The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1922-07-18
Special Federal Tax
Under Last Year Law
Must Be Paid In july

10 business houses, concerns and in.
dividuals in business is contained in
a communication sent to Maui News
from the office OF the %collectu. Of in
ternal revenue for the district of Ha-
wall with the request that it be given
the publicity to which il is entitled.
The communication follows in full:
Forms for making returns OF special
taxes, due under the Revenue Act of
1921 during the month of July, now
are available at the office of Collector
of Internal Revenue, Honolulu and the
branch offices at WailukI, Hilo and
Kohala.
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 dom
este corporations; foreign corpora
tions-70S must be made on Form 707.
Form II is used for making return of
the miscellaneous occupational and
the tobacco manufacturers special tax.
Regulations ga, governing the collec-
ton of the capital stock tax, Regula-
tions SO governing the collections of
the miscellaneous occupational taxes
and Regulations 8 governing the col
lection of the tobacco manufacturers
special tax also may be obtained upon
request of the office of the collector
Of internal ven and branch offices.
Tax On Capital Stock
The revenue act provides chat ev-
cry domestic corporation shall pay an
nually a special excise tax with res
pect 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, as is in excess of S.
900. In estimating the value OF the
capital stock, the surplus and undivid-
ed profits shall be included.
Every foreign corporation shall pay
annually a 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
of capital employed in the transaction
of its business in the United States,
during the preceding year ending June
so"
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 associations. Quot
ing from the Capital Stock Tax Regu.
lations No. Ga, "The words and carry
ing on or doing business must be
given every ordinary and natural
Specification. Business is a very COM
prehensive term and embraces what
ever occupies the time, attention or
labor of men for the purposes of live
lihood or profit. In other words bust
ness necessarily involves the idea of
gain" Every domestic corporation
must make a return on Form 707, 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 Rev
enue.
The basis of the tax in the case of
a foreign corporation is Carrying 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 the Unit
ed States, or in any other way enters
the United States for the purposes of
it's business.
Occupational Taxes
Following are the miscellaneous oc-
cupational taxes: brokers, $50; pawn
brokers, 800; ship brokers, $50; Gus
tomhouse brokers, $50. Proprietors of
theaters, museums and concert halls
where a charge for admission is made
having a seating capacity of not more
than $50, shall pay a tax of $50; hav-
ing a seating capacity of more than
$50 and not exceeding 500, 500; hav-
ing a seating capacity exceeding 500
and not exceeding 800, $3.50; having a
sealing capacity of more than 800,
5000.
Circus proprietors are required to
pay a tax of 500; proprietors of bow
ling alleys and billiard rooms are re-
quired to pay SO, for each alley or
table; proprietors of shooting galleries
500; proprietors of riding academies,
800.
Rental Service Cars ...
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
pleasure boats, power boats,
boats and motor boats with
fixed engines, of over 5 net tons,
.ength over 80 feet. Numerous in
have been received concern
ing this tax. These boats are divided
into three classes with respect to
and a separate tax is provided
or each class as follows: over 5 net
tons, length over 80 feet and not over
feet, 81. for each foot; over 5 net
tons, length owe so feet and not over
100 feet, 50. for each foot; over 5 net
tons, length over 100 feet, 81. for each
foot. The Commissioner of Internal
Revenue has held that a vessel must
be both over 5 net tons and over 80
feet in length in order to be subject
to the special tax imposed by this