Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-07-10
ON
TAXES ISSUED
BY KERNA NDE:Z'

The following statement was Is
sued recently by Collector or Inter-
nal Revenue b. c.. Hernandez, of
the district of New Mexico:
Forms for making returns OF
special taxes, due under the Reve-
nue. act of 1921 during the month
of July, are now available at the
offices of the collector of tnterna!
revenue. Albuquerque, n. NJ.
To avoid penalty return and
payment 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 707: foreign cor
porations, 70S. Form II is used
for making return of the miscel-
laneous occupational and the to-
bacco manufacturers special tax.
Regulations GA, governing the col
lection of the capital stock tax,
Regulations SO governing the coli
lection of the miscellaneous occu-
pational taxes and Regulations
governing the collection of the to-
hacco manufacturer special tax
also may be obtained upon request
Of the office of the collector of
internal revenue.
The revenue act provides that
every domestic corporation shall
pay annually d special excise tax
with respect to carrying on or do
ing business equivalent to 81 for
each 81 900 or so much of the fair
average value of it's capital stock
for the preceding yeC, ending June
80, as is in excess of $4,000. 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 do
| ing business in the United States,
| equivalent to 81 for each $1,000 of
the average amount Of capital en-
ployed in the transaction of its
| business in the United States, dur
ing the preceding year ending juno
| 80"
The basis of the tax in the case OF
q domestic corporation is carry
ing on or doing business" In the
capacity of a corporation or asso-
citation. Quoting from the Capt.
tai Stock Regulations No. GA, THE
words carrying on or doing bust
ness must be given every ordinary
and natural Specification. Bust
ness is 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 involves the idea of
gain" Every domestic corpora
ton must make a return on Form
| 707, even though the law may indi-
cate that it Is exempt from the tax,
| The question of exemption is one
| for determination by the commits
sioner Of internal revenue.
The basis of the tax in the case
| of a foreign corporation is carry
ing on or doing business in the
! United States" A foreign cor
! poration is carrying on or doing
! business in the United States if IT
maintains an agent or an office or
| WAREHOUSE III lne united states, or
in any other way enters the United
States for the purpose of its bus
mess.
| Following are the miscellaneous
occupational taxes: Brokers, $50;
pawnbrokers, 800; ship brokers
$50; Customhouse 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 tax of $50; hav-
ing u seating capacity of more
than $50 and not exceeding 500
800; having a seating capacity
exceeding 500 and not exceeding
500, $50; having a seating ca
pacity of more than 500, 5000.
Circus proprietors are required
to pay a tax of 800; proprietors
of bowling alleys and billiard
rooms are required to pay SO,
for each alley or table: proprle-
tors of shooting galleries, $50;