Five Mile Beach weekly journal., 1913-12-05

~ 0AA& vi R81 III AAOAAA
o.-Does the present moons tax law
take the place of the corporation income
tax law of 1902 Ayes, but for the
months of January and February. 1918.
the old corporation income tax law re-
mains in force. The present income tax
law goes into effect from March I, 1918.
Collection at Source.
Q.-What is meant by the collection of
this tax lat the source?' A.-The law
provides that all persons, firms and corpo-
~rations paying interest. rent, salaries, an
nuities or other fixed or determinable an
nual or periodical gains. profits and in
come Of any other person exceeding $1,000
per year shall withhold 1 per cent and
pay 1t to the government as the normal,
tax upon hat portion of the income OF
the person who was entitled to receive the
rent. salary, income, annuity, etc.
Off the annual rent on my home or
place of business is $500 and 1 know that
the landlord has other income which
would make him taxable, shall l deduct
| per cent from my rent? A.-No; you can
only make the deduction provided the rent
you pay exceeds $1,000 per year. and this
same principle applies to all payments of
rent. salary, interest, annuities. etc.. with
the sole exception of interest on corporate
bonds.
OFF the interest on corporate bonds
amounts to less than 1900, must the l
per cent be deducted at the source? A.
Yes; the law provides that where the in
come is interest on corporate bonds the
tax must be deducted at the source, ire
spective of the amount of the interest
payment. :
Off rent or salary payable by me
amounts to 5000 or less l understand l
withhold no tax, but If it amounts to
more than 5000, do l withhold the tax on
the excess or on the whole amount? A.
You withhold the tax on the whole
amount. For example. IL rent or salary
due from you mount to $1,000 or less you
deduct nothing, but II It amounts to $500
you must deduct $35-namely, l per cent
of the entire $500.
Q.-Can the person entitled to rent, sal
airy, interest, annuity, etc., claim an ex-
emption? Ayes; by filing a notice with
you he can claim and obtain an exemp-
ton of 5000 Cor $4,000 If married and with
a wife living with him) In that case you
should only deduct the l per cent from
the excess over the exemption. For ex-
ample, If a landlord or nployee Is en-
titled to 5000 a year an files with you an
exemption as a married man amounting to
$4,000 you would only deduct S1O-namely, 1
per cent on the excess of $1,000.
Q.--Ffow about the collection of coupons
on corporate bonds? A.-The interest is
\ NC QCQQ1ACu ny the tOIpOIdliVis III
owner of the coupon must then file a GER
tificate of ownership with the bank or
other concern which receives the coupon
for collection, otherwise that bank would
have to deduct the tax and attach its own
certificate. giving the name of the owner.
The owner has a right to claim exemp-
ton up to $1,000 if single or $4,000 If mar
ried. The forms of certificates of owner
ship and of exemptions have been pre-
scribed and may be obtained from the col
lector.
Q.-In deducting the tax from rent, sal
airy and interest, shall l deduct from each
payment or wait until $1,000 has been paid?
A.-Under the regulations you need not
withhold the tax until such time as the
rent, salary or interest shall nave reached
an aggregate in excess of $4,000. The tax
subsequently is to be deducted from the
full amount or from $4,000 or $4,000 less IL
notice of exemption has been filed.
Q.-What tax shall be deducted in 1913?
A.-For the year 1913 everything is on a
fve-sixths basis, because the law will
have been in effect for ten months. All
calculations of exemptions, deductions, in
come, etc, for 1918 shall be taken at five
sixths of the whole annual amount In
each case.
Q.-Suppose the landlord or employee
entitled to receive more than 5000 a year
has business expenses losses, etc, which
bring his net income below $1,000 in all;
can he, by filing a statement of such busi-
ness expenses, losses, ETC., obtain a full
payment from me without deduction? A.
No. You must still deduct l per cent. He
will be entitled to obtain the benefit of
such deduction by application to the col
lector.
Q.-What do do with the amounts l
deduct from payments of salary, interest,
rent, annuity, etc? A.-You hold them
/ and make zanarqfQ Y.at1Irnc for ct1ch do
duction at the same time you make your
own return. You pay the amount of the
deductions to the collector between June
/ and June 30. individuals and corpora
tons will be notified of the amount upon
which they are liable on or before Tune /.
Publicity Of Returns.
Q.-Are the returns made by an individ-
ual or corporation open to the insrection
Of the public? A.-All returns, whether
by individuals or corporations, are public
records, but they may be inspected only
upon the order of the president under
rules and regulations to be prescribed by
the secretary of the treasury and APP
proved by the president.
Q.-Can income tax returns be inspected
by the tax officers of any state. city or
county? A.-No. except as they may be
inspected by any citizen, as explained in
my answer to the previous question. The
only exception is that officers of any state
which imposes a general income tax may
have access to the returns.
Penalties.
Q.-What is the penalty for neglect or
refusal to make a return OF time? A.
Five per cent of the amount of the tax is
added n l per cent per month from the
time 1t became due, and a fine may be
imposed of not less han $40 or more han
$1,000 In the case of an Individual or not
more than s1o.00O in the case of a corpo-
ration.
Q.-What is the penalty for making a