Evening star., 1937-10-17

ON BUSINESS TAX.
Officials Estimate That
Number Have Failed to
Make Returns on Time.

BACKGROUND
One OF the items in the neD
reUenue act, under uhtch the Dis
trict has operated, effective July I,
proUides for imposition OF gross
tar on businesses and professions.
The delay in enacting the meas
ure caused t,oo poStponements OF
the date for returns and collections.
Threat of heavy penalties for failing
to report their gross receipts on sched-
uled time was held out last night by
District ofhcisls for perhaps 1000 busi-
ness and professional men and women,
~ the deadline was reached for COM
pliance with the new business privilege
tax measure, but the number admit
tedly was 4 guess.
There was surprisingly small num-
Der Of persons calling at the District
Building yesterday to file returns on
their gross receipts of the last calendar
year. or for any period prior to the
effective date Of the business privilege
levy. August II.
Allen F. Brooke, the administrator
OF the tax, estimated at the close of
the days business that some $4,000
taxable returns had been filed. 1t has
been estimated that a total of about
$4,000 taxable returns should be re-
ceived, which would leave about 5000
yet to come in.
Brooke said he believed Mondays
mail would bring perhaps 1000 more,
leaving 1000 still in jeopardy of the
possible penalty of fine, plus the
addition Of 10 per cent on the tax
finally assessed by the District.
No Further Extensions.
Officials repeated yesterday there
will be no further extension of the
time for filing the returns. The dead
line had been advanced twice. Be-
ginning this week, on the contrary,
Brooke will send a group Of investi-
gators out to make door-to- door in
spection of business houses to deter
AAhAAC ~ tAACy AldNC OOldlIlCO llCcLlStS W
continue in business. He said prosecu-
ton would be started against all those
not having licenses which are con-
tinuing in business.
Definitely raising a question of how
much revenue is to be derived from
the business privilege levy, examina-
ton of the returns showed that of
the $4,000 returns counted by last
night there were some 1000 which
showed no gross receipts above $4,000.
There is no tax on gross receipts of
lesser amount.
Last night was the deadline also
Tor the provision Of business privilege
licenses for those who desired to
continue in the operation of a COM
mercial or professional enterprise. 1t
has been estimated some $4,000
licenses must be issued. Brook esti-
mated late yesterday that about IT,
600 licenses had been issued, calcu-
lating that perhaps 5000 of the
$4,000 total would be issued free Of the
$40 fee.
Many File Gross Returns.
A Startling" number of the gross
receipts returns, according to an
other unnamed District official,
showed there was no taxable gross
receipts. Though returns are not
required by those showing receipts
of less than $4,000, Brooke estimated
there were about 1000 returns filed
which showed returns of lesser
amounts.
Days OF examination may be re-
quired to determine the exact results
OF the returns, the number required
to pay the gross receipts tax, the
total income from the levy and the
number required to pay the $40
license fee, officials said. More than
1000 returns which came in by mail
yesterday, for instance, Brooke said,
nave not been opened because of
the rush Of reports in the last week.