New-York tribune., 1922-06-26
Special Tax
On Business
Is Due July l
Levy Provides for Payment
by All Corporations of 81
for Each 81. 900 Value of
Stock ai End Of Last Year
$4,000 Is Free From Tax
Foreign Concerns Conduct
ing Business in L. 5. As
scsscd on Similar Basis
80 -. 7,g,,-.', wa,hl-5fo, ru-eas

Prov, The T-ibs-es Wafhir5fo1 ru-e1s
WASHINGTON. June 25 Notice
was served upon American business
to-day by the Treasury Department
that the rev special taxes provided for
tv the revenue act Of 1921. including
the capital stock tax. miscellaneous oc-
euratl0nal taxes and the tobacco manu-
facturcrs special tax, are due on or
before July /. 1922. Discussing these
levies for general guidance. state
nient issued hy the Bureau n Internal
Revenue says;
"Ihc revenue act provides that every
domestic cornoration shall pay annu-
aliv a special excise tax with respect
10 carving on or doing business. equiv
alcnt 10 81 FOR each 81 900 of so much
81 the fair average value ~ rs capital
stock for the preceding year endinf
June 30 as is In excess of S1Ol0. IT
estimating the value of eapital stoe.
tho surplus and undivided pronts shall
be included.
Every foreign corporation shall pay
annually a special excise tax with re-
speet 20 carrying on or doing business
in the United States, equivalent 10 -
FOR each 81 .0Oo Of the average amount
Of capital employed In the Transaction
q It's business IN the Cnitst s-.s
during the preceding year ending june
go
The basis OF the tax in the case Of a
domestic corporaiion is carrying ON
or doing business" in the capacity oi
corporaiion or association. Quoting
from the capital stock tax regulations
No. g. "thc words carrying on or DO
ing business must be given every ordi-
rarv and natural sig-ihcance. plsl-
ness il very comprchcnsive term
and embraces whatever occupies tAc
time. attention or labor % men for me
purposes OF livelihood or proht. Ia
other words, business necessarily IN
wolves the idea Of gain Every comci-
tic CORPORATION must make a return on
form, 707. even though tho law may n
dicate that IL is exempt from the tex.
The auction of exemption - one ior
determination by the Commissioner OF
Internal Revenue.
Foreign Corporation Tax
The basis o. the tax IN the case OF
a foreign corporation IS carrying on
or doing business IN the United
states" 4 foreign corporation =
carving on or doing business IN
the United States II - main
tsins m agent or an oihee or ware
house In the United States: or in any
other way enters tho United states ioF
the purposes Of its business.
Following arc tho miscellaneous oc-
cupational taxes: Brokers, $50; pawn
brokers. 500: shipbrokers, $50; Gus
tom house brokers, $50. ProFrieiors Of
,hea.ers. museums and concert nails
where a charge for admission is made,
having a seating capacity Of not more
than 25O. shall pay tax u $780, having
seating capacity Of more than go and
not exceeding 500. 500; having seat
irr capacity exceeding 300 ard not er-
ceeding 500. $50; having n seating
capaeity Of more than 500, $500.
Circus proprictors are required 20
pav tax Of 500; proprietors Of bowl
ing alleys and billiard rooms are re-
quired 10 pay $40 for each alley or
table: proprietors OF Shooting CALLER
les. 500: propric.orl Of riding aead-
em.es. 800.
Persons carrying on the bushes,
OF operating or renting passenger au- /
tomoblles FOR hire are required 20 pay /
$40 f0r each such automobile having F.
a seating capacity of more than two .
and not more than seven. and $50 Tor /
each such automobile having a seating F.
capacity Of more than seven.
Pleasure Boat lmpost
Section 1909. o. the revenue net Of /
1927. imposes . tax upon the use o. /
yachts. pleasure boats, power boats /
sailing boats ard motor boats with /
fixed engines. of over five ne, tons
length over thirty-two feet. Numerous /
inquiries have been received concern. /
inc this tax. These boats are divided /
into three classes with respect 70 /
length, and separate tax is pro /
vided FOR each class as follows; over /
five net tons. length thirty-t~o ieet ]
- ~, Is, 4