New-York tribune., 1919-05-15
No Special System
Devised to Collect
Soda Fountain Tax
Each Proprietor Is Allowed
to Do 1t in His Own Way:
One Keeps His Daily Ac-
counts ssIn His Head"

| Revenue
Offices at the Custom House yesterday
disclosed the fact that no special sys-
tenn has been devised to collect the
new tax on soft drinks, while visits to
the Liggett- -Riker stores and several
corner soda-water stands disclosed as
many systems as there are stores.
While the large chain stores, like
those of the Liggett- -Riker Company,
have uniform system the small store
has not even semblance of one.
When this was called to the attention
OF the Internal Revenue Depart
ment the official in charge said his
department would have to trust the
honesty of the vender.
he called attention to the following
provision contained in the new regu-
lations that have been sent out by the
Commissioner of Internal Revenue at
Washington, Daniel C. Roper:
The tax imposed must be paid by
the purchaser to the vender, and the
vender must make return under oath
in duplicate and pay the tax so COL
lected to the collector of the district
IN which his principal place of business
is located on or before the last day
of each month for the business done
during the preceding month.
Must Keep Daily Records
"Daily records shall be kept by the
proprietors or their agents in charge.
showing the number of sales Grouped
according to amount Of sale) and the
tax paid thereon. The daily records
OF the proprietors or their agents, with
copies of their monthly returns. shall
>be kept on file in the places of bust
ness of such proprietors in such man
ner as to be readily accessible to in
vestlgating internal revenue officers.
1ountaln, ice cream parlor or similar
place of business does not use an ade
quate cash register or check system
from which daily and monthly records
may be kept separate receptacle shall
be used to retain the tax collected by
the vender from the purchaser. Such
receptacle shall be so arranged or
subdivided into compartments suitable
for holding the different amounts of
tax collected, in order to facilitate the
compilation of the daily and monthly
records of tax collection"
Liable to Larceny Charge
This official was asked how the
Revenue Department would be able to
Keep track of the money placed in the
"receptacles," and he said that any
one caught tampering with it would
be guilty of grand larceny. He was
also asked whether he thought the
small East Side venders would keep
track of their sales, and he answered
that they would have to.
W. c. Watt, vice-president of the
Llggett-Riker Company, explained that
his company's system was as simple as
could be devised. When the purchaser
buys his check for drink he is given
another check on which is printed the
amount of the tax, for 10 cent drink
cent check, and fora Is cent drink
q cent check
Mr.. Watt said these tax checks are
sent to the various company stores in
numbers of 10000 or more and each
lot has different numbers. When the
stores have sold all these tickets they
know just how much tax return is due
and must account to the main office for
that amount.
While this system is simple, Mr.
Watt said there was considerable dis
satisfaction among the customers,
which is petty annoyance to the store
itself and holds up what is ordinarily
an efficient service. The tax, according
to Mr.. Watt, has also necessitated more
employees.
Banks Have Complained
He said petition demanding the re-
peal Of the act in question is being
signed in great numbers. He also cited
the fact that he banks are protesting
against the number Of pennies they
must supply daily.
a visit to one of the smaller stands
IN battery Park showed that the pro-
prietor relied on his memory for
system of keeping tab of all returns.
when the purchaser buys a drink for
cents he asked for six cents, which
is deposited in a small cash register. |
80 classification is made, however, Of
She respective amounts.
Ihis proprietor was asked how he
accounted to the Revenue Department
1,or his tax returns and said that he !
nad gone to the Revenue Department |
Tor suggestions and was told "to use
n'S own discretion" which he Ia doing
Each night he counts what he thinks |
were the sales Of the day.
rms, however, he admitted does NOT
account for the sales Of choco1.+aa