Evening star., 1937-12-17
WARRANT ISSUED
FOR BUSINESS TAX
Fairfax Oyster Is Charged
With Failure to File Gross
Receipts Return.

Aroused over failure of the business
privilege tax u gross receipts to
measure up to expectations on reve-
nue., the District today launched its
first legal action against taxpayers
for alleged failure to comply with the
requirement that returns be filed
showing their gross take during. the
past calendar year
Assistant Corporation Counsel 10
v. Morgan filed at Police Court suit
against Fairfax Oyster, alleging he had
failed to file return showing his
gross receipts during 1886, although
he was in business throughout that
year and on August l6, 1897, when
the business privilege levy went into
effect.
A warrant was issued. but it was
understood that Mr.. Oyster would be
notified to appear in court to answer
the suit.
Heavy Penalty Provided.
The act prescribes penalty Of q
fine up to 81 900 per day for each day
of refusal of business or professional
operator to file returns as required
by the revenue act This would indi-
cate that should Mr.. Oyster be found
guilty, the court could impose q
maximum penalty of some $60o0O.
Meanwhile, Corporation Counsel Ell
wood H. Seal recommended to the
Commissioners that they take steps
to bring into line as many as perhaps
several thousand business and pro-
fessional operators who had been sus-
pected of failing to comply with the
business privilege tax law. Mr.. Seal
recommended that the police in each
precinct be directed to make house.
toulouse canvass to determine what
business and professional operators
had failed so far to obtain a business
privilege license.
Final Decision Postponed.
The Commissioners, in their board
meeting today, postponed final de-
cision, and referred the Seal recon-
mendation to Police Supt. Ernest W.
Brown for a report as to whether the
police could or should be called into
play on this issue.
Commissioner Melvin c. Hazen said
1t was apparent that the District
should make every possible effort to
collect the levy, but there was some
question as to whether the police
could or should make the house-to-
house canvass.
One official held that this was more
properly the duty of the agents of the
tax assessor. However, final decision
was deferred to await a recommenda-
ton from Maj. Brown.
The contemplated action follows
disclosures, published last Sunday in
The Star, that the receipts 50 far are
far below the expectations of a So
900 900 total.
The report was that through De-
cember IL, the District actually had
collected only about 100000 in busi-
ness privilege taxes, plus little more
than 100000 in the $40 license
fees. Since the taxes are payable in
two installments, the first reports in
dicated that the District stood to COL
lect little more than $1,200,0oo by
the end of next March.
Some of1icials voiced hopes OF rais-
ing this total to about 100000 by
forcing tax payments and returns
from perhaps as many as 1000 more
business houses or professional work.
ers, and through correction of returns
already made. It was suggested that
perhaps many persons had made the
mistake of filing returns based on net
receipts instead of upon gross receipts,
as required by the law.
One or more concerns have been
represented Is deciding to refuse to
make the returns, pending final test
Of the legality of the act in court
decision.