Frear v. Wilder

Citations

• 25 Haw. 603
• 1920 Haw. LEXIS 18

Syllabus

<p>Statutes — construction of statutes imposing taxes.</p> <p>It is a cardinal rule of construction that statutes imposing taxes are to be construed strictly against the government and in favor of the taxpayer and that no person and no property is to be included within their scope unless placed there by clear language.</p> <p>Same — same.</p> <p>It is the established rule not to extend their provisions by implication beyond the clear import of the language used or to enlarge their operation so as to embrace matters not specifically pointed out. In case of doubt they are construed most strongly against the government and in favor of the citizen.</p> <p>Same — sections 1305 and 1307 R. L. 1915 differentiated.</p> <p>Sections 1305 and 1307 R. L. 1915 were intended to serve separate and distinct purposes. The first levies an income tax upon the gains, profits and income derived from certain definite and plainly enumerated sources and fixes the rate of taxation, while the latter merely prescribes the method to be pursued by the taxpayer in returning his gross income from which his net taxable income is to be computed.</p> <p>Girts — gratuities inter vivos not deemed to Be income.</p> <p>While gifts causa mortis usually fall within the scope of inheritance tax enactments Christmas gifts and other gratuities inter vivos are not deemed to be income and are not taxable as such under any of the existing laws of this Territory.</p>