Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-10
VIRGINIA LAUNCHES
AUDIT OF GAS TAX.
Public Accountants Begin on
Books OF III Distributing
Companies.
Special Dispatch to Tn. Star.

Special Dispatch to The Star.
RICHMOND, Va, August "a
Statewide audit of the books of the III
gasoline distribution companies of Vir-
GINA has been launched by the State
Division of Motor Vehicles.
With no advance word of his inten-
ton, T. Mccall Frazier, director OF the
division, which is responsible for col
lecting the cents road tax upon every
gallon of gasoline sold to motorists in
the State, put large force OF certifled
public accountants to work, with in
structions to examine every item in the
gasoline tax return figures Of the COM
panies.
These companies will pay to the State
more than $4,000 900 in tax funds dur
ing the next two years.
Eliminate Confusion.
The general audit, designed to put
the new auditing bureau Of the motor
vehicle division upon a solid tounoatlon
of figures, and to settle current ques-
tions as to exemption allowances under
the gasoline road tax, followed DIVISION
audits of several smaller companies
which indicated the possibility OF con-
fusion.
I'VE audited three of the smaller
companies and found they were not as
careful as they should be in making re-
norris to the State" Director Frazier
said. mo charge Of dishonesty followed
these audits, but the errors discovered
resulted in the collection Of about $4,000
additional gas tax money. II tnereIoIe
was decided to audit all of the COM
panies."
Under current gas tax collection prac-
&;ce the state collects the tax money
from the distribution companies. Iney
report their sales each month, charge
the scent tax to the retail price TO
the consumer, and turn over Genus
for each gallon to the Division OF MOTOR
Vehicles.
Benefit Expected.
The audit is expected to prove as
beneficial to the fuel companies as 70
the State In the long run, since II VIII
relieve the home Offices Of some Oh tne
larger companies OF q snare OF tne
auditing responsibility. and will protect
the companies rs well as the State from
The state expects to collect $16,1ol.-
253 in gasoline taxes during the bien-
MUM ending in 1882. All OF this money
goes directly into highway construction
IL cents Of each going to the coun-
ties and the remainder TO the highway
During June, the last month for
which figures are available, collections
went beyond the million-dollar marx.
The distribution companies were
charged with the collection response
bility to avoid confusion, 1t being con-
sidered practically physical impossl-
bility to collect the gas tax from the
thousands Of separate ming stations;
But the tax itself is not paid by the
fuel companies either directly or m
directly, for each person who buys gas
paws 5 cents above the retail price on
every gallon.
The motcar vehicle division auditors
will check the amount of gas delivered
by the lit distribution companies 10
their agencies; the returns on this gas
made by the filling stations; the totals
for which exemption of the gas tax Is
requested and granted under the law;
the allowances made for waste through
evaporation, ETC. AL of these items VIII
be subject to comparison, so that dis
crepancies will be revealed at once.
Companies that are found short are
subject to various penalties. -.
Director Frazier had planned 70 auoIt
ali of the companies simultaneously,
but found this impossible because there
were not enough accountants available
for the task. The seven large distrinu-
ton companies each have several
branches.
Auditors Drilled.
Careful preparations extending over
several weeks were made Tor the auolt.
The auditing bureau personnel was
armed with all available comparative
, figures and information that might
serve them as guides. in their studies:
: All Of the auditors were carefully drilled
in provisions of the gasoline tax law
whereby the companies are guided In
making gasoline tax returns.
T.. No regular check has been made OF
: the books of the lit different COM
panies and diSagreements and errors.
: that have arisen from time to time
: have been settled as they happened.
Under the new auditing policy of the
[, division it Is planned TO prevent dis
agreements and errors before they have
time to occur by maintaining con-
slant check upon the fuel companies.
Director Frazier said the preliminary
audits are being rechecked and re-
port will be made of the results as
: soon as the general audit is completed.
The firm Of T. Coleman Andrews,
. certified public accountants, was re-
tanned by the division to aid IN the
. big check.up. which is being directed
/, by T. K. Sexton, head of the recently
established auditing bureau Of the d.
+. vision.