Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-07-03


escort.
The board must direct the assessment
OF property which is found to have
been omittcd"-this language is gen
eral. and is not limited TO the current
year; second. under subsection of
the same section. it /, is provided that
the board shall review reports Of pur
chases and returns for taxation "as
made or required TO be made" II is
clear that this provision does not limit
the board 10 returns which have been
made. but extends their jurisdiction TO
returns which ought TO have been made.
That is to say, omitted property; third,
the same subsection in defining the
duties OF the examiners of records as
to their report to tine local board OF
review, provides that the examination
OF State and Federal records by the
examiners must be done for the pur-
pose Of "ascertaining and reporting for
taxation" not property to he taxed for
the current year. but all property
liable to taxation under the laws of
this state: fourth, the same subsec-
tion goes on 10 provide that after the
report of the examiner to the board
and the report of the board TO the
commissioner Of the revenue. he Shall
assess taxes thereon as II such ntangi-
Die property, income or money had been
listed by the individual person firm or
corporation" thus showing that it was
contemplated that omitted property
should he taxed. that is TO say. prop
er'y which the taxpayer failed 10 list;
fifth. the same subsection also pro-
vides that upon the request of the ex-
aniner of records the taxpayer should
be summoned before the board TO an
swer on oath such questions as may he
propounded by said board or the ex-
aminer OF records
EXAMINER MAY PUT
TAXPAYER UNDER OATH
The chief purpose OF this provision
seems TO he to allow the examiner of
records to put the taxpayer under oath
and require him TO disclose omitted
property. There would be little reason
TO put him on the stand and question
him az to property he had already re-
turned because valuations could usual
~ be proven b. third parties. while un-
disclosed or omitted taxable property
could best be discovered by questions
propounded TO the taxpayer himself.
In this connection, II would be we'll
10 note that in none of these various
provisions with reference to omitted
taxes is language used limiting the
operation OF the new tax laws to
omitted taxes for current years There
being no such limitation in the law, il
should not be placed there by CON
struction. especially when We bear in
mind the result of such 4 constructions
1t would mean that the General AS
sembly, in adopting new tax system
intended TO provide a less efficient sys-
tenn for the collection of taxes which
ought to have been collected i'm the
past than for the collection Of current
taxes. Such a construction would
mean that II next year the examiners
of records should, in pursuance of their
duties OF investigation. discover that
this year or in past years the State
had not received taxes to which il was
entitled. then the examiner is relieved
of all duty TO report the same for taxa
tion. To illustrate. suppose that next
year some large merchant should de-
eide to retire from business and con-
veyed his real estate, business and in
tangible personal property TO a third
party. the instrument Of conveyance
being placed upon record: the exam
iner of records, in pursuance of his
duties as defined by statute finds the
conveyance on record discloses that
the merchant owned n large amount of
taxable intangible property which had
escaped taxation, and that the consid-
GRAFTON for the conveyance of the bust
ness was so great as to show clearly
that the merchants returns of pur-
chases in former years were grossly
below what they should have been:
then, il the duties of the examiners of
records are limited to the current year,
In such a case as that above stated, he
has no duty to perform in reporting
the merchant for taxation for past
years.
SPECIAL DUTY OF
EXAMINERS OF RECORDS
1t is not sufficient to say that the
commissioner Of the revenue has au-
thority TO make such investigation and
to assess such taxes. for the very pur-
pose of giving the examiners of records
function to perform with reference
to the tax system, and putting upon
him a special duty of examining the
State and Federal> records. was upon
the theory that the examiner of
records. being a commissioner in chan
Gerry and usually a lawyer, was familiar
with records. especially the court
records and accustomed to examine the
same. and, therefore. better fitted to
bring to light facts disclosed by the
records.
1 do not believe that the General A.