The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-08-07

cent, while IL the earnings for this
year shold be $350,000 the difference
would be $250,000 and on that sum
there would be assessed q fifty per
cent excess profits tax or $4,000. ".
Where a corporation did not exist
or showed no profits in the war
period, the rate of taxation Is to be
based upon the earnings of similar
corporations. Thus in the foregoing
table to determine the rate HonokaS
and Pacific Mill must pay was obtain.
ed by taking the average tax rate OF
the other twenty companies.
Figures Base On 1915
Since it was impossible to ascertain
what the earnings of the various
companies would be for 1917, it was
assumed for the purpose Of preparing
the table that they would be the same
as in 1916, or, in other words, the
table shows what the various compan.
les would have paid under the pro.
visions Of the new law upon excess
profits had II then been in effect, and
what will be paid on the same earnings
this year. Consequently, the sums and
the totals are only approximations of
what the actual figures viii be found
to be at the end Of the year. The 1917
crop is larger than was the 1916,
prices for raw sugar have been higher
and IL appears to be a safe assumption
that earnings will be higher rather
than lower and consequently that the
individual taxes will be higher rather
than lower. ~ o.. ...: - .....s>.
The figures used in these computa,
tions were obtained from the Manual
of Hawaiian securities. In the second
enlumn of the table above. appears the,
pre-war income obtained BY adding the
net income Of the years 1911, 1919 and
1913 and dividing by three. , The
third column shows the net earnings
for 1916 rs appears in the Mammal of
Securities; the third column of figures
is obtained by deducting those in the
first from those in the second and de.
termines the amount taxable and the
rate while the last column shows the
amount to be paid as so determined.
Some Heavy Assessments - ..l
Five sugar companies win pay taxes
at the rate Of fifty per cent and none
at lower rate than twenty-five per
cent on these excess earnings. II is
the companies tahat did poorest In the
pre-war period that pay the higher
percentages, with the exception of
those that had no earnings at that
time.
Hawaiian Commercial will be the big
tax payer in the Islands. It's excess
earnings in 1917 will be the same as in
1915. Next comes Pioneer with $495,-
O2O and third Oahu with 1899, 103.35.
One of the surprises is McBryde which
would pay, it appears, 1896, 730.43.
To learn what deductions in dividend
payments the various companies will
be likely to find necessary should be a
simple matter of comparison for those
interested. With the income reduced
that amount in excess taxes that
amount is no longer available for divi,
dends and the share holders must ex-
pect the correspopdingly smaller re-
turn.
Besides the companies that are list
ed on the stock exchange, there are
various other plantations companies
that are not so listed but which will
to the war expenses in the
same way and in the same proportions
and rates as to do the companies in.
cluded at the table at the. head Of this
article. 81 ns..r