Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-10-18


cent per annum upon the amount BY
which the total net income exceeds
$200000 and does not exceed 5000
and 9 per cent per annnm upon the
amount by which the total net income
exceeds $685. 600"
individuals to Make Returns.
Every person subject to the income
tax must make report OF bis income
to the collector of internal revenue In
the district in which he lives or In
which bis business Is carried on.
In defining what shall be considered
income for taxation. the bill says:
Subject only to such exemptions
ind deductions as are hereinafter al
lowed. the net income Of a taxable
person shall include guins, profits and
income derived from salaries. wages
or compensation for personal service
Of Whatever kind and In whatever form
paid. or from professions. yocatfons,
businesses. trade. commerce OF sales or
dealings III property. whether real or
personal. growing out OF the ownership
or use Of or interest In real or personal
property; also from interest. rent. dlyi-
dends securities or the transaction OF
any lawful business carried on for gain
or profit or gains or profits and income
derived from any source whatever. In
Guiding the income from but not the
value Of property acquired by gift. be-
quest devise or descent. provided, that
the proceeds of life insurance policies
paid upon the death OF the person in-
sured or payments made by or credited
to the insured on life insurance. en-
dowment or annuity contracts upon
the return thereof to the insured at the
maturity OF the term mentioned In the
contract or upon surrender Of the con-
tract shall not be included as income
The provisions 81, the bill for exemp-
lions as finally agreed on are:
, There shall be deducted from the
amount of the net income OF each of
said persons, ascertained as provided
herein. the sum OF 5000 plus $1,000
additional IL the person making the re-
turn be a married man with q wife.
living with him and being herself not
taxable under the income tax law. or
plus the sum OF $1,000 additional IL the
person making the return be a married
woman with a husband living with her
and being himself not taxable under
the income tax law, but in no event
shall this additional exemption Of ST.
600 be deducted by both husband
and wife"
Foreign Residents TO Be Taxed.
The bill contains provisions Cor the
taxation of the incomes of citizens re-
siding in foreign countries on Incomes
derived from property owned or busi-
ness carried on In the United States.
The bin also provides:
THAT IL any person, corporation.
joint stock company. association or In
surance company liable to make the
return or pay the tax aforesaid shall
refuse or neglect to make return ut
the time or times hcreinbefore speci-
fed in each year. such person shall be
liable to penalty Of not less than $40
nor more than LOCO Any person or
any officer Of any corporation required
by law to make. render. sign or verify
any return who makes any false or
fraudulent return or statement with In
tent to defeat or evade the assessment
required by this section to he made
shall be guilty of misdemeanor aud
shall be fined not exceeding $1,000 or
be imprisoned not exceeding one year,
or both. at the discretion OF the court.
with the costs of prosecution
The first tax il to lie levied and col
Iected OIL incomes from Marrh l. i9t3.
to Dec, 81. 1913 Thereafter the ip.
come shall lie computed fsr calendar
years ending with Dee. :'I=5 "@
The bin :tSe provides that the in
come Of states. territories or political
subdivisions shall not lie taxed. and
there shall he no fax levied on Incomes
derived by states ard municipalities
from the operation or public utilities.
but this des's not exempt tine corpora
ton operating the utilities from IrIfiHg
t:Ix on the .fnrt1nn Ut the i:lr-unp. dna to
the uanit ! atty.