Annual-Continued.

Salary and leave computations-Con.

leave accrues only upon basis of
fiscal year, including each calendar
day thereof..
Saturday status for postmasters' leave
computation-postmasters are not
within purview of provisions in 39
U. S. Code 832 establishing 40-hour,
5-day week for postal employees and
there may not be excluded from the
computation of their annual and
sick leave Saturdays "or short work-
week day observed by the com-
munity other than Saturday".
Substitute postal employees-in view
of provisions of 39 U. S. Code 104
fixing 2,448 hours of service by sub-
stitute postal employees as equiva-
lent to one year's service of regular
employee (306 days of 8 hours each),
a year's annual and sick leave may
not be credited to substitute postal
employees for each 2,024 hours of sub-
stitute service (365- 8-hour days less
8 hours for each Saturday, Sunday
and holiday of the year, which is the
actual service required per year of
regular employees). 19 C. G. 177,
amplified..

Sick:

Propriety of regulations in derogation of
employees' statutory rights-as na-
tional holidays established by Federal
statute specifically have been excluded
by act of Mar. 2, 1940, from counting as
days of annual or sick leave under
leave laws, authority to grant and
charge annual or sick leave for absence
on national holiday on which em-
ployees are required to work by ad-
ministrative order may not be ac-
complished by amendment to leave
regulations-which would be legis-
lating-but may be effected only by
amendment of leave statutes...
Salary and leave computations:
Compensation adjustments for over-
drawn leave:

In computing indebtedness of em-
ployee for overdrawn or excess
sick leave taken over period prior
to Jan. 1, 1944, under annual and
sick leave regulations effective
during period Jan. 1, 1940, through
Dec. 31, 1943, there is not required
to be refunded compensation for
Sundays and holidays occurring
within the period of excess leave...
Under sec. 4.7, Annual and Sick
Leave Regs. effective Jan. 1, 1944,
amount required to be refunded by
employee for overdrawn or excess
sick leave over period beginning on

Leaves of absence-Continued.
Sick-Continued.

Salary and leave computations-Con.
Compensation adjustments for over-

drawn leave-Continued.

or after Jan. 1, 1944, is total amount
of compensation actually paid for
entire period of overdrawn or
excess leave which was advanced,
including compensation for Sun-
days and holidays occurring with-
in period of such leave....
638, 677
Saturday status for postmasters' leave
computation-postmasters are not
within purview of provisions in 39
U. S. Code 832 establishing 40-hour,
5-day week for postal employees and
there may not be excluded from the
computation of their annual and sick
leave Saturdays "or short work-
week day observed by the com-
munity other than Saturday".

Without pay:

Salary and leave computations:
Failure to return to duty on first day of
year after nonpay status at end of
prior year where period of leave
without pay was applied for in writ-
ing by permanent employee and ad-
ministratively approved in advance
to terminate on Dec. 31, 1943, but
employee did not return to work
until Jan. 4, 1944, it is within ad-
ministrative discretion to grant
annual leave retroactively effective
to Jan. 3, 1944 (first workday of year),
and pay employee compensation for
Jan. 1 and 2-legal holiday and a
Sunday, respectively-but, if annual
leave is not administratively granted
retroactively effective, there is no
authority to pay employee compen-
sation for Jan. 1 and 2..
Retroactive approval of leave without
pay-where employee having no
annual or sick leave to his credit has
absented himself from work for single
work day without prior authoriza-
tion and it is administratively deter-
mined after his return to duty that
conditions rendered advance applica-
tion for leave without pay impracti
cable, justifying conclusion that he
was not "a. w. o. 1.," employee's pay
status may be regarded the same as
though leave without pay had been
granted in advance and he may be
allowed pay for non-work day occur-
ring immediately prior to actual
return to duty. 16 C. G. 807, dis-
tinguished...

Requiring of make-up overtime work as
condition for excusing from work-if em-
ployee is excused by administrative action
from working on a holiday declared work-

344

638

960

996

chases generally-Gen. Reg. 86-Re-
vised, Supp. 1, June 6, 1944..
Exemption certificates-accountabiltiy rec-
ord procedure-Gen. Reg. 100, Oct.
4, 1943.

Internal revenue witholding from pay-
ments to nonresident aliens-Gen.
Reg. 96, Supp. 3, Mar. 3, 1944---------
Salary deductions:

Income tax witholding:

Adjustments for overdrawn leave
upon separation from service-in-
debtedness of a former employee for
overdrawn leave, on and after July 1,
1943, upon separation from service
may be recredited to applicable
salary appropriation by set off
against retirement fund credit-
otherwise available for set-off-only
to extent of net amount of salary
(including 5 percent credited for
retirement), after deduction of
amount witheld under Current Tax
Payment Act of 1943, during period
of overdrawn leave; but in order
that amount paid from salary ap-
propriation be fully restored by re-
crediting, also, amount witheld for
tax, matter should be referred to the
Claims Division of this office for
appropriate action. 22 Comp. Gen.
1046, amplified...
Jurisdiction-question of whether
lump-sum payment, in lieu of un-
used annual leave, authorized under
act of July 12, 1943, to be paid Na-
tional Youth Admin. employees
upon separation from service due to
that agency's liquidation on Jan. 1,
1944, should be reported to Internal
Revenue as income in calendar year
1943 or 1944, and whether such pay-
ments are subject to witholding tax
are matters properly for consider-
ation by Commissioner of Internal
Revenue.

1003

997

16

208

TAXES-Continued.
Federal-Continued.

Salary deductions-Continued.
Income tax withholding-Continued.
Youth Admin. employees upon sep-
aration from service due to that
agency's liquidation on Jan. 1, 1944,
should be reported to Internal Rev-
enue as income in calendar year
1943 or 1944, and whether such pay-
ments are subject to witholding tax
are matters properly for consider-
ation by Commissioner of Internal
Revenue; but view of this office is
that witholding tax should be de-
ducted from such payments pend-
ing decision of said Commissioner
to contrary..

Transportation tax:

Contract price adjustment:

Tax inclusive price as affected by sub-
sequent exemption from tax-even
though bidder's quoted price for
furnishing supplies to Govt. f. o. b.
destination includes amount repre-
senting Federal property trans-
portation tax imposed by sec. 620,
Revenue Act of 1942, provisions of
Act of Nov. 4, 1943, extending tax
exemptive provisions of 1942 act to
amounts paid for transportation of
property to or from Govt. afford no
basis for deduction of any amount
representing said tax from such
prices where contract contains
standard "Federal taxes" clause
providing for increase or decrease in
contract prices in respect to all sub-
sequent tax changes "applicable
directly upon the production, manu-
facture, or sale of the supplies".
Transportation tax as being incident
to OPA ceiling-price change-where
contract for steel at specified deliv-
ered prices, not exceeding current
maximum prices established by
Office of Price Admin., provides for
adjustment of contract prices on
shipments made on and after
effective date of any maximum price
changes and applicable price regula-
tions authorize maximum delivered
prices to be increased by amount of
property transportation tax im-
posed by sec. 620, Revenue Act of
1942, contractor is entitled to reim-
bursement of such amounts repre-
senting said tax as it was required to
pay on transportation charges inci-
dent to delivery of steel shipped
after effective date of tax. 22 C. G.
13 and ibid. 915, distinguished......
Contract reformation for relief of cost-
plus contractor's vendor-where sup-
plemental contract, executed by cost-
plus contractor and its supplier six
months after issuance of purchase

Page

208

619

27

TAXES-Continued.
Federal-Continued.

Transportation tax-Continued.

order and delivery of merchandise,
stated, in effect, that it was intended
contractor should pay Federal prop-
erty transportation tax as well as
freight, but neither purchase order nor
evidence shows such was agreement of
parties prior to issuance of purchase
order or delivery of merchandise,
reformation of purchase order to pro-
vide for reimbursement of tax is
wholly without consideration and may
not be regarded as obligating con-
tractor, or Govt., to make such pay-
ment.
Exemption as to travel on transportation
request:
Circuitous route-where employee

used transportation request for
circuitous travel for personal con-
venience, he is chargeable with
amount of Federal transportation
tax on railroad fare representing
difference between actual fare and
constructive fare had travel been
direct

Service personnel in mileage status-
while, in view of Govt.'s exemption,
payment of transportation tax im-
posed by sec. 3469, Internal Revenue
Code, is not required when officers
traveling in mileage status are fur-
nished transportation on transporta-
tion requests pursuant to act of
June 12, 1906-for which deduction
of 3 cents per mile is made from
officer's mileage account-there
would be no legal basis for avoidance
of tax on sleeping and parlor car
accommodations by use of trans-
portation requests, in view of inhibi-
tion in 1906 act as to furnishing of
transportation requests for such
accommodations to officers traveling
in a mileage status..
Exemption of U. S. as applied to direct
payment for transportation of contract
material-where, under cost-plus con-
struction contract reserving to Govt.
right to pay freight charges directly
to common carriers and "to pay di-
rectly to the persons concerned all
sums due from the Constructor for
labor, materials, equipment, or other
charges," Govt. makes payment di-
rectly to transportation concern for
charges incident to unloading and
hauling of equipment to plant site,
amount paid therefor is not subject to
transportation-of-property tax im-
posed by sec. 620, Revenue Act of
1942, which exempts from tax amounts
paid by U. S. to carriers or other per-
sons rendering transportation services

Page

Service personnel traveling in mileage
status-Navy officers traveling in
mileage status may not be reim-
bursed for tax imposed by sec. 3469,
Internal Revenue Code, on amounts
paid for transportation of persons, in
addition to 8 cents per mile allow-
ance prescribed by sec. 12, Pay Re-
adjustment Act of 1942, to which
they are entitled when not furnished
transportation on transportation re-
quests pursuant to act of June 12,
1906..

Supporting evidence requirements:
Employee traveling on official busi-
ness who procures Pullman ac-
commodations by cash payment
may not be reimbursed the amount
of the tax imposed on transporta-
tion of persons by Revenue Act of
1942, in absence of receipt showing
payment for such accommoda-
tions, as required by par. 81, Stand-
ardized Govt. Travel Regs.; but
receipt need not contain notation
concerning tax-amount of which
is computed on amount charged
for such accommodations. 23 C.
G. 188, amplified..
Since receipts are not required by
par. 81, Standardized Govt. Travel
Regs., for railroad and other trans-
portation fares (except for pay.
ments in connection with travel
on extra-fare trains, or sleeping
car, etc., accommodations), em-
ployee traveling on official busi-
ness who procures transportation-
other than Pullman, etc., accom-
modations-by payment of cash
fare of $1 or more, plus applicable
tax imposed by Revenue Act of
1942, is not required to obtain re-

898

891

484

TAXES-Continued.

Federal-Continued.

Transportation tax-Continued.

Payment-reimbursement, etc., as to
Government travelers-Continued.
Supporting evidence requirements-

Continued.

ceipt for payment of additional
amount representing tax in order
to secure reimbursement therefor.
Where employee traveling on official
business procures transportation by
payment of cash fare of less than $1
rather than by issuance of transpor-
tation request, as permitted by par.
20, Standardized Government Trav-
el Regulations, and does not execute
exemption certificate in lieu of pay-
ment of tax on transportation of per-
sons imposed by Revenue Act of
1942, amount of tax so paid properly
may be considered as part of trans-
portation expense actually and neces-
sarily incurred by traveler for which
reimbursement is authorized........

Set-off. See Set-Off.
State:

Federal payments in lieu of. See Payments,
in lieu of taxes.
Gasoline:

Government's exemption rights, in gen-
eral, where legal incidence of tax is not
on vendee-under Maryland law, legal
incidence of State gasoline tax is upon
vendor, and, in view of language in
Alabama v. King and Boozer, 314 U. S.
1, to effect that vendor who sells sup-
plies to U. S. is not exempt from pay-
ment of State tax unless legal incidence
thereof is upon vendee, payment of
Maryland tax legally may be required
of dealer furnishing gasoline in that
State on or after April 1, 1944-effective
date of State regulations relative there-
to-to or for use of U. S. unless sale is of
type specifically exempted..
Purchases in Maryland:

Even though its contract for service
station deliveries of gasoline to a post
office in Maryland provides that
price stipulated therein is "exclusive
of any and all taxes," contractor is
not entitled to reimbursement for
Maryland gasoline tax-legal inci-
dence of which is on vendor and
which vendors are required to pay
on gasoline sold in that State to or for
use of U. S. on and after Apr. 1, 1944,
except under circumstances not here
involved-in absence of provision in
contract for payment of amount
equivalent to tax in addition to price
otherwise fixed...........

Under Maryland law, legal incidence
of State gasoline tax is upon vendor,
and, in view of language in Alabama
v. King and Boozer, 314 U. S. 1, to

Page TAXES-Continued.
State-Continued.

484

188

957

957

Gasoline-Continued.

Purchases in Maryland-Continued.
effect that vendor who sells supplies
to U. S. is not exempt from payment
of State tax unless legal incidence
thereof is upon vendee, payment of
Maryland tax legally may be re-
quired of dealer furnishing gasoline
in that State on or after April 1,
1944-effective date of State regula-
tions relative thereto-to or for use
of U. S. unless sale is of type speci-
fically exempted.....
Mistakes as to legal effect of taxing stat-
utes-misapprehension by contractor
and Govt. contracting officer as to legal
effect of terms of Maryland taxing stat-
ute, insofar as question of their applica-
bility to gasoline sold under contract in-
volved was concerned, must be regarded
as mutual mistake of law for which this
office is not required or authorized to
grant relief...-----
Reimbursement to vendor in absence of
specific contract provision—even though
its contract for service station deliveries
of gasoline to a post office in Maryland
provides that price stipulated therein is
"exclusive of any and all taxes," con-
tractor is not entitled to reimbursement
for Maryland gasoline tax-legal inci-
dence of which is on vendor and which
vendors are required to pay on gasoline
sold in that State to or for use of U. S. on
and after Apr. 1, 1944, except under cir-
cumstances not here involved-in ab-
sence of provision in contract for pay-
ment of amount equivalent to tax in
addition to price otherwise fixed........
TELEPHONES:

Amplifying devices for use by deaf employ-
ees-appropriation availability-while it is
established rule that cost of special equip-
ment to enable employee to qualify for
performance of official duties constitutes &
personal expense and, as such, is not pay-
able from appropriated funds, in view of
present difficulty of securing qualified em-
ployees, rental by Treasury Dept. of am-
plifying device to be attached to official
telephone as means of obtaining best re-
sults from employee handicapped by deaf-
ness may be considered necessary for ex-
peditious and satisfactory performance of
Govt. business, and, therefore, rental
thereof is proper charge against Depart-
ment's appropriation..
Pay stations-revenues-collection and dis-
position-pay stations in Government
plant leased to cost-plus contractor-where
Government-owned naval ordnance plant
was leased to contractor at rental of $1 per
annum under contract which, gave con-
tractor "complete supervision and opera-
tion of the plant" but specifically pro-

TELEPHONES-Continued.

vided that plant shall be operated for the
"exclusive benefit of the Government,"
commissions accruing from pay tele-
phones installed at plant for convenience of
contractor's personnel represent income
incident to use of said Govt. building, and,
therefore, should be deposited into Treas-
ury as miscellaneous receipts in accord-
ance with sec. 3617, R. S., rather than
applied in reduction of gross contract cost..
TIME:

Compensatory. See Sundays and Holidays,
compensatory time.
TRANSPORTATION:

Baggage. See Transportation, household ef-
fects.

Bills of lading:

Accountability record procedure-Gen.
Reg. 100, Oct. 4, 1943....
Government-forms and procedure for
use extension of time for use of old
forms-Gen. Reg. 97, Supp. 1, Dec. 8,
1943.
Status as contract for transportation or
receipt of goods-while in some instances
bills of lading may constitute not only
receipt for goods involved but, also,
contract for their transportation, where
transportation of goods is accomplished
pursuant to previously executed con-
tract, bills of lading are merely receipt
for goods to be transported and pay-
ments for individual services would be
for consideration as being made under
previously executed master contract
rather than under particular bill of
lading covering service.....
Dependents:

Additional change of station prior to com-
pletion of travel to first new station--
illness precluding travel to first new
station-where, due to sickness, de-
pendent wife of Navy enlisted man was
precluded from traveling to his new per-
manent station prior to receipt of order
involving another permanent change of
station, which latter order was issued
more than sixty days after first order,
payment of travel expenses of dependent
is limited, under sec. 12, Pay Readjust-
ment Act of 1942, and Navy Travel In-
structions, to conmercial cost of trans-
portation from last permanent station
to ultimate new station...
General effect of par. 6, sec. 12, Pay Re-
adjustment Act of 1942-authorization
contained in par. 6, sec. 12, Pay Read-
justment Act of 1942, respecting trans-
portation for dependents of retired per-
sonnel and members of Reserve com-
ponents of military, naval, etc., services
goes no further than to continue author-
ization contained in Fourth Suppl. Natl.
Defense Appro. Act, 1941 and Naval
appropriation acts of 1942 and 1943 for
transportation for dependents of retired
598796-44-vol. 23-75

and Reserve officers and enlisted men of
the Navy when ordered to active duty
(other than training) and upon release
therefrom

On discharge:

Regular service personnel, in general-
transportation, at Government ex-
pense, from last duty station to home
for dependents and household effects
of officers and enlisted men of Regular
Navy upon their discharge from serv-
ice is not authorized by sec. 12, Pay
Readjustment Act of 1942..
Reservists discharged without release
to inactive status-where Naval re-
servists, including enlisted reservists
retained on active duty beyond periods
of their enlistments, are discharged
while on active duty rather than re-
leased to an inactive status, either be-
cause of disability incurred in line of
duty or for other reasons not due to
their own misconduct, such discharges
may be considered tantamount to re-
lease from active duty so as to en-
title them, in proper cases, to trans-
poration for dependents and house-
hold effects from last duty station to
home, authorized by sec. 12, Pay Re-
adjustment Act of 1942, in connection
with release from active duty......
On release from active duty-Navy en-
listed men transferred to reserve com-
ponent-place to which entitled-
"home" to which Regular Navy enlisted
men transferred to reserve component
and subsequently released from active
duty are entitled to transportation for de-
pendents at Government expense, under
sec. 12, Pay Readjustment Act of 1942, is
home or official residence of record, and
where dependents travel to home which
man elects upon release from active duty,
rather than to home or official residence
of record, cost to Govt. for transportation
may not exceed what it would have cost
had travel been to such home or official
residence of record..
War-casualty situations:

Casualty occurring during duty assign-
ment within U. S.-in view of provision
in sec. 1 (a), act of Mar. 7, 1942, defining
term"person" as used therein as in-
cluding commissioned officers wherever
serving, fact that Army officer was
serving in U. S. at time he was killed as
result of military operation would not
necessarily, of itself, preclude payment
of transportation authorized under sec.
12 of said act for dependents of persons
on active duty who are killed as the re-
sult of "military or naval operations."
Commutation generally-authorization
in sec. 12, act of Mar. 7, 1942, for trans-
portation of dependents of persons

Page

73

73

73

967

349