| OCR Text |
Show Mr. Walter G. Moyle : August 25, 1941. one-eleventh of the taxable base both for sales made from the inventory and those representing subsequent importations reduced to jobbers price. If such is the case and the same method of computation were used for the post suit period it will make a substantial difference in the tax to be eventually paid. You will recall that at the time your brief was filed, on December 11, 1940, we did not sompute the tax on Exhibit “D" covering the suit period and Exhibit “F* covering the post suit period as we wished the Unit to do this in order that we might know just what stand they would take upon this question. It is hoped, of course, that they will use the jobbers base and assess the tax upon one-eleventh of it. Our first of two computations is August 2, 1941 and eliminates of letter in your separate gun barrel sales, and computes the tax of the after imported inventory at guns at the jobbers price made as requested transportation charges, liability on the sale basis and those sold “wholesale: g Sales made from Tax 8 inventory transferred 624,893.59 56,808.50 222,968.28 20,269.84 Sales made from subsequent importations reduced to jobbers Less Tax price Total Tax Actually Paid Computed Tax 77,078.34 23, 373.65 Payable $53,704.69 The tax actually paid in January of 1936 was $76,491.54, of which $12,706.90 represents interest, leaving a balance of $63,78).64. We agree with the statement made in the second paragraph, page 6 of your letter of July 16th, that this figure compares favorably with in mind, with the exception of on to be allowed. the reasonable interest which objectives we had we were counting The next computation represents the one you requested for comparative purposes and eliminates transportation charges, separate gun barrel sales, and the reduction of retail sales to “wholesale”. In this computation we have used as the tax basis the jobbers price for all of the taxable sales made in the suit period regardless of whether they were made from the original inventory or from subsequent importations: from |
