The Stroller's weekly and Douglas Island news., 1922-07-15
CORPORATION TAX DELINQUENT SOON To Avoid Penalty Return and Pay ment Must Be Made on or
 Before July 3l.

 by Collector Of Internal Revenue,
 Burns Poe. for Che District of Waah- iugton. which includes Alaska
 Forms for making returns Of spe- cial taxes. due under tho Revenue Act of 1921 during thc month of July. now are available at Che office of
 Collector of Internal Revenue. Tac-
 oma, Washington, and Che following
 branch offices. Seattle and Spokane.
 To avoid penalty return and pay- mont Of the tax must Doe made on or before July 31, 1922.
 Return of Che capital stock tax Of domestic corporations must be made on form 707: foreign corporations. 708. Form n is used for making re-
 turn Of Che miscellaneous occupa- uonal and Che tobacco manufacturer special tax Regulations ca. govern ing the collection Of Che capital stock tax. Regulations 59 governing Che collection of tho miscellaneous occu- pauonal taxes and Regulations 8 gov- orninr Che collection Of the tobacco manufacturers special tax also may Doc obtained upon request of the of- flee or Che collector Of internal reye- nuo and branch offices.
 Tho revenue net provides "that every domestic corporation shall pay annually a special excise tax with re- spcct to carrying on or doing business equivalent to f1 for each S1.000 Of so much of Che fair average value Of its capital stock for the preceding year ending June 30. as is in excess of f5.O00. ln estimating the value Of tho capital stock. Che surplus and undivided profits shall be included.
 "Eyory foreign corporation shall pay annually @ special excise tax with respect to carrying on or doing busi- ness In Che United States. equivalent t0 S1 for each f1.000 Of Che average amount of capital employed in tho
 transaction of is business iu tho United States during Che preceding year ending June 30."
 The basis Of Che tax in the case of domestic corporation is carrying on or doing business" in the capacity Of a corporation or association Quot ing from Che Capital Stock Tax Regu- iauous No. 64. "Thc words carrying on or doing business must hc given every ordinary and natural aIgnii.ca- Hon. Business is a very comprehen- s.ve term and embraces whatever oc- cupies Che umc attention or labor of men for Che purpose Of livelihood or profit In other words business me- cosarily involves Che idea of gain." Every domestic corporation must make a return on form TOT. even though Che law may Indicate that it is exempt from Che taE. The ques- lion Of exemption is one for deter imitation by Che Commissioner of Inc tornol revenue.
 The basis of the taX in Che case of a foreign corporation Is "carying on or doing business in the United States" A foreign corporation is carrying on or doing business in the
 United States if it maintains an agent or an office or warehouse in tho United States. or in any other way enters tho United States for the purpose Of its business.
 Following are the miscellaneous occupauonal taxes: brokers. $50i pawnbrokers. StOO; ship brokers. f50: customs brokers $50. Proprie- tors of theatres. museums and cone cert halls where a charge for admis- sion is made having a seating capac- lty of not more than 25O, shall pay a tax of 800; having Q seating capacity of moro than 250 and not exceeding boo. S1OO; having % seating capacity exceeding 300 and not exceeding 500. f150. having a seating capacity or moro than 500. f200.
 Circus proprictors arc required to pay tax of 5000; proprietors of bowling alleys and billiard rooms arc required to pay Sl0 for each alley or table. rroprictors Of shooting gal- lcrics f20. propriotor Of riding academies. S100.
 Persons carrying on the business of operating or renting passenger automobiles for hire are required Co pay sf0 for coch such automobile having a seating capacity of moro chan two and not more than seven. and SEQ for each such automobile having a seating capacity Of moro chan seven.
 Section 1003 of Che Revenue Act of 1921 imposes a tax upon the uso Of yachts. pleasure boats. power boats. sailing boats and motor boats with fixed engines, of over 6 net tons. length over 32 feet. Numerous iu- mIrlos have been received concern .ng this tax. These boats are divided into throo classes with respect to length. and a separate tax is provided for each class as follows. over 0 net .one. length over 32 feet and not over 5O feet. S1 for each foot. over 6 net toms. length over 50 feet and not over 100 feet. g2 for each foot; over 6 net toms. length over 100 feet. {i for each foot. The Commissioner Of Internal Revenue has held that a vessel must bo both over net tons and over 32 f.t in length in order Go be subject fo tho spccil tax imposed by this sec- ton. No return of certificate Of eX- ompuon win be required in the case of boats falling below both or either of these specifications.
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