The Ocala banner., 1922-07-14
INCOME TAX REPORTS

Ioi 4NdhAnS returns Oh SpeclaI taxes,
due under the Revenue Act of 1921
during the month of July. now are
available at the Office OF Collector OF
Internal Revenue, Jacksonville, and
the following branch offices Tampa,
Miami, Pensacola and Key West Flor
ida
To avoid penalty, return and pay
ment of the tax must be made on or
before July 81. 1922
Return of the capital stock tax of
domestic corporations must be made
on Form 7O7; foreign corporations,
708. Form II is used for making re-
turn of the miscellaneous occupational
and theotbaccO manufacturers special
tax. Regulations 64, governing the
Regulation SO governing the collection
of the capital stock tax
OF the miscellaneous Occupational tax
es and Regulations governing the
collection of the tobacco manufacture
er's special tax also may be obtained
upon request of the office of the col
lect0r of internal revenue and branch
offices.
The Revenue Act provides that ev-
cry domestic corporation shay pay
annually a special excise tax with re-
spect to carrying on or doing business
equivalent to 81 for each $1,000 of so
much of the fair average value of its
capital stock for the preceding year
ending June 80, basis in excess of $5,-
OOO
4 In estimating the value of the capi-
tai stock, the surplus and undivided
profits shall be included.
Every foreign corporation shall pay
annually special excise tax with re-
spect to carrying on or doing business
in the United States, equivalent to 81
for each $1,000 of the average amount
Iof capital employed in the transac-
tion of its business in the United
States, during the preceding year end
ing June lst"
The basis of the tax IN the ease of
a domestic corporation is carrying
on or doing business" in the capacity
of a corporation or association
Quoting from the Capital Stock
Regulations No 81, "The words car
rying on or doing business must be
given every ordinary and natural sig
nificatiOn. Business" is a very com
prehensive term and embraces what
ever occupies the time, attention or
labor of men 70 rthe purposes of live
lihoOd or prifit In other words busi-
ness necessarily involves the idea of
gain" Every domestic corporation
must make return on Form 7O7, even
though the law may indicate that it is
exempt from the tax The question of
exemption is one for determination
by the Commissioners of Internal
Revenue.
The basis of the tax in the case
of foreign corporation is carrying
on or doing business in the Uniteda
States" A foreign corporation is car
rying on or doing business in the Unit
ed States if it maintains an agent
or an office or warehouse in the United
States, or in any other way enters
the United States for the purposes of
its business.
Following are the miscellaneous oc-
cupational taxes: Brokers, $50; pawn
brokers. $40; ship brokers, $50; GUS
tomhouse brokers, $50. Proprietors of
theaters, museums aind concert halls
where charge for admission is made,
having seating capacity Of not more
chan $50, shall pay tax of $50; hav-
ing a seating capacity of more than
$50 and not exceeding 500, S1O0; hav-
ing seating capacity exceeding 500
and not exceeding 500, $50; having
a seating capacity of more than 500,
5000.
Circus proprietors are required to
pay tax of $1OO; proprietors of bow
ling alleys and billiard rooms are re-
quired to pay $40, for each alley or
table; proprietors of shooting CALLER
les. $40; proprietors of riding acad-
emy, $1O0.
Persons carrying on the business of
operating or renting passenger auto
mobiles for hire are required to pay
SO for each such automobile having
a seating capacity of more than two
and not more than seven, and $40 for
each such automobile having a seating
capacity of more than seven.
Section 1908 of the Revenue Act of
1921 imposes a tax upon the use of