Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-11
SPECIAL J.. s. TAX
ON BUSINESS DUE
BY END Of JULY
Domestic and Foreign Corpora
tons Must Pay 81 on
Every $1,000 Capital.

Helena. July lU.-F OrfnS Tor max
ing returns of special taxes. due under
the revenue act of 1921, during the
month of July, now are available ut the
office of collector of internal rcverpe
Helena, and the following branch If
fees: Butte. Great Falls and Billings
To avoid penalty, return and pay
ment of the tax must be made on OF
before July 81.
Return of the capital stock tax OF
domestic corporations; foreign corpora
tlons-I0S must be made on form 707
Form II is used for making return OF
the miscellaneous Occupational and the
Regulations GA. governing the collection
OF the capital stock tax, regulations 80,
governing the collection of the miscell-
aneous o~ccupational axes and regula-
tons s governing the collection of the
tobacco manufacturers special tax
also may be obtained upon request of
the collector of internal revenue and
branch offices.
The revenue act provides that every
domestic corporation shall pay annually
a special excise tax with respect to
carrying on or doing business equiva-
lent to 81 for each 81 900 or so much
Of the fair average value of its capital
stock for the preceding year ending
June 80. as in Excess of 5000. In
estimating the value of the capital stock
the surplus and undivided profits shall
be included.
Every foreign corporation shall
pay annually a special excise tax with
respect to carrying on or doing bust
ness in the United States. equivalent to
81 for each $1,000 of the average
amount of capital employed in the
transaction of its business in the
United States during the preceding
year ending June 80.
The basis of the tax in the case of
a domestic corporation is carrying
on or doing business in the capacity
of a corporation or association. Quot
ing from the capital stock tax regula-
tons No. "a, The words carrying on
or doing business must be given every
ordinary and natural Specification.
Business is a very comprehensive term
and embraces whatever occupies the
time, attention or labor of men for the
purposes of livelihood or profit. In
other words business necessarily in
wolves the idea of gain" Every do
nestle corporation must make a re
turn on form 101. even though the law
may indicate that it is exempt from the
tax. The question Of exemption is one
for determination by the commissioner
of internal revenue.
The basis of the tax in the case Of
a foreign corporation is ''carryin. on
or doing business in the United States"
\ foreign corporation j. CARRYING on or
doing business in the United States If
1t 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 it's business.
Following are the miscellaneous oc-
cupational taxes; brokers. $50: pawn
brokers. 500; ship brokers. $50: GUS
tomhouse brokers, $50: proprietors of
theaters, museums and concert halls
where a charge for admission is made,
having q seating capacity of not more
than 30 shall pay q tax of $50; having
a seating capacity of more than go
and not exceeding 500. 500: having q
seating capacity exceeding 800 and not
exceeding 500. $3.50: having a seating
capacity of more than 500. 5000.
Circus proprietors are required to
pay a tax of 500: proprietors of
bowling alleys and billiard rooms are
required to pay $40 for each table:
proprietors of shooting galleries. $40;
proprietors Of riding academies. 500.
Persons carrying on the business of
operating or renting passenger auto
mobiles for hire are required to pay
$40 for each such automobile having a
seating capacity of more than two and
more than seven, and $50 for each
such automobile having a seating capac-
ity Of more than seven.
Section 1908 of the revenue act of
l9Zl imposes a tax upon the use of
pleasure boats, power boats,
sailing boats and motor boats with
fixed engines. of over five net tons,
over % feet. Numerous In
quiries have been received concerning
tax. These boats are divided into
three classes with respect to length.
and a separate tax is provided for each
as follows: Over five net tons.
length over 80 feet and not over 30
feet, ST for each foot: over five net
tons. length over 80 feet and not over
100 feet. So for each foot: over five
net tons. length over 100 feet, 81 for
each foot. The commissioner of intern
al revenue has held that q vessel must
be both over five net tons and over
81 feet in length in order to be subject
the special tax imposed by this sec !
ton. No return of certificate of ex-
emption will be required in the case Of
boats falling below both or either of
these SDpcjfications !