The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-10-16
WAR PROFITS TAX .
GIVES BIG REVENUE
TEXT or WAR REVENUE BILL AS PASSED SHOWS THAT PRO-
,.s.f VISIONS WERE COMPLETELY CHANGED IN CON-
stg.1 FERENCE AND INCREASES MADE =

the weekly premium payment plan.
"(d) That the tax shall not be
imposed In the ease Of the trade or
business Of a foreign corporation or
partnership OF q non resident alien In
lividual, the net income Of which trade
or business during the taxable year
from sources within the United States
is less than $4,000. '%r
Amounts Of Deduction ..#|
''Sec. 203. That for the purposes of
this title the amount Of the deduction
shall be determined, except as other.
wise in this title provided: ..@
"(a) In the case Of domestic cor
poration by deductiug from the net
income of the trade or business re.
eeived during the taxable year the
sum Of az an amount equal to the
same percentage Of the invested capi-
tai for the taxable year which the aver.
age amount of the annual net income
Of the trade or business during the
pre.war period was of the invested
tcapital for the prewar period, (but
not less than seven or more than nine
per eentum Of the invested capital for
the taxable year, and (2) $4,000;
"(b) In the case Of domestic part.
nership or of citizen or resident OF
the United States, by deducting from
the net income of the trade or business
received during the taxable year tho
sum Of (l) an amount equal to the
same percentage Of the invested capt.
| tHl for the taxable year which the av-
lerage amount Of the annual net I'M
come Of the trade or business during
! the prewar period was Of the invested
capital for the prewar period (but not
less than seven or more than uine per
centnm of the invested capital for the
taxable year,l and (2) $4,000; Mt.
| "ie) In the case of foreign cor.
poration or partnership or Of non.
resident alien individual, by dedueting
from the net income Of the trade or
business received FROM sources within
the United States duEing the taxable
year an amount equal TO the same per.
centage of the invested capital used
within the United Stateh dnfihg such
lsyear which the average net INCOME re-
eefsea darinG the, pFelNaf 1nEi0d ,9as
or the average invested capital used
within the United States during The pre-.
war period, but no less than seven or
more than niue per eentnm OF the in.
vested capital used within the United
II az
Invested Capital Defined ~ -.
| 5"As used in this subdivision, the term
| invested capital used within the
| United States shall be deemed TO be
that proportion of the entire invested
capital which the net income Of the
trade or business from sources within
the United States bears to the entire
net income. Eh. @f
| std If the secretary Of the treasury
is unable satisfactorily to determine thl.
average amount of the annual net In.
come of the trade or business during
the pre.war period, the excess profits
shall be determined as provided in sec.
tion two hundred and five. .tE
"Sec. 204-That IL corporation or
partnership was not In existence, or an
individual was not engaged in the trade
or business during the whole of any
one calendar year during the pre- wal
period, the excess profits shall be de.
termined by deducting from the net In.
come of the trade or business for the
taxable year, in the case of domestic
corporation $4,000, and in the case of a
domestic partnership or citizen o,
resident of the United States 10000, pluG
IN either case an amount equal to s pc!
eentum of the invested capital for such
year, mp"
''In the case of a foreign corporation
or partnership, or of a nonresident
alien individual, the net income from
sources within the United States, anC
that proportion of the entire invested
caPital which the net income received
from sources within the United State
bears to the entire net income, shal
be used as the basis of computation
but no 10000 or 10000 deduction shal
be allowed. 4 5
I" A trade or business carried on by ,
corporation, partnership, or individual
although formally organised or reor
ganiEed on or after January .. 1919
p, which is substantially continuation
! of a trade or business carried on prio
to that date, shall for the purpose o
this title be deemed to have been il
existence prior to that date, and tn
net income and invested capital of IL
predecessor prior 70 that date shall b
deemed to have been it's net income an,
invested capital. IT,. -.
Aseertaintng Income .,1. .e
'tThe net income of partnership o
, individual shall be aseertained md re
turned for the calendar years ninetee,
! aud twelve, and nineteen hundred an,
, thirteen, and for the taxable year, upoi
the same basis and in the same name
as provided in title l of such Act O
September eighth, nineteen hundre,
and sixteen, as amended by this Act
except that the credit allowed by sub
division (b) of Section five Of such ac
, shall be deducted, There shall be al
lowed (a) in the case Of domesti,
, partnership the same deductions as al
4 lowed to individuals In subdivision "a
of Section five of such Act Of Septem
< Der eighth, nineteen hundred and six
teen, as amended by this Act; and (b
r in the case of q foreign partnership tn,
, same deductions as allowed TO individ
. uals in subdivision (a) of Section 81,
r of such Act as amended by this Act.
{ Meaning Of Invested Capital
Section 207. That as used in thi
| title the term 'invested eanital, for an,