Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-05-15
DEMAND RIGID REPORTS
OF MERCHANTS ACCOUNTS
Letters Prepared by State FAX Board
Place Duty on Examiners and
Revenue Commissioners.
BELIEVE MANY DODGE LAW
or $4,000 Dealers I'm Virginia, Rec
Ords Show That Only Onc-Half
Last Year Reported Purchases of
More Than $1,000.

Letters are being prepared hy the
State Tax Board to be sent out this
week to examiners of records and COM
missioners Of the revenue, calling upon
them to investigate strictly and rightly
the reports OF purchases or every mcr-
chant especially those reports which
would permit the maker to satisfy his
obligations TO the state by paying a
license fec OF SO or $40.
Notice of this warning is contained
in a letter which goes forward to-
day from the state Auditors Office to
the commissioners of revenur. These
officers are put on notice to bring to
the attention OF merchants, when they
take out their licenses, the necessity
of stating accurately their actual pur-
chaseS. The loose manner heretofore
license taxes. the commissioners are
notified. will not he permitted If the
enforcement Of the laws Of the State
can prevent IT,
RELIEVE MANY EyADE
PAYING LARGE SUMS
OF Il total of $4,000 merchants in,
Virginia. 5000. or one-half. reported
last year that their total purchases
were less than $1,000 on which they
paid the minimum license lax OF 81.
More than 5000 reported purchases not
in excess Of $4,000 and paid license
tax OF $40. II is clear to the State
TAX Board that most of these 10000
merchants grossly moderated the value
OF their purchases and in this manner
eyaded the payment of n large sum Of
taxes.
The fact that tho merchants license
taxes were not changed by the last
Legislature has left the Tax Board only
the remedy of compelling truthful
compliance with the law respecting
purchases in order to secure from this
source n portion of the increased rev.
enucs that will be needed in 1917 to
wipe out an impending deficit The
merchants themselves have estimate cd
that the amendments requiring Il more
careful accounting as to purchases will
bring in additional revenues amount
ing to approximately S20e,000 a year.
HOLDS OFFICIALS DEREIICT
IN ENFORCING TIL: LAW
Auditor MOore's letter TO tho com
misSioncrs of the revenue serves no.
tice that the State Tax Board will
shortly issue instructions TO examiners
and local boards of review respecting
the investigation of all returns of NOR
chants purchases, and reads, in part,
rs follows:
THE Commonwealth has heretofore
failed to realize "A considerable amount
of the revenue she was entitled to re-
ceive. under the law, from merchn nts.
due to the fact that numerous mer-
chants have not accurately reported
their purchases, ard due to the fact
that commissioners OF thu revenue
have not always required merchants
to make the reports OF purchase under
Oh IN as the law directs. and to the fact
that commissioners have not examined
the invoices. books and accounts of the
merchants. nor have tho commission
crs tested the accuracy OF the reports
furnished them by taking into consid-
Grafton the answers made by the mer-
chants respecting expenses for rent.
rental value OF premises, expense for
employees. etc, which would be n
guide in determining whether the pur-
chascs arc correctly reported because
the amount OF expenses under which Il
merchant does business will indicate
whether tho probable profits on the
purchases reported will Justify the cx-
pcnses borne IN carrying on the bus
mess.
, lin Instances II has been the Gus
tom OF the commissioner merely to ask
the merchant III his purchases were
about the same az they were the last
year or Shall I put you down the
| same ms last year" and similar ques-
tons.
The position YOU hold in assessing
the revenue Of the Commonwealth is
the most responsible position in the
fiscal department, OF the Common
wealth. and desire now 10 impress
inns iact upon you and trust the man
ner IN which you discharge your duty
| in connection with the assessment of
the merchants license taxes, as we'll
Az the manner In which you discharge
the other duties Put upon you by the
! law, viii he evidenced by your activity.
capacity and fidelity"