NRLF f- -), 212 s. 100 .... 206, 207 s. 101 207 s. 103 207 s. 104 208 s. 105 208 s. 106 ... 209, 224, 225 e. 108 .... 209, 210 s. 109 .... 209, 210 s. Ill ... 205, 208, 209 s.112 . .211, 212 (note 2 ) s. 121 37 43 & 44 Viet. c. 20, s. 52 . 87, 95, 279 44 Viet. c. 16 12 TABLE OF STATUTES. XIX PAGE 47 & 48 Viet. c. 62, s. 6 . . 27 (note 2 ), 32 (note 2 ) 48 & 49 Viet. c. 51, s. 25. 31 (note 5 ), 37 (note 6 ) s. 26. . . .159,219,228 49 & 50 Viet. c. 47 .12 (note 1 ) 50 & 51 Viet. c. 15, s. 18 . 90 (note ), 103 (note 2) 51 Viet. c. 8 . . 145 (note 4 ) 51 Viet. c. 8, PAGE s. 24 . 157 (note 1 ), 250, 219 (note 3 ), 250 51 & 52 Viet. c. 41 . 29 (note 3 ) 51 & 52 Viet. c. 44 . 187 (note 2 ) 52 & 53 Viet. c. 42, s. 10 . 249 53 & 54 Viet. c. 8, s. 23 . . 95, 164, 287, 305 56 Viet. c. 2, s. 1 100, 163 s. 2 . . 86, 274,. 288, 293 ERBATUM. Page 219, note s, for " 48 & 49 Viet. c. 35," read " 48 & 49 Yict. c. 51." INCOME TAX ACTS. CHAPTEE I. THE INCOME TAX AND THE OFFICIALS CONCERNED IN ASSESSING, CHARGING, AND COLLECTING IT. The Income Tax an Annual Tax. The income tax is levied year by year, under the authority of an Act of Parliament passed annually, which determines the amount of the tax for the current financial year that is, for the year which * begins on the 6th April and ends on the 5th April following. The machinery by which the tax is charged and collected derives its force from each annual Act, which generally continues the existing machinery, with, perhaps, some changes made in certain particulars in which experience has suggested a possibility of improvement. The income tax, as we know it, was first established in 1842, and the Act of that year (5 & 6 Yict. c. 35) which im- posed the tax constituted the machinery, which, in its main features, still remains. In describing the authorities concerned in the business of assessing, charging, and collecting, the income tax, the property, profits, and gains, which are the subject of the tax, 1 43 & 44 Yict. c. 19, s. 48. E. B * INCOME TAX ACTS. Chap. I. the mode of assessing, charging, and collecting, the tax, and the means to be employed in order to secure the various exemptions, allowances, and deductions, which may he claimed by persons who are assessed, we shall have to notice all the provisions, in whatever Act contained, by which at the present time these subjects are regulated ; but it must be remembered that all these provisions are, strictly, in force for one year only, and depend for their validity in any par- ticular year upon the Act of that year which refers to, and continues, them, and without which they would expire. So much is this the case, that, to prevent the inconvenience which would otherwise arise from the passing of the annual Act being delayed until after the close of the financial year, it has now become the practice to insert in each annual Act a clause "to ensure the collection in due time of any duties of income tax which may be granted for the ensuing year," by which all provisions in any Act relating to the income tax which are in force on the 5th April, in the year current at the time the annual Act is passed (that is, on the last day of the then current financial year) are made to have full force and effect with regard to the duties of income tax which may be granted in the ensuing year. Officials. The persons concerned with the assess- ment and collection of the income tax are (1) The Commissioners of Her Majesty's Treasury, (2) The Commissioners of Inland Eevenue, (3) The Commis- INCOME TAX ACTS. o sioners for Special Purposes, (4) The Commissioners Chap. I. for General Purposes, (5) The Additional Commis- sioners, (6) The Clerks to the Commissioners, (7) The Purveyors, (8) The Assessors, and (9) The Collectors. The Commissioners of Her Majesty's Treasury. 2 The Commissioners of Her Majesty's Treasury, or, to give them their full title, the Commissioners of Her Majesty's Treasury of the United Kingdom of Great Britain and Ireland, are the persons appointed by her Majesty's letters patent for executing the offices of Lord High Treasurer of Great Britain and Lord High Treasurer of Ireland. 3 The signatures of any two of the Commissioners are sufficient to validate any document which the Commissioners are required to sign. In the 4 Taxes Management Act, 1880, these Commissioners are compendiously styled "the Treasury," and we shall for the future in speak- ing of them adopt that term. The Treasury 5 has chief control, and superintendence, as regards the assessment, and collection, of income tax. The Commissioners of Inland Revenue. The Com- missioners of Inland Eevenue are 6 a consolidated 1 To whom we should, perhaps, add Inspectors. See note 5 p. 25, post. 2 56 Geo. III. c. 98, s. 2. 3 12 & 13 Viet. c. 89. . 4 43 & 44 Viet. c. 19. 5 56 Geo. III. c. 98, s. 2; 43 & 44 Viet. c. 19,- s. 12. 6 12 & 13 Viet. c. 1, s. 1. B2 INCOME TAX ACTS. Chap. I. Board of Commissioners representing the old Com- missioners of Excise, and Commissioners of Stamps and Taxes, 1 whose powers and authorities they exercise. The Commissioners are appointed 2 by her Majesty under the Great Seal of the United King- dom, and hold office during pleasure. 3 For income tax purposes any two of the Commissioners form a quorum. 4 Their chief office, which is called the " Chief Office of Inland Kevenue," must be at such place, within the limits designated as the limits of the " Chief Office of Excise " by an Act passed in the eighth year of George IV., as the Treasury appoints. These limits are 5 the cities of London and West- minster, the borough of Southwark and the suburbs thereof, the parishes within the 6 weekly bills of mor- tality, and the parishes of St. Marylebone and St. Pancras in the County of Middlesex. The Commis- 1 12 & 13 Yict. c. 1, s. 3. 2 12 & 13 Viet. c. 1, s. 2. 3 43 & 44 Viet. c. 19, s. 5. 4 12 & 13 Viet. c. 1, s. 5. * 7 & 8 Geo. IV. c. 53, s. 14. 6 The weekly bills of mortality are accounts of the births and deaths within a certain district, which has varied from time to time, but may be said now to be comprised in the general description ' ' the cities of London and Westminster, the borough of Southwark, and the suburbs thereof." The bills of mortality are said to date from 1592, but their regular publication from 1603, with some intermission during the Great Fire of London. The parishes of St. Marylebone and St. Pancras have never been included in the district. INCOME TAX ACTS. sioners of Inland Ee venue are styled in the l Taxes Chap. I. Management Act, 1880, " the Board," and we shall adopt that term. 2 The Board have the direction, and management, under the Treasury, of the assessment and collection of the income tax. We may conve- niently describe here the offices of the Receiver- General of Inland Revenue and the Collectors of Inland Revenue, whom we shall by and by have occa- sion to mention. 3 The Receiver-General of Inland Revenue is an officer who represents the old Receiver- General of Excise, and Receiver- General of Stamps and Taxes. His office was created by the same Act which constituted the Board, and was a necessary con- sequence of the consolidation of the two old Commis- sionerships of Excise and Stamps and Taxes. 4 The Receiver- General of Inland Revenue holds office during the pleasure of the Treasury. The 5 Collectors of Inland Revenue are officers appointed by the Board to be Collectors, or officers for receipt, either of one, or of several, of the branches, or descriptions, of revenue under the management of the Board, who appoint the counties, or districts, or circuits, of re- ceipt in which such Collectors respectively act. The Commissioners for Special Purposes. 6 The 1 43 & 44 Yict. c. 19. 2 16 & 17 Viet. c. 34, s. 4; 43 & 44 Yict. c. 19, s. 12. 3 12 & 13 Viet. c. 1, s. 6, and see sect. 17. * 12 & 13 Viet. c. 1, s. 6. s 12 & 13 Viet. c. 1, s. 15. e 5 & 6 Viet. c. 35, s. 23, and 12 & 13 Viet. c. 1, s. 17. INCOME TAX ACTS. Chap. I, Board, and such persons as the Treasury by warrant under their hands and seals from time to time appoint as they think expedient, are Commissioners for Special Purposes, or, as we shall call them shortly, Special Commissioners. No other qualification is required of a Special Commissioner than the possession of his office. The Special Commissioners are allowed such salary for their trouble, and such incidental expenses, as the Treasury may direct to be paid to them. The Treasury cause an account of all appointments of Special Commissioners with salaries to be laid before each House of Parliament within twenty days after appointment, if Parliament is then sitting, and if not, within twenty days after the meeting of Parliament. The following persons are also Special Commis- sioners for the purposes mentioned in connection with such persons respectively in the following list : Oovemor i The Governor and Directors of the Company and Direc- tors of of the Bank of England are Commissioners for Bank of England. the purpose of assessing and charging the duties of income tax in respect of all annuities pay- able to the said company at the receipt of the exchequer, and the profits attached to the same and divided amongst the several proprietors; and in respect of all annuities, dividends, and shares of annuities, payable out of the revenue of the United Kingdom to any persons, cor- 1 5 & 6 Yict. c. 35, s. 24. INCOME TAX ACTS. * porations, or companies whatever, and en- Chap. I. trusted to the said governor and company for such payment ; and in respect of all profits and gains of the said company chargeable under Schedule D. ; and in respect of all other divi- dends, annuities, pensions, and salaries payable by the said company ; and in respect of all other profits chargeable with income tax and arising within any office or department under the management or control of the said governor and company. 1 The Commissioners for the Eeduction of the Commis- sioners for National Debt are Commissioners for the pur- Reduction ., ,. . ofNa- pose of assessing and charging duties of income tionai tax in respect of all annuities payable by them out of the revenue of the United Kingdom; and in respect of all salaries and pensions pay- able in any office or department under their management or control. 2 The Lord Chancellor, the judges, and the Lord Chan- principal officer or officers of each Court or ceiior, department of office under her Majesty through- &c. out Great Britain, whether the same is civil, judicial, or criminal, ecclesiastical or commis- sary, military or naval, have authority to appoint Commissioners from amongst the officers of each Court or department of office respectively, and 1 5 & 6 Viet. c. 35, s. 28. 2 5 & 6 Viet. c. 35, s. 30. INCOME TAX ACTS. Chap. i. the persons so appointed, or any three or more of them, not in any case exceeding seven, are Commissioners for assessing and charging duties of income tax in relation to the offices in each such Court or department accordingly. But in relation to each department of office, not being one of her Majesty's Courts, civil, judicial, or criminal, or an ecclesiastical or commissary Court, the Treasury, whenever they think it expedient, settle and determine in what par- ticular departments Commissioners shall not be appointed ; and in such case they settle and determine in what other department of office the officers of that department in which Commis- sioners are not appointed shall be assessed. And whenever there is default in the officers of any department, or in any Court aforesaid, in ap- pointing Commissioners, the Treasury appoint fit and proper persons to be Commissioners in the several Courts and departments of office aforesaid, for which they are appointed, from amongst the officers in the several departments respectively, uniting, in cases requiring the same, two or more offices under the same Com- missioners, but nevertheless with distinct officers from each office so united for assessing the duties of income tax. The Treasury have au- thority to determine any dispute which may arise touching the department in which any office is executed. INCOME TAX ACTS. 9 1 The Speaker and the principal clerk of either Chap. I. House of Parliament, the principal or other The officers in the several Counties Palatine and the andPrfn- Duchy of Cornwall, or in any ecclesiastical Court, or in any inferior Court of Justice, whether of law or equity, or criminal or justiciary, or under offers O f any ecclesiastical body or corporation, whether aggregate or sole, throughout Great Britain, &c - have authority to appoint Commissioners from amongst the persons executing offices in either House of Parliament, or in their respective departments of office, and the persons so ap- pointed, or any three of them, not in any case exceeding seven, are Commissioners for assessing and charging the duties of income tax in rela- tion to the places, offices, and employments of profit in each House of Parliament, and in each such department respectively. The names of the Commissioners appointed must be transmitted to the Board, and in default of appointment as aforesaid, the appointments are made by the Treasury. 2 The Mayor, Aldermen, and Common Council, or the principal officers or members, by whatever name they are called, of every corporate city, i 5 & 6 Yict. c. 35, s. 31. 3 5 & 6 Viet. c. 35, s. 32. This section was repealed by s. 9 of the Customs and Inland Eevenue Act, 1876 (39 & 40 Viet. c. 16), but was revived by sect. 7 of the Customs, Inland Eevenue, and Savings Bank Act, 1877 (40 & 41 Viet. c. 13). INCOME TAX ACTS. Chap. I. borough, town, or place, and of every cinque port throughout Great Britain, or any three or more of them, not exceeding seven, are Commissioners for assessing and charging the duties of income tax in relation to the public offices, or employments of profit, in such city, corporation, and cinque port, and in every guild, fraternity, company, or society, whether corpo- rate or not corporate, within such city, corpora- tion, or cinque port. 1 The appointment of Commissioners in relation to the duties of income tax upon the offices, and em- ployments of profit, mentioned in the foregoing list, must be notified to the Board within one calendar month after the 5th of April in every year, and in default of notification the appointment devolves upon the Treasury, to whom the Board notify the default. If the appointment is not made by the Treasury within a month after the default is notified to them, the General Commissioners for the district act until another appointment is made. 2 All persons appointed Special Commissioners are required, before acting in relation to 3 the duties in Schedule D., to take 4 the prescribed oath, which may be administered by a General or Special Commissioner, and any Special Commissioner acting (except in administering the 1 5 & 6 Viet. c. 35, s. 33. 2 5 & 6 Yict. c. 35, s. 38. 3 As to these duties, see post, pp. 102 et seq. 4 5 & 6 Yict. c. 35, s. 16. INCOME TAX ACTS. 11 oath) before he has taken the oath, is liable to a Chap. i. penalty of 100/. The Commissioners for General Purposes. The Commissioners for General Purposes, or, as we shall call them shortly, the General Commissioners, are selected from another body of Commissioners, called the Land Tax Commissioners. We must begin, Land Tax therefore, by explaining who the Land Tax Com- sioners. missioners are. In the first place, * all persons who act as justices of the peace for any county, shire, riding, division, or district, and who possess the estate qualification presently referred to, are Land Tax Commissioners within their respective counties, &c. In addition to these ex qfficio Commissioners, certain other persons holding good positions in the localities in which they reside are appointed from time to time by Act of Parliament to be Land Tax Com- missioners for the several counties, divisions of coun- ties, cities, boroughs, and other places, which form 2 separate districts for the purposes of the land tax. 1 7 & 8 Geo. IV. c. 75, s. 1. 2 By " districts " we must be understood here to mean the " divisions of the country for which separate Commissioners act," not the "parishes and other districts for which separate Assessors act." The case of Reg. v. Land Tax Commissioners for the Tower Division (2 E. & B. 694) introduced the use of the word "division" for the Commissioners' district, and of the word " district" for the Assessors' district. The " divi- sions" may be found in 38 Geo. III. c. 5, s. 2. The enact- ment is concerned with the proportions in which the several "divisions" are to be assessed and taxed, and it proceeds 12 INCOME TAX ACTS. Chap. I. Formerly it was the custom to introduce their names and addresses and the localities in which they were empowered to act into the Act by which they were appointed ; but in the year 1869 the practice seems to have commenced, which has since been continued, of including these particulars in a schedule, which is signed by, and deposited with, the clerk of the House of Commons, and afterwards published in the London Gazette. l The last Act appointing Land Tax Commissioners was passed on the 25th June, 1886, and, as it refers to no Act of the same kind earlier than the 7 & 8 Geo. IV. c. 75, we may infer that the names of all existing Land Tax Commis- sioners, who are not justices of the peace, may be found in that and the subsequent Acts which have been passed for the same purpose, or (since 1869) in the schedules referred to by these Acts, and pub- lished in the London Gazette. For the estate qualification required of a Land Tax Commissioner, and the oaths to be taken by him before exercising his office, we must refer to the enactments enu- The merated 2 below. The General Commissioners are General Commis- sioners. U p 0n ^ e p r i nc ipi e O f stating the proportion in which some particular city, town, borough, liberty, or place in a county is to be assessed and taxed, and then the proportion in which the rest of the county is to be taxed. The land tax, which had before been an annual tax, was made perpetual by 38 Geo. in. c. 60. 1 49 & 50 Yict. c. 47. 2 38 Geo. III. c. 5, ss. 49, 50, 9295; 38 Geo. HI. c. 48, ss. 1, 3 ; 9 Geo. IV. c. 38, s. 3. INCOME TAX ACTS. 13 selected from the Land Tax Commissioners in the Chap. I. following manner : l The Board, whenever they deem it necessary to do so, convene, by notice inserted in the London Gazette, meetings of the Land Tax Commissioners ; and thereupon the Land Tax Com- missioners for each county, riding, shire, or division of the same, and for each city, borough, cinque port, liberty, franchise, town, and place, for which separate Commissioners have been appointed with exclusive jurisdiction for putting in execution the 2 Land Tax Acts within the same, meet at the time and place appointed by the notice, within the district for which they act, and there choose such of the Land Tax Commissioners appointed for such district as possess the qualifications 3 presently mentioned, and are fit and proper persons to act as General Commissioners for the same district. The names of the persons chosen to be General Commissioners are set down in writing in the order in which the major part of the Land Tax Commissioners present think fit they should be appointed General Commissioners ; and any seven, or any number less than seven not less than three, of the persons whose names are set down 1 5 & 6 Viet. c. 35, s. 4 ; 12 & 13 Yict. c. 1, s. 17. 2 The phrase "Land Tax Acts" is used in the sense in which it is used in the Taxes Management Act, 1880 (43 & 44 Viet. c. 19), where it is denned (s. 5) as " any Act or part of any Act relating in any way to the assessment or redemption of the Land Tax." 3 See post, pp. 1820. 14 INCOME TAX ACTS. Chap. I. to act as General Commissioners, in the order in which their names are set down, are the General Commissioners for the district. Vacancies among the General Commissioners are supplied from a list made by the Land Tax Commissioners in the way If number we shall presently mention. If the Land Tax of persons . . in district Commissioners present at any meeting cannot find qualified to ,_ _T _ m . . "be General amongst the Land 1 ax Commissioners lor the sionersis district seven persons to act as General Commis- insuffi- .-, -\ ii cient. sioners, and seven to supply vacancies, they may appoint any persons residing within the district and possessing the required qualification, who are in their judgment fit and proper persons, although not Land Tax Commissioners, to be General Commis- sioners, until the two numbers of seven and seven have been supplied ; and if they cannot find amongst the Land Tax Commissioners of the district, and such other persons as have been referred to, the requisite number of fourteen, they may select so many persons as may be required to make up that number from the Land Tax Commissioners acting for any adjoining or neighbouring district. 2 In the case of a city, borough, town, or other place of the kind, if a sufficient number of persons capable of acting as General Commissioners are not chosen or appointed, any person qualified to act as General Commissioner for the county at large, or riding, or 1 See post, pp. 15, 16. 2 5 & 6 Yict. c. 35, s. 6. INCOME TAX ACTS. 15 shire, in, or adjoining to, which such city, &c. is Chap. I. situate, may be chosen to act as General Commis- sioner for such city, &c. ; and in the case of a city, &c., as of a county, &c., a person otherwise duly qualified, and resident within the city, &c., although not a Land Tax Commissioner, may be appointed a General Commissioner in case of need. 1 Where seven persons duly qualified have been chosen to act as General Commissioners for any district, no other person may interfere. 2 In case any General In case any General Commissioner dies, or declines to act, or having Commis- begun to act declines to act any further, the re- maining General Commissioners choose one of the persons whose names appear on the vacancy list, who, if he has been chosen in the same manner as the person in regard of whom the vacancy occurs, is appointed to act in his place. 3 The vacancy list is The made thus : 4 the Land Tax Commissioners at their list, meeting, after choosing General Commissioners, go on to set down the names of persons qualified to be General Commissioners, and any seven, or any num- ber less than seven not less than three, of these last- named persons, whose names appear in the Land 1 5 & 6 Yict. c. 35, s. 4. Except, of course, when expressly authorised to do so. That this is a necessary qualification must be already evident; it is provided for by the words contained in the section quoted, " except as hereinafter mentioned," and its extent will appear as we proceed. 2 5 & 6 Viet. c. 35, s. 7. 3 5 & 6 Yict. c. 35, s. 6. 4 5 & 6 Yict. c. 35, ss. 4, 7. It) INCOME TAX ACTS. Chap, i. Tax Commissioners' list next in order after the names of those persons who have been chosen General Commissioners are Commissioners to supply vacancies in the body of General Commissioners. If the Land Tax Commissioners cannot find within their district seven persons to put upon the vacancy list, they may fill up the number in the same manner as in like case they may fill up the number of General Commissioners. The vacancy list is made up and renewed from time to time as need requires by the Land Tax Commissioners at their meetings ; and if it happens at any time to be defective, so that the due number of Commissioners cannot be supplied from it, it is filled up and renewed by the acting in certain General Commissioners for the district. In certain towns per- cities and towns persons may be chosen to act as General Commissioners together with the General with the Commissioners who have been chosen in the ordi- Commis- nar 7 wav - ^hus, in the City of London two Com- sioners. m i ss ioners and two to supply their vacancies may be named by the Mayor and Aldermen of London out of eight persons, four of whom must be aldermen, to be returned to them by the Common Council ; two other Commissioners and two to supply their vacan- cies may be named by the Governor and Directors of the Bank of England ; and one other Commissioner and one to supply his vacancy may be named by each of the following companies, viz. : the Governor 1 5 & 6 Yict. c. 35, s. 5. INCOME TAX ACTS. 1 * and Directors of the Royal Exchange Assurance Chap. i. Company, the Governor and Directors of the Lon- don Assurance Company, the Directors for conduct- ing and managing the affairs of the East and West India Dock Company, and the Directors for conduct- ing and managing the London Dock Company, and the Saint Katharine Dock Company respectively for the time being. In the City of Norwich, the magis- trates and justices of the peace acting in, and for, the city may choose eight persons to be Commissioners and eight persons to supply their vacancies, not more than four of the first eight, and four of the second eight, to be chosen from among the magistrates and justices, and the remainder to be chosen from among the inhabitants of the city. In each of the following cities and towns, viz. : Bristol, Exeter, Kingston- upon-Hull, Newcastle - upon - Tyne, Birmingham, Liverpool, Leeds, Manchester, King's Lynn, and Great Yarmouth, the magistrates and justices of the peace acting in, and for, the city or town, together with the justices of the peace acting in, and for, the county, riding, or division, in which the same is situ- ate, may choose eight persons to be Commissioners, and eight to supply their vacancies. l The names of all persons so chosen must be returned to the Board. 2 If in any district there is neglect in appointing If in any General Commissioners, or the General Commis- there is 1 5 & 6 Viet. c. 35, s. 5, and 12 & 13 Viet. c. 1, s. 17. 2 5 & 6 Viet. c. 35, s. 8, and 12 & 13 Viet. c. 1, s. 17. INCOME TAX ACTS. Chap. I. sioners appointed neglect, or refuse, to act, or neglect in having begun to act decline to act further, the Land General Tax Commissioners for the district, on notice of the sioners, S ~ neglect to appoint, &c., being given to their Clerk by General an 7 Surveyor authorized by the Board to give such SoSera iS " n tice, being duly qualified to act as General Com- deciineto m i ss i ners > or an 7 of them not exceeding seven in act - number, must act as General Commissioners ; and if there is in any district a want of General Commis- sioners, the Commissioners for any adjoining district in the same county, riding, division, or shire, if possessing the required qualification, must, on re- ceiving like notice, act as General Commissioners, by themselves or in concurrence with any persons willing to act as General Commissioners in the district in which such want occurs. If the persons before mentioned, to whom notice as aforesaid has been given, do not, within ten days after receiving the notice, take upon themselves to act as General In certain Commissioners, the l Special Commissioners must act cases of default, as General Commissioners within the district. 2 The Commis- estate qualification required for any district, or divi- sioners . T, , , ., must act. sion oi any county in Ji/ngland, except the county E uaiifi ^ -^ onmou th, an( i f r an y of ^ ne ridings of the tionfor county of York, and for the cities or towns of General . Commis- London, Westminster, Bristol, Exeter, Kingston- sioners in England, upon-Hull, Newcastle - upon - Tyne, Norwich, Bir- 1 See ante, pp. 5, 6. 2 5 & 6 Yict. c. 35, s. 10. INCOME TAX ACTS. mingliam, Liverpool, Leeds, Manchester, King's Chap I. Lynn, and Great Yarmouth, is the possession of except iu lands, tenements, or hereditaments, freehold, or mouth- copyhold, or leasehold whereof not less than seven s years are unexpired, in Great Britain, of the value of 200/. a year, or more, over and above all ground rents, incumhrances, and reservations, payable out of the same ; or the possession of personal estate of the value of 5,000/., or of a personal estate, or an interest therein, producing an annual income of 200/. ; or the possession of lands, tenements, or hereditaments, and personal estate or an interest therein, which together are of the annual value of 20 O/. ; or being the eldest son of some person who is possessed of an estate of thrice the value required as the qualification of a Commissioner in right of his own estate. One hun- dred pounds of personal estate is, for the purpose of qualifying in right of the Commissioner's own estate, reckoned as equivalent to 41. a year ; and an interest from personal estate of 4L a year as equivalent to 100/. of personal estate. ir rhe estate qualification re- Estate quired for the office of General Commissioner in Son f of any district or division of the county of Mon- qommis- mouth, or of any county in Wales, or in any city, borough, cinque port, liberty, franchise, town or place, in England or "Wales, other than the cities or towns before mentioned, is the possession of an estate of the nature, and of four-fifths of the value, 1 5 & 6 Yict. c. 35, s. 11. 20 INCOME TAX ACTS. Chap. I. required for the estate of a Commissioner acting for a district, or division, of a county in England (other than the county of Monmouth), or being the eldest son of a person possessed of an estate of thrice the value required as the qualification of a General Commissioner for the same county, &c. l No estate consisting of lands or tenements for the qualifi- cation of a Commissioner need be situate in the county, riding, division, or shire, for which the person whose qualification it constitutes is a Commissioner. Proof of The proof of qualification lies on the person acting tionon as Commissioner. 2 Every General Commissioner acting. before he begins to act in relation to the 3 duties con- takeVb be ^ ne( ^ ^ n Schedule D. must take the 4 prescribed oath, Commis w hi n anv one ^ the persons appointed General sioner. Commissioners may administer. The oath is sub- scribed by the person taking it, and any General Com- missioner acting in relation to the duties in Schedule D. (except by administering the oath) is liable to a penalty of 100/. The Additional Commissioners. 5 The Additional Commissioners are appointed by the General Com- missioners. The mode of appointment is as follows : Whenever the General Commissioners for any district 1 5 & 6 Yict. c. 35, s. 14. 2 5 & 6 Yict. c. 35, s. 38. 3 As to these duties, see post, pp. 102 et seq. 4 The oath is given in Schedule F. of 5 & 6 Yict. c. 35. 5 5 & 6 Yict. c. 35, s. 16. INCOME TAX ACTS. think it expedient that the powers given by the In- Chap. I. come Tax Acts should be executed by Commissioners other than, and in addition to, General Commissioners appointed in the way we have described, and at the same time do not desire to exercise the power given them, as we shall presently explain, to appoint a greater number of General Commissioners, they, at any meeting held for that purpose, set down in writing lists of the names of such persons residing within their respective districts as are in their opinion fit and proper persons to act as Additional Commis- sioners, and have the estate qualification required of an Additional Commissioner, that is, an estate of the nature, and of one-half the amount, required for the qualification of a General Commissioner in the same district. The General Commissioners may ap- point so many Additional Commissioners as they in their discretion, after taking into consideration the size of the district, and the number of persons to be assessed therein, think requisite. The lists of the names of the persons appointed Additional Commis- sioners are, when signed by the General Commis- sioners, sufficient authority for the persons appointed Additional Commissioners to act in that capacity. 2 Notice in writing of their appointment is given by the General Commissioners to the Additional Com- missioners, through the Assessors of the parishes or 1 See post, pp. 22, 23. 2 5 & 6 Viet. c. 35, s. 19. 22 INCOME TAX ACTS. Chap. i. places in which the Additional Commissioners reside; and the notice requires them to assemble on a day, not more than ten days after the date of the notice, when the oath which they are required to take is administered to them by the General Commissioners. 1 The persons appointed to supply vacancies among the General Commissioners in any district may be appointed Additional Commissioners, until their ser- vices are required as General Commissioners. 2 The General Commissioners may, whenever they think proper, divide the Additional Commissioners into dis- trict committees, and allot to each committee distinct parishes, wards, or places, in which such committees may act separately. Not more than seven persons may act together as Additional Commissioners for the same district, if not formed into several divisions in the manner above mentioned ; and no more than seven persons may act as Additional Commissioners on any committee into which the Additional Com- missioners for the district are divided. When more than seven Additional Commissioners attend any meeting, the seven first in order on the list then present act, and the rest withdraw. Two Additional Commissioners form a quorum at any meeting of Acting their body. 3 If the acting General Commissioners, Commis- whether they have been chosen, or act by virtue of sioners 1 5 & 6 Viet. c. 35, s. 16. 2 5 & 6 Yict. c. 35, s. 20. 3 5 & 6 Yict. c. 35, s. 21. INCOME TAX ACTS. 23 their appointment as Land Tax Commissioners, think Chap. I. it expedient that a greater number than seven General may ap- Commissioners, possessing the required estate quali- fication, should be appointed for any district, they may appoint more General Commissioners, not exceeding seven in number, instead of appointing Additional Commissioners, observing with regard to such appointment the same rules as in the first appointment of General Commissioners, but without adding any persons to supply their vacancies. If the General Commissioners avail themselves of General this power to increase their number, they choose by sioners lot not less than two, nor more than seven, of their Additional own body, to execute the office of Additional Com- s ioners. S " missioners, and the remaining members of their body act as General Commissioners. If no Additional Commissioners are appointed specially to execute the powers vested in Additional Commissioners, the Acting General Commissioners, whether chosen, or acting by virtue of their appointment as Land Tax Commissioners, divide themselves, so that two of them at least are appointed to execute the powers vested in Additional Commissioners. If, after such appoint- ment as last mentioned, there are not two persons at least remaining qualified to act as General Commis- sioners for the district, then the persons qualified to act as General Commissioners for any adjoining dis- trict may act as General Commissioners in the district in which the deficiency has occurred. All persons appointed Additional Commissioners are required, 24 INCOME TAX ACTS. Chap. I, before acting in relation to the l duties in Schedule D., to take the 2 prescribed oath, which may be ad- ministered by a General or Special Commissioner; and 3 every person acting as Additional Commissioner in relation to the duties in Schedule D. before he has taken the oath, is liable to a penalty of 100/. Clerks to Commissioners. 4 The General Commis- sioners in each district, at their first meeting in every year, which must be held before the 10th April, elect a fit person to be their Clerk ; and the person who is elected Clerk becomes by virtue of such election sole Clerk to the Commissioners for the year, and is not removeable except for just cause, and at a meeting of the Commissioners for that purpose duly summoned by notice in writing, signed by the Commissioners, and served on each of the Commissioners who have qualified in, and for, the district, by the major part of the Commissioners present. The Clerk is not to take or receive any fees, gratuities, or perquisites, for any- thing done by him in his official character, except from the person appointed by the Board to pay him the allowances he is entitled to, which are set out in the first schedule to the 5 Taxes Management Act, 1 As to these duties, see post, pp. 102 et seq. 2 The form of the oath is given in Schedule F. of 5 & 6 Viet. c. 35. 3 5 & 6 Viet. c. 35, s. 38. * 5 & 6 Viet. c. 35, s. 9; 43 & 44 Viet. c. 19, s. 41. 6 43 & 44 Viet. c. 19. INCOME TAX ACTS. 25 1880. Any vacancy occurring in the course of the Chap. I. year by the death, dismissal, or resignation of any Clerk is filled up by the General Commissioners elect- ing a person to be Clerk for the remainder of the year. Any Clerk or Clerk's assistant wilfully obstructing, or delaying, the execution of the Income Tax Acts, or negligently conducting, or wilfully misconducting, himself in the exercise of his office, renders himself liable to a penalty of 100/., and dismissal from his office, and becomes incapable of again acting as Clerk or Clerk's assistant. ] The Clerk to the Greneral Com- missioners for any district, or his assistant, acts also as Clerk to the Additional Commissioners for the same district. 2 Every person acting as Clerk, or Clerk's assistant, in relation to the 3 duties in Schedule D. is required to take the 4 prescribed oath, which may be administered by a Greneral, or Special, or Additional Commissioner ; and 2 any person acting as Clerk or Clerk's assistant in relation to the duties in Schedule D. before he has taken the oath is liable to a penalty of 100 /. Surveyors. 5 The surveyors are officers appointed 1 5 & 6 Viet. c. 35, s. 19. 2 5 & 6 Yict. c. 35, s. 38. 3 As to these duties, see post, pp. 102 et seq. 4 The form of the oath is given in Schedule F. of 5 & 6 Yict. c. 35. 5 5 & 6 Yict. c. 35, s. 37 ; 43 & 44 Yict. c. 19, s. 17. The Inspectors, of whom frequent mention is made in the Acts relating to income tax, are chosen from the ranks of Sur- E. C 26 INCOME TAX ACTS. Chap. I. from time to time by the Treasury for the survey and inspection of the duties of income tax. The Treasury appoint their allowances and salaries. ] Every Sur- veyor is required, before he begins to act in relation to the 2 duties in Schedule D., to take the prescribed oath, which any General, or Special, or Additional Commissioner may administer; and, if he acts in relation to the duties in Schedule D. before he has taken the oath, he is liable to a penalty of 100/. A Surveyor who 4 wilfully makes a false and vexatious charge of duty, or wilfully delivers or causes to be delivered to the General Commissioners a false and vexatious 5 certificate of charge of duty, or a false and vexatious 6 certificate of objection to any supplemen- tary return, or is guilty of any fraudulent, corrupt, or illegal practices in the execution of his office, or knowingly or wilfully, through favour, undercharges or omits to charge, any person, incurs a penalty of 100/. for every such offence, and on conviction will be discharged from his office. Assessors Assessors. The Assessors are appointed either by appoint - veyors of experience. As regards the public, their duties seem to be similar to those of Surveyors. 1 5 & 6 Viet. c. 35, s. 38. 2 As to these duties, see post, pp. 102 et seq. 3 The form of the oath is given in Schedule F. of 5 & 6 Viet. c. 35. 4 43 & 44 Viet. c. 19, s. 18. 5 As to the certificate of charge, see post, p. 193. 6 As to the certificate of objection to a supplementary- return, see post, p, 194. INCOME TAX ACTS. 27 the General Commissioners, or, in certain cases, by Chap. I. other persons. The mode of appointment by the merit by l General Commissioners is as follows : l The General Commissioners for the district, before the 10th April S1< in every year, direct their precept to such inhabitants of each 2 parish within their district, and to such num- ber of such inhabitants as they think most convenient, to be Assessors for such parish, requiring the persons to whom such precept is addressed to appear before the General Commissioners of the district at such place, and such time, not exceeding ten days after the date of the precept, as the Commissioners appoint. 3 Any person to whom such precept is addressed wil- fully neglecting, or refusing, to appear before the General Commissioners according to the tenour of the precept, or appearing, but refusing to submit to be appointed Assessor, incurs a penalty of 10/. When. 1 43 & 44 Viet. c. 19, s. 42. s By the Eevenue Act, 1884 (47 & 48 Viet. c. 62), s. 6, the parish for purposes of income tax is made coterminous with the parish for purposes of poor law administration. And if, in the opinion of the Board, any parish is so large that it ought to be divided into districts, with separate Assessors and Collectors, this may be done by the Board with the sanction of the Treasury ; and the Board may again, with the like sanction, alter, or annul, such division. After any such division, and whilst it continues, each district of the divided parish is treated as a parish in itself for purposes of income tax. The above-mentioned section is amended by 53 & 54 Viet. c. 8, s. 27, with regard to the Inner Temple, Middle Temple, and Gray's Inn, and the parish of Lambeth. 3 43 & 44 Viet. c. 19, s. 46. c2 28 INCOME TAX ACTS. Chap. I. the inhabitants who have been summoned appear before the General Commissioners, the latter appoint such of them as they think proper to be Assessors for the parish, and give them instructions how they are to make their l certificates and assessments. 2 Any person appointed an Assessor by the General Commis- sioners who wilfully neglects, or refuses, to perform his duty as Assessor, or to charge and assess himself and all other persons chargeable, or to make his assess- Period for ment according to law, incurs a penalty of 20/. 3 The which appoint- appointment is for the year commencing on the 6th made. April in each year, and continues until other Assessors are appointed for the same parish. Where an Assessor is continued in office beyond the year for which he is appointed, notice thereof is given him by the General Commissioners, or by the Surveyor; and by such notice the Assessor may be required to attend on a day, and at a place, named in the notice, then and there to receive, and take charge of, all notices and papers to be delivered to him for the due execution of his office. In a parish where two able and suffi- cient inhabitants cannot be found, the General Com- missioners for the district in which the parish is situate nominate and appoint fit persons, residing near such parish, to be Assessors for the parish. If a failure happens in the appointment of an Assessor 1 As to certificates and assessments of Assessors, see post, Chap. III. 2 43 & 44 Yict. c. 19, s. 46. 3 43 & 44 Viet. c. 19, s. 42. INCOME TAX ACTS. 29 for any parish, whereby the assessment of the duties Chap. I. of income tax is likely to be delayed, the magistrates or justices of the peace having jurisdiction in or over such parish, or any two of them, on notice of such default given them by the Surveyor, appoint an Assessor, observing the rules and regulations pre- scribed for the appointment of Assessors by Greneral Commissioners. l Any person appointed an Assessor Penalty by the magistrates or justices who wilfully neglects, or dining refuses, to take upon himself the office, or to perform his duty as Assessor, or to charge and assess himself and all other persons chargeable, or to make his assess- ment according to law, incurs a penalty of 50/. 2 In Where in any parish any parish where Assessors are not duly appointed, or Assessors being appointed do not take upon themselves the office duly ap- within the time limited, or where the Assessors for any or do not former year upon whom the duty of Assessors devolves office^ do not take upon themselves the office of Assessors at or before the time limited, the Surveyor of the district in which the parish is situate may execute the duty of Assessor of such parish until Assessors are appointed and take upon themselves the office. In the Metro- Appoint- ment of polis, as defined by the 3 Yaluation (Metropolis) Act, Assessors 1 43 & 44 Viet. c. 19, s. 46. 2 43 & 44 Viet. c. 19, s. 43. 3 32 & 33 Viet. c. 67. The term " Metropolis," as used in this Act, means (sects. 3 and 4) unions, and parishes not in union, which are for the time being either wholly, or for the greater part in value thereof, respectively situate within the jurisdiction of the Metropolitan Board of Works, appointed under the Metropolitan Management Act, 1855 (18 & 19 30 INCOME TAX ACTS. Chap. I. 1869, the General Commissioners do not appoint Assessors, but the Surveyors acting therein are the in "the metro- polis." Yict. c. 120). The jurisdiction of the Metropolitan Board of Works, which has now ceased to exist, having been abolished by the Local Government Act, 1888 (51 & 52 Yict. c. 41), extended over the Metropolis, as denned by sect. 250 of the last-mentioned Act ; that is to say, the City of London and the following parishes and places : St. Marylebone. St. Pancras. Lambeth. St. George, Hanover-square. St. Mary, Islington. St. Leonard, Shoreditch. Paddington. St. Matthew, Bethn'al Green. St. Mary, Newington, Surrey. Camber well. St. James, Westminster. *?}** Chelsea. St. Mary Abbott, Kensington. St. Luke, Middlesex. St. George-the-Martyr, South- wark. Bermondsey. St. George -in- the -East. St. Martin -in-the-Fields. Mile End Old Town, Hamlet of. Woolwich. Rotherhithe. St. John, Hampstead. St. Mary, Whitechapel. Christchurch, Spitalfields. St. Botolph Without, Aldgate, Middlesex. Holy Trinity, Minories. St. Katherine, Precinct of. Mile End New Town, Hamletof. Norton Folgate, Liberty of. Old Artillery Ground. Tower, District of. St. Paul, Deptford (including Hatcham). St. Nicholas, Deptford. Greenwich. Clapham. Tooting Graveney. Streatham. *St. Mary, Battersea (excluding Penge). Wandsworth. Putney (including Roehamp- ton). Hackney. St. Mary, Stoke Newington. St. Giles- in-the-Fields. St. George's, Bloomsbury. St. Andrew, Holborn -above - Bars. St. George-the-Martyr. St. Sepulchre, Middlesex. Saffron Hill, Hatton Garden, Ely-rents and Ely-place. Glasshouse Yard, The Liberty of. St. Anne, Soho. St. Paul, Covent Garden. St. John the Baptist. Savoy, or Precinct of the Savoy. St. Mary-le- Strand. St. Clement Danes. Liberty of the Rolls. St. Peter and St. Paul, Ham- mersmith. Fulham. St. Anne, Limehouse. St. John, Wapping. St. Paul, Shadwell. Ratcliff, Hamlet of. All Saints', Poplar. St. Mary, Stratford-le-Bow. St. Leonard, Bromley. INCOME TAX ACTS. 31 Assessors, for the l duties of income tax under Sche- Chap. I. dules A. and B., upon any property in the Metropolis. 2 No person inhabiting any city, borough, or town No in- corporate, can be compelled to be an Assessor for a of any place outside the limits of such city, borough, or town, can be 3 Every person appointed an Assessor is required on to^ his appointment, and before he acts, to make the pre- scribed declaration ; and, 4 if he neglects, or refuses Ol to do so, he incurs, if the neglect or refusal follows tion to be upon a precept addressed to him by the General Com- Assessors. missioners, a penalty of 10/. ; if it occurs after appoint- ment by the General Commissioners, a penalty of 201. ; and if after appointment by the magistrates or jus- tices, a penalty of 50/. 5 The remuneration of Asses- Remuner- ation of sors is prescribed in the first schedule to the 6 Taxes Assessors. Management Act, 1880. The foregoing are the Christchurch. St. Saviour's (including the Liberty of the Clink) . Charlton - next -Woolwich . Plumstead. Eltham. Lee. Kidbrooke. Lewisham (including 1 Sydenham Chapelry). *Penge, Hamlet of. St. Thomas, Southwark. St. John, Horselydown. The Close of the Collegiate Church of St. Peter. The Charterhouse. Inner Temple. Middle Temple. Lincoln's Inn. Gray's Inn. Staple Inn. Furnival's Inn. St. Olave. 1 As to these duties, see post, pp. 44, 45, 90, 91. 2 43 & 44 Viet. c. 19, s. 44. 3 43 & 44 Yict. c. 19, s. 45. The declaration is given in the section referred to. 4 43 & 44 Viet. c. 19, s. 46. s 43 & 44 Viet. c. 19, s. 47. But see also 48 & 49 Viet. c. 51, s. 25. 6 43 & 44 Viet. c. 19. 32 INCOME TAX ACTS. Chap. I. general provisions relating to the appointment of Special Assessors, but special provision for the exercise of forexer* 8 the duties of Assessor is sometimes made in the duties of Act granting the duties of income tax for the year. Assessors may be thfincLe Collectors. Collectors are appointed by the Land rtife Ct Tax, and General, Commissioners for each x parish or year. group of parishes. ( 2 A group of parishes is formed by the Land Tax Commissioners for the district in which the group is situate, with the consent of the Board, for purposes of collection ; and, when the group is formed, it is regarded as one parish for the purposes of collection, but for such purposes only. Where parishes have been grouped, and the grouping proves inconvenient, the Land Tax Commissioners may, with the consent of the Board, dissolve the group- ing, either as regards all, or some, or one, of the Appoint- parishes so grouped.) The mode of appointment of meiit of Collectors. Collectors by the Land Tax and General Commis- sioners is as follows. s The Land Tax Commissioners and the General Commissioners for a district, in the Nomina- month of April in each year, nominate one or more tion. 1 As to the income tax parish being coterminous with the poor law parish, and as to the powers of dividing parishes into districts, with separate Assessors and Collectors, see p. 27, note 2 , ante. 2 43 & 44 Viet. c. 19, s. 72. The powers of "grouping" given to the Board must now be exercised consistently with the provisions of s. 6 of the Eevenue Act, 1884 (47 & 48 Viet. c. 62). 3 43 & 44 Yict. c. 19, s. 73. INCOME TAX ACTS. 33 able and sufficient person or persons, resident within Chap. I. each parish, or group of parishes, within the district, to the office of Collector of Taxes for such parish, or group of parishes. The fact of the nomination of a person to be Collector must be notified to him, per- sonally, or by a registered letter sent through the general post. Acceptance of the office is not com- Accept- pulsory, but, if the person appointed is unwilling to office not take the office upon himself, he must within fourteen pu^ory. days after the notification to him of his nomination, Notice m J ' must be either personally or by registered letter addressed to given if office de- the Clerk to the Commissioners, signify his refusal to dined, accept the office. If he does not give such notice, and fails, when required by the Commissioners, to attend a meeting for the purpose of receiving his appointment and warrant as a Collector, he incurs a Collector's penalty of 20/. On the expiration of the time limited for declining the office, viz., fourteen days from the date of the notification to the person nomi- nated of his nomination as Collector, the Commis- sioners proceed to appoint such person or persons as Appoint- they think fit, who has, or have, been nominated, and not declined the appointment, to be Collector or Collectors for the parish, or group of parishes, for which he or they have been nominated. The fact of Notifica- the appointment of a person to be Collector must be appoint- notified to him, personally, or by registered letter sent through the general post. In any case in which Where a a person nominated as Collector for any parish, or nominated group of parishes, declines office, the Commissioners office. S c5 INCOME TAX ACTS. Chapel. mav nominate some other able and sufficient person if there is to the office. In the event of there being no able cient per- and sufficient person within any parish, or group of son within . , . ~ . . . . . any parish parishes, the Commissioners may nominate an able and sufficient person resident in a neighbouring ifectorf r P 81 "* 8 ^ or g rou P ^ parishes. If the Collector for any any parish parish has not been appointed by the 31st May in has not beenap- any year, the power of appointing a Collector for such parish for that and every subsequent year vests in the Board, and the Board must appoint a Col- If a Col- lector accordingly. In the event of the death of a lector dies & J in the Collector f or any parish, or group of parishes, in the the year, course of any year, or before his accounts for such year have been closed, the Board, or the Land Tax, and General, Commissioners, as the case may be, by whom such Collector was appointed, may appoint to the vacant office such person or persons willing to if vacancy act, as they may think fit. If a vacancy occurring by C deaSi g by the death of a Collector is not filled within forty within days from the date of death by the Land Tax, and arty ys. Q. enera ^ Commissioners, where the appointment has to be made by them, the power of filling such The Board vacancy for such year vests in the Board. l The may re- J J quire se- Board may, whenever they think fit, give notice to be given the Land Tax, and General, Commissioners that they lectors. require all, or any, of the persons nominated or ap- pointed Collectors for any parish, or group of parishes, or division, specified in the notice to give security to 1 43 & 44 Viet. c. 19, s. 74. INCOME TAX ACTS. 3-3 the satisfaction of the Board for the due collecting, Chap. I. accounting for, and paying over, of the moneys collected, or to be collected, by such persons re- spectively, and for the due performance of their duties as Collectors ; and the Board may also cause the like notice to be given to any person who has been appointed Collector. After such notice given by the Board to the Commissioners, they may not appoint any person to be Collector for any parish, group, or division, specified in the notice, unless he has pre- viously given security to the satisfaction of the Board; and in case any person who has been appointed Col- lector, and to whom such notice is given by the Board fails to give security within the time limited by the notice for that purpose, his nomination, and appoint- ment, and authority, as Collector, ceases at the end of that time. 1 If after such notice given by the Board If after ., , . -I 1 j-i ; o such notice there is neglect, or delay, in the appointment of there is Collectors, who previously have given security to the delay in Crown, or a failure on the part of a person nomi- nated, or appointed, Collector to give such security, c the Board may appoint a Collector, or Collectors, for the parish or group of parishes, or division, in which such neglect, delay, or failure has occurred. The Appoint- appointment by the Board of a Collector is made by Collector warrant under their hands ; and a person appointed Board- Collector by the Board has like power and authority as a person appointed Collector by the Commissioners. 1 43 & 44 Yict. c. 19, s. 76. 36 INCOME TAX ACTS. Chap. I. The security given on the requirement of the Board Security is by bond to the Crown, entered into by the Collector by the 6 with sureties to be approved by the Board, or as the how Board determine, and in such sum as the Board LandTa rec l 11 i re ' * The Land Tax, and General, Commissioners a ^ so re( l u ^ re Collectors on their appointment to missioners give security to their satisfaction ; and any two or require more inhabitants of a parish, or group, being respec- ito'be 1 y tively charged to the land tax, or income tax, in the collectors, assessment for the current year, may, by notice in two or 7 writing to the respective Commissioners, served habitants personally on, or by registered letter addressed to parish the Clerk to, the Commissioners, require, that the person whom the Commissioners propose to appoint Collector for the parish, or group, shall give security to the satisfaction of the Commissioners ; and after receipt of such notice the Commissioners may not appoint a person who has not given such security. Security The security to be given to the Commissioners may be by a joint and several bond, with two sureties at soners ,11 n . ,1 p how to be the least, to, and in the names of, any two or more Commissioners ; and the penal sum in any such bond, must, if so required, be equal to the whole land tax, and moneys, assessed in the parish, or group of parishes, and to be collected by the person whom it is proposed to appoint Collector for such parish or group of parishes, and from whom security is Bond required. 2 No bond or security given by a Collector given by i 43 & 44 Yict. c. 19, s. 77. * 43 & 44 Viet. c. 19, s. 78. INCOME TAX ACTS. 37 in respect of the collection, accounting for, or re- C^P- I - mitting, of the land tax, or income tax, duties is Collector liable to stamp duty. x No parish is answerable for to stamp 6 the acts, neglects, or defaults, of a Collector appointed by the Board, or who gives security to the Crown ; an swer- nor is a parish liable to be re-assessed for an arrear, defaults of ' Collector or deficiency, of the land tax, or income tax, arising appointed by the from any default or failure of such Collector ; but Board or where the Collector of a parish is not appointed by given the Board, or does not give security to the Crown, the parish is answerable for the amount of the land answer- tax, and income tax, and for the same being duly able * demanded of the persons charged therewith, and for the Collector, or his executors, or administrators, duly paying over the sums received by him to the Collector of Inland Eevenue. 2 Every Collector before he athtobe . . taken by begins to act in relation to Hhe duties in Schedule D. Collector. must take the 4 prescribed oath, which may be ad- ministered by a General, or Special, or Additional Commissioner ; and every Collector acting in relation to the duties in Schedule D. before he has taken the oath incurs a penalty of 100/. There are 5 other penalties which Collectors incur by various breaches of rule. 6 The remuneration of the Collectors is fixed Remune- ration of Collectors. 1 43 & 44 Viet. c. 19, s. 79. 2 5 & 6 Viet. c. 35, s. 38. 3 As to these duties, see^os^, pp. 102 et seq. 4 The form of the oath is given in Schedule F. of 5 & 6 Viet. c. 35. 5 See 43 & 44 Viet. c. 19, s. 121. 6 43 & 44 Viet. c. 19, s. 80. But see also 48 & 49 Viet. c. 51, s. 25. 38 INCOME TAX ACTS. Chap. i. by the first Schedule of the l Taxes Management Act, 1880. Commis- sioners and other officers only liable to penal- ties in- flicted by Income Tax Acts. Limita- tion of right to sue Com- missioners and other officers. (1) Action must be com- menced within six months. (2) Must be laid where cause of complaint arose. (3) Must not be com- menced within one month after notice in writing. Actions against Commissioners and Officers. We may mention here the following provisions. In the first place, 2 no Commissioner, Clerk, Surveyor, As- sessor, or Collector, acting in the execution of the Acts relating to duties of income tax, is liable for any act done in execution thereof to any penalty other than such as is inflicted by those Acts respec- tively. In the second place, 3 actions or suits brought against a Commissioner, Surveyor, Collector, Assessor, or other person, for anything done in pursuance of the Acts relating to duties of income tax are subject to the following limitations ; viz. : (1) The action or suit must be commenced within six 4 months after the act committed, and (2) Must be laid in the county or place where the cause of complaint arose. (3) No writ, or process, can be sued out for the commencement of any such action or suit until the expiration of one month after notice in writing specifying (a) the cause of action, (b) the name and place of abode of the intended plaintiff, and of his attorney or agent, if any, has been delivered to, or left at the usual place of abode of, the intended 1 43 & 44 Yict. c. 19. 2 43 & 44 Viet. c. 19, s. 19. 3 43 & 44 Viet. c. 19, s. 20. 4 Calendar months. 13 & 14 Viet. c. 21, s. 4. INCOME TAX ACTS. 39 defendant by the attorney or agent of the Chap. I. intended plaintiff. On the trial of any such action or suit no evidence On trial may be given of any cause of action other than such confined as is contained in the notice. The intended defen- of action dant to whom any such notice has been delivered i n notice, may at any time before the expiration of a month Defendant may tender after the notice has been delivered to him, or left at amends, his usual place of abode, tender amends to the in- tended plaintiff, or his attorney or agent ; and, if the j^ d * e ^ d amends tendered are not accepted, may plead the not ac - J x . cepted. tender in bar to any action or suit brought against him founded upon such notice. Every action or suit A ction ^ brought against any Collector must be defended by against f J Collectors the respective Land Tax Commissioners, or Greneral appointed by Gene- Commissioners, for the parish, when the Collector has rai, or been appointed by them, or has acted under their Commis- ' warrant, or directions; and the costs and charges muTbe attending any such action or suit, or any action or ^ them, suit brought by, or against, the Commissioners, or any Collector appointed by them, for any act done in pur- suance of the Acts relating to duties of income tax, are defrayed by an assessment made in a just pro- portion on the several persons, lands, tenements, and hereditaments liable to be assessed in the parish in, or relating to, which the alleged cause of action has arisen, or for which such Collector has been appointed. 1 All penalties exceeding 201. imposed by virtue of the Recovery of penal - 1 43 & 44 Viet. c. 19, s. 21. 40 INCOME TAX ACTS. Chap. I. Acts relating to duties of income tax, excepting * such ties ex- as are directed to be added to the assessments, are 20??iS?- recoverable in the High Court, with full costs of suit, income 7 an( * are sued for (except in Scotland and Ireland) by by^ctfon. information in the name of the Attorney- General for England, and, in default of prosecution within twelve months of the penalty being incurred, no penalty is Recovery afterwards recoverable in any other manner. Sub- of penal- ties di- ject to the above restriction as to time, all pecuniary be added penalties not exceeding 20/., and also such of the ments, and penalties exceeding 201. as are directed to be added not ex- 68 to the assessments, are recoverable before the Land ceeding rp ax Commissioners, and General Commissioners, re- spectively, who must take cognizance of the offence in respect of which a penalty may be imposed by them upon information in writing made to them, and upon a summons to the party assessed to appear before them at such time and place as they fix. The Com- missioners examine into the matter of fact, and 2 hear, 1 Sect. 185 of 5 & 6 Viet. c. 35, enacts as follows: ' ' Wherever by this Act any increased rate of duty is im- posed as a penalty, or as part of, or in addition to, any penalty, every such penalty and all such increased rate of duty may be added to the assessment, and be collected and levied in like manner as any duties included in such assess- ments may be collected and levied." 2 The provisions of the Taxes Management Act, 1880 (43 & 44 Yict. c. 19), s. 57, that no barrister, solicitor, or person practising the law, shall be allowed to plead before the General Commissioners on an appeal (see post, pp. 275, 276), does not apply to proceedings for penalties under the Acts re- lating to income tax before the General Commissioners. Bourdin's Land Tax, 3rd ed. by Bunbury, p. 41, note (/). INCOME TAX ACTS. 41 and determine, the same in a summary way ; and on Cha P- * proof made thereof, either by voluntary confession of the party assessed, or by the oath, or solemn affirma- tion, of one or more credible witness or witnesses, or otherwise as the case may require, give judgment for the penalty, or for such part thereof as they think proper to mitigate the same to, and assess the penalty on the party by way of supplementary assessment. The penalty so assessed is levied in like banner as the duties. The adjudication of the Commissioners is final and conclusive, and there is no appeal from it. The Board, however, may at their discretion mitigate, or stay, or compound, proceedings for any penalty recoverable in the High Court; and may reward any informer who may assist in the recovery of any such penalty. 2 A11 constables, and other peace officers, are required to aid in the execution of the Acts relating to duties of income tax, and to obey and execute such precepts, and warrants, as are directed to them in that behalf by the respective Commissioners. 3 If any person wilfully obstructs a Penalty Surveyor, Assessor, or Collector in the execution of structing his office, he incurs a penalty of 50/. veyor, &c. Exemption from Stamp Duty. 4 Receipts, certifi- cates of payment, affidavits, appraisements, and 1 As to the manner of levying the duties, see post, Chap. III. 2 43 & 44 Viet. c. 19, s. 22. 3 43 & 44 Yict. c. 19, s. 23. 4 5 & 6 Viet. c. 35, s. 179. INCOME TAX ACTS. Chap. i. valuations, made, or given, in pursuance of, and for the purposes of the Income Tax Act, 1842 (5 & 6 Yict. c. 35), are exempt from stamp duty, as are also J all affidavits and declarations made upon a requisition of the Commissioners of any public Board of Revenue, or of any of the officers acting under any such Board, and all affidavits, and declarations, required by law, and made before any justice of the peace, and all receipts given for, or upon the payment of, any par- liamentary taxes or duties. 1 33 & 34 Yict. c. 97, Sched. 1. INCOME TAX ACTS. 43 CHAPTER II. WHAT IS SUBJECT TO INCOME TAX THE SCHEDULES. Upon what the Duty is charged. Speaking gene- rally, we may say, that Everything in the nature of property, which produces, or is capable of producing, or itself consists in, an annual income or revenue, is the subject of the taxation we are considering, if either the property is situate, or the income enjoyed, in the United Kingdom. The titles of the 2 Income Tax Acts, 1842 and 1853, as well as of the various Acts which have from time to time continued, and modified, their provisions, speak of duties on profits, arising from property, professions, trades, and offices. It is not, however, as we shall see, in all cases neces- sary that a profit shall actually be made out of pro- perty in order that its owner may become liable to the duty. 1 In the case of Attorney -General v. Slack (post, pp. 120, 121), Martin, B., speaking of the five schedules, and of sect. 100 of the Income Tax Act, 1842, as a net large enough to include every description of property, sa^d, "In fact, the care dis- played in embracing every possible source of profit is, I may say, carried to an almost ludicrous extent ; it is practically impossible to escape the operation of the Act." 2 5 & 6 Viet. c. 35, and 16 & 17 Viet. c. 34. 44 INCOME TAX ACTS. Chap. ii. The Schedules. For purposes of classification and distinction, and of applying the provisions of the various Acts relating to the income tax, the several kinds of property, in respect of which the duty is granted, are arranged in " schedules ; " each schedule being marked by one of the five letters of the alpha- bet, A., B., C., D., and E., and each containing a description of one kind, or class, of property. Rules are given for ascertaining, charging, and levying, the duties with reference to each kind, or class, of pro- perty ; but, l so far as they are applicable, and not inconsistent with special provisions, they are applicable to the duties in all the schedules. SECTION I. SCHEDULE A. Property in Land, fyc. 2 Under Schedule A. the duty is charged " for and in respect of the property in all lands, tenements, hereditaments, and heritages in the United Kingdom, for every 3 twenty shillings of the annual value thereof." The word " property," we may remark, is used in two senses in the 4 Income Tax Acts, of 1842 and 1853. Sometimes it is used as it is colloquially, and as we have used it above ; for instance, after enumerating the subjects of the duties, 1 5 & 6 Viet. c. 35, s. 188. 2 16 & 17 Viet. c. 34, s. 2. 3 Fractional parts of 20s. are also charged with duty by sect. 3 of the Act, 16 & 17 Yict. c. 34 ; but no duty is to be charged of a lower denomination than Id. 4 5 & 6 Yict. c. 35, and 16 and 17 Viet. c. 34. INCOME TAX ACTS. 45 the Act of 1853 goes on to say, that they are granted Chap. II. " in respect of the annual profits or gains arising from any kind of property whatever ; " but in Schedule A. the word is used to designate the interest in land of the owner, as distinguished from that of the occupier. The duty charged under Schedule A. is, therefore, a duty which is imposed upon, and has ultimately to be paid by, the owner, and not the occupier, of land. "We say " ultimately " because, as will be seen ^y-and-bye, it is generally paid in the first instance by the occupier, who deducts what he has so paid from the rent he pays to his landlord. A very common name for this duty is " Landlord's Property Tax." The generality of the words used in describing Cases of the extent of the application of the general Justices of rule by which the annual value of property clerk y. chargeable under Schedule A. is determined (see s loners of post, p. 49, " Extent of application, &c.") is not sufficient to destroy the prerogative of the Crown which exempts from taxation property occupied for it. A Scotch case, Clerk v. Com- missioners of Supply for Dumfries (17 Sco. L. B. 774), had decided that police stations, acquired for the purpose of local government, owned and occupied by the county authorities, were charge- able with income tax. But in Coomber v. Jus- tices of Berks (L. E. 9 App. 34; 53 L. J. Q. B. 1 See post, pp. 181, 182, 197, 198. 46 INCOME TAX ACTS. Chapel. 239 ; 50 L. T. 405 ; 32 W. E. 525), the House of Lords decided that buildings containing Assize Courts, the necessary rooms and offices, and a police station, erected by the justices of a county acting under statutory powers, the buildings in question being erected out of the county rate, and used for purposes of police, that is, for the discharge of functions which of common right belong to the Crown, were exempted from income tax by virtue of the prerogative of pro- perty occupied by the Crown. The case of Clerk v. Commissioners of Supply for Dumfries, was cited, and disapproved of. It is to be observed that the special case which came before the House of Lords showed that as a matter of fact no profit whatever had been made out of the buildings : whether a surplus revenue could be, or ought to have been, raised by letting the Assize Courts and rooms in the buildings when not in use, was a question of fact not raised by the case, which the House of Lords, having only to decide questions of law raised by the case, expressly abstained from considering. Case of In the Scotch case of Adam v. Maughan (27 Maughdn Sco. L. E. 64) it was held that a Burgh Court, being a Court for the administration of public justice, the building or rooms in the municipal buildings which were occupied for the adminis- tration of justice in that Court were part of the Queen's establishment for the administration of INCOME TAX ACTS. 47 justice, and were not taxable. But it was held cha P- n - that neither municipal offices nor corporation baths could be exempted on the ground that they yielded no profit, and could be used only for public purposes. But in the case of a county lunatic asylum, Case of Bray v. established under 16 & 17 Yict. c. 97, and pro- Justices of vided for the reception and relief of pauper shire. lunatics, where the medical superintendent, medical officers, and steward, occupied apart- ments situate in the asylum building, and the chaplain a house within the asylum grounds; each of these officers being assessed to income tax in amounts exceeding 150/. per annum; the medical superintendent, medical officers, and steward, being bound to be resident in the asylum, and liable at any time to be transferred from one set of rooms to another ; neither the apartments, nor the house, being rated or charged in the poor rate assessment in accord- ance with sect. 35 of 16 & 17 Yict. c. 97 ; it was held that the apartments and the house were not in the occupation of the Crown, or of persons using them exclusively in and for the service of the Crown, and that they were tax- able. In this case the county justices had been assessed in respect of the apartments and the house. A question was raised whether the justices were the proper persons to be assessed, but this question, which Bowen, L. J., charac- 48 INCOME TAX ACTS. Chap. ii. terised as ridiculously technical, not having been raised before the Commissioners, the Court held that it had no power to entertain it. (Bray v. Justices of Lancashire, 22 Q. B. D. 484 ; 37 W. E. 392 ; 58 L. J. M. C. 54.) Annual Value under Schedule A. It will have been observed, that the duty under Schedule A. is charged "for every twenty shillings of the annual value" Rules are given for ascertaining the annual value of the lands, tenements, hereditaments, and heritages mentioned in Schedule A. General Rule for ascertaining Annual Value under Schedule A. First of all, we have a general rule which meets the common case of lands, &c. in the occupation of the owner, or of some one to whom he has let them. We have said already, that the duty under Schedule A. is payable in the first instance by the occupier, whether he be owner or tenant, and this general rule, therefore, meets all cases in which the lands, &c. are " in the 'occupation of the party to be charged," except those presently enumerated, for which special rules are given. The general rule is as follows : 2U The annual value of lands, tenements, hereditaments, or heritages, charged under Schedule A. shall be understood to be the rent by the year at which the same are let at rack-rent, if the amount of 1 See post , pp. 51 et seq. 2 5 & 6 Yict. c. 35, s. 60, No. 1. INCOME TAX ACTS. 49 such rent shall have been fixed by agreement com- Chap. 11. mencing within the period of seven years preceding the fifth day of April next before the time of making the assessment : but if the same are not so let at rack- rent, then the rack-rent at which the same are worth to be let by the year." Extent of Application of the foregoing General Rule. The foregoing general rule extends to * " all lands, tenements, and hereditaments or heritages, capable of actual occupation, of whatever nature, and for what- ever purpose occupied or enjoyed, and of whatever value," except those 2 presently enumerated. But it is in some degree qualified by the following provi- sions : 1. 3 If an owner of land, &c., whether he is also Case of the occupier or not, pays rates and taxes, which are rates and ill , -, . taxes paid by law a charge upon the occupier, or any composi- by land- tion for tithes, the annual value is to be estimated exclusively of the amount of such rates and taxes, or composition. 2. 4 But if a tenant pays rates and taxes which are Case of by law a charge upon the owner, then the annual rates and value is to be the rent, either actually paid or that by X teiSnt. might be obtained, as the case may be, plus the amount of such rates and taxes. 1 5 & 6 Yict. c. 35, s. 60, No. 1. 2 See post, pp. 51 et seq. 3 5 & 6 Viet. c. 35, s. 63, No. 10, r. 1. 4 Ibid., No. 10, r. 2. E. D 50 INCOME TAX ACTS. Chap. II. 3.1 If t ne ren t reserved depends in whole or in part Case of upon the price of corn or grain, the estimate shall, if pending possible, be made on the amount payable according corn, &L to the average prices fixed in the year preceding the year appointed for the payment of the duty, and in the manner by which such rent has usually been ascertained between landlord and tenant. Case of 4. 1 If the whole, or a part, of the rent is reserved served in in corn or grain, the estimate shall, if possible, be made on the average price computed on the quantity of corn or grain to be delivered in the year appointed for payment of the duty. Where such computation cannot be made, the estimate may be made on the annual value ascertained according to the General Eule. Case of 5. 2 If the amount of rent depends on the actual pending produce, either in respect of the price, or the quantity, produce. ' thereof, the estimate shall be made on the amount, or value, of such produce in the year preceding the year appointed for payment of the duty, according to the price fixed, and the quantity produced, for that year, and in the manner by which such rent has usually been ascertained between landlord and tenant. If the price, or the quantity, of produce varies in the two years, the assessment may be rectified upon 3 appeal or surcharge. 1 5 & 6 Viet. c. 35, s. 63, No. 10, r. 3. 2 Ibid., No. 10, r. 4. 3 As to appeals, see post, pp, 274, 275 ; as to surcharges, see post, p. 192. INCOME TAX ACTS. Exceptions to the foregoing Rule. The six cases of Chap. II. exceptions to the foregoing general rule which follow agree in this particular, that the profits charged arise from lands, &c., which are not " in the occupation of the party to be charged." They are governed by the six special rules which follow : 1. 1 Tithes taken in kind. The annual value is the First case average amount for one year of the profits received ception : & ' Tithes in within the three preceding years. kind. 2. 2 Ecclesiastical dues : that is, " all dues and Second cage of money payments in right of the Church, or by en- exception : dowment, or in lieu of tithes (not being tithes arising tical dues, from lands)." The annual value is estimated by the same rule as is employed in the case of tithes taken in kind. 8. 3 Compositions, rents, and money payments, in Third case lieu of tithes, 4 other than rent- charges comprised ception : under the Act passed for the commutation of tithes, sitions for The annual value is the amount of such composition, 1 5 & 6 Yict. c. 35, s. 60, No. 2, r. 1. But the duty upon tithes may be charged upon the occupier of the lands out of which the tithes arise. See No. 4, r. 4. 3 Ibid., No. 2, r. 2. 3 Ibid., No. 2, r. 3. 4 " Why this exception was made from this rule we do not know, nor could the Solicitor- General or Mr. Davey enlighten us on the subject," Stevens v. Bishop, 35 W. E. 839. The 4 * annual value" of the rent-charge is not the gross value, but the gross value less such outgoings as are necessary to realize the rent-charge, or, in other words, the "net value or profits." From the net value or profits the deductions allowed may afterwards be made. S. (7. 52 INCOME TAX ACTS. Case of Stevens v. Bishop. Chap. II. rent, or payment, for one year preceding. 1 Where the owner pays any parochial rates or taxes charged on any such composition, rent, or money payment, the amount so paid by him is to be deducted from the annual value. An owner of tithe rent-charge is entitled to deduct from the gross rent-charge what he neces- sarily and properly expends, and is compelled to spend, in order to realize his tithe. No reason can be given for the distinction made between tithes in kind, tithes compounded for, and tithes commuted under the Act, 6 & 7 Will. 4, c. 71. Annual value as regards tithes means net, not gross, value. Stevens v. Bishop, 19 Q. B. 442 ; 35 W. E. 839 ; on appeal, 20 Q. B. D. 442; 36 W. E. 421; 57 L. J., Q. B. 283; 58 L. T. 669; see post, p. 184. 4. 2 Manors and other royalties. The annual value is the average amount for one year of the profits received within the seven preceding years. The profits referred to in this rule include all dues, and services, and other casual profits, but not rents, or other annual payments. 1 5 & 6 Yict. c. 35, s. 60, No. 10, r. 1. A deduction in respect of parochial rates and taxes may also be made in the case of a rent-charge comprised under the Act passed for the commutation of tithes. See post, p. 73. 2 5 & 6 Yict. c. 35, s. 60, No. 2, r. 4. Costs of collection may not be deducted. Duke of Norfolk v. Lamarque, 24 Q. B. D. 548; 38 W. E. 382; 59 L. J., Q. B. 119; 62 L. T. 153. Fourth case of ex- ception : Manors and other royalties. INCOME TAX ACTS. 53 5. 1 Fines upon demise of lands or tenements. Chap. n. The annual value is the amount received within the Fifth case year preceding. If the person chargeable proves to ception : the satisfaction of the General Commissioners of the ' district that such fines, or any part thereof, have been applied as productive capital, on which a profit has arisen, or will arise, otherwise chargeable to income tax for the year in which the assessment is made, the General Commissioners may discharge the amount so applied from the profits liable to assess- ment under this rule. 6. 2 Other profits of the same kind : that is, profits Sixth case that arise from lands, &c., not in the occupation of ception: the party to be charged, and not before enumerated, profits of The annual value is the average amount for one year of the profits received within such a number of years preceding as the Commissioners judge proper. 3 In all cases to which the special rules above stated apply, if the possession, or interest, of the party to be charged has commenced within the time for which the average by which the annual value is to be estimated is directed to be taken, then the profits of one year are to be estimated in proportion to the profits received within the time which has elapsed since the commencement of the possession, or interest, of the party to be charged. 1 5 & 6 Yict. c. 35, s. 60, No. 2, r. 5. 2 Ibid., No. 2, r. 6. 3 Ibid., No. 4, r. 6. 54 INCOME TAX ACTS. Chap. II. Further Exceptions to the foregoing General Rule. In the cases of the " lands, tenements, hereditaments, or heritages," enumerated below, the foregoing general rule is replaced by the special rules which follow, 1 and by the 2 rules prescribed by Schedule D., which apply so far as they are not inconsistent with these special rules : First I. 3 Quarries of stone, slate, limestone, or chalk. rule : The annual value is the average amount for one year of the profits received in the preceding year. Case of The statute is imposing a tax upon that which Jones v. c A Cwmorthen is worked, not upon the mode of working it. Works for getting slate, although carried on un- derground, and so that they would ordinarily be described as a mine, rather than as a quarry, are, nevertheless, within the expression " quarries," as it is here used. Jones. v. Cwmorthen Slate Co., L. E., 5 Ex. D. 93 ; 49 L. J., Ex. 210 ; 41 L. T. 575 ; 28 W. E. 237. As to the intention with 1 5 & C Yict. c. 35, s. 60, No. 3; 29 & 30 Yict. c. 36, s. 8. The effect of this latter enactment is not to transfer cases in Schedule A. (No. 3) to Schedule D., so as to change the re- spective times for which the profits are to be assessed. But mines, for instance, are, by this enactment to be charged and assessed according to the rules prescribed by Schedule D. so far as those rules are consistent with No. 3 of Schedule A. Cvltness Iron Co. v. Slack, L. E., 6 App. 315 ; 51 L. J., Q. B. 626; 45 L. T. 145; 29 W. E. 717. Eailway Companies, however, now pay income tax under Schedule D.,post, p. 60, note 1 . 2 As to these rules, see post, Chap. II., sect. 4. 3 5 & 6 Viet, c. 35, s. 60, No. 3, r. 1. INCOME TAX ACTS. 55 which the words " quarries " and " mines " (see Chap. II. below) are used in the Act, and the reason for Eeason the difference of treatment established between e nce of the two concerns, Brett, L. J., in this case said : " I apprehend, that the true intent of using the words quarries ' and ' mines ' is only to fix the " mmes - place at which the tax is to be imposed, or, in other words, the persons upon whom the tax is to be imposed ; that is to say, those who are ob- taining the profits of certain produce are to be taxed in one way, and those who are obtaining the profits of certain other produce are to be taxed in another way; and I should think myself that the reason of the difference of average is on account of the mercantile difference between the sales of the different kinds of produce. It is to be noticed that the tax is upon profits. That implies a sale, and deduction of expenses ; and the difference of average probably is to be accounted for in this way, that it is well known that the profits on those matters which are in the first class are tolerably uniform; whereas it is equally well known that the profits in the second class are exceedingly varying from year to year." 2. 1 Mines of coal, tin, lead, copper, mundic, iron Second j and other mines, except 2 alum mines. The annual rule: value is the average amount for one year of the (except alum mines) 1 5 & 6 Viet. c. 35, s. 60, No. 3, r. 2. 8 As to alum mines, see below. 56 INCOME TAX ACTS. Chap. II. Case of Jones v. Cwmorthen Slate Co. Case of Addie $ Sons y. Solicitor of Inland Revenue. Pit sink- ing, ex- penditure for. Case of Coltness Iron Co. v. Mack. profits received in the five preceding years. But, l if any mine has decreased, or is decreasing in annual value, so that the average of five years will not give a fair estimate of its annual value, the Commissioners may take the actual amount of the profits in the preceding year to be the annual value. The expression " other mines " means mines ejusdem generis with those before mentioned. It clearly does not mean all other mines, because there is special mention afterwards of " alum mines." Jones v. Cwmorthen Slate Co., L. E., 5 Ex. D. 93 ; 49 L. J., Ex. 210 ; 41 L. T. 575; 28 W. E. 237. Addie and Sons, who were coal and iron masters, claimed to deduct from the sum in which they had been assessed a percentage for pit sinking, on the ground that the expenditure which such percentage would represent was part of the annual expenditure necessarily incurred in realising the profits of their trade. It was held that expenditure for pit sinking was an expendi- ture of capital, and that the deduction claimed could not be allowed. Addie and Sons v. Solicitor of Inland Revenue, 12 Sco. L. E. 274. In Colt- ness Iron Co. v. Black (L. E., 6 App. 315 ; 51 L. J., Q. B. 626 ; 45 L. T. 145 ; 29 W. E. 717), however, Blackburn, L. J., commenting upon the foregoing case of Addie and Sons v. Solicitor oj 1 5 & 6 Yict. c. 35, s. 60, No. 4, r. 5. INCOME TAX ACTS. 57 Inland Revenue, said, " I see that in Addie and Chap. II. Sons v. Solicitor of Inland Revenue, reliance is placed on the judgment of the Lord President, on the third rule as to concerns under the first case of Schedule D., that no deduction is to be made ' for any sum intended to be employed as capital.' But I do not think reliance can be placed on this. If, from the nature of the con- cerns in No. 3, an allowance ought to be made for capital, then this rule should be rejected as inconsistent with No. 3. If no such deduction should be made, the rule is not required." In Coltness Iron Co. v. Black, it was decided, not 1 that a mine owner will not in any case be en- titled to an allowance in respect of the cost of sinking a pit, by means of which pit the minerals Pit sink- ing* pent for. are gotten, which are the source of profit for the pen'diture year in which the pit is sunk a point which was not involved but that a mine owner cannot write off, and deduct, from the gross earnings of his mine in a particular year, a sum to re- present that year's depreciation of all his pits wherever sunk. The Broughton and Plas Power Coal Com- Case of Broughton pany were lessees of certain collieries which they # Plas. 1 See, however, what was said by Grove, J., in the case of Gillatt and Watts v. Colquhoun, post, p. 125, note 3 . The case of Coltness Iron Company v. Black overruled the case of Knowles v. M'Adam, L. E., 3 Ex. D. 23; 47 L. J., Ex. 139; 37 L. T. 795; 26 W. E. 114. D5 58 INCOME TAX ACTS. Chap. II. Power Coal Co.v. KirJc- patrick. commenced working in October, 1880. By the agreement under which they held the collieries the lease was to commence from the 25th March, 1874, and to continue for forty -two years. The dead rent was to he 1,000/. a year for the first three years, 2,000/. a year for the next seven years, and 3,000 /. a year for the residue of the term, to be repayable out of royalties during the first sixteen years, and afterwards the deficiency in any year was to be recouped out of the excess of any of the next five years. The dead rent and the royalty were actually one and the same payment, and were merged together, the dead rent being a device to secure the lessor against the fluctuations of mining, whereby the lessor received, on account of his share of the profits of the company, not less than a certain annual sum ; so that, when the lessor's share of the royalties did not amount to that sum, he received that sum, but, when his share of the royalties ex- ceeded the fixed annual sum, the fixed sum only was paid to him until the company had been reimbursed the excess previously paid to the lessor when his share of the profits did not amount to the fixed sum. For the years 1878, 1879, and 1880, 2,OOOJ. each year was assessed to the income tax, as the mine was not working. For the year 1881-1882 the royalties amounted to 3,477/. The company claimed that a sum of 1,477J. in the assessment for 1881-1882 should INCOME TAX ACTS. 59 be allowed from that assessment, on the ground Chap. II. that it had already borne income tax when it was previously paid to the lessor. It was held that income tax must be paid upon the 1,477/. 1 Income tax had been paid upon that sum, but by the landlord, not by the tenant, the company. The company had paid no income tax, making no profits. When the mine began to be a profit- able concern, the company could not deduct past losses, and the fact that they had made a bar- gain with a third party made no difference. The case of the Coltness Iron Company v. Black (uU sup.} was held to be in point, and the pre- sent case was distinguished from the case of Last V. London Assurance Corporation, 2 as it had then been decided by the Court of Appeal (post, pp. 137 142). Broughton and Plas Power Coal Company v. KMpatrick, 14 Q. B. D. 491 ; 54 L. J., Q. B. 268 ; 33 W. E. 278. 3. 3 Iron works, 4 gasworks, salt springs, alum Third BDOOUU rule : 1 That income tax has been already paid upon a particular sum is, therefore, of itself no reason why such sum should not be charged, unless the previous payment of income tax was made by the person whom it is sought to charge. 2 The appeal to the House of Lords, which resulted in the reversal of the judgment of the Court of Appeal, had not then been carried through. 3 5 & 6 Viet. c. 35, s. 60, No. 3, r. 3. 4 The gasworks intended are gasworks in England. Profits derived from gasworks on the Continent of Europe or in the Colonies are chargeable under Schedule D. The Imperial Continental Gas Association v. Nicholson, 37 L. T., N. S. 717, 60 INCOME TAX ACTS. Chap. ii. mines or works, waterworks, streams of water, canals, iron inland navigations, docks, drains, and levels, fishings, &c. r ; alum rights of markets and fairs, tolls, Railways and water' other ways, bridges, ferries and other concerns of fcc^f 8 ' the like nature. The annual value of these concerns rigfef is the P rofits of the year preceding. & 27 Sco. L. E. 863. The Highland Kailway Company were em- powered to provide and use steam and other vessels. Finding that they had been running certain lines of steamships at a loss, they dis- continued them. The traffic of one of these lines of steamships was undertaken by an owner of steamships under an agreement with the company; the traffic of the other line was undertaken by a shipping company entirely on their own account, and without any agreement with the Railway Company. The Railway Company made up their account for income tax of the profits of the year preceding that of assessment. During the year of assessment and the preceding year the agreement made by the Railway Company, which provided for the traffic formerly carried on by one of their lines of steamers, was in force. During a part of the year preceding the year of assessment the Rail- way Company had run the other of their lines of steamers, but in the latter part of the year they had abandoned this line, the traffic of which was undertaken, as has been said, by an independent shipping company. The Railway Company claimed to deduct the loss sustained by them in the year preceding the year of assessment upon the line of steamers which they had con- INCOME TAX ACTS. 71 tinned to run during a part of that year. It Chap. II. was objected that they were not entitled to do this, because during the year of assessment the running of steamers had in fact formed no part of the undertaking of the railway company, and the basis of assessment must be determined by the character of the undertaking during the year of assessment. But it was held that the Railway Company had not, by discontinuing a part of their business, changed the character of their undertaking, and that, the assessment having to be made upon the profits of the year preceding the year of assessment, the profits of that year must be taken as they actually stood, and that the Railway Company were entitled to the deduction which they claimed. Had they changed the character of their undertaking, the undertaking would not have been the same in the year of assessment that it was in the pre- ceding year, but a different undertaking, and then the profits of the preceding year would not have formed the basis of assessment. Highland Railway Company v. Special Commissioners of Income Tax, 23 Sco. L. R. 116. all cases to which the special rules above stated apply, if the possession, or interest, of the party to be charged has commenced within the time for which the average by which the annual value is to be 1 5 & 6 Viet. c. 35, s. 60, No. 4, r. 6. 72 INCOME TAX ACTS. Chap. II. estimated is directed to be taken, then the profits of one year are to be estimated in proportion to the profits received within the time which has elapsed since the commencement of the possession, or interest, of the party to be charged. Deductions and Allowances. It is further necessary, in order to arrive at the annual value of any property chargeable to the duty under Schedule A., to have regard to the deductions and allowances which it is permitted to make. J No deductions, except such as are specified, are allowed ; and those, only if claimed in 2 the prescribed manner. 3 The deduction or allowance (the two names seem to be used interchangeably) is of a sum equal to the duty at the rate per 20s. in force for the time being upon the sums paid in respect of which the deduction or allowance is granted; and it is not granted if such sums are paid by a tenant. The following are the deductions or allow- ances which may be granted if claimed : i. De- 1. 4 Tenths, &c. The amount of the tenths and allowed first-fruits, duties and fees, on presentations, paid by &c. 6 S> an y ecclesiastical person within the year preceding that in which the assessment is made. 1 5 & 6 Viet. c. 35, s. 159. See post, p. 155, as to the deduction allowed to a clergyman, or minister of any re- ligious denomination, for expenses incurred in the per- formance of his duty or function. 2 As to the mode of claiming the deduction or allowance, eee post, Chap. IV., sect. 1. 3 5 & 6 Viet. c. 35, s. 60, No. 5. Ibid, No. 5, first deduction. &c ' INCOME TAX ACTS. 73 2. 1 Procurations, &c. For procurations and synodals cha P n. paid by ecclesiastical persons, on an average of seven 2. De- years preceding that in which the assessment is made, allowed 3. 2 Repairs of chancels, &c. The amount expended in repairs of collegiate churches and chapels, and chancels of churches, or of any college or hall in any duction ,T . ... P n i -n , i allowed of the universities ot Grreat Britain, by any person for repairs bound to repair the same, in the year preceding that eels, &c. in which the assessment is made. 4. 3 Parochial rates on tithe rent-charge. The 4 - D . e - duction amount of parochial rates, taxes, and assessments, allowed upon any rent-charge confirmed under the Act passed chiai rates for the commutation of tithes, paid in the year in rent- which the assessment is made. &c arg6 ' 5. 4 Land tax. The amount of land tax unre- 5. De- deemed charged upon any lands, &c. allowed 6. Drainage rates, &c. 5 The amount charged ontax. ar lands, &c., by a public rate or assessment in respect ^ u ^" n of draining, fencing, or embanking, the same. 6 A allow ed , ; f or drain - deduction is allowed in respect of the amount expended a s e > & c -> sea walls, by the owner on an average of the twenty-one preced- &c. ing years in making or repairing sea walls, or other 1 5 & 6 Yict. c. 35, s. 60, No. 5, second deduction ; 16 & 17 Viet. c. 34, s. 34. 2 Ibid., No. 5, third deduction. 3 Ibid., No. 5, fourth deduction. 4 Ibid., No. 5, fifth deduction. 5 Ibid., No. 5, sixth deduction. This would appear not to allow a deduction in case of a private drainage act. 6 16 & 17 Yict. c. 34, s. 37. B. -p. 74 INCOME TAX ACTS. Chap. II. embankments necessary for the protection of land against the encroachment or overflowing of the sea, or any tidal river, although the sums expended have not been charged upon such land by any public rate or assessment. Case of Where land, open to a tidal river, and liable Hesketh ^ v. Bray. to be more or less flooded at every tide, but covered with short herbage, and worth as pasturage 6s. to 10s. an acre, and so assessed to poor rate and income tax, was reclaimed by the construction of an embankment, with provision of drainage, and for access by roads, so as to be worth from 3L to 31. 10s. an acre, it was held that no allowance or deduction could be made or allowed for the amount expended in making the embankment. The object of the works was not protection, but the increase of the capital value of the land, by a change of the character of the land. If, in the course of time, a further expenditure should be incurred for the purpose of preserving and protecting the land in its new condition, an exemption claimed on that further expenditure would in all probability be allowed. ffisMh v. Bray, 20 Q. B. D. 589 ; 35 W. B. 622 ; 57 L. J., Q. B. 184 ; 58 L. T. 313. The 1 "Protection," not "reclamation," see Hesketh v. Bray, 20 Q. B. D. 589; 36 W. E. 622; 57 L. J., Q. B. 184; 58 L. T. 313. Affirmed on appeal, 21 Q. B. D. 445 ; 37 W. B. 22 ; 57 L. J. Q, B. 633. INCOME TAX ACTS. 75 judgment was affirmed on appeal, 21 Q. B. D. Chap. n. 445 ; 37 W. E. 22 ; 57 L. J., Q. B. 633. 7. Wear and tear of machinery. We have Already 7. De- mentioned the deduction allowed for wear and tear of allowed machinery to the person or company by whom thelnYCarof concern in which the machinery is used is carried on. machiner ^ 2 If the machinery or plant is let upon such terms that the burden of maintaining and restoring the same falls upon the lessor, he may claim repayment of so much of the duty charged in respect of the machinery or plant, and deducted by the lessee on payment of rent, as represents the income tax upon such an amount as the Commissioners think just and reasonable as representing the diminished value of the machinery by wear and tear. The mode in which the claim is made will be explained 3 later on. Allowances for certain Public and Charitable Institu- tion*. The following allowances 4 are also directed to be made : 1. Colleges and halls in universities. For the 1. uties charged on any college, or hall, in any of the universities of Great Britain, in respect of the public buildings, and offices, belonging to such college or sities ' hall and not occupied by any individual member thereof, or by any person paying rent for the same ; 1 Ante, p. 60. 3 41 & 42 Viet. c. 15, s. 12. 3 See post, pp. 295, 296. 4 5 & 6 Yict. c. 35, s. 61, No. 6. E2 d 76 INCOME TAX ACTS. 2. Allow- ance for hospitals, &c. Chap. II. and for the repairs of the public buildings, and offices, of such college or hall ; and of the gardens, walks, and grounds for recreation, repaired and maintained by the funds of such college or hall. 2. Hospitals, &c. For the duties charged on any hospital, public school, or almshouse, in respect of its public buildings, offices, and premises, not occupied by any officer thereof whose income amounts to, or exceeds, 150/., or by any person paying rent for the same ; and for the repairs of such hospital, public school, or almshouse, and offices ; and of the gardens, walks, and grounds, repaired and maintained by its funds. The exemption is not limited to charitable institutions. A hospital would not be the less entitled to the benefit of this rule because it had taken certain fees from its patients ( per Denman, J., in Blake v. Lord Mayor, fyc. of London, infra). The City of London School is a school main- tained by the Corporation of the City of London. Certain payments are made by the scholars, but no profit is made by the Corporation, but on the contrary a yearly deficiency of income to meet expenditure is made up by the Corporation out of their own moneys. It was contended that the term " public school " was limited by prior statutes, i.e., 43 Geo. 3, c. 122; 46 Geo. 3, c. 65 ; and 48 Geo. 3, c. 55, to schools which are supported by charity funds or endowments, and that if the scholars paid anything the school Case of Blake v. Lord Mayer, $c. of London. i INCOME TAX ACTS. 77 ceased to be a "public school." Mr. Justice Denman said that the words " public schools " were not to be construed as words of art, but meant "schools which are in their nature public." He added that the school in question was in some sense a charitable institution, but that it was not necessary to show that it was a charit- able institution in order to establish its claim to exemption. On appeal the decision of the Court below was upheld. But all the judges in the Court of Appeal took note of the charitable element in the school. Lord Esher, M. E., founded his judgment on the facts that (1) the school was partially maintained by a donation in its origin voluntary and charitable ; (2) the object of the foundation was a public object, and therefore the school was of the same nature as one of the colleges or halls in the universities, which were also subjects of exemption ; and said that the mere fact that some money was paid by those who were interested in the educa- tion of the boys did not prevent the school being a public school within the meaning of the Act where those circumstances existed. Fry, L. J., said that all the exemptions must be construed in the light of each other, and that "public school " must be read not only with hospitals or almshouses, but also with u colleges or halls of any of the universities." He said that it would be unwise to attempt to lay down any definition 78 INCOME TAX ACTS. Chap. II. of a public school, but that there were certain notes of a public school which the school in question had. (1) It was a public foundation ; (2) a portion of its income was charitable ; (3) it was managed by a public body ; (4) no private person had any interest in the school; and (5) no profit was in contemplation in carrying it on. Lopes, L. J., said that the legislature did not intend by the words "public school" only a pure charity school. It intended to relieve from taxation schools where a sufficiently large number of the public received their education gratis, or mainly gratis. That was not an exhaustive definition of the term "public school," but the City of London School came within it. Blake v. Lord Mayor, fyc. of London, 18 Q. B. D. 437 ; 35 W. B. 212 ; on appeal, 19 Q. B. D. 79 ; 35 W. E. 791 ; 56 L. J., Q. B. 424. ase of St. Where a hospital for the treatment of persons Hospital suffering from mental diseases was conducted on smith. the principle of the richer patients paying sums above what their treatment and maintenance cost, to enable poor patients to be also treated, so that from the payments so made by the richer patients there was an excess of 7,000/. over the ordinary expenditure, which was ap- plied in extending and improving the hospital, so as to make it more fit for the purpose for which it was intended, it was held that the excess was profit, and assessable to income tax. INCOME TAX ACTS. 79 St. Andrew's Hospital v. S/icarsmiM, L. 11. 19 Chap. II. Q. B. D. 624; 35 W. E. 811. And where a hospital of a similar kind was Case of Need ham conducted on similar principles, with the result v. flower*. that there was an annual surplus which was expended in enlarging, improving, and other- wise better adapting the institution for its work, it was held not entitled to exemption from the duties charged on profits by the Income Tax Acts. Needham v. Bowers, 21 Q. B. D. 436; 37 W. E. 125. But the question in these cases is not whether Case of an institution may flourish for a few years by Committee reason of taking fees, nor whether in any par- lunatic ticular year it receives payments which enable Dotting - it to pay its way, but, What is the character am ' of the institution itself? Is its eleemosynary character blotted out, or does it still exist? The Lunatic Hospital, Nottingham, was a building provided for the reception and relief of lunatics who were not paupers, for whose maintenance and medical attendance sums vary- ing from 1 Os. to 40s. a week were paid (except that about five patients paid an extra 11. a week for extra room accommodation) ; it was founded and built with charitable donations, it was an institution for the relief of persons suffering from a distressing disease, and it was managed by charitable persons not deriving any pecuniary benefit therefrom, but, on the contrary, assisting 80 INCOME TAX ACTS. Chap. II. it by their subscriptions. The real property on which the institution was earned on was vested in trustees upon trust to be used as a lunatic hospital, and for the benefit of the inmates thereof, and for no other purpose, and in such manner as the rules of the institution should direct, and there was no power of sale ; the endowment funds were also vested in trustees for the benefit of the hospital and the inmates, as a majority of the voluntary donors and sub- scribers should direct, and the hospital and its inmates could alone derive benefit from the real or personal estate connected with it. An assess- ment had been made upon an alleged profit of 58(R The committee of the hospital submitted that " profits," as defined by the Income Tax Acts, meant what remained after deducting the value of the occupation of the premises where the profit was made, and that, if this was allowed, a loss of 4201. would appear instead of the alleged profit of 580/. They also alleged that the income -of the hospital was exempt as being applied to charitable purposes only. There had been a change in the amount of support and in the class of patients received by the hospital, so that for three years at least there had been an occasional balance in favour of the trustees. It was held that the institution, being endowed with a substantial charitable endowment, was exempt from income tax as a INCOME TAX ACTS. 81 " hospital." It was pointed out that if the Chap. n. profits were assessed apart from the buildings as upon a going concern from which profit was derived, a very different question would arise. But the assessment appealed against was not an assessment under Schedule D., and the appeal must be allowed. (Cawse v. Nottingham Lunatic Asylum, [1891] 1 Q. B. 585 ; 39 W. R. 461 ; 60 L. J., Q. B. 485 ; 65 L. T. 155.) The Whittingham Asylum was a county Case of lunatic asylum established under 16 & 17 Yict. Justices c. 97, and was provided for the reception and fare. relief of pauper lunatics. The medical superin- tendent, medical officers, and steward occupied apartments situate in the asylum building ; the chaplain occupied a house within the asylum grounds. The apartments and house were not rated or charged in the poor rate assessment, in accordance with sect. 35 of 16 & 17 Yict. c. 97. The medical superintendent, medical officers, and steward, were bound to be resident in the asylum, and might at any time be transferred from one set of rooms to another. The county justices, being assessed in respect of the apart- ments and house, appealed, contending that, as they were bound by 16 & 17 Yict. c. 97 to pro- vide an asylum for the reception of pauper lunatics, and as there was no beneficial occupa- tion on the part of these officers, who were acting as their servants, they were not liable to E5 INCOME TAX ACTS. Chap. II. assessment. It was held that the assessment had been rightly made. (Bray v. Justices of Lancashire, 22 Q. B. D. 484 ; 37 W. E. 392 ; 58 L. J., M. C. 54.) 3. Allow- 3. Literary or scientific institutions. For the ance for literary or duties charged on any building the property of any scientific .. ...' P institu- literary or scientific institution, used solely for the purposes of such institution, in which no payment is made for any instruction there afforded; provided that the building is not occupied by any officer of such institution, nor by any person paying rent for the same. 4. Allow- 4. Charity lands, &c. For the duties charged on charity the rents and profits of lands, &c., belonging to any hospital, public school, or almshouse, or vested in trustees for charitable purposes, so far as the same are applied to charitable purposes. < J ase . s of The meaning of the words " charitable pur- Eegina v. Commis- poses " was considered in the case of Rcgina v. sioners of Income Commissioners of Income Tax (22 Q. B. D. 296 ; Commis. 37 W. E. 294 ; 58 L. J., Q. B. 196 ; 60 L. T. Special 446). Lands had been conveyed to trustees upon trust to apply the rents and profits in part to the maintenance of the missionary establish- ments of the United Brethren, in part to the maintenance of educational establishments of the same religious body, such educational esta- blishments being for the maintenance, support, and education of the children of their ministers and missionaries, and special regard was to be INCOME TAX ACTS. had to the children of such ministers as were Chap. least ahle to support the expense of their chil- dren's education ; in part to establishments of the same religious body called choir houses, which were used for the residence and support of single or unmarried persons belonging to the United Brethren, selected either as deserving in themselves of the benefit of the endowment, or as likely to advance the religious interests of the community. Other lands had been conveyed to the same trustees, upon trust to apply the rents and profits for the benefit and general purposes of the establishment of the Protestant Episcopal Church of the United Brethren at Gracehill, Ballymena, in the county of Antrim, in Ireland. The question was whether the purposes to which the income of the estates were applied were " charitable purposes " within the meaning of the Income Tax Act, 1842. In the Queen's Bench Division (England), the judges (Lord Coleridge, C. J., and Grantham, J.) differed, butj the junior judge withdrawing his judg- ment, judgment was given for the Crown. In the Court of Appeal, the judgment of the Court below was reversed. Lord Esher, M. E., said that he agreed with all the reasoning of the Lord Chief Justice, but not with his conclusions. He agreed with the decision in a case in Scot- land which had been cited in argument (Baird's Trustees v. Inland Revenue, 25 Sc. L. E. 533), 84 INCOME TAX ACTS. . II. that the phrase must be construed in its popular sense, as it would he understood by all the edu- cated people in the United Kingdom, not in a technical sense in which it would be understood by a part only of such people. It must not be construed in the large sense which had been given to it by the English Court of Chancery in using the Statute of Elizabeth (43 Eliz. c. 4) as a means of formulating and extending its jurisdiction, in which sense it would include many things which no educated person would think of considering charities. The term might be paraphrased thus : " Bents and profits are given for charitable purposes, when lands are given in trust that the income shall be expended in assisting people to something considered by the donor to be for their benefit, and the donor intends that such assistance shall be given to people who, in his opinion, cannot, in conse- quence of their poverty, obtain the benefit without his assistance, and where the donor's intention to assist such poverty is the sub- stantial cause of his gift." The missions to the heathen, which were one of the objects of the trust, were missions to poor heathen, who had not the means of getting religious instruction for themselves, and therefore the assistance to these missions was a charitable purpose. The education of the children of missionaries and ministers, which was another object of the trust, INCOME TAX ACTS. 85 was intended for the assistance of persons who Chap. II. without such assistance could not get the educa- tion given ; that assistance was, therefore, a charitable purpose. The choir houses, which were the third object of the trust, were also a charitable purpose, the object being to benefit persons whom the donor considered to require assistance on account of their poverty. Fry, L. J., was of opinion that the words "charitable purposes " were technical words, to be under- stood in their technical meaning, but held that the statute 43 Eliz. c. 4 had determined that technical meaning, and amounted to a declara- tion by the legislature of the sense in which the word " charitable " was then understood. From that time forward " charity " meant, in all the Courts which had to do with it, all the uses and intents mentioned in the preamble to the statute, and analogous uses and intents. There was no question but that that technical meaning would include the case before the Court. If he was wrong in his principle of construction, he agreed with the Master of the Bolls that, according to the popular meaning of the words, the three objects to which the money was dedicated were charitable purposes. Lopes, L. J., arrived at the same conclusion, but by the mode of reason- ing of the Master of the Bolls. On appeal to the House of Lords, the decision of the Court of , Appeal was affirmed, the case viBaird's Trustees 86 INCOME TAX ACTS. Chap. II. y. Lord Advocate (ante, p. 84) being disap- proved. Commissioners for Special Purposes of Income Tax v. Pemsel, [1891] A. C. 531; 61 L. J., Q. B. 265. tion : of inp " 5. * Trade unions duly registered under the 2 Trade trades Union Acts, 1871 and 1876, and the rules of which unions' "provident limit the amount assured to any member, or person benefits" . J fund. nominated by or claiming under him, to a sum not exceeding in the total 200, and the amount of any annuity granted to any member, or person nominated by him, to a yearly sum not exceeding 30/., are exempt from income tax under schedule A. in respect of interest and dividends applicable to and applied solely for the purpose of " provident benefits." The Meaning phrase " provident benefits " is defined to mean pay- vident ment to a member during sickness, or incapacity benefits." J from personal injury, or while out of work, or to an aged member by way of superannuation, or to a member who has met with an accident, or has lost his tools by fire or theft, or a payment in discharge, or aid of, funeral expenses on the death of a member or a wife of a member, or as provision for the chil- dren of a deceased member ; where the payment in respect of which exemption is claimed is a payment expressly authorized by the rules of the trade union claiming the exemption. The mode in which the allowances are claimed and 1 " The Trade Union (Provident Funds) Act," 1893 (56 Yict. c. 2), ss. 1, 3. 2 34 & 35 Viet. c. 31 ; 39 & 40 Yict. c. 22. INCOME TAX ACTS. 87 made, will be described l later on. 2 Like allowances Chap. II. are made to the trustees of the British Museum. It must be understood that the properties are assessed, and the duties levied, in the usual way, notwithstand- ing the allowances made afterwards. Allowance to Owner of Land when Profits are found to fall short of Assessment. 3 If, at the end of any year of assessment, an owner of land, being also the occupier thereof, and occupying the land for purposes of husbandry only, whether he obtains his living principally from husbandry or not, finds, and satisfies the Commissioners by whom he has been assessed in respect of such land, that his profits and gains arising from the occupation of such land during the said year fall short of the sum upon which the assessment was made, the Commissioners may cause an abatement to be made from the amount of the assessment. If the applicant for relief satisfies the Commissioners that his income from every source for the year of assess- ment was under 150/., he is entitled to relief as 4 a person whose yearly income is less than 150/. Allowance on account of Life Insurance or Purchase of Deferred Annuity. 5 Any person who has made 1 See post, pp. 272 et seq. * 5 & 6 Viet. c. 35, s. 149. 3 14 & 15 Yict. c. 12, s. 3; 16 & 17 Viet. c. 34, s. 46; 43 & 44 Viet. c. 20, s. 52. As to the mode in which the allowance is to be claimed, see post, pp. 278, 279. 4 As to this relief, see post, p. 96. 5 16 & 17 Viet. c. 34, s. 54; 16 & 17 Viet. c. 91, s. 1; 88 INCOME TAX ACTS. Chap. II. insurance on his own life, or on the life of his wife, or who has contracted for any deferred annuity on his own life, or on the life of his wife, in or with any insurance company existing on the 1st Novemher, 1844, or registered pursuant to the Act 7 & 8 Yict. c. 110, or 1 under any Act passed in the Session of Parliament of the 16th and 17th years of her Majesty, or 2 in or with any friendly society legally established under any Act of Parliament relating to friendly societies, and 3 any person who has contracted for any deferred annuity on his own life, or on the life of his wife, with the Commissioners for the Eeduction of the National Debt, and ] any person who under any Act of Parliament is liable to the payment of an annual sum, or to have an annual sum deducted from his salary or stipend in order to secure a deferred annuity to his widow, or a provision to his children after his death, may, if he has been 22 & 23 Yict. c. 18, s. 6. The provision does not apply to insurance with a foreign insurance company. It is doubtful whether it applies to insurance with a Scotch company, Scotch insurance companies being expressly excepted from the operation of 7 & 8 Yict. c. 110. Colquhoun v. Haddon, 24 Q. B. D. 491; 38 W. E. 366; 59 L. J., Q. B. 142; and on appeal, 25 Q. B. D. 129 ; 38 W. E. 545 ; 59 L. J., Q. B. 465 ; 62 L. T. 853. 1 16 & 17 Yict. c. 34, s. 54. No Act for the registration of insurance societies was in fact passed during this session. 2 18 & 19 Yict. c. 35, s. 1. The premiums payable in respect of such insurances must not be made for shorter periods than three months. 3 22 & 23 Yict. c. 18, s. 6. INCOME TAX ACTS. 89 assessed to the duty under Schedule A., and has paid Chap. n. the duty assessed upon him, or if he has been charged with duty by way of deduction, l claim repayment of such a proportion of the duty paid by him as the amount of such annual premium, &c., bears to the whole amount of his profits or gains on which he is chargeable under all or any of the schedules. 2 But no such allowance may be made in respect of such annual premium beyond one-sixth part of the whole amount of the profits and gains of the claimant. Exemption in Case of Annual Income being less than 150/., and Allowance in Case of Annual Income being less than 4001. 3 A person whose income is less than. 150/. a year is exempted from payment of income tax ; and a person whose income, though exceeding 150/. a year, is less than 400/. a year, is entitled to an abatement in respect of 120/. of his income. The mode in which the exemption and abatement respec- tively are claimed and allowed will be described 4 later on. 5 For the purpose of claiming such exemption, the annual value of lands, &c. belonging to, or in the occupation of, any person claiming the exemp- tion is estimated, for the purpose of ascertaining 1 As to the mode in which the claim is made, see post, pp. 271, 272. 2 5 & 6 Viet. c. 35, s. 54. 3 39 & 40 Viet. c. 16, s. 8. 4 See post, pp. 265271. 5 5 & 6 Viet. c. 35, s. 167. 90 INCOME TAX ACTS. Chap. II. his title to the exemption, according to the rules and directions contained in the Schedules A. and B. respectively ; and the income arising from the occu- pation by the claimant of lands, &c. chargeable under Schedule B. is deemed, for the purpose afore- said, to be equal in England to one-half of the full annual value thereof, estimated according to the said rules and directions ; and where the claimant is the proprietor, as well as the occupier, of any such lands, &c. the amount deemed as aforesaid to be the income arising from the occupation of such lands, &c. is added to the amount of the full annual value thereof ; and the aggregate amount is deemed, for the pur- pose aforesaid, to be the income of the claimant arising from the lands, &c. of which he is the pro- prietor and occupier as aforesaid. The income arising from any lease of, or composition for, tithes, is deemed, for the purpose aforesaid, to be equal to one-fourth of the full annual value of such tithes estimated in manner aforesaid. SECTION II. SCHEDULE B. Occupation of Land, fyc. Under Schedule B. the duty is charged " for ! and in respect of the occupation 1 16 & 17 Viet. c. 34, s. 2. As to the duty charged in respect of land occupied by a dealer in cattle, or by a dealer in, or seller of milk, see post, pp. 156, 157. Farmers may now elect to be charged under Schedule D. This option was first given in 1887, by the Customs and Inland Eevenue Act of that year (50 & 51 Viet. c. 15), the provisions of the 18th section of which are as follows : " It shall be lawful for any INCOME TAX ACTS. of all such lands, tenements, hereditaments, and Chap. n. heritages as aforesaid " (that is, as are comprised in Schedule A.), 2 except dwelling-houses, with their offices, not occupied with farms of lands, or tithes, for farming purposes, and except warehouses, or other buildings, occupied for the purpose of carrying on a trade or profession, "for every 3 twenty shillings of the annual value thereof." The duty charged under Schedule B. is a duty which is imposed upon, and has to be paid by, the occupier, and not the owner of land. A police-officer, compelled by the duties of Case of his office, and the circumstances in which he Roberts. holds that office, to occupy a house, separate person occupying land for the purposes of husbandry only to elect to be assessed to the duties of income tax under Schedule D., and in accordance with the rules of that' schedule, in lieu of assessment to the duties under Schedule B. The election of such person shall be signified by notice in writing, delivered personally, or sent by post in a registered letter, to the Surveyor of Taxes for the district, within two calendar months after the commencement of the year of assessment ; and from and after the receipt of such notice the charge upon him to the duties of income tax for such year shall be under Schedule D., and the profits or gains arising to him from the occupation of the lands shall for all purposes be deemed to be profits or gains of a trade chargeable under that schedule." Each "year of assessment" begins on the 6th April; any such election must therefore be made between the 6th April and the 6th June in any year, and is operative for "the current year of assessment." 2 5 & 6 Yict. c. 35, s. 63, No. 7. 3 16 & 17 Yict. c. 3-1, s. 2. See p. 44, note 3 . 92 INCOME TAX ACTS. Chap. II. from the police-station, but communicating with the prison yard ; the house being liable to be used for purposes connected with the police force as the chief constable of the county may direct ; and the police-officer being liable to be removed at any time, is not an " occupier," although the house is for the time being wholly occupied by him, and furnished with his own furniture, and a sum is deducted from his salary by way of rent. Burt v. Roberts, L. R., 3 Ex. D. 66. Annual Value under Schedule B. The rules for determining the annual value under Schedule B. are generally Hhe same as those employed for determin- ing the annual value under Schedule A. ; but the following modifications of those rules, so far as concerns assessments under Schedule B., must be noticed : i. Lands 1. 2 Lands subject to tithe rent-charge and lands tith^rent- tithe free. In all cases where lands are subject to a titheffree. rent-charge in lieu of tithes under the 3 Act passed for the commutation of tithes, and in all other cases where lands in England are not subject to tithe, or to any modus or composition real in lieu thereof, there shall be deducted out of the duties contained in Schedule B. a sum not exceeding one-eighth part thereof. 1 5 & 6 Viet. c. 35, s. 63, Nos. 9, 10, 11. 2 Ibid., No. 7. 3 6 & 7 Will. IY. c. 71. INCOME TAX ACTS. 93 2. l In all cases where lands in England are sub- Chap. n. ject to a modus or composition real, and not subject 2. Lands to any tithe, there shall be deducted out of the modus or duties contained in Schedule B. so much thereof tfoTreai. as, together with the like rate on such modus or composition real, shall not exceed one-eighth part of such duties. 3. l In all cases in which lands in England are 3. Lands . subject to subject to a modus or composition real in lieu or certain specific tithes, and also are subject to certain t other specific tithes ; or where such lands are free of & c . certain specific tithes, and are subject to certain other specific tithes, the annual value of such lands shall, for the purpose of charging the duties under Schedule B., be estimated at the rack-rent at which the same would let by the year if wholly free from tithes, and there shall be deducted therefrom the amount or value of one-eighth of the said duties, chargeable on the said estimate. The occupier of a deer forest in Scotland Case of Sir George claimed to be assessed under Schedule B. upon Nathaniel the ordinary value of the land, part of the rent Middieton, actually paid, which exceeded this ordinary value, being paid for the privilege of shooting deer, which, it was argued, was not " a property capable of actual occupation " as required by the Act, and the duty under Schedule B. being, it was said, really chargeable in respect of 1 5 & 6 Viet. c. 35, s. 63, No. 7. 94 INCOME TAX ACTS. Chap. II. profits only. But it was held that the claim was not maintainable ; that in the case of lands no estimate of profits is required as in the case of trades and professions, but a statutory mode of proving what the profits are is established A deer /. ., by taking the annual value ; that a deer within forest is within the meaning of sect. 60 ; and 5&6Vict. that the privilege of shooting game let to a A ri\t of tenant is part of a right of property. Case of shooting sj r Q eor qe Nathaniel Broke Middleton, Bart., 13 is part of a right of SCO. L. E. 378. property. Exceptions Lands occupied as Nurseries or Gardens for the Sale of Produce. * The profits arising from lands so occupied are estimated according to the rules contained in Schedule D., which we shall state 2 presently, and the duty thereon charged at the rate contained in that schedule ; and, when the duty has been so ascertained, it is charged under Schedule B., as upon profits arising from the occupa- tion of lands. 3 But lands occupied for the growth of hops are charged wholly under Schedule B. Deductions and Allowances under Schedule B. The rules for determining the annual value under Schedule B. being, as we have said, generally the 1 5 & 6 Yict. c. 35, s. 63, No. 8. This enactment includes lands occupied for the growth of hops ; but by 16 & 17 Viet. c. 34, s. 39, such lands are to be assessed under Schedule B. 2 See post, Chap. II., sect. 4. 3 16 & 17 Yict. c. 34, s. 39. INCOME TAX ACTS. 9.5 same as those employed for determining the annual Chap. n. value under Schedule A., the deductions and allow- ances made under that schedule will also be made, so far as they may be applicable, in cases of duties chargeable under Schedule B. The following allow- ance in the case of duty payable under Schedule B. is, it will be seen, very similar to that allowed in the case of duty chargeable under Schedule A. x lf at the end of any year of assessment any occupier of land, occupying the same for the purposes of hus- bandry only, not being the owner thereof, who has been assessed in that year under Schedule B. in respect of such land, finds, and satisfies the Commis- sioners by whom the assessment was made, that his profits and gains arising from the occupation of such land during the said year fell short of the sum upon which the assessment was made, the said Commis- sioners may 2 cause an abatement to be made from the amount of the assessment. 3 In cases where an abatement from the amount of the assessment would afford inadequate relief, the occupier of lands for the purposes of husbandry only may obtain an adjust- ment of his liability by reference to the loss, and to the aggregate amount of his income for that year. 1 14 & 15 Yict. c. 12, s. 3; 16 & 17 Viet. c. 34, s. 46; 43 & 44 Viet. c. 20, s. 52. 2 As to the mode in which the abatement is made, see post, pp. 278, 279, 287. a 53 & 54 Viet. c. 8, s. 23. As to the mode, in which the relief is claimed, and the time within which the claim must be made, see post, p. 287. 96 INCOME TAX ACTS. Chap. II. But, if he avails himself of this relief, he will not be entitled to claim, or be allowed, a deduction on the assessment for a subsequent year by reference to the amount of loss in respect of which he has obtained relief. J If the applicant for relief satisfies the Com- missioners that his income from every source for the year of assessment was under 150/., he is entitled to relief as a 2 person whose yearly income is under 150/. Abatement on account of Life Insurance or Purchase of Deferred Annuity. What 3 we have said with reference to this abatement, when dealing with the duty under Schedule A., will apply equally to the duty under Schedule B. Exemption in Case of Annual Income being less than 150/., and Allowance in Case of Annual Income being less than 4007. The exemptions and abatement we 4 have mentioned in dealing with the duty under Schedule A. may also be claimed in case of the duty under Schedule B. We have 5 already incidentally referred to the mode in which, for the purpose of this exemp- tion and abatement, the annual value of the occupa- tion of lands, &c. is estimated. The mode in which 1 16 & 17 Viet. c. 34, s. 30; 39 & 40 Yict. c. 16, s. 8. 2 See below. As to the mode in which the relief is claimed, see post, pp. 265 271, 287. s Ante, pp. 8789. 4 See ante, pp. 89, 90. s Ibid. INCOME TAX ACTS. 97 the exemption or abatement is claimed and allowed Chap. II. will be described l later on. SECTION III. SCHEDULE C. Interest and Annuities payable out of Public Revenue. Under Schedule C. the duty is charged " 2 for and in respect of all profits arising from interest, annuities, dividends, and shares of annuities, payable to any person, body politic or corporate, company or society, whether corporate or not corporate, out of any public revenue," for " 3 every twenty shillings of the annual amount thereof." The duty extends to " 4 all public annuities whatever payable in Great Britain out of any public revenue in Great Britain or elsewhere ; and to all dividends, and shares of such annuities, respectively;" 5 and also to interest payable out of the public revenue, or securities, issued at the ex- 1 See post, pp. 265271, 286, 287. 2 16 & 17 Viet. c. 34, s. 2. See p. 155, post, as to the deduction allowed to a clergyman, or minister of any reli- gious denomination, for expenses incurred in the perform- ance of his duty or function. 3 Fractional parts of 20s. are also charged with duty by sect. 3 of the Act, 16 & 17 Viet. c. 34; but no duty is charged of a lower denomination than Id. 4 5 & 6 Viet. c. 35, s. 88. Annuities or dividends payable out of the revenue of a foreign state are chargeable. 5 & 6 Viet. c. 80, s. 2. And, of course, annuities and dividends payable out of any colonial revenue. See 5 & 6 Viet. c. 35, s. 96. 5 5 & 6 Viet. c. 35, s. 97. E. F 98 INCOME TAX ACTS. Chap. II. First case of ex- emption : Stock of friendly societies. Second case of exemp- tion: Stock of savings tanks. Case of In re the Yorkshire fenny Jianlt. chequer or other public office, by whatever names such securities are called, except in the following cases of exemption, viz. : 1. l Stock, &c., of friendly societies. The stock, dividends, or interest, of any friendly society legally established under any Act relating to friendly societies, not assuring to any individual more than 200/., and not granting any annuity exceeding 30/. 2. 2 Stock, &c., of savings banks. The stock, or dividends, of any savings bank established under the provisions of the Act 9 Greo. 4, c. 92 ("An Act to consolidate and amend the laws relating to savings banks"), arising from investments with the Commis- sioners for the Eeduction of the National Debt ; and also the dividends, or interest, payable by the trustees of any savings bank upon any funds therein invested belonging to any depositor, or to any charitable insti- tution. The Yorkshire Penny Bank had been ori- ginally constituted as a Savings Bank under 9 Greo. 4, c. 92. It was subsequently incor- porated as a company limited by guarantee for the promotion of 3 objects within sect. 23 of the Companies Act, 1867. There were no profits. With the money received from depositors the 1 5 & 6 Yict. c. 35, s. 88, first exemption. 2 Ibid., second exemption. 3 These objects are such as serve to promote commerce, art, science, charity, or any other useful object unconnected with the making of profit. INCOME TAX ACTS. 99 Bank made investments, and income tax was Chap. II. deducted in the usual course from the interest paid on such investments. For many years the Bank obtained repayment from the Special Commissioners of the duty deducted from the interest, but, attention having been drawn to the fact that the operations of the Bank were no longer confined to the receipt of small deposits, the Special Commissioners declined to repay any larger sum than the duty on so much of the interest received as had been paid, or credited, to depositors whose annual interest did not amount to 3/. The Bank obtained a rule nisi, requiring the Special Commissioners to show cause why a mandamus should not issue direct- ing them to allow the Bank an exemption from income tax. They contended that they were entitled to the allowance under the second ex- emption of sect. 88 of 5 & 6 Yict. c. 35, or under 1 the third exemption of the same section, either as a savings bank, or as a charitable institution, or under sections 98 and 105 of 5 & 6 Yict. c. 35. The Board of Inland Revenue offered to entertain a claim for repayment of income tax in respect of the interest paid to those de- positors whose annual interest in any year did not amount to 3/., and ultimately, the offer being 1 See post, p. 100. F2 100 INCOME TAX ACTS. Chap. II. Third case of ex- emption : Stock of charitable institu- tions ; including British Museum. accepted, the rule nisi was discharged by agree- ment, with costs. In re The Yorkshire Penny Bank, unreported. 3 l Stock, &c., of charitable institutions. The stock or dividends of any corporation, fraternity, or society of persons, or of any trust, established for charitable purposes only, so far as the same are applied to charitable purposes only; and the stock, or dividends, in the names of any trustees applicable solely to the repairs of any cathedral, college, church, or chapel, or any building used solely for the pur- poses of divine worship, so far as the same are applied to such purposes. 2 Stock and dividends, vested in the Trustees of the British Museum, are also exempt from duty; and no salary or payment made out of her Majesty's Exchequer to such trustees is to be charged. But the duties on all salaries of officers or persons employed under the said trustees, are to be charged on the said officers respectively. 3 And a trade union duly registered under the 4 Trade Union Acts, 1871 and 1876, by the rules of which the amount assured to any member, or person nominated by, or claiming under, him, is limited to a sum not exceeding 2007., and the amount of any annuity granted to any member or person nominated by him is limited to a 1 5 & 6 Viet. c. 35, s. 88, third exemption. 2 16 & 17 Viet. c. 34, s. 149. 3 ''The Trade Union (Provident Funds) Act, 1893" (56 Viet. c. 2), s. 1. 4 34 & 35 Viet. c. 31 ; 39 & 40 Viet. c. 22. UNIVERSITY OF INCOME TAXSS^ST^ 101 yearly sum not exceeding 30/., is entitled to exemp- Chap. II. tion from income tax chargeable under Schedule C., in respect of the interest and dividends of the trade union applicable and applied solely for the purpose of provident benefits. 4. 2 Stock in the name of the Treasury or of the Fourth Commissioners for the Reduction of the National exemp- Debt. The stock, or dividends, standing in the stock in . , name of names aforesaid. Treasury 5. 3 Stock belonging to her Majesty, or to accredited mi ss ioners ministers. The stock, or dividends, belonging to her Action of Majesty; and the stock, or dividends, of any accredited e b 1 t onal minister of any foreign state resident in Great Fifth case -r, ., . ofex- J3ritam. emption : Stock of her Ma- Allowance on Account of Life Insurance and Purchase jesty ' d ? t r d of Deferred Annuities. What we 4 have said with ministers v . of foreign reference to this abatement when dealing with the states. duty under Schedule A. will apply equally to the duty under Schedule C. Exemption in Case of Annual Income being less than 150/. ; and Allowance in Case of Annual Income being less than 4001. The exemption and abatement we 5 have mentioned in dealing with the duty under Schedule A. may also be claimed in case of the duty 1 As to what are "provident benefits," see ante, p. 86. 2 5 & 6 Viet, c. 35, s. 88, fourth exemption. 3 Ibid., fifth exemption. 4 See ante, pp. 87, 89. 5 See ante, pp. 89, 90. 102 INCOME TAX ACTS. Chap. II. under Schedule C. The mode in which the exemp- tion or abatement is claimed and allowed, will he described l later on. Small Dividends to be charged under Schedule D. 2 When the half-yearly payment on any annuities, dividends, and shares of annuities, otherwise charge- able under Schedule C., does not amount to fifty shillings, the same is to be accounted for, and charged under Schedule D. ; 3 except in the case of dividends attached to stock certificates issued under the National Debt Act, 1870, from which the duty is deducted, although the dividend does not amount to fifty shillings. SECTION IV. SCHEDULE D. Annual Profits and Gains from Property and Pro- fessions. Under Schedule D. the duty is charged 4 "for and in respect of the annual profits, or gains, arising, or accruing, to any person residing in the United Kingdom, from any kind of property what- ever, whether situate in the United Kingdom or elsewhere ; and for and in respect of the annual profits, or gains, arising, or accruing, to any person residing in the United Kingdom, from any profession, trade, employment, or vocation, whether the same shall be 1 See post, p. 290. 2 5 & 6 Yict. c. 35, s. 95. 3 3,3 & 34 Viet. c. 71, s. 36. 4 16 & 17 Yict. c. 34, s. 2. INCOME TAX ACTS. 103 carried on in the United Kingdom or elsewhere ; . . . Chap. II. and for and in respect of the annual profits, or gains, arising, or accruing, to any person whatever, whether a subject of her Majesty or not, although not resident within the United Kingdom, from any property whatever in the United Kingdom, or any profession, trade, employment, or vocation exercised within the United Kingdom" for every l twenty shillings of the annual amount of such profits and gains ; and " for and in respect of all interest of money, annui- ties, and other annual profits, and gains, not charged by virtue of any of the other schedules " for every 1 twenty shillings of the annual amount thereof. 2 A man " resides " in Great Britain if he has Case of his ordinary residence there, although he is absent from that residence for a greater or shorter period of each year (Case of Captain H. Young , Master Mariner, 16 Sco. L. R. 682), even although he is not in Great Britain for six months of the year (Case of Captain H. Young, ubi sup.), or even although he is absent from Case of Great Britain the whole year. (Rogers v. Inland inland Revenue, 16 Sco. L. E. 682.) A merchant cIse^T* having a permanent residence, and carrying on ^Jff v * 1 Fractional parts of 20s. are charged with duty by sect. 3 of the Act, 16 & 17 Viet. c. 34 ; but no duty is charged of a lower denomination than Id. 2 Farmers may elect to be assessed under this schedule and in accordance with its rules, rather than under Schedule B., 50 & 51 Viet. c. 15 ("Customs and Inland Eevenue Act, 1887 "). See ante, p. 90, note l . 104 Chap. II. Place of residence of a com- pany. Case of Calcutta Jute Mills Co.v. Nicholson. INCOME TAX ACTS. business, at Leghorn, but having also a resi- dence in Scotland which he visited in the summer months, always returning to his per- manent abode in Italy, was held liable to be assessed on the profits of his foreign trade brought into Great Britain to meet his expen- diture in Scotland, and elsewhere in Great Britain, although the period of his residence in Great Britain had been less than six months in the year. (Lloyd v. Sully, unreported.) A joint stock company is charged as a "person." (5 & 6 Yict. c. 35, s. 40.) It "resides" in the place in which it carries on its real trade and business. (Calcutta Jute Mills Company v. Nicholson, L. B,., 1 Ex. D. 437 ; 45 L. J., Ex. 821 ; 35 L. T. 275 ; 25 W. E. 71.) The place of registration of the company is not conclusive as to its place of "residence," although it is a fact to be taken notice of in connection with all other circum- stances in order to determine the place of " resi- dence " of the company. The " Calcutta Jute Mills Company, Limited," was a company regis- tered in England, having its registered office in England, managed by a Board of not less than five directors in England, who appointed a resi- dent director and manager in Calcutta. There were Indian and English shareholders of the company. The whole of the business of the company, the realising, and disposing of, its funds, and the division among the Indian share- INCOME TAX ACTS. 105 holders of the part of the profits due to them, Chap. II. was transacted in India. The company made no profits in England. The company was held liable to assessment upon the whole of its profits, not upon so much only as was divided between the shareholders in England. l The case of The Case of Cesena Ccscna Sulphur Company, Limited (L. R., 1 Ex. Sulphur D. 428 : 45 L. J., Ex. 821 ; 35 L. T. 275 ; 25 6 '' "W. E. 74) was similar. The Imperial Ottoman Bank was a body in- Case of corporated according to the law of Turkey by a Alexander. firman of the Sultan, established as a state bank for the Ottoman Empire, and having its seat in Constantinople. It had an agency in London London t agency of by which the usual business of bankers was carried foreign on, managed by the London members of a com- company, mittee, appointed to administer the affairs of the 1 In the case of Colquhoun v. Brooks (see post, p. 118), where the question was whether a partner in a business carried on in Australia, residing in England, was liable to pay income tax upon the profits of the business in Australia not brought into this country, the question was finally decided in the negative by the House of Lords. Lord Herschell in his judgment expressly abstained from con- sidering whether the facts in the case of the Cesena Sulphur Company raised the same question as was raised in the case before him, but said that, inasmuch as the important con- siderations which had been pressed in argument in the House of Lords were not present to the minds of the learned judges who took part in the decision in the Cesena Sulphur Com- pany's Case, it could not be considered as an authority determining the question. F5 INCOME TAX ACTS. Chap. II. bank by the shareholders. The bank was held to be not resident in the United Kingdom. Attorney-General v. Alexander and others, L. R., 10 Ex. 20 ; 44 L. J., Ex. 3 ; 31 L. T. 694 ; 23 W. K. 255. Case of Messrs. Tischler & Co. were wine growers and Co. v. Ap- wine merchants, carrying on business as Tischler & Co. at Bordeaux, where they resided. Mr. Tischler, the senior partner, was in the habit of spending about four months in every year in England at different times, and dwelt during that period chiefly in London, and then always at the Eoyal Hotel, Blackfriars. He had no other place of residence in England. When in Eng- land he saw customers, and took orders for wine, which was shipped from Bordeaux by his firm, who sent invoices, sometimes to the purchaser direct, and sometimes to Messrs. Feuerheerd & Co., who acted as general agents for Tischler & Co. Feuerheerd & Co. were paid by commission upon the amount of all wines sold either through them or by Mr. Tischler when in London. The commission included a guarantee of all debts for wine sold in England. A room was provided for Mr. Tischler in Feuerheerd & Co.'s office, the rent of which was paid by Tischler & Co., who had their own clerk there, and their name painted on the door. Payment for wines ordered was made to Feuerheerd & Co. for Tischler & Co., and Feuerheerd & Co. received invoices, or INCOME TAX ACTS. 107 copies of invoices, of all wines sent by Tischler Chap. n. & Co. from Bordeaux to England. It was held that Tischler & Co. did not "reside" in the United Kingdom, but were liable to income tax as carrying on a trade there. Tischler fy Co. v. Apthorpe, 52 L. T. 814; 33 W. E. 548. The Great Northern Telegraph Company Case of Erichaen of Copenhagen was a company " resident at v. Lust. Copenhagen. It had submarine cables in con- nection with the United Kingdom, and other submarine cables and foreign telegraph lines not in connection with the United Kingdom. It had also, under an agreement with the Post- master-General, separate wires between Aber- deen, Newcastle, and London, worked by its own staff in workrooms in Aberdeen, Newcastle, and London. No profits were made by the company from the land lines in the United Kingdom used by them, except so far as the use of these lines enabled the company to make profits by the transmission of messages abroad. It was held that the company must be assessed on what they received in the United Kingdom for transmission of messages abroad, after deducting sums paid by them for the use of foreign lines. Erichsen v. Last, L. E., 8 Q. B. D. 414 ; 51 L. J., Q. B. 86; 45 L. T. 703; 30 W. E. 301. Messrs. Pommery and Greno were wine mer- Case of chants and shippers, having their chief office for ^Apl U business at Bheiins, in France, where they re- thorpc ' 108 INCOME TAX ACTS. Chap. ii. sided. They were in the habit of shipping champagne to England for the purpose of sale. They had an agent in England, one Hubinet, who acted as their representative in England in the sale of their wine and the transaction of their business. He had a place of business in Mark Lane, in the City of London, the premises being taken in his own name. He, on behalf of Messrs. Pommery and Greno, employed travellers, and appointed sub-agents who sought for orders for Messrs. Pommery and Greno's wines. All orders obtained were sent by Hubinet direct to Messrs. Pommery and Greno at Rheims ; in the case of small orders the wine was supplied from a stock of wine kept in London ; in the case of larger orders the wine was shipped by Messrs. Pommery and Greno direct to the customers. The amounts due were collected by Hubinet on behalf of Messrs. Pommery and Greno, who kept a bank- ing account in London. Drafts given in pay- ment were sent to Messrs. Pommery and Greno for indorsement. In case of default in payment proceedings were taken in English Courts. The agent received a commission on all wines sold in England, as an equivalent for his expenses in rent, clerks' salaries, and otherwise, and as re- muneration for his services. The name of Pom- mery and Greno was inserted among the London wine merchants in the "London Directory," coupled with that of Hubinet as agent. Hubinet INCOME TAX ACTS. 109 was duly assessed to income tax on all profits Chap. II. made by him in respect of his agency, and paid income tax thereon. Messrs. Pommery and Grreno were assessed on their profits in the name of their agent Hubinet, and appealed on the ground that the profits were made in France and not in England. It was attempted to distin- guish the case from that of Tischler and Co. v. Apthorpe, on the ground that in the latter case one of the appellants' firm spent four months in the year in this country, and personally took orders, and the English agent received all the moneys ; and from the case of Erichsen, v. Last, on the ground that in that case the whole business was certainly done in this country. But it was held that no serious distinction could be drawn be- tween the cases, and that Messrs. Pommery and Greno were rightly assessed. Pommery v. Ap- thorpe, 35 W. E. 307; 56 L. J., Q. B. 155 ; 56 L. T. 24. The facts were not so strong in the case of Case of Messrs. Werle and Co., who were wine mer- Co. v. Coi- chants, resident at Rheims, in France. They qu employed a London firm of wine merchants as their sole agents in the United Kingdom. The agents' office was taken in their own name, and on their own account, and they carried on their own business there. The agents, with the authority of Messrs. Werle and Co., issued ad- vertisements and circulars in England for the INCOME TAX ACTS. Chap. II. purpose of securing contracts. The name of " Werle and Co." was exhibited on the inside window of the agents' office in London, and was entered in the " London Directory." Contracts for wine were made by the agents in England, and transmitted to Bheims. No stock of wine was kept in England by Messrs. Werle and Co., nor had they any banking account in England. The purchasers either paid the agents, who re- mitted the amount to Messrs. Werle and Co., or paid Messrs. Werle and Co. direct. Messrs. Werle and Co. sent receipts to the purchasers for all payments. The agents were paid by a commission (upon which they paid income tax) on all wines sold by Messrs. Werle and Co. in the United Kingdom, and paid all expenses. It was held that there was a trade carried on in England, and that the profits were assessable to income tax. Lord Esher, M. R,., said that it was not essential that the profits should be re- ceived in England, nor that there should be an establishment in England. It was not neces- sary that anyone should be found to be assessed in England under ! sect. 41 of 5 & 6 Yict, c. 35. If the Crown can find such an agent as is mentioned in that section it can assess him ; but if it cannot, that does not derogate from the right of the Crown, if there is a person assessable. The Crown must by some means or other get at 1 See post, p. 179, note 3 . INCOME TAX ACTS. HI that person. Fry, L. J., agreed with the Master Chap. II. of the Bolls upon the construction to be placed on sect. 41 of 5 & 6 Yict. c. 35, but thought that Messrs. Werle and Co. had an agent within the United Kingdom in receipt of the profits and gains, as part of the gross sum which was paid him by the purchaser. Werle and Co. v. Colqu- lioun, 20 Q. B. D. 753 ; 36 W. E. 613 ; 57 L. J., Q. B. 323 ; 58 L. T. 756. In the case of the Imperial Ottoman Bank, Case f 1 Gilbertson mentioned above, it was held that English profits v. Fer- gusson. made by the London agency of the bank were London liable to assessment. Gilbertson v. Fergusson, L. E., 7 Q. B. D. 562 ; 46 L. T. 10. It was also held, in the case of the Imperial Ottoman Bank (ubisup.}, that the English share- English holders' share of the profits made in Turkey holders' was liable to assessment : e. g., if the shares had profits of been equally held in England and in Turkey, and the profits made in England and in Turkey had been equal, three-fourths of the profits would have been assessable. Mr. Brooks resided in England, but was Case of partner in a firm which carried on business v. exclusively in Australia. The question was whether he was only liable to be assessed in respect of his interest in the Australian firm on the sums from time to time received by him in England in respect of that interest, or whether he was liable to be assessed on the whole of his 112 INCOME TAX ACTS. Chap. ii. share in the profits of the Australian firm, whe- ther received in England or not. In the Queen's Bench Division, the judges, Wills, J., and Stephen, J., differed. Wills, J., held that the generality of the words in the first portion of Schedule D. was cut down hy the provisions of 5 & 6 Yict. c. 35, applicable to Schedule D., more especially sects. 100, 106, and 108 ; that the method of construction summarized in the maxim expressio unius exchisio alterius, from which it had been argued that, from the very fact that such limitations are imposed in the case of profits derived from foreign or colonial securities or possessions, it is to he inferred that no such limitation is to he imposed in the case of profits derived from a trade carried on abroad, did not help him to arrive at what was meant ; that there was authority for saying that there is a general rule as to the extent to which English Acts of Parliament dealing with pro- perty in general are to be treated as applying to foreign property (using the word " foreign " as including colonial property) , that is, property which, whether situate in England or elsewhere, is not, at the time to which the discussion relates, English property, and that, in the words of Lord Westbury in Attorney- General v. Camp- bell (L. E., 5 H. L. 524530; 21 W. E. 34, n.), " You cannot apply an English Act of Parlia- ment to foreign property while it remains INCOME TAX ACTS. 113. foreign property " ; that the question in every Chap. II. instance was one of fact, " Is the property sought to be affected British property or not ? " and that there was absolutely nothing to give a British character to the unremitted portion of the profits made in Melbourne by a business carried on in the colony of Victoria only ; that the principle of the decision in Sitllcy v. At' tor net/- General (8 W. E. 472 ; 5 H. & N. 711 ; reversing Attorney- General v. Sulley^ 7 "W. H. 666 ; 4 H. & N. 769) was that the profits of a business carried on abroad, and not in the United Kingdom profits made abroad, and never remitted here are not taxable ; that it was far easier to suppose that the omission of any special mention of the case of a person resident here and not receiving the whole of the profits of a business carried on abroad by a firm of which he is a partner was an acci- dent, than that there should be, in respect of an isolated case of this kind, a departure, without express words, from a well-understood principle regulating the application of Acts of Parliament in general ; and that the provi- sions relating to the profits of foreign securities pointed out what, for the purposes of the Income Tax Acts, effected the conversion of foreign into British property, viz., the receipt of the profits, whether of foreign securities or of foreign trade, in this country. Stephen, J., differed. He 114 INCOME TAX ACTS. Chap. II. thought the language of Schedule D. concluded the question. It could not be limited in the way suggested. He pointed out that the words of Lord Westbury, quoted by Wills, J., were used with reference to statutes imposing duties on property when, by the death of its owner, it changes hands. The Income Tax Acts were directed to taxation of persons, not to distribu- tion or management of things ; and he saw no reason why an Act which in terms taxed resi- dents in England for the profits of trade carried on abroad should be cut down by implication, so as to apply to those parts only of the profits which were brought home. Wills, J., as junior judge, withdrew his judgment, in accordance with the old practice in the * Court of Exchequer, and judgment was given for the Crown. But in the Court of Appeal, the judgment was reversed by Lord Esher, M. R., and Lopes, L. J., Fry, L. J., dissenting. Lord Esher, M. B., said that it was impossible to have words larger than those used in Schedule D. of the 2 Income Tax Act, 1853 ; if taken in their largest sense, they would apply to a foreigner just as much as to a servant of the Queen, so that any foreigner residing in this country for a time sufficient to make his stay a residence would have to pay income tax for any kind 1 The old Court of Exchequer had jurisdiction in revenue cases. 2 16 & 17 Yict. c. 34. INCOME TAX ACTS. of property whatever, whether situate in the Chap. u. United Kingdom or elsewhere; that such an enactment would amount to a tyrannical and abnormal interference in regard to matters with which this country has nothing to do ; and that, unless it was perfectly clear (which it was not) that Parliament had intended to commit an outrage on the law and comity of nations, it could not be supposed that any such conse- quences were intended to result from the gene- ral words used. lie adopted all the arguments which Wills, J., had given in his judgment. Lopes, L. J., concurred, but Fry, L. J., found himself^ unable to place any limitation upon the words, used in Schedule D. He thought that the obvious and express language of the legis- lature did create a charge upon persons resident in this country in respect of any profits, wherever they had been earned. The argument that such legislation would have amounted to an outrage upon the law of nations, he dis- missed as one ^for the legislator, not for the judge ; he quoted with approval the language of Lord Cairns in Par I ing ton v. The Attorncy- General (L. R, 4 H. L. 100) : " The principle of all fiscal legislation is this. If the per- son sought to be taxed comes within the letter of the law, he must be taxed, however great the hardship may appear to the judicial mind to be " ; he did not dissent from the pro- 116 INCOME TAX ACTS. cha P- n - position of Lord Westbury, but held that it had no application to the case before him ; he said that the income tax was not like the succession duty, or the legacy duty, a charge upon a thing, but was a charge upon a person in respect of a thing, and he knew of no principle of law which prohibited the Legislature from using foreign property, or anything in the world they liked, as the standard by which the person resident within this country was to be charged; he thought the rules in l cases 4, 5, and 6 furnished no general guide for the interpretation of the statute. The judgment of the Queen's Bench Division was reversed in accordance with the opinion of the majority of the Court of Appeal. The case was carried to the House of Lords, where the decision of the Court of Appeal was affirmed, but for different reasons. Lord Fitz- gerald thought that there would be no hardship in charging Mr. Brooks on his share of the profits of the Australian firm, actually ascer- tained, but held that there was no sufficient finding to warrant him in coming to the con- clusion that such profits had been so ascertained as to be legitimately the subject of taxation here. He also held that profits derived from trade carried on entirely elsewhere than in the United Kingdom are not accessible for income tax until received here by the person entitled to 1 See post, pp. 158, 159, 162, 163. INCOME TAX ACTS. them, being a resident in the United King- Chap. II. dom. Lord Herschell did not attach weight to the argument that the result of allowing the contention of the Crown to prevail, which must be extended to the case of a foreigner, would involve a violation of international law, nor did he consider that the decisions under the Legacy and Succession Duty Acts, which im- posed a limit upon the broad language of the enactments subjecting legacies and successions to taxation, supplied a rule applicable to questions of income tax. But he pointed out the anomalies in the incidence of the tax which would result from adopting the view put forward on the part of the Crown ; that none of the elaborate machinery provided for carrying out the taxing purposes of the Income Tax Acts was applicable to the assessment of the profits of a trade carried on entirely outside the United Kingdom, no part of which is received here; and that the shares of the Australian partners of the Austra- lian firm clearly could not be taxed, and that there was no provision for a separate statement and assessment of the profits of the English partner such as the Crown contended for. And referring to the rule styled the 1 fifth case of Schedule D., dealing with the duty to be charged in respect of possessions in any of her 1 See post, p. 162. 118 INCOME TAX ACTS. Chap. II. Majesty's dominions out of Great Britain, and foreign possessions, he expressed himself unable to see why the word " possessions " might not be fitly interpreted as relating to all that is possessed in her Majesty's dominions out of the United Kingdom, or in foreign countries, and so as including the interest which a person in this country possessed in a business carried on elsewhere. This construction would have the advantage of removing the glaring anomaly which would inevitably flow from the rival con- struction, and of taxing alike such portion only of the profits arising abroad, whether from pro- perty or trade, as is received in the United Kingdom. In the case of the Ccsena Sulphur Co. v. Nicholson (see ante, p. 105), the head office, and therefore the principal place of business, of the companies whose income was under con- sideration, was in England, and the argument turned principally upon where those companies resided. Without stopping to inquire whether the facts in that case raised the same question as was then to be decided, it was certain that the important considerations which had been pressed in argument were not present to the minds of the learned judges who took part in the decision upon that case, which could not, therefore, be regarded as an authority deter- mining the question. Lord Macnaghten, after saying that he did not think that any light was INCOME TAX ACTS. H9 thrown upon the question by considering the Chap. II. Legacy Duty Acts, or the Succession Duty Act, or the decisions on those statutes ; or that there was any room for the argument that " arising or accruing to any person " in the first sentence of Schedule D., meant "received by any person in the United Kingdom"; or that there was sufficient force in the argument founded upon the comity of nations ; entered into an elaborate examination of the language of the earlier Income Tax Acts, from which the existing Acts were more or less copied, and, comparing the language of the existing Income Tax Acts, and noting the inadequacy of the provisions for stating and assessing the profits of a partnership business wholly carried on abroad, he came to the conclusion that the profits and gains arising from Mr. Brooks' Melbourne business fell under the l fifth case of Schedule D., and were charge- able accordingly on the actual sums received in the United Kingdom. Colquhoun v. Brooks, 19 Q. B. D. 400 ; 57 L. J. Q. B. 70; 57 L. T. 448. On appeal, 21 Q.B.D. 52; 36W.B. 657; 57 L. J. U. B. 439 ; on appeal to the House of Lords, 14 App. Gas. 493 ; 38 W. E. 289 ; 59 L. T. 850. The ground of the decision in Colquhoun v. Case of Brooks (ubi sup.} was that a person who carries on Bank of , . ill T i T i i ; Mexico and a business solely abroad, was not liable to pay South income tax in England upon the profits of that ' 1 See post, p. 162. INCOME TAX ACTS. Chap. II. business unless the profits are received in England. If a person carries on one business in England, and another distinct business abroad, the two businesses must be looked at as separate businesses, and the person can only be assessed upon the profits of the business carried on abroad which he receives in this country. But where there is no business carried on solely abroad, but one business carried on in England, although a portion of the profits of that business is earned abroad by transactions carried out there, there is no rule that in such a case the profits must be received in this country before they can be assessed. London Bank of Mexico and South America v. Apthorpe, [1891] 1 Q. B. 383 ; 60 L. J., Q. B. 196 ; 64 L. T. 416 ; on appeal, [1891] 2 Q. B. 378 ; 39 W. E. 564. Case of Under the authority of certain Acts of Par- ' liament a rate was levied on coals landed on the beach of, or in any other way brought or delivered within the limits of the town of, Brighton. The proceeds of the rate were applied to the purchase of land, the extension of the market, the enlargement of streets, the erection of a town hall, and to parochial purposes. The incidence of the tax was upon the importer of the coal, which was sold indiscriminately to persons not inhabitants of Brighton, and to non- rateable inhabitants of Brighton. It was not therefore a tax upon the inhabitants of Brighton, INCOME TAX ACTS. 121 or on those among them who were otherwise Chap. n. rateable. It was held that the rate was a "profit" within Schedule D. Attorney-General v. Black, L. E., 6 Exch. 78, 308 ; 40 L. J. 89, 194 ; 24 L. T. 370 ; 25 L. T. 207; 19 W. E. 416, 1114. The Corporation of the City of London derived Case of a large annual income from profits of markets, Scott. corn and fruit metages, brokers' rents, major's court and other fees, and from other sources. The receipts were carried to a general account, from which was deducted the whole expenditure of the Corporation for the civil government of the city, and the balance was returned as the profits of the Corporation chargeable under Schedule D. It was held that the profits derived by the Cor- poration from the sources above mentioned were liable to income tax under Schedule D. without reference to the purposes for which they were applied, and that the proper principle upon which the assessment should be made was to take each item, or head, of income separately, and to assess the net produce of such item after deduct- ing from the gross receipts the expenses incurred in earning and collecting the same. Attorney - General v. Scott, Chamberlain of the City of London, 28 L. T. 302 ; 21 W. E. 265. The Paddington Burial Board, formed in Case of 1853 under the provisions of 15 & 16 Viet. c. 85, Burial derived their sole income from payments made inland ' Revenue. E. G 122 Chap. II. Case of Partridge v. Mallan- daine. INCOME TAX ACTS. in accordance with a scale of charges fixed under sect. 34 of that Act. By sect. 22 of the Act any surplus income in any year, after satis- fying all liabilities, and providing such a balance as should be deemed by the Board sufficient to meet their probable liabilities during the then next year, was to be paid to the overseers in aid of the poor rate. It was held that the surplus income was profit chargeable with income tax, and that the case differed from that of the Glasgow Corporation Water Commissioners (ante, pp. 63, 64), inasmuch as in that case the inhabitants of Glasgow were not carrying on any business at all, and there was no profit made, the ratepayers paying only as much as it cost to supply them with water, neither more nor less; while in this case the burial board carried on the business of undertakers for the benefit of the ratepayers. Padding ton Burial Board v. Inland Revenue Commissioners, 13 Q. B. D. 9; 53 L. J., Q. B. 224; 50 L. T. 211 ; 32 W. E. 551. Professional bookmakers, who attend races, and carry on the business of betting, and make profits thereby, must pay income tax on such profits. Partridge v. Mallandaine, 18 Q. B. D. 276 ; 35 W. E. 276 ; 56 L. J. Q. B. 251 ; 56 L. T. 203. It was argued that the Legislature intended that income tax should be paid under Schedule D. only where some business recognized by the law was INCOME TAX ACTS. 123 carried on, and that this was not a lawful Chap. II. business. But Hawkins, J., said the calling was an honest one, and Denman, J., said that, in his opinion, if a man carried on a systematic business of receiving stolen goods, and made a profit of 2,0001. a year by it, the Income Tax Commissioners would be right in assessing him on it. In the case of Turner v. Cuxson (22 Q. B. D. Case of 151 ; 37 W. E. 254; 58 L. J., Q. B. 131 ; 60 L. T. 335) the question was raised whether a sum of 50/. paid to a curate of the Church of England, by way of an allowance from the Society of the Curates' Augmentation Fund, and which was not renewable save at the dis- cretion of that Society, was assessable to income tax. It was held that it was not so assessable,, inasmuch as the sum in question was a voluntary gift or gratuity, not derived from the employ- ment or profession of the curate. It differed from payment made to a clergyman by parishioners in return for services rendered, which was the case in The Board of Inland Revenue v. Strong (15 Sco. L. H. 704 ; see post, p. 158), for it was not a payment made by parishioners, nor was it made in respect of his services in a particular parish, but it was given to him as being a poor and deserving clergy- man. G2 124 INCOME TAX ACTS. Chap. II. Classification of Sources from which Annual Profits or Gains chargeable under Schedule D. arise} The sources from which annual profits or gains charge- able under Schedule D. arise are divided into six classes ; and for the case of each of those six classes there are provided special rules for ascertaining the duties payable ; some of the rules being common to more than one of the classes. The classification, and the rules applicable to each class, are as follows : First Source. The first source is 2 every "art, mystery, adventure, or concern," carried on by any " person, body politic or corporate, fraternity, fellow- ship, company, or society," except " such adventures or concerns on or about lands, tenements, heredita- ments, or heritages, as are mentioned in Schedule A." The duty to be charged on annual profits or gains arising from this source is to be computed 3 exclusively of the "profits or gains arising from lands, tenements, or hereditaments, occupied for the purpose of any trade, manufacture, adventure, or concern"; and 4 on a sum not less than the full amount of the balance of such profits or gains, upon a fair and just average of three years ending on the day of the year immedi- ately preceding the year of assessment on which the 1 Where profits or gains may be charged under either of two or more sources or classes, the Crown may make the charge as may be most to its advantage. (Scottish Mortgage Co. of New Mexico v. McKelvie, see post, p. 160.) 2 5 & 6 Yict. c. 35, s. 100, second rule of first case. 3 Ibid., second of rules applying to first and second cases. 4 Hid., first rule of first case. INCOME TAX ACTS. 125 accounts of the trade, &c., have been usually made Chap. II. up, or on the 5th day of April preceding the year of assessment. If the trade, &c., has been commenced within such period of three years, the duty is com- puted on the average of the balance of the profits and gains from the commencement of the trade, &c. ; while, if it has been commenced within the year of assessment, the duty is computed according to the rule applicable in Hhe case of the sixth class. In as- certaining the profits 2 the value of all doubtful debts due or owing to the person charged may be estimated ; and in the case of the bankruptcy or insolvency of a debtor, the amount of the dividend which may reasonably be expected to be received on the debt due from him is to be deemed to be the value thereof. First Source Deductions allowed. The deductions allowed in estimating the balance of profits and gains upon which duty is charged under Schedule D., and which arise from the first source, are for the most part indicated only by an enumeration of the deductions not allowed, which are as follows : ductio^to be allowed 1. 3 No sum is to be deducted for repairs of pre- foi i re ~ raises, or for supply, repairs, or alterations of imple- premises, 1 See post, pp. 162, 163. 2 16 & 17 Yict. c. 34, s. 50. 3 5 & 6 Yict. c. 35, s. 100, third rule of first case. Here nothing is contemplated in the way of outlays of money in the shape of expenditure of capital for the future benefit of the estate, but only what may be called current expenditure. Per Grove, J., in Gillalt and Watts v. Colquhoun, 33 W. R. 258. 126 INCOME TAX ACTS. Chap. II. ments, beyond the sum usually expended for such purposes according to an average of three years preceding the year of assessment. repairs of imple- ments, beyond a three years' average ; 2. Or on account of loss un- connected with the trade, &c. ; 3. Or on account of capital withdrawn from the trade, &c. ; 4. Or for capital employed in the trade, &c. ; 5. Or for capital employed in im- provement of pre- mises ; 6. Or for interest which might have been made; 7. Or for debts, ex- cept bad debts ; 8. Or for average loss, bevond actual amount ; 2. *No sum is to be deducted on account of loss not connected with, or arising out of, the trade, &c., the profits or gains arising from which are the subject of charge. 3. 2 No sum is to be deducted on account of any capital withdrawn from such trade, &c. 4. 2 No sum is to be deducted for any sum em- ployed as capital in such trade, &c. 5. 2 No sum is to be deducted on account of any capital employed in improvement of premises occupied for the purposes of such trade, &c. 6. *No sum is to be deducted on account of any interest which might have been made on such sum. 7. ~ No sum is to be deducted for any debts, except bad debts, which must be proved to be such to the satisfaction of the Commissioners. 8. 2 No sum is to be deducted for any average loss, beyond the actual amount of loss after adjust- ment. 1 See ante, p. 125, note 3 . 2 5 & 6 Viet. c. 35, s. 100, third rule of first case. INCOME TAX ACTS. 127 9. l No sum is to be deducted on account of any Chap. II. annual interest, or any annuity or other annual pay- 9. orfor ment, payable out of profits or gains. Sc? 8 * 1 10. No sum is to be deducted for any sum re- 10. Orfor coverable under an insurance or contract of indem- reSove able under insurance, &c.; 11. 2 No sum is to be deducted for any disburse- 1L Orfor expenses ments or expenses whatever, not being money wholly not being and exclusively expended for the purposes of such wholly x -, o employed trade, &c. for the purposes 12. 2 No sum is to be deducted for any expenses of trade, &c. ; maintenance of the parties, their families, or esta- expenses^ Moments, tt^f of the 13. 2 No sum is to be deducted for the rent O r parties; 13. Orfor value of any dwelling-house, or domestic offices, or the rent or value any part thereof respectively, 3 except such part of any dwelling- thereof as may be used for the purposes of such house not , , used for trade, &c. purposes of the 14. 2 No sum is to be deducted for any expendi- 14, o'rfor' ture on any other domestic or private purposes tur^on 1 " distinct from the purposes of such trade, &c. purposes 1 5 & 6 Viet. c. 35, s. 100, fourth rule of first case. 2 5 & 6 Yict. c. 35, s. 100, first rule applying to first and second cases. The deduction allowed does not include initial expenditure incurred by a person to enable him to enter a particular trade. Dillon v. Corporation of Haverfordwest, ante, pp. 66, 67. 3 See post, p. 130. 128 INCOME TAX ACTS. Chap. II. But Hhe deduction which is allowed in the case of Deduction a concern chargeable under Schedule A. with refer- foi e ence to the rules of Schedule D. for the diminished 1. Wear value by reason of wear and tear of machinery or and tear of ma- plant used for the purposes of the concern 2 is allowed also in the case of any trade, &c., chargeable 2. Life under Schedule D. And any person who has made assurance &c. insurance on his own life, or on the life of his wife, or who has contracted for any deferred annuity on his own life, or on the life of his wife, 3 in or with any insurance company existing on the 1st No- vember, 1844, or registered pursuant to the Act 7 & 8 Yict. c. 110, or 4 under any Act passed in the session of Parliament of the 16th and 17th years of her Majesty, or 5 in or with any friendly society legally established under any Act of Parliament 3. Deferred relating to friendly societies ; 6 and any person who U1 7% has contracted for any deferred annuity on his own life, or on the life of his wife, with the Commissioners for the [Reduction of the National Debt ; 7 and any person who under any Act of Parliament is liable to the payment of an annual sum, or to have an annual sum deducted from his salary or stipend, in order to 1 See ante, pp. 60, 75. 2 41 & 42 Yict. c. 15, s. 12. See the case of The Caledonian Railway Co. v. Banks, post, pp. 131, 132. 3 16 & 17 Viet. c. 91. ^ 16 & 17 Viet. c. 34, s. 54. 5 18 & 19 Viet. c. 35, s. 1. 6 22 & 23 Viet. c. 18, s. 6. 7 16 & 17 Viet. c. 34, s. 54. INCOME TAX ACTS. 129 secure a deferred annuity to his widow, or a provi- Chap. II. sion to his children after his death, may deduct the amount of the annual premium paid by him for such insurance or contract, or the annual sum paid by him or deducted from his salary or stipend as afore- said, from any profits or gains in respect of which he is liable to be assessed under Schedule D. ; and if he has been assessed, and has paid the duty, he may 1 claim repayment. But 2 the amount deducted, or Amount . . deducted repaid, is not to exceed one- sixth part of the whole not to ex- profits and gains of the person claiming the allow- sixth of ance, and no such deduction entitles any person to No de ^ claim exemption from duty on 3 the ground that his annual profits and gains are thereby reduced below 150/. 4 And any person carrying on, either solely or on account in partnership, two or more distinct trades, manuf ac- bein g less than 150/. tures, adventures, or concerns in the nature of trade, a year, the profits of which are 5 chargeable under the rules of Schedule D., may deduct from, or set against, the 1 As to the mode of claiming and obtaining repayment, see post, pp. 271, 272, 294, 295. 3 16 & 17 Yict. c. 34, s. 54. 3 As to this ground of exemption, see post, pp. 170, 171. 4 5 & 6 Yict. c. 35, s. 101. 5 The trades, &c. must be chargeable under the same schedule, so that where, before the passing of the " Customs and Inland Eevenue Act, 1887 " (ante, p. 90, note a ), a seed merchant, who had taken a farm and worked it in connection with his seed business, claimed an allowance from the assess- ment on his profits as seed merchant in respect of losses on the farm, it was held that the claim could not be sustained. Brown v. Watts, 23 Sco. L. E. 403. G5 130 INCOME TAX ACTS. Chap. ii. trade may in on? 68 profits in ier ' And renting dwelling- houses occupied poses of may 6 de- C ' sum not ofrent Case of the Bir- mingham Corpora- tion. Corpora- tion of profits acquired in one or more of the said concerns the excess of the loss sustained in any other of the said concerns over and above the profits thereof, in the same manner as a loss may be deducted from the profits of the same concern. And in such a case the person or persons carrying on the several concerns may make separate statements in respect of each. And any such person renting a dwelling- house, of which part is used by him for the purposes . of any trade or concern, or any profession, the profits of which are chargeable with duty, may deduct from, or set off against, the profits of such trade, concern, or profession, such a sum not exceeding two-thirds f ^ ne ren ^ bond fide paid by him for such dwelling- nouse as the Commissioners may on due consideration allow. The Corporation of Birmingham were assessed in respect of their market hall, fish market, 1,1 ^ L L- vaults, and meat market, in sums amounting in the aggregate to 6,250/. They did not dispute this assessment, but alleged that they suffered losses in respect of the following concerns, viz. : utilisation and disposition of sewage, industrial schools, baths and parks, and that they were entitled, as persons carrying on more concerns than one, to set these losses against the profits arising from the market hall, fish market, vaults, and meat market. The Court, however, decided in favour of the surveyor of taxes, who con- tended on behalf of the Crown that the Corpora- INCOME TAX ACTS. 131 tion could not be considered to be persons Chap. II. carrying on trades or adventures, and that the Birming- concerns from which they derived no profits were part of the authorized and legitimate persons expenditure of the borough, provided for the benefit of the inhabitants, and that the losses incurred in connection with these last-mentioned concerns could not be set against the profits derived from the market hall, fish market, vaults, and meat market, which were applied in aid of the rates which the burgesses were called upon to pay. In re Corporation of Birmingham (un- reported) . The Caledonian Railway Company having Case of Caledonian been allowed deduction of all sums actually Hail. Co. expended by them during the year in repairs and renewals of stock, claimed to deduct a sum of 4J per cent, on stock added during the preceding five and a-half years, such added stock not having been repaired (because until it had depreciated to the extent of 25 per cent. it would need no repairs, and it would not have depreciated to that extent until it had been in use five and a-half years), but depre- ciating in value at the rate of 4J per cent, a year. It was held that they were not entitled to make the deduction ; that " diminished " Dimi- nished value " means value for the purpose for which value,' the article was intended in a going concern, not for purpose of sale ; and that the Commissioners 132 Chap. II. Case of Highland Mail. Co. v. B alder ston. INCOME TAX ACTS. had decided as a question of fact from which decision there was no appeal that there had been no such diminution of value ; that the plant in question required no repairs to enable it to produce the same amount of income that it did at first ; and that, in allowing a deduction of sums actually expended in repairs and renewals, the Commissioners had allowed the sum expended in maintaining the whole of the company's plant in good working order, which sum might fairly be regarded as making up the whole deterioration which the wear and tear of the year had occasioned. Caledonian Railway Company v. Banks, 18 Sco. L. B. 85. The Highland Eailway Company, in making their return under the Income Tax Acts, claimed to deduct sums expended in improving a section of their line so as to bring it up to the standard of their main line, and in substituting heavy rails and chairs for lighter ones, on the ground that, although these sums had been charged against capital in the books of the com- pany, they were properly chargeable against income. But it was held that the expenditure was not an expenditure for the maintenance of the line, but for altering the character of the line, and so a charge against capital, properly entered as such in the books of the company, and that the deduction could not be allowed. Highland Rail Co. v. Balderston, 26 Sco. L. E. 657. INCOME TAX ACTS. 133 The Corporation of Newcastle-under-Lyme, Chap. II. under Parliamentary powers, purchased gas- Case of works from a private company, understanding Newcastle- that the structural condition of the works was imperfect and defective, and that in the course P ratwn ' Special de- of a few years a large outlay would have to be preciation made to restore certain parts of the plant and meet ex- penditure apparatus. To meet this contingency the Cor- on pro- poration had set aside 500/. a year for five chased in years. It was expected that the expenditure state. must of necessity take place within the next two auction or three years. A deduction had been made a owe ' from the assessment upon the Corporation for the actual cost of all renewals, repairs, and maintenance of works for the year. The Cor- poration claimed a deduction in respect of the 500/. appropriated yearly to the special deprecia- tion fund. It was held that they were not entitled to such deduction. Clayton v. New- castle-under-Lyme Corporation (unreported) . A company undertook to construct a railway Case of in Brazil under a guarantee by the Government imperial of Brazil of interest at the rate of 7 per cent. Rail. Co. upon the money expended. The money was uarante raised by debentures, upon which interest at the ^ paid to a rate of 5J per cent, was paid, and the balance of company r / overin- the 7 per cent, interest paid by the Brazilian terest Government was applied to the formation of a by the sinking fund. It was argued that the trans- to its de- action amounted to a contribution by the holders 6 134 INCOME TAX ACTS. Chap. II. being applied to a sinking fund, cannot be considered as a con- tribution of capital by instal- ments. Case of Nizam's Guaran- teed State Rail. Co. v. Wyatt. Brazilian Government of capital in a number of annual payments, instead of in a lump sum, that the interest paid by the Brazilian Govern- ment was not, therefore, a profit or gain within the meaning of the Income Tax Acts, and that, although no question could arise as to the 5J per cent, interest payable to the debenture holders, from which income tax would be deducted by the company, a deduction should be made from the amount upon which the company should pay income tax of the differ- ence between the 5J per cent, interest paid by the company to the debenture holders, and the 7 per cent, interest paid by the Brazilian Government to the company. But it was held that no such deduction could be allowed. Blake v. Imperial Brazilian Rail. Co. (unreported). And in the case of Nizam's Guaranteed State Rail Co. v. Wyatt (L. E., 2 Q. B. 548), the Nizam of Hyderabad guaranteed to the com- pany for twenty years an annuity of 5 per cent, on their issued share and debenture capital, which annuity was to be applied in paying interest on such capital, and in forming a sink- ing fund for the redemption of the debentures, subject to provisions for repayment of the sum paid under the guarantee, with interest, out of profits earned. In the case of Blake v. Imperial Brazilian Rail. Co. (ubi sup.), the formation of the sinking fund had not been provided for by INCOME TAX ACTS. 135 agreement, but in the present case it was part Chap. II. of the agreement with the Nizam that the sinking fund for the redemption of the deben- ture capital should be formed in the manner stated. It was held that the whole of the annuity, including the sums applied to the sinking fund, was chargeable with income tax. The Alexandria Water Company claimed a Case of . , , Alexandria deduction in respect of interest payable to Water Co. foreign debenture holders. It was held that the grave. ' deduction claimed could not be allowed, whether the income tax paid could be recovered from the foreign bondholders or not, being prohibited by sect. 100, rule 4. Alexandria Water Company v. Musgrave, 11 Q. B. D. 174 ; 52 L. J., Q. B. 349 ; 49 L. T. 287 ; 32 W. ft. 146. The directors of a fire insurance company Case of claimed to make a deduction for " unearned Fire AS- ,, . ., 'in surance Co. premiums, or premiums the period of accruing v . Wilson. of which was unexpired. They argued that, ^ inasmuch as insurances were effected at all P r . e " mmms periods of the year, and the company's liabilities ? insurance under the policies upon which those premiums company, were paid did not expire with the expiration of each year, the gross amount of premiums paid to the company in any one year ought not to be credited to them as profits actually realized in that year ; that, in estimating their annual profits, the company were entitled to deduct from the gross amount of the premiums paid to 136 INCOME TAX ACTS. Chap. II. them within the year, 33 per cent., in order to make fair allowance for the premiums so un- earned at the expiration of the year, and to enter such percentage amongst the profits realized in the succeeding year ; that, in estimating their annual profits, the company were entitled to deduct from the gross amount of premiums paid to them within the year, such a sum as it would cost to re-insure the premiums which had not been exhausted during the year. 1 It was held that the company were not entitled to make the deduction claimed. The Court recognized the impossibility of doing complete justice between the Crown and the company ; but said the in- justice upon the company was in fact confined to the first year, when they commenced business ; for, as they went on year by year, the charge upon them, under the mode of assessment appealed against, would, taking the average, be right; and in the last year of the business sect. 134 of 5 & 6 Viet. c. 35 (see post, p. 164) afforded a means of remedying any overcharge. The 33 per cent, was an arbitrary figure. Huddleston, B., suggested that the company might have adopted another mode of keeping their accounts, viz. : by ascertaining what amount of each premium was applicable to the year 1 See cases of Scottish Union, &c. Company v. Smiles, and Northern Assurance Company v. Russell, post, pp. 146, 147. INCOME TAX ACTS. 137 current at the time of payment, and what to the Chap. n. succeeding year, and then have carried out a figure which would really represent the amount applicable to the risks of the last-named year. Imperial Fire Assurance Company v. Wilson, 35 L. T. 271. An insurance company carried on the business Case of of marine, fire, and life insurance. Its profits London i -in ,-, on Assurance were derived from the following sources : Corpora- (1) Interest on paid up capital and reserve twn ' fund ; (2) profit on marine business ; (3) profit on fire business ; (4) profit on life business. As regarded the profits derived from the first source no question arose, inasmuch as income tax was levied and paid by deduction from the interest, and dividends, of the investments of the funds. These profits were, therefore, not included in the return made by the company. As regarded the other three sources of profit, the company con- tended that the results of the three branches of their business should be thrown into one general account, and that if, and so far as, the total sum on which they paid income tax in respect of their investments exceeded the sum total of the profits they made, they were not liable to -be assessed under Schedule D. The Surveyor contended that, assuming the company to be right in their contention, that the three branches of their busi- ness should be brought into one account, the assessable profit of the life branch was not to be 138 INCOME TAX ACTS. Chap. IT. determined merely by the amount of profit available for division among the shareholders, but must be found by the third rule of the first case of Schedule D., and that, over and above the profit so appropriated to the shareholders, the accounts of the company showed (1) sums paid to policy-holders in the shape of bonuses, which was a distribution of assessable income or revenue ; (2) additions made to the life fund, which was a transfer of income to capital. That, to arrive at the net balance of profit chargeable for the life branch under the above rule, account must be taken, on the one hand, of the life premiums received during the last three years, and on the other nothing must be allowed in the way of deduction beyond the claims actually paid under policies becoming payable in the same period, together with the expenses of managing the business ; that the balance remaining would be the profit chargeable to the income tax for the life branch ; and that this profit, added to the untaxed profit of the marine and fire branches, would represent the total liability of the company under Schedule D. In answer to the contention of the Surveyor, the company explained that in the life branch of their business there were three classes of policies, called respectively the " old," the " 1831," and the " 1846 " series. The three classes were worked independently. As regarded the "old" series, any surplus which remained INCOME TAX ACTS. after payment of policies belonged to tlie com- Chap. II. pany for payment of expenses and profit. As regarded the "1831" and the "1846" series, by the terms of the contracts with the assured, the surplus which remained after payment of policies was dealt with as follows : Two- thirds of the surplus were returned to the assured, who received payment, either by way of bonus, or by abatement of premium ; and the remaining third of the surplus went to the company, the balance of which, after payment of expenses, constituted the only profit of the company available for division among the shareholders. The question for the opinion of the Court was, whether or not, for the purposes of assessment to income tax, the contention of the company, that the results of the three branches of their business should be thrown into one account, was sound ; and upon what principle the profits of the life business should be calculated. It was held that the busi- ness of the company must be dealt with as a whole, and not as three separate businesses, although the accounts were naturally, as well as by compulsion of law, kept separate; and that the amounts yearly transferred from in- come to the life fund were not part of the profits of the company, and were not, therefore, subject to income tax. As regarded the ques- tion whether the amount set aside for distribu- tion among the bonus policy holders was part 110 Chap. II Difference between premiums on fire and life insurance. INCOME TAX ACTS. of the expenses of the business, or profits, the judges (Day and A. L. Smith, JJ.) differed. Day, J., holding that it was part of the ex- penses of the business and not profits, while A. L. Smith, J., held that it was profits. It was held that the case of the Imperial Fire Assurance Co. v. Wilson (ubi sup.) had no bearing upon the first question, inasmuch as ! there was a radical difference between fire and life insurance; fire insurance premiums running out in all their incidents in one year, while in life insurance each premium has relation to the whole dura- tion of the life or risk, and every year's premium has to be set aside and capitalised for payment of the future debt. Last v. Lon- don Assurance Corporation, 12 Q. B. D. 389 ; 53 L. J., Q. B. 325 ; 50 L. T. 534 ; 32 W. E. 702. On appeal, the judges were again divided upon the question whether the amount distri- buted amongst the bonus policy holders was expenses or profits, which was, in fact, the only question remaining to be decided. Brett, M. B., held that two sets of persons must be con- sidered the company, or, in other words, the shareholders, who carried on the business, and the customers, who were the assured. The tax- able profits were, therefore, what the share- 1 See Scottish Union, &c. Co. v. Smiles, and Northern Assurance Co. y. Russell, post, pp. 146, 147. INCOME TAX ACTS. 141 holders received, while what was distributed Chap. II. amongst the bonus policy holders was expen- diture by which the profits were earned. Cotton, L. J., agreed with the Master of the Bolls, but Lindley, L. J., dissented, agreeing with A. L. Smith, J"., in the Court below. The result was that the Court of Appeal affirmed the judgment of the Court below. (14 Q. B. D. 245; 54 L. J., Q. B. 4 ; 52 L. T. 604 ; 33 W. E. 207.) The case was carried to the House of Lords, where there was again a difference of opinion. Lord Blackburn, with whom Lord Fitzgerald agreed, held that the amount dis- tributed amongst the bonus policy holders was not expenditure by which the shareholders earned the dividends payable to them, which alone were taxable profits, but that the bonus policy holders had in fact contracted for a share in the profits, and that the taxable profits in- cluded the amount divided amongst the bonus policy holders, as well as the amount paid in dividends to the shareholders. The case of the Mersey Docks v. Lucas (ante, pp. 60, 61) had decided that income tax was payable on profits, whatever the corporation earning the profits might be bound to do with them, and not only so, but the question was concluded by 5 & 6 Yict. c. 35, s. 54, which enacted that the estimate of the profits of a corporation should be made " before any dividend shall have been made thereof to 142 Chap. II. Employers contract- ing to pay employed a share of profits Lord Bram- welPs opinion. Co-ope- rative societies Lord Bram- well's opinion. Case of Clerical, Medical, and Gene- ral Life Assurance Society v. Carter. INCOME TAX ACTS. any other person having any share, right, or title in, or to, such profits." Lord Bramwell, however, dissented, and in the course of his judgment pointed out that, if the contention of the Crown was right, all that insurance offices would have to do would be to alter their language, hut that income tax would be pay- able in all cases in which employers had agreed with employed that, besides fixed wages, the employed should receive what is called a share of profits. The income tax would apply to co-operative societies strictly so called, and be payable on a sum falsely called profits, with no deduction of the wages contingently payable to workmen if gross profits enabled them to be paid. In the result, the judgment of the Court of Appeal (which had aifirmed that of the Court below) was reversed. (L. E., 10 App. 438.) In the case of Last v. London Assurance Cor- poration (supra), it was assumed that the corpo- ration was entitled to credit for income tax paid at the source on interest on investments, and, in the form of return after the final judgment in the House of Lords agreed upon between the Board of Inland Revenue and the corporation, the corporation were credited with taxed interest accordingly. But, although the account was adjusted on this basis, the case did not expressly decide whether, where interest on the invest- ments of a life insurance society has not been INCOME TAX ACTS. 143 taxed at the source, but paid in full, the Crown Chap. II. is entitled to charge income tax upon it, although the taxed interest paid at the source exceeds the sum which would be payable on trade profits. This latter question was raised in the case of the Clerical, Medical, and General Life Assurance Society v. Carter (21 Q. B. D. 339 ; 37 W. E. 124; 57 L. J., Q. B. 614 ; 59 L. T. 827), and was decided by the Queen's Bench Division in the affirmative, and the decision was affirmed on appeal. 21 Q. B. D. 444; 37 W. E. 346 ; 58 L. J., Q. B. 224.) The Gresham Life Assurance Society sold Case of Gresham annuities, the consideration being a lump sum Life As- 11 ji P T i ! *urance paid down in the case of an immediate annuity, Society v. and either a lump sum, or a series of periodical premiums, in the case of a contingent, or de- ferred, annuity. The annuity obligations of the Society were in many instances discharge- able abroad. The Society claimed to deduct from its gross income the sums paid in discharge of its annuity obligations. The Queen's Bench Division held that the Society was not entitled to make the deduction, that the annuities were payable out of profits and gains profits and gains meaning not strictly net profits, but such sums received as a merchant would bring into his account, and it having been the intention of the Legislature to give to the revenue the benefit of taxing, upon the first possible occasion of 144 INCOME TAX ACTS. Chap. II. taxation, any moneys which were taxable. The Court held, however, that the Society would he entitled to deduct from the annuities the proper income tax thereon under sect. 102 of the Income Tax Act, 1842. On appeal, this deci- sion was affirmed, and it was held that the deduction claimed was prohibited by Schedule D., r. 4, of the Income Tax Act, 1842, and 2 sect. 1 02 of the same Act, but for which pro- hibition the deduction might have been made. The Court of Appeal also held that the case was governed by the rule of construction laid down in 3 Alexandria Water Co. v. Musgravc. But on appeal to the House of Lords, it was held that the Society ought not to be assessed upon the amount paid by it for the annuities, that the deduction prohibited by rule 4 of Schedule D. was a deduction on account of an annuity or annual payment made out of profits and gains, and that gross receipts were not to be treated as profits without regard to the payments to which, in consideration of those receipts, the Society had bound themselves. The rule was primarily designed to meet such a case as that in which a trader had contracted to make an annual pay- ment out of his profits, as, for example, when he had agreed to make such a payment to a 1 5 & 6 Viet. c. 35. As to Schedule D. r. 4, see ante, p. 127. 2 See post, pp. 157, 158, 249251. 3 See ante, p. 135. INCOME TAX ACTS. 145 former partner, or to a person who had agreed Chap. II. to make a loan on the terms of receiving such payment. The language of the 4th rule, when read in connection with sect. 1 102 of the 2 Income Tax Act, 1842, showed that the rule only related to annuities payable out of profits and gains " brought into charge " by virtue of the Act, and the conclusion was not invalidated by the fact that in the Act for instance, in the 3rd rule of schedule D. the words "profits and gains " were not always used in their proper or ordinary sense. The decision in z Alexandria Water Co. v. Mmgrave was right upon the facts of that case, the claim there being a claim to deduct the company's debts for borrowed capi- tal, and to diminish the amount of the profits of the trading, but it did not govern 4 the pre- sent case. Sect. 102 of the 5 Income Tax Act, 1842, and sect. 40 of the 6 Income Tax Act, 1853, had no bearing upon the question. Gres- ham Life Assurance Society v. Styles, (in Queen's Bench Division) 24 Q. B. D. 500 ; 38 W. R. 480; 62 L. T. 464; (in Court of Appeal) 25 1 See post, pp. 157, 158, 249251. 2 5 & 6 Viet. c. 35. 3 Ante, p. 135. 4 The case arose before the passing of the Customs and Inland Kevenue Act, 1888 (51 Viet. c. 8). See post, p. 250, as to sect. 24 of this Act. 5 5 & 6 Viet. c. 35. 16 & 17 Viet. c. 34. SGQpost, pp. 198, 199, as to sect. 40. E. H 146 Chap. II. Cases of Scottish Union, $c. Co. v. Smiles, and Northern ^Assurance Co.v. Russell. 1. Profits of fire insurance and life insurance to be reckoned undivided income. 2. Interest of invest- ments from which tax has not been de- ducted at the source to be reckoned as profit. 3. Mode of ascertain- ing profits of fire insurance. 4. Mode of ascertain- ing profits INCOME TAX ACTS. Q. B. D. 351 ; 38 W. E. 696 ; (in House of Lords) 41 W. E. 270. In the cases of the Scottish Union and National Insurance Co. v. Smiles, and the Northern Assur- ance Co. v. Russell (26 Sco. L. E. 330), the fol- lowing instructions were given by the Court : 1. In assessing to the Income Tax the gains of a Company carrying on the businesses both of fire insurance and life insurance, the net pro- fits and gains from the two branches of the business must be massed together as one un- divided income, assessable according to the rules applicable to the first case under Schedule D. 2. The interest of investments which has not suffered deduction of income tax at its source must be taken into account in ascertaining the assessable amount of profits and gains of the Company. 3. Seeing that fire insurance policies are con- tracts for one year only, premiums received for the year of assessment, or on an average of three years, deducting losses by fire during the same period and ordinary expenses, may be fairly taken as profits and gains of the Company, without taking into account, or making any allowance for, the balance of annual risks unex- pired at the end of the financial year of the Company. 4. But this rule is not applicable to the ascer- tainment of profits and gains upon " life " busi- INCOME TAX ACTS. 147 ness. Life policies are contracts of most variable Chap. II. endurance, and the premiums are in many cases of life , rru ni i insurance. not annual payments. The profits and gams can he ascertained only by actuarial calculation. 5. Where the gain is made by the Company 5. Profit on (within the year of assessment, or the three years an invest- prescribed by the Income Tax Act, Schedule D.) taxed. by realising an investment at a larger price than was paid for it, the difference is to be reckoned among the profits and gains of the Company. Where a company, to extend its business, Case of r J ' ' Smith v. opened a manufactory and fitted machinery, Westing- but subsequently closed it, removed a portion of Brake Co. the machinery, and re-opened the manufactory on a smaller scale, and thereby lost a portion of the original expenditure, it was held that this was a loss of capital, and that no deduction could be allowed in respect of such loss. Smith v. Westinghome Brake Co. (unreported) . A company carrying on the business of iron- Case of founders claimed to deduct from the sum shown Handyside- in their own report as net profits a sum which they had written oS under a provision in their articles of association to form a reserve fund for the purpose of " meeting contingencies, or of Reserve purchasing, improving, enlarging, rebuilding, contmgeu- restoring, reinstating, or maintaining the works, plant, and other premises, or property, of the company." The company had deducted a cer- tain sum for repairs, and the deduction had been H2 148 INCOME TAX ACTS. Chap. II. allowed. It was held that they were not entitled to make the deduction claimed. l Forder v. Handyside, L. E., 1 Ex. D. 233 ; 35 L. T. 62 ; 24 W. E. 764. Case of Messrs. Gillatt & Watts paid a premium of Watts v. 34,000/. for the lease of the house in which they carried on their business, and a rent of 2507. a year. The house was assessed to the income tax under Schedule A., at an annual value of 1,000/. Messrs. Grillatt & Watts contended that in making their returns for assessment under Schedule D. they were entitled to treat the 34,000/. paid in the first year as an actual expenditure in that year, so that, if they did not make any more than 34,0007. , they would have no income tax to pay at all, and that, the lease being for twenty-two years, they had a right to deduct in each year one twenty-second part of the 34,000/., because the lease would diminish in value as every year was cut off from it. It was held that the principle contended for was 1 The case of Forder v. Handyside was decided in the year 1876, before the passing of 41 & 42 Viet. c. 15, s. 12 (ante, pp. 60, 75), which permitted an allowance to be made in respect of depreciation of machinery. The case is referred to by A. L. Smith, J., in the course of his judgment in Gillatt and Watts v. Cdl-guhoun (infra), as showing that the balance- sheet to be made out to show what profit a trader has made under Schedule D. is not to be worked out in the same way that the trader would make out his balance-sheet for his own information showing what profit or loss he has made. INCOME TAX ACTS. 140 wrong ; that the right principle was, taking the Chap. II. premium into consideration, and the rent, to take what an actuary would put as the fair rent for the lease for the time over which the lease extended that is, supposing no premium had been paid. It was found that the actual pre- mium was not a fair premium, but one much too large, and, the case stated containing a find- ing that, the premises in question being assessed under Schedule A. at the sum of 1,000/., that was, for the purposes of the case, to be taken as the " annual value " of the premises, the judges intimated that that should be taken as the fair rent the deduction of which should be allowed. l Gillatt and Watts v. Colquhoun, 33 W. E. 258. 1 It may be gathered, from the observations of A. L. Smith, J., in delivering judgment in this case, that a free- holder carrying on his trade upon his own premises, would be entitled, in making his return of profits under Schedule D., to deduct a sum which would represent a fair rent for the premises. It will be remembered that special provision is made for the case of a person renting a dwelling-house of which part is used by him for the purpose of any trade or concern, enabling such person to make a deduction of so much, not exceeding two-thirds, of the rent paid by him as the Com- missioners allow. (Ante, pp. 127, 130.) This provision seems intended to meet the case where the trader lives upon pre- mises which he has hired, and carries on his trade there also, so that the premises are part dwelling-house, and part place of business. But where the owner of premises uses them solely for the purposes of the trade or concern which he carries on there, it would seem that he is entitled to deduct a fair rent. 150 INCOME TAX ACTS. Chap. II. Case of Watney v. Musgrave. Adver- tisements, cost of. Nothing is to be deducted which is not strictly part of the costs and expenses incurred in pro- duction. Therefore, although a brewer is en- titled to deduct the annual cost of the buildings in which the beer is manufactured, the cost of the raw material used in the manufacture of beer, and the wages of the persons employed in the manufacture, and, it may be, under some circumstances, the cost of conveying the beer to the consumer, he is not entitled to deduct any- thing on account of premiums paid by him for leases of public-houses which he lets to tenants, whom he places under covenants to buy beer of him, any more than, if he chose to give dinners to publicans, and they said in return " We will buy a quantity of beer from you," he would be entitled to deduct the cost of the dinners ; or than he would be entitled to deduct 1 the costs of 1 As to the question whether the cost of advertisements may be deducted, the following observations were made by Grove, J., by way of illustration, in the course of his judg- ment in Gillatt and Watts v. Colquhoun (ubi sup.) : "I may mention advertisements as one class of outlay, and in one case that was mentioned it was said to be a matter which ought to be deducted. No doubt it would be a most difficult question to settle, because it may differ in different trades. Some trades possibly may be founded very much upon advertisements; and there may be a trade of advertising which is founded upon the value of such advertisements. It is a question of degree, and I do not at present go the length of saying that in no case can advertisements ever be deducted." INCOME TAX ACTS. advertisements by which he increased the sale Chap. II. of his beer. Watney v. Husgrave, L. R., 5 Ex. D. 241 ; 49 L. J., Ex. 493 ; 42 L. T. 690 ; 28 W. E. 491. The decision in the above-mentioned case of Case of / . Reid's Watney v. Musgrave was held to be one affecting Brewery investment of capital, and therefore to be con- Neaie. fined to the case itself, and inapplicable as a guide in a case where a firm of brewers carried on, in connection with their brewery business, a business of banking and money lending, con- fined to the customers of the firm, and ancillary to their business as brewers. The capital used by the firm in the banking and money lending business was held to be used only in the sense that all money which is laid out by persons who are traders is used ; it was not invested in the ordinary sense of the word. If the firm had carried on two businesses, they would have been entitled under 1 sect. 101 of 5 & 6 Yict. c. 35 to set off a loss sustained in one business against a profit made in the other, but as they carried on not two businesses but one business, they were entitled to write off, by way of deduction from their taxable profits, such losses as they had sus- tained in the debts of the branch of the brewing business relating to loans and advances. Heid's Brewery Co. v. Neale, [1891] 2 Q. B. 1 ; 39 1 See ante, pp. 129, 130. 152 INCOME TAX ACTS. Chap. II. Case of liussell v. Aberdeen Town and County Jlank. W. K. 459 ; 60 L. J., Q. B. 340 ; 60 L. T. 294. The Aberdeen Town and County Bank owned a building in which its business was carried on, and in which there was also accommodation pro- vided for managers and agents of the Bank, who occupied portions of the building as their resi- dences. The question raised was whether the Bank was entitled to deduct from its profits, before returning them for assessment under Schedule D., the whole value of their Bank pre- mises, where such premises were in part occupied for residence by officers of the Bank. The Court of Exchequer (Scotland) decided that the Bank were entitled to make the deduction, and on appeal to the House of Lords the judgment was upheld. Lord Herschell said it was not disputed that the l annual value of premises exclusively used for business purposes is properly to be deducted in arriving at the balance of profits and gains. Probably this deduction was allowed because it was an essential element to be taken into account in ascertaining the amount of the balance of pro- fits. For, if not, it could only be included by a 1 It is believed that no difficulty will be made in allowing a deduction on account of annual value (which would be taxed under Schedule A.) of business premises owned by the person carrying on the business, whether such premises con- sist of land or buildings, although there may be, perhaps, some difficulty in pointing out how the right to such deduction is conferred. See ante, p. 149, note ] . INCOME TAX ACTS. 153 very broad extension of the terms actually used, Chap. II. as being a disbursement or expense, which is money wholly and exclusively laid out or ex- pended for the purpose of the trade. But it was admitted, and, he thought, it must have been admitted, that in one way or another the deduc- tion would have to be made. If the annual value of the premises belonging to the Bank, used for the purposes of their business, had to be deducted, there was no reason why any deduction should be made from that amount on account of the fact that the manager of the Bank for pur- poses of the business, or as part of his emolu- ment (it mattered not which), occupied a portion of the Bank premises. And it made no differ- ence whether the Bank manager would, or would not, be liable to income tax in respect of the value of his residence as part of the emoluments of his employment. Russell v. Aberdeen and County Bank, 13 App. Gas. 418. Where a company borrowed money to be Case of employed in its business, and covenanted to pay Copper Co. annual interest thereon, and to repay the capital with an additional bonus of 10 per cent., it was held that the bonus paid could not be claimed as a deduction. Arizona Copper Co. v. Smiles, 29 Sco. L. E. 134. Second Source. The second source from which the annual profits or gains chargeable under Schedule D. H5 154 INCOME TAX ACTS. Chap. II. arise ! is "professions, employments, or vocations, not contained in any other schedule ; " and " employ- ment " extends to every employment by retainer in any character whatever, whether such retainer shall be annual or for a longer or shorter period, " and all profits and earnings of whatever value." 2 The duty to be charged on annual profits or gains arising from this source is, like that on the annual profits or gains arising from the first source, to be computed exclu- sively of the profits of lands, and 3 on an average of profits of three years. 4 Friendly societies legally established, and so conducting their business as not to debar themselves from the benefit of the 5 exemp- tion under Schedule C., are exempted from liability to be charged under Schedule D., as under Schedule C. In ascertaining the profits, 6 doubtful debts may be estimated, as in the case of profits arising from the first source. Second Source Deductions allowed. 7 The deduc- tions allowed in estimating the balance of profits and gains upon which duty is charged under Schedule D., 1 5 & 6 Yict. c. 35, s. 100, second case, and first rule of second case. 2 5 & 6 Yict. c. 35, s. 100, second rule of rules applying to first and second cases. 3 16 & 17 Yict. c. 34, s. 48. 4 16 & 17 Yict. c. 34, s. 49. 5 See ante, p. 98. 6 16 & 17 Yict. c. 34, s. 50. See ante, p. 125. 7 5 & 6 Yict. c. 35, s. 100, rules applying to first and second cases. INCOME TAX ACTS. and which arise from the second source, are again, Chap. II. except in the case of deduction on account of life in- surance or deferred annuity, generally only negatively indicated by a reference to deductions not allowed, which are the same, so far as the change of subject will permit, as those allowed in the case of profits arising from the first source ; " profession, employ- ment, or vocation," being substituted for "trade, manufacture, adventure, or concern." l In addition, however, to such deductions as are generally allowed, there is one positively permitted in the case of a clergyman, or minister, of any religious denomina- tion, who is allowed to deduct from the profits, fees, or emoluments of his profession, any expenses in- curred by him wholly, exclusively, and necessarily, in the performance of his duty or function as such 1 16 & 17 Yict. c. 34, s. 52. The words "profits, fees, and emoluments of his profession," would seem to confine the operation of this provision to cases in which the clergy- man, or minister, is chargeable under Schedule D. But inas- much as the section commences with the words ' ' In assessing the duty chargeable under any schedule of this Act upon any clergyman, or minister," we must assume, unless the words italicised have no meaning, that the deduction would be allowed in cases where the clergyman, or minister, is charge- able under Schedules A., B., C., or E., provided only that he enjoys that in respect of which he is charged as professional emolument. A voluntary contribution made by a clergyman towards the stipend of an assistant, is not an allowable de- duction under this section, which applies to expenses incurred by the clergyman in the personal performance of the duties of his office. Lothian v. Macrae, 22 Sco. L. E. 219. 156 INCOME TAX ACTS. Chap. IT. clergyman or minister. 1 A deduction is also allowed in respect of the rent of a dwelling-house, part of which is occupied for the purposes of a profession, the profits of which are chargeable under Schedule D. Third Source. 2 The third source can only be circuitously described. It is a source from which arise "profits of an uncertain annual value not charged in Schedule A." From the provisions which follow we may gather that the kind of profits intended are profits on securities bearing interest payable out of the public revenue (except 3 securities charged under Schedule C.), discounts, and interest of money not annual interest, and the profits arising from such trades as those of dealers in cattle and sellers of milk, who are concerned in an indirect way with land, but whose profits cannot be accurately estimated by the rent they pay for land in their occupation. The duty is charged upon the full amount of the profits or gains within the preceding year, ending on the day of the year immediately preceding the year of assessment, on which the accounts of the business (if profits of a business are in question) have been usually made up, or on the 5th day of April preceding the year of assessment. Land oc- In the case of land occupied by a dealer in cattle, or aTeaier L a dealer in, or seller of, milk, where the land occupied 1 See ante, pp. 127, 130. 2 5 & 6 Yict. c. 35, s. 100, third case. See^os*, pp. 222, 223. 3 As to these securities, see ante, pp. 97, 98. INCOME TAX ACTS. 157 has been estimated or charged on the rent or annual Chap. II. value, but is not sufficient for the keep and sustenance cattle, or a of the cattle brought on the land, so that the rent or crueller 1 * annual value of the land cannot afford a just estimate ' m of the profits of such dealer, a return of such profits is required, and such further sum must be charged thereon as, together with the charge in respect of the occupation of the land, makes up the full sum where- with such trader ought to be charged. The same deduction on account of life insurance, or purchase of deferred annuity, is allowed as l m the case of profits and gains arising from the first source. 2 A11 annuities, yearly interest of money, or other annual payments charged on any property of the person 1 See ante, pp. 128, 129. 2 5 & 6 Viet. c. 35, s. 102. The practical effect of this provision is, however, confined to cases in which the annual payment is, by reason of the same being charged on property in any of her Majesty's dominions abroad, or on any foreign property, or foreign security, or otherwise, received without any deduction of duty being made by the person liable to make such payment (see post, pp. 197 201), or where any such payment is made from profits or gains not charged by the Income Tax Acts, or where any interest of money is not reserved, or charged, or payable, for the period of one year. In the case of the Oresham Life Assurance Society v. Styles (see ante, p. 143) it was held by the Queen's Bench Division, and by the Court of Appeal, that this section authorized a society which sold annuities to deduct income tax from the annuities paid. But the House of Lords decided that the section had no such application. Such deduction may, how- ever, now be made under sect. 24 of the * ' Customs and Inland Revenue Act, 1888 " (51 Viet. c. 8). See p. 250. 158 INCOME TAX ACTS. Case of Strong. Gift of money raised by voluntary subscrip- tion. Chap. II. paying the same, or payable "by virtue of any con- tract, are also charged with duty under the provisions applicable to the third case of Schedule D. A gift of money raised by voluntary subscrip- tion and made annually to a minister of religion by his congregation is assessable the annual gift being either "gain" under Schedule D., or "emolument" l under Schedule E. In re George Walter Strong, 15 Sco. L. E. 704. But a sum paid to a clergyman by way of allowance by a charitable society, not renewable save at the discretion of the society, and paid to the clergy- man, not in respect of his services, but as being poor and deserving, is not assessable. Turner v. Cuxson, '22 Q. B. D. 151 ; 37 W. E. 254 ; 58 L. J., Q. B. 131 ; 60 L. T. 335 ; ante, p. 123. Fourth Source. 2 The fourth source is securities in what are called in the 3 Income Tax Act, 1842, " the British Plantations in America," or in any other of her Majesty's dominions out of Great Britain, and foreign securities, from which interest arises, except 4 such annuities, dividends, and shares as are charged under Schedule C. 5 It includes dividends, and shares of annuities, payable out of the revenue of any foreign state, and interest, dividends, or other annual 1 As to Schedule E., see post, p. 166. a 5 & 6 Viet. c. 35, s. 100, fourth case. 3 5 & 6 Viet. c. 35. 4 As to these annuities, &c., see ante, pp. 97 101. 6 5 & 6 Viet. c. 80, s. 2, and 16 & 17 Viet. c. 34, s. 10. INCOME TAX ACTS. 159 payments, payable out of, or in respect of, the stocks, Chap. II. funds, or shares of any foreign, or l colonial, com- pany, society, adventure, or concern, or in respect of any securities given by, or on account of, any such company, &c., and 2 all annuities, pensions, or other annual sums, payable out of the funds of any institu- tion in India, which have been intrusted to any per- son, corporation, company, or society in the United Kingdom, for payment to any person, corporation, company, or society, in the United Kingdom. The same deduction on account of life insurance, or purchase of deferred annuity, is allowed as 3 in the case of profits and gains arising from the first source. A company formed for the purpose of borrow- Case of r \ . Scottish ing money in this country and investing it Mortgage ,,,,., , p.! , , , Co. of New abroad at higher rates of interest, were charged Mexico y. . , IP -I i i 11 ,1 McKelvie. upon interest of money lent by them on the security of property in the United States of America, a deduction being made of the ex- penses of management in America (which could not have been received in this country as part of the income derived from foreign securities, and was, therefore, rightly deducted), and expenses 1 24 & 25 Viet. c. 91, s. 36 (the phrase " person entrusted with payment" in this section, has the same extent of mean- ing as in sect. 96 of 5 & 6 Yict. c. 35, as to which see post, p. 219, note 3 ) ; 48 & 49 Viet. c. 51, s. 26. 2 31 & 32 Viet. c. 28, s. 5. 3 See ante, p. 128. 160 Chap. II. The Crown may charge under the case most to its ad- vantage. INCOME TAX ACTS. of management in this country (which, whether rightly deducted or not, was allowed as a deduc- tion by the Inland Eevenue). The interest received by the company's agents in Am. erica was periodically brought into account in the books of the company kept at the head office in Glasgow, but of the funds raised by the com- pany in this country there was retained a sum equivalent to the interest or gain realized from the American securities after defraying the working expenses in America, and out of this sum was paid all the working expenses in Great Britain, the interest to debenture holders and depositors, and a dividend at the rate of 7 per cent, to the shareholders. The company con- tended that under these circumstances the inte- rest or gain realized from the American securities was not brought into this country, and therefore not chargeable. But it was held that the sum retained out of the funds raised in this country (the above-mentioned deductions being made) had been, in the process of book-keeping, con- verted into income (for otherwise the payments made out of it, which were clearly payments to be made out of income, would have been illegal), and that the company had been rightly charged. It was held that the company were rightly charged under the fourth case, and that though they might have been charged under the first case, where a charge might be made under INCOME TAX ACTS. either of two cases, the Crown was entitled to Chap. n. charge under that case which was most to its advantage. (Scottish Mortgage Co. of New Mexico v. McKelvie, 24 Sco. L. E. 87 ; and see Smiles v. Case of Northern Investment Co. of New Zealand, 24 Sco. Northern L-TV ff-on \ Investment . K,. 060.) Co. of New The Australasian Mortgage and Agency Com- pany carried on an extensive and miscellaneous Smiles v. r ; . Austra- business in connection with the Australian lasian colonies. The company were first of all wool- md brokers, and they acted as parties both to buy and to sell wool, and they advanced money on the security of the goods in which they dealt, and they received a commission for their agency. Their trade was partly the trade of a broker and partly the trade of a banker, although they did not call themselves bankers. The advances made by them were made on second mortgages over real property in the colonies, and on liens and charges upon stock, wool, and other pro- duce, and on the security of shipments of wool and other produce, some of which might be in warehouse in Australia, some in course of transit to this country, and some in warehouse in London. The advances were in the nature of bankers' advances or loans, the amounts of which fluctuate from time to time according as produce is realized or other payments are made. The company had its registered office in Scot- land. It was sought to charge the company INCOME TAX ACTS. Chap. II. upon the profits of a part of their business as if those profits were interest arising from securities in the colonies, so far as those profits were received in this country, under the fourth case of Schedule D. But it was held that that part of the business of the company which it was sought so to charge was proper trading, and not an investment of money upon securities, and that the company were chargeable under the first, and not under the fourth case of Schedule D. The case was distinguishable from the cases of the Scottish Mortgage Co. v. McKelvie, and Smiles v. Northern Investment Co. (ubi sup.). (Smiles v. Australasian Mortgage and Agency Co., 25 Sco. L. B. 645.) Fifth Source. 1 The fifth source is possessions in the "British Plantations in America," or in any other of her Majesty's dominions out of Great Britain, and foreign possessions. The duty is charged upon the actual annual sums received in Great Britain upon an average of three preceding years, allowing such deductions only 2 as in the case of profits arising from the first source. Sixth Source. 3 The sixth source is such as pro- duces annual profits or gains not falling under any 1 5 & 6 Yict. c. 35, s. 100, fifth case. As to the meaning of "possessions," see the case of Colquhoun v. Brooks, ante, pp. 117, 118. 2 See ante, pp. 125 et seq. 3 5 & 6 Yict. c. 35, s. 100, sixth case. INCOME TAX ACTS. 163 of the preceding cases, and not charged by virtue of chap - ** any other schedule. The duty is charged on the amount of the value of the profits and gains received annually, or according to an average of such period, greater or less than one year, as the case may require, and as shall be allowed by the Commissioners. The same deduction on account of life insurance, and purchase of deferred annuity, is allowed as l in the case of profits and gains arising from the first source. Exemption from Duty and Abatement under Sche- dule D. 2 Friendly societies legally established, and Friendly . .,..,,' ,., ,, societies. not assuring to any individual any sum which would debar such society from the benefit of the exemption granted to friendly societies by 5 & 6 Yict. c. 35, in respect of their stocks, &c., chargeable under Schedule C., are exempted from the duty chargeable under Schedule D. 3 Trade unions duly registered under Trade the 4 Trade Union Acts, 1871 and 1876, and the rules unions ' of which limit the amount assured to any member, or person nominated by or claiming under him, to a total sum not exceeding 20 O/., and the amount of any annuity granted to any member or person nomi- nated by him to a yearly sum not exceeding 30/., are 1 See ante, pp. 128, 129. 2 16 & 17 Yict. c. 34, g. 49. As to the exemption under Schedule C, see ante, p. 98. 3 Trade Union (Provident Funds) Act, 1893 (56 Yict. c. 2, s. 1. 4 34 & 35 Yict. c. 31 ; 39 & 40 Yict. c. 22. 16 i INCOME TAX ACTS. Chap. ii. exempt from income tax chargeable under Schedule D., in respect of the interest and dividends of the trade union applicable and applied solely for the whose 1 P ur P os e of provident benefits. 2 A person whose annual in- income is less than 150/. a year is exempted from come is less than 150/., payment of income tax ; and a person whose income, or than though exceeding 150/. a year, is less than 400/. a year, is entitled to an abatement in respect of 120/. of his income. The mode in which such exemption and abatement respectively may be claimed and allowed will be described 3 later on. 4 Abatements may be claimed on account of diminution of profits and gains within the year current at the time of making the assessment, which reduces the profits and gains for that year below the sum at which they were computed, and also in case the person charged ceases to carry on trade, or dies, before the end of such Person year. 5 And when a person sustains a loss in any sustaining a loss in trade, manufacture, adventure, or concern, or pro- fession, employment, or vocation, carried on by him either solely or in partnership, he may obtain an adjustment of his liability by reference to the loss and to the aggregate amount of his income for the 1 As to what are " provident benefits," see ante, p. 86. 2 39 & 40 Viet. c. 16, s. 8. 3 See post, pp. 265271, 294. 4 5 & 6 Yict. c. 35, ss. 133, 134. As to the mode in which such abatements are claimed and made, see post, pp. 303 306. . 5 53 & 54 Yict. c. 8, s. 23. As to the mode in which the relief is claimed and made, and the time within which the claim must be made, see post, pp. 305, 306. INCOME TAX ACTS. 165 year, estimated according to the several rules and Chap. n. directions of the Income Tax Acts. But if he avails himself of this relief, he will not be entitled to claim, or be allowed a deduction on the assessment for a subsequent year by reference to the amount of the loss in respect of which he has obtained relief. In the case of Tennant v. Smith ([1892] A. C. Case of 150 ; 61 L. J., P. C. 11 ; 66 L. T. 327) it was held that an agent for a bank, who was bound, as part of his duty, to occupy the bank house as custodian of the whole premises belonging to the bank, and also for the transaction of any special bank business after bank hours ; who was not entitled to sub-let the bank house, or to use it for other than bank business ; and who, in the event of his ceasing to hold his office, was under obligation to quit the premises forthwith ; claim- ing abatement on the ground that his total income from all sources was less than 400, cannot be compelled to bring into account the yearly value of his privilege of free residence in the bank premises. Doubtful Debts may be valued. x ln ascertaining the profits of any person chargeable under Schedule D., the value of all doubtful debts due or owing to the person who is to be charged may be estimated, and in the case of the bankruptcy, or insolvency, of the debtor, the amount of the dividend which may 1 16 & 17 Viet. c. 34, s. 50. 166 INCOME TAX ACTS. Chap. II. reasonably be expected to be received on any debt due from him is to be deemed the value thereof. SECTION Y. SCHEDULE E. Public Offices, fyc. Under Schedule E. the duty is charged lu for, and in respect of, every public office or employment of profit, and upon every annuity, pension, or stipend, payable by her Majesty, or out of the public revenue of the United Kingdom, except 2 annuities charged to the duties under Schedule C.," for every 3 twenty shillings of the annual amount thereof. 4 The following is an enumeration of the "public offices and employments of profit," upon which the duty is charged for all "salaries, fees, wages, perquisites, or profits," accruing therefrom, under Schedule E., viz. : Offices: 1. Parliament. Any office belonging to either Hame f nt! ar " House of Parliament. 2. Of 2. Courts of justice. Any office belonging to any Courts of ~ . . justice. Court oi justice. 3. Of civil 3. Civil service, &c. Any public office held under the civil government of her Majesty, or in any county palatine, or the Duchy of Cornwall. service. 1 16 & 17 Yict. c. 34, s. 2. 2 As to these annuities, see ante, pp. 97 et seq. 3 Fractional parts of 20s. are charged with duty by the Act 16 & 17 Viet. c. 34, s. 3 ; but no duty is charged of a lower denomination than Id. 4 5 & 6 Yict. c. 35, s. 146, r. 3. INCOME TAX ACTS. 167 4. Army, navy, &c. The office of any commis- Chap. II. sioned officer in the army or navy, or in the militia 4. Of army, or volunteers. navy, &c. 5. Ecclesiastical. Any office held under any 5. Eccle- siastical. ecclesiastical body. 6. Public corporations, &c. l Any office held under 6. Of any public corporation, or under any company or corpora- tions, SOCiety. companies 7. Public institutions. Any office under any public ties. institution, or in any public foundation. 7 'ubiic 8. County, municipal, &c. Any office in any j? county, city, town, or place. 8. County, 9. General. Every other public office or employ- ^ mc ment of profit of a public nature. The profits 2 may be estimated either on the profits of the preceding year, or on the fair average of one year of the amount of the profits in the three years preceding, such years in each case ending on the 5th day of April in each year, or on the other day of each year on which the accounts of such profits have been usually made up. And in estimating the profits the following deductions may be made, viz. : 1. 3 The amount of duties, or other sums, payable First de or chargeable on the same, by any Act of Parliament, B u ti es , * 1 Including offices, and employments of profit held in, or under, any railway company. See 23 & 24 Viet. c. 14, s. 6. 2 5 & 6 Viet. c. 35, s. 146, fourth rule. 3 5 & 6 Viet. c. 35, s. 146, first rule. 168 INCOME TAX ACTS. Chap. II. &c. pay- able by Act of Par- liament. Second deduction : Official de- ductions. Third de- duction : Expenses of travel- ling and keeping a horse. Case of Jlowers v. Harding. where such duties, &c., have been actually paid by the person charged. 2. 1 A11 official deductions and payments made upon the receipt of the salaries, fees, wages, perqui- sites, and profits. 3. 2 The expenses of travelling in performance of the duties of the office or employment, necessarily incurred, or of keeping a horse necessary for the fulfilment of such duties, actually defrayed out of the emoluments of the office or employment, and money otherwise necessarily and actually expended in the performance of such duties. An assessment was made upon Greorge Harding under Schedule E. in respect of his office of national schoolmaster, and 3 of the office of national schoolmistress held by his wife, for which they received a joint salary of 150/. a year, and also of Harding's office of choirmaster, for which he received 1 01. a year. He claimed a deduction of 30/. a year, in respect of expenses incurred by him in keeping a servant, in order 1 5 & 6 Viet. c. 35, s. 146, ninth rule. 2 16 & 17 Viet. c. 34, s. 51. The directors of a company who travel from their residences to the place of meeting of the company cannot, under this section, deduct their travel- ling expenses from the remuneration allowed them as such directors. Revel v. Directors of Elworthy Brothers & Co., Limited (not reported). 3 By sect. 45 of 5 & 6 Viet. c. 35, the profits of a married woman, living -with her husband, are to be deemed the profits of the husband. See post, p. 180. INCOME TAX ACTS. that his wife might be able to perform her Chap. II. duties as schoolmistress, which, in addition to the deduction of 1201. a year, the statutory abatement on all incomes less than 400/., and 121. allowed for annual life insurance pre- mium, would have entitled him to total exemp- tion, as reducing his income from all sources below 150/. a year. It was held that the deduc- tion for expenses of keeping a servant could not be allowed. Sowers v. Harding, [1891] 1 Q. B. 560 ; 39 W. E. 558 ; 60 L. J., Q. B. 474 ; 64 L. T. 201. 4. A deduction on account of life insurance and Fourth de- purchase of deferred annuity, similar to l that For life allowed in case of profits, &c., chargeable under Schedule D. Mr. Grlasson was principal bursar of St. John Case of ' Baptist College, Oxford, and in that capacity v. Giasson. received a stipend of 450/. a year. He was one of several officers who received such stipends as the president and fellows of the college at their general meeting considered to be proper. He was not one of the body who constituted the college. The following are instructions given by the Board of Inland Eevenue to the officers of Inland Eevenue. " The members of a capi- tular or collegiate body are not liable to direct 1 See ante, p. 128. E. I 170 INCOME TAX ACTS. Chap. II. assessment in respect of sums which they are, as members of the corporate body, legally entitled to receive out of the taxed income of the cor- poration. Salaries paid out of such income to persons who are not members are, however, chargeable by direct assessment, unless they are a charge by statute or otherwise on the revenue of the corporation." The question was, to which of the two categories the bursar belonged. If he was a member of the collegiate body, and was merely taking his 'share of the collegiate property, he would not be taxed, for then there would be no office, no salary, but he really would be receiving that which fell to his lot as one of that college body. But if he received a salary paid out of the college income, that salary was liable to be assessed and charged. It was held that the bursar fell under the latter of the two categories, and that he was chargeable with income tax in respect of his stipend. Langston v. Glasson, [1891] 1 Q. B. 567 ; 39 W. E. 476 ; 60 L. J., Q. B. 356 ; 65 L. T. 159. Exemption when Income is under 1507. ; and Abate- ment when Income is under 400 /. X A person whose income is less than 150/. a year is exempt from pay- ment of income tax; and *a person whose income, 1 39 & 40 Yict. c. 16, s. 8. INCOME TAX ACTS. 171 though exceeding 150/., is less than 400/. a year, is Chap, n. entitled to an abatement in respect of 120 1. of his income. The mode in which the exemption and abatement respectively are claimed and allowed will be described 1 later on. 1 Post, p. 309. i2 INCOME TAX ACTS. CHAPTEE III. ASSESSMENT AND COLLECTION. WE have now to explain the modes in which the duties of income tax are assessed, and collected. The modes of assessment, and collection, differ according to the kind of property, or character of profits, to be charged. The simplest way to deal with the subject will be to take each schedule in turn, and describe with reference to the property, or profits, comprised in each the mode of assessment, and collection, pre- scribed. SECTION I. SCHEDULE A. SUB-SECTION I. ASSESSMENT. Who are Commissioners for assessing Duty under Schedule A. ^he General Commissioners act in all matters relating to the duties in Schedule A., except 2 suchj allowances in respect thereof as are made by the Special Commissioners, and except 3 assessments in respect of the annual value of, or profits or gains arising from, railways, 4 which are made by the Special Commissioners. 1 5 & 6 Viet. c. 35, s. 22. 2 5 & 6 Yict. c. 35, s. 22. As to allowances made by the Special Commissioners, see post, Chap. IY. 3 23 & 24 Yict. c. 14, s. 5. * Seepost, p. 212. INCOME TAX ACTS. 173 Place of Charge. l All properties chargeable to the Chap. in. duties under Schedule A. are charged in the parish or place where the same are situate, except in the following cases : 1. Canals, &c. The profits arising from canals, First case inland navigations, streams of water, drains or levels, ception : ... Canals, railways, and roads or ways of a public nature, and &c., rail- belonging to, or vested in, any company of pro- roads', &c. prietors or trustees, corporate or not corporate, may be stated in one account, and charged in the city, town, or place at, or nearest to, the place at which the general accounts of such concern have been usually made up. 2. Manors and royalties. The profits arising from Second prqp ^y any manor or royalty which extends into different exception : ... , , . , . ., . -, Manors parishes may be assessed in one account in the parish and royai- where the Court for such manor or royalty has been usually held. And the profits arising from all fines received by the same person may be assessed in one account where the person to be charged resides. 3. Lands occupied by the same person. All lands Third occupied by the same person are to be brought into exception : every account required to be delivered by such per- different son, although situated in different parishes ; but the occupied duties to be charged thereon are charged in each J[ me e parish, in proportion to the value of the property P ersou< situate therein. But land situate in the same district of Commissioners, although in different parishes, may 1 5 & 6 Viet. c. 35, s. 60, Xo. 4, rr. 1, 2. 174 INCOME TAX ACTS. Chap. in. be charged in either parish at the discretion of the Commissioners, if they are satisfied that the propor- tion in each parish, either in respect of the quantity, rent, or value of the lands, cannot be ascertained. If the lands extend into different districts of Commis- sioners, they are to be assessed in the district in which the occupier resides. Mode of proceeding to obtain Return. 1 The Assessor for each parish, being appointed as we have 2 before explained, causes notices to be affixed on the door of the church, or chapel, of the parish, and in other specified situations, requiring 3 all persons who are l)ound to make any list, declaration, or statement, to make out and deliver the same to the Assessor, or to the General Commissioners, or their Clerk, at a place to be specified in the notice, within a time which must not be more than twenty-one days. The notices must remain up for ten days before the day appointed for the delivery of the list, &c. ; and every person who defaces a notice renders himself liable to a penalty not exceeding 20/. Further, although the general notice we have mentioned is to be deemed sufficient notice to all persons resident within the place for which the Assessor acts, 4 he must also give a similar 1 5 & 6 Viet. c. 35, s. 47. 2 Ante, pp. 25 et seq. 3 As to the persons bound to make out lists, &c., see post, pp. 175178. 4 5 & 6 Yict. c. 35, s. 48. INCOME TAX ACTS. 175 notice to every person chargeable in respect of any Chap. III. property situate, or profits arising, within the limits of such place. This additional notice may be served by leaving it at the residence of the person to be charged, or on the premises upon which the assess- ment is made ; or, if given by a Surveyor, as may be the case when Assessors are not appointed, or l when the Assessor has neglected to give the notice to any person to whom it ought to be given, or when any person comes to reside in any parish, or place, after the expiration of the notices given by the Assessor, 2 may be sent by registered post. Persons required to make out Lists, fyc. The per- sons who are required to make out lists, declarations, and statements, and who are, therefore, affected by the above-mentioned notices, are the following : 1. Persons chargeable. 3 Every person chargeable i- Persons with duty must, when required to do so, prepare a able with " . . , statement in writing containing (a) the 4 annual make out value of all lands and tenements in his occupation, and (b) the amount of the profits or gains made by him, and chargeable, from whatever source they arise. 2. Persons acting for others. 5 Every person who 2. Persons G4. -VI acting for receives money, or value, or profits, or gams, belong- others 1 5 & 6 Viet. c. 35, s. 57. 2 43 & 44 Yict. c. 19, s. 16. 3 5 & 6 Viet. c. 35, s. 52. 4 As to the meaning of "annual value" under Schedule A., see ante, pp. 48 et seq. 5 5 & 6 Viet. c. 35, s. 51. INCOME TAX ACTS. Chap. III. ing to any other person, for which such other person must make is chargeable, or would be chargeable if resident in ments ; Great Britain, must prepare a statement in writing of such money, value, profits, or gains, and of the name and place of abode of every person to whom the same belongs, and whether such person is of full age, or a married woman living with her husband, or a married woman for whose payment of the duty the husband is not accountable, or resident in Great Britain, or an infant, idiot, lunatic, or insane person. If any other person is joined with the person deliver- ing this statement in receiving such money, value, profits, or gains, Ms name and address must also be and if the stated. J If the person to whom the money, &c., be- the pro- longs is an idiot or lunatic, or resident out of Great aifidiot, Britain, and so cannot be personally charged, the or resi- tlC ' person making the statement must add a declaration that the amount of the profits, &c., has been esti- must add ma ^ e( l on a ^ the sources mentioned in the schedules tion Clara " describing the same, as if he himself were to be charged in respect of property of his own. 3. Officers 3. Officers of companies. 2 The Chamberlain, or panics other officer acting as treasurer, auditor, or receiver, outriate- 6 for the time being, of any corporation, fraternity, fellowship, company, or society, must prepare a statement in writing of the profits and gains of such corporation, &c. ; and 3 must also do all such acts as 1 5 & 6 Yict. c. 35, s. 53. 2 5 & 6 Yict. c. 35, s. 54. 3 42 & 43 Yict. c, 21, s. 18. INCOME TAX ACTS. 1< < are required to be done for assessing the officers and Chap. ill. persons in the employment of the corporation, &c. The estimate of profits, &c., must be made on the amount of the annual profits and gains before any dividend is paid; but salaries, wages, or profits of any officer of such corporation, &c., otherwise chargeable, are not to be included in the statement. 4. Persons having lodgers, employes, &c. l Every 4. Persons having person, on being required to do so, must prepare a lodgers, i . ,. ... . ,, p T , . . employes, list in writing oi the names 01 lodgers or inmates &c. must resident in his dwelling-house, and of other persons lists of chiefly employed in his service, whether resident in m his dwelling-house or not, and of any lodger or inmate who has any ordinary place of residence else- where at which he is entitled, and desires, to be assessed. 2 The lists, &c., must be made out in the prescribed form, and signed by the person making them, and delivered to the Assessor of the parish, or place, in which such person resides. In the case of statements made by trustees, or agents, of persons incapacitated, or abroad, the statements may be signed by all the trustees, or agents, if more than one, or by one on behalf of himself and his colleagues ; and when the statement is made by the person chargeable, or, as before mentioned, by the agent of a person incapaci- tated, or resident out of Great Britain, or by the 1 5 & 6 Yict. c. 35, s. 50. 2 5 & 6 Yict. c. 35, ss. 50, 51, 52, 53, 54, 190, Sched. G. 15 178 INCOME TAX ACTS. Chap. in. officer of a corporation, &c., it must contain a de- claration that the amount of profits which it shows has been estimated on all the sources contained in the schedules describing the same. l The penalty for neglecting to deliver lists, &c. is, if proceeded for by information before the Commissioners, a sum not exceeding 20/. and treble duty, the increased duty to be added to the assessment; if proceeded for in a court of law, 50/. But if any person who is required to deliver a list, &c., on behalf of another, delivers an imperfect list, &c., and declares that he is at the time unable to deliver a more perfect list, &c., giving reasons for such inability, and the Commissioners are satisfied with the reason given, further time may be granted for the delivery of a list, &c., as perfect as the nature of the case admits of. 2 And no person re- quired to deliver a list of persons in his service or em- ploy is liable to a penalty for omitting the name, or residence, of any such person not resident in his dwel- ling-house, if it appears that such person is exempt from payment of duty. 3 And a person who has not received a particular notice from the Assessor, 4 as before mentioned, is not liable to any penalty for having neglected to make a statement of income, if it appears to the Commissioners on inquiry that he is entitled to be exempt from payment of all duty. 1 5 & 6 Yict. c. 35, s. 55. 2 5 & 6 Yict. c. 35, s. 50. 3 5 & 6 Yict. c. 35, s. 56. 4 Ante, pp. 174, 175. INCOME TAX ACTS. 179 Persons chargeable. All persons who are in pos- Chap. in. session for their own benefit of profits arising from property, professions, trades, and offices, are "persons chargeable " with duty in respect thereof. Persons chargeable in respect of Profits not their own. Persons charge- Besides those who are in receipt for their own able in benefit of profits arising from property, professions, profits not trades, and offices, and who are chargeable with duty in respect thereof, certain other persons are charge- able in respect of profits not their own, but which they receive for others. Thus J the parent, guardian, parents, ' trustees, or tutor of any infant or person under twenty-one guardians, years of age, and the trustee, guardian, tutor, cura- curators, tor, or committee of any infant, married woman, mittees ; lunatic, idiot, or insane person, having the manage- ment of the property of such infant, &c., whether such infant, &c., is resident in Great Britain or not ; and 2 the executors or administrators of any person dying : executors . and admi- and 3 the factor, agent, or receiver, having receipt of nistrators ; 1 5 & 6 Yict. c. 35, ss. 41, 108, 173; 43 & 44 Viet. c. 19, s. 92. 2 5 & 6 Yict. c. 35, s. 173 ; 43 & 44 Viet. c. 19, s. 92. 3 The person not resident in Great Britain is, strictly speaking, to be charged, but in the name of his trustee, guardian, tutor, curator, committee, factor, agent, or receiver. (Sect. 41.) This, however, practically amounts to the trustee, &c. being chargeable, and he is responsible for doing all acts requisite for assessment. But see sect. 108. In Tischler v. Aptliorpe (33 W E. 548; 52 L. T. 814, ante, p. 106), Mathew, J., referring to sect. 41 of 5 & 6 Viet. c. 35, said, "When one looks at the section, and then at sect. 44" (see below), "it is clear that sect. 41 is intended to aid the Commissioners in 180 INCOME TAX ACTS. Chap. III. factors, agents and receivers ; receivers appointed by the Chancery Division of the High Court of Justice ; husbands of married women ; wives living from their husbands ; bodies politic, &c.. com- panies, &c. ; any profits belonging to any person resident out of Great Britain ; 1 the receiver appointed by the Chan- cery Division of the High Court of Justice, or any other Court in Great Britain having the direction and control of any property chargeable; 2 the husband of any married woman living with her husband (in respect of profits of the wife) ; 3 the wife of any man, living separate from her husband, whether he shall be only temporarily absent or otherwise (in respect of any allowance or remittance received from her husband, or from property of his out of Great Britain) ; are all chargeable in respect of the profits received by them in the characters aforesaid. So 4 all bodies politic, corporate, or collegiate, companies, fraternities, fellowships, or societies of persons, cor- porate or not corporate, are chargeable, and the recovering the tax, and not to alter the incidence of taxation in any way, for, under sect. 44, the agent who was charged under sect. 41 is entitled to recover from his principal, who is the person really liable, any payment he may have made. If the principal can be got at, there is no need to have re- course to sect. 41. But where the case contemplated by sect. 41 arises, of one resident abroad who cannot be reached by the Commissioners, then the Commissioners can come down upon the agent." This was adopted by Lord Esher, M. E., in Werle & Co. v. Colquhoun, 20 Q. B. D. 753; 36 W. E. 613; 57 L. J., Q. B. 323; 58 L. T. 156 (ante, p. 109). 1 5 & 6 Yict. c. 35, s. 43. 2 5 & 6 Yict. c. 35, s. 45. 3 5 & 6 Yict. c. 35, s. 45. Married women acting as sole traders, or having separate property, are chargeable as if unmarried. 4 5 & 6 Yict. c. 35, s. 40. INCOME TAX ACTS. officer acting as treasurer, auditor, or receiver, for Chap. III. the time being, is to do all acts requisite for as- sessment. l But parents, trustees, agents, factors, trustees, &c. may receivers, guardians, tutors, curators, or committees, retain executors, or administrators, so charged may retain for pay- f rom moneys coming to their hands when acting duties ; in such capacities enough to pay the duties charged, and every such officer of a company, &c. is indem- officers of nified against the company, &c. for all payments indemni- made by him in discharge of such chargeableness paying as aforesaid. 2 A trustee who has authorized the/ trustees in receipt of the profits arising from the trust property certain by the person entitled thereto, or his agent (provided bound to they have been actually so received), need, however, names of do no more than return a statement of the name and trust; residence of such person, and the case is the same with any agent, or receiver, of any person of full and age resident in Great Britain, not being a married &c. of , ....... _ names of woman, lunatic, idiot, or insane person, unless indeed persons the testimony of the trustee, agent, or receiver, is they act. required by the Commissioners, 3 for then such testi- mony must be given. Occupiers chargeable for Owners of Land. 4 The occupier, that is, the person having the use, of any 1 5 & 6 Yict. c. 35, ss. 44, 73 ; 43 & 44 Viet. c. 19, s. 92. 2 5 & 6 Viet. c. 35, s. 42. 3 5 & 6 Viet. c. 35, s. 125. 4 5 & 6 Viet. c. 35, s. 63, No. 9, rr. 1, 2, 3. The occupier may deduct the duties paid by him from his rent. See post, pp. 197, 198. 182 INCOME TAX ACTS. Chap. Ill, First ex- ception : Dwelling- house under the value of IQl.a, year, and land or tenement let for a lands or tenements for the time being, is chargeable with the duties under Schedule A., although he is not the owner of the lands and tenements, and although 1 he has not occupied them for the whole period for which the duty is levied. There are, however, the following exceptions to this rule, the reasons for which will be easily understood : 1. Dwelling-house under the value of WL a year, or let for a period less than one year. 2 The owner, and not the occupier, is chargeable in the case of any dwelling-house in the occupation of a tenant, which, with the buildings or offices belonging thereto and the land occupied therewith, is under the value of 10/. a year, and also in the case of any land or tenement let to any tenant for a less period than 1 Every tenant on quitting the occupation is liable for any arrears at the time of so quitting, and for a proportionate part of the accruing duty up to the time of quitting. The amount for which the tenant quitting is so liable must be settled and levied by the Commissioners, and repaid to the occupier by whom the same has been paid. The executors, or administrators, of any tenant who dies before payment of any such assessment, is liable in like manner as the testator or intestate would have been if living. Every tenant quitting before the time of making the assessment, is liable for such portion of the year as has elapsed at the time of his so quit- ting, and the amount for which he is so liable must be adjusted, and settled, by the Commissioners; 5 & 6 Viet. c. 35, s. 63, No. 9, r. 3. These provisions can only have effect where the occupier cannot deduct the duty he has paid from the rent. See the last note. 2 5 & 6 Yict. c. 35, s. 60, No. 4, r. 3. INCOME TAX ACTS. 183 one year. But in default of payment by the owner Chap. III. the duty may be recovered from the occupier. less period 2. House occupied by foreign minister, owner, or person immediately entitled to the rent, Second . . . exception : and not the occupier, is chargeable in the case of any House . , s . occupied house or tenement occupied by any accredited minister by foreign - . ' , , minister. from any foreign prince or state. 3. House let in apartments. 2 The landlord of any Third ex- ception : house or building let in different apartments or tene- House let in apart- ments, and occupied by two or more persons severally, ments. is chargeable in respect of such house, &c. But in default of payment by him, the duty may be levied on the occupier or occupiers respectively. And 3 where any house is divided into distinct properties, and occupied by distinct owners, or their respective tenants, the duties are charged upon the respective occupiers. Landowner chargeable for Owner of Rent-charge in lieu of Tithe. 4 By an exception introduced in the case of the owner of a rent- charge confirmed under the 5 Act passed for the commutation of tithes, the owner of the land out of which the rent-charge issues pays the duty in respect of the land without any deduction on account of such rent-charge, though 6 on paying the rent-charge he will, of course, deduct the duty thereon. 1 5 & 6 Yict. c. 35, s. 60, No. 4, r. 7. 2 16 & 17 Viet. c. 34, s. 36. 3 5 & 6 Viet. c. 35, s. 60, No. 4, r. 13. 4 5 & 6 Viet. c. 35, s. 60, No. 2, r. 3. 5 6 & 7 Will. 4, c. 71. 6 5 & 6 Viet. c. 35, s. 60, No. 4, r. 10. See post, p. 200. 184 INCOME TAX ACTS. Chap. in. x But ( 2 except in the Metropolis), on a due return of any such rent- charge being made by the owner thereof in order to an assessment upon him, the Commis- sioners acting in the matter may, if they think fit, charge and assess the owner of the rent-charge in respect thereof, allowing a deduction for the amount of the parochial rates charged upon, or in respect of, such rent-charge during the preceding year, and, in case the assessment is made upon the owner of the rent-charge, the amount of the rent-charge is allowed as a deduction in the assessment of the land upon which the same is charged. Case of The owner of a tithe commutation rent-charge Bihop> assessed under section 32 of the Act of 1853, may deduct the expenses of collection, where the amount could not be realised without such expenditure in collection. Sect. 5 of the Act of 1853 makes the earlier statute of 1842 applic- able to the income tax under the later Act. The method of assessment under that Act is contained in Schedule A. Eule 1 of that Schedule is the rule applicable. Matters incap- able of actual occupation may very well be within that rule, but at any rate the words used in that rule must be made to apply, inasmuch as sect. 5 of the Act of 1853 makes them applicable, for the case cannot be brought under rule 2. The 1 16 & 17 Yict. c. 34, s. 32. 2 32 & 33 Yict. c. 67, s. 77. As to the meaning of " Me- tropolis," see ante, p. 29, note 3 . INCOME TAX ACTS. 185 value of the tithe rent-charge is, therefore, the Chap. III. amount at which it would let at a rack rent. This clearly could not exceed the gross amount of the tithe rent-charge less the reasonable remuneration for its collection, not the cost of a merely optional collection, but the expenditure without which the amount could not be realised. Stevens v. Bishop, 20 Q. B. D. 442 ; 36 W. E. 421 ; 57 L. J., Q. B. 283 ; 58 L. T. 669. Other Persons chargeable. Subjects of the Queen whose ordinary residences are in Great Britain, but who have gone abroad for the purpose only of occa- sional residence, remain chargeable as if they had continued to reside in Great Britain. Persons tem- porarily in Great Britain become chargeable after residence, at one time, or at several times, for a period amounting to six months in any one year. Proceedings after Notices given. The notices having been given, 2 the Assessor appears before the Com- missioners at the time appointed, and verifies upon oath the fixing of the general notices, and the deli- very of the particular notices ; and, if it appears that notices have not been served upon any persons, the Surveyor may cause notices to be served on them, as he may also cause notices to be served upon per- sons coming to reside in the parish after the Assessor's report. 1 5 & 6 Viet. c. 35, s. 39. 2 5 & 6 Viet. c. 35, ss. 57, 58. 186 INCOME TAX ACTS. Chap. in. Assessment Period for which made. l Every assess- ment is made for the year commencing on the 6th day of April in any year, and ending on the 5th day of April following ; each of such days being reckoned inclusively. Assessment in Case of Return made by Party charge- able. 2 In the meantime, however, the Assessor pro- ceeds to make his assessment, observing therein, in the case of each kind of property, the rules applicable thereto, which we have before explained ; and using the returns made by the party chargeable. If he finds a difficulty in so doing, he applies for instruction, and assistance, to the Commissioners, or to the Surveyor. If he is not satisfied with the return made by the person to be charged, or if no return has been made, and if the annual value cannot otherwise be ascertained, he proceeds to estimate to the best of his judgment the annual value of the property of which no account, or no sufficient account, has been delivered, and to assess the same 3 except in the Metropolis; 4 taking as his guide the last assessment of the property for the purpose of the poor-rate in all cases in which the poor-rate has been made throughout by a pound-rate on the annual value as it would be estimated accord- 1 43 & 44 Yict. c. 19, s. 48. 2 5 & 6 Yict. c. 35, ss. 64, 74. 3 See below. 4 5 & 6 Yict. c. 35, s. 64, No. 11, r. 1. INCOME TAX ACTS. 187 ing to Schedule A. ; and in other cases, whenever Chap. III. possible, taking the assessment for the purpose of the poor-rate as his guide according to certain prescribed rules. In the Metropolis, as that word is defined by intheMe- the l Valuation (Metropolis) Act, 1869 that is, valuation . , . , . , . . . , . , list is con- the unions, and parishes not in union, which were elusive either wholly or for the greater part in value, "gross" situate within the jurisdiction of the Metropolitan a le ra Board of Works appointed under the 2 Metropolis va ue * Management Act, 1855 3 the valuation list made in pursuance of the 4 Valuation (Metropolis) Act, 1869, and for the time being in force, is conclusive evidence of the gross value, and rateable value, of the several hereditaments included therein, and of the fact that all hereditaments required to be inserted therein have been inserted therein, for the purpose of the 5 Income Tax Acts, in all cases where the tax is charged upon the gross value and not on profits. 6 " Gross value," as used in the Act we have just been quoting, is defined to mean " the annual rent which a tenant might reasonably be 1 32 & 33 Viet. c. 67. See ante, p. 29, note 3 . 2 18 & 19 Viet. c. 120. The Metropolitan Board of Works no longer exists, having been abolished by the "Local Government Act, 1888 " (51 & 52 Viet. c. 44). 3 32 & 33 Viet. c. 67, s. 45. 4 32 & 33 Viet. c. 67. The provisions of this Act relating to the making of valuation lists, and to appeals, contained in sects. 6 42, should be referred to. 5 5 & 6 Viet. c. 35, and any Acts continuing or amending the same. See 32 & 33 Viet. c. 67, s. 45 (2) (b). 6 32 & 33 Viet. c. 67, s. 4. 188 INCOME TAX ACTS. Chap. in. expected, taking one year with another, to pay for a hereditament, if the tenant undertook to pay all usual tenant's rates and taxes, and tithe commutation rent- charge, if any, and if the landlord undertook to bear the cost of the repairs, and insurance, and the other expenses, if any, necessary to maintain the hereditament in a state to command that rent ; " while the term " rateable value," as used in the same Act, is defined to mean lu the gross value after de- ducting therefrom the probable annual cost of the repairs, insurance, and other expenses as aforesaid." The Assessor 2 may, however, estimate the value of any dwelling-house which, with any ground occupied therewith, is of less annual value than 10, and the value of which he is able to estimate, either according to the prescribed rules, or of his own knowledge, without requiring a return of the annual value, unless the Surveyor objects to his so doing; and this extends to land separately occupied. 3 He is authorized to require any tenant to produce to him the lease, or agreement, under which the tenant holds; and, if the lease, or agreement, was made within the period of seven years, and the rent reserved expresses the full consideration, either in money or in value, for the lease, the Assessor may take such rent as the annual value of the property ; but always having regard to any increase of the 1 32 & 33 Viet. c. 67, s. 4. 2 5 & 6 Viet. c. 35, s. 65. 3 5 & 6 Viet. c. 35, s. 66. INCOME TAX ACTS. 189 amount of the reserved rent, by reason of any agree- Chap. III. ment by the landlord to pay tenant's rates and taxes, or to any decrease of the amount of the same rent, by reason of any agreement by the tenant to pay landlord's rates and taxes. Express provi- sion is made for cases in which the tenant has undertaken to make certain improvements in the property let, and the rent has been fixed with reference to the estimated result of such improve- ments, but at a sum higher than the present annual value of the property. 2 If the tenant holds under a parol agreement made within the same period of seven years, or for any reason has not the custody of the lease under which he holds, it will be enough if, instead of producing a lease or agreement, he gives to the Assessor an account in writing, signed by himself, of the actual amount of the annual rent reserved ; and the Assessor may make the assessment according to such rent. 3 The penalty for delivering a false account, or omitting to produce any lease or agreement, with intent to conceal the annual value of the property comprised therein, is 201. and treble duty. Where there is an existing lease, made within Case of the last seven years, by which the property which v . Inland is the subject of the assessment is let at rack- rent, the rent named is to be taken as the annual 1 5 & 6 Viet. c. 35, s. 66. 2 5 & 6 Viet. c. 35, s. 67. 3 5 & 6 Viet. c. 35, s. 68. INCOME TAX ACTS. Chap. III. value. But if upon the face of the lease it clearly appears that what is called rent is pay- able, in part at least, for something which is not the subject of assessment, the clause does not apply. Campbell v. Inland Revenue, 17 Sco. L. B. 23. In this case a part of what appeared to be rent was in fact an annual instalment of a sum agreed to be paid for purchase of the goodwill of a business, and for stock in trade, the remain- der only being rent properly so called. Delivery of Certificates of Assessment. The Assessor, having made his assessments, introduces the same into a certificate, the form of which is prescribed by the * Taxes Management Act, 1880, and delivers the certificate to the General Commissioners, with all returns made to him; and 2 the General Commissioners forthwith deliver the certificate to the Surveyor for examination. 3 The Surveyor has a right to examine every return, and every first assessment of the duties made for any parish, for any year ; and every person who has any such return in his custody must deliver the same to the Surveyor, if he requests him to do so, taking the Surveyor's receipt for the same ; and the Surveyor may take charge of any assessment so de- livered to him, until he has taken such copies of, or extracts from, the same as may be necessary for his 1 43 & 44 Viet. c. 19. 2 43 & 44 Viet. c. 19, s. 50, 3 43 & 44 Viet. c. 19, s. 51 ; 5 & 6 Viet. c. 35, s. 161. INCOME TAX ACTS. 191 tetter information. J Any person who wilfully ob- Chap. III. structs the Surveyor in the performance of his duty in this respect is liable to a penalty of 50/. 2 The Surveyor may also require the Assessor to give notice to the overseers of the parish to deliver the rate books of the parish, and a true copy of the last rate made, to the Surveyor for his use, or to produce them to the Greneral Commissioners ; and 3 he may at all times in- spect, and take copies of, or extracts from, any book kept by any parish officer, or other person, concerning the poor-rates, or any other public taxes or rates; and 4 if the occupier, or other person chargeable, has, after due notice given, omitted to make the required return, or has made a return with which the General Commissioners are dissatisfied, the Surveyor may, after having first obtained an order from the Greneral Commissioners, and after two days' notice to the occupier, accompanied by such skilled persons as are named in the order, view and examine any property chargeable, in order to ascertain its annual value. A similar power is given to Assessors. Amendment of Assessment. 5 If the Surveyor, upon examination, discovers that any properties, or profits, chargeable to the duties have been omitted, or that any person chargeable has not made a full and proper 1 5 & 6 Viet. c. 35, s. 161. 2 5 & 6 Viet. c. 35, s. 75. 3 5 & 6 Viet. c. 35, s. 76. 4 5 & 6 Viet. c. 35, s. 78. 5 43 & 44 Viet. c. 19, s. 52. 192 INCOME TAX ACTS. Chap. in. return, or has made no return at all, or has not been charged, or has heen undercharged, or has obtained any allowance, deduction, abatement, or exemption, not authorized, he corrects and amends the assess- ment. If the discovery should be made after the assessment has been signed and allowed in the manner presently described, but within four months of the expiration of the year to which the assessment Surveyor's relates, the Surveyor certifies this error to the General Commissioners, who then sign and allow an addi- Additional tional first assessment, made in accordance with the sessment. particulars certified by the Surveyor. Allowance of Assessments. 2 After the Surveyor has examined the assessments made, the General Com- missioners take them into consideration ; and, if the Surveyor has made no objections, and they are satis- fied, they sign and allow the assessments. If the Surveyor makes an objection to any assessment, the Kectifica- Commissioners 3 rectify the same according to the best sessments" of their judgment. The General Commissioners 4 have the same right as the Surveyor to require the overseers of any parish to produce the rate books, 1 See below. 2 43 & 44 Yict. c. 19, s. 56. 3 Except where they are specially authorized to do so, no assessment delivered to the General Commissioners is to be altered by them, except in case of, and upon, appeal. 43 & 44 Viet. c. 19, s. 57. See post, pp. 274277. 4 5 & 6 Yict. c. 35, s. 75. INCOME TAX ACTS. 193 and Ho inspect the rate books, and take copies of, or Chap. in. extracts from, them ; and, if the Surveyor alleges that the assessments have not been properly made, 2 they may summon Assessors and overseers before them, and examine them on their oaths. Omissions from First, or Additional First, Assessments, how dealt with. 3 An omission discovered by the Sur- veyor within the year following the year for which the person liable ought to have been charged, may be rectified by the Surveyor charging such person, Surcharge and giving notice to him of the charge and the par- veyor. ticulars thereof, and certifying to the General Com- missioners the particulars of the omission and charge. The Commissioners, upon oath being made by the Surveyor, or other credible witness, of the service of the notice, sign and allow the certificate. The cer- tificate must, however, be delivered to the General Commissioners, or to their Clerk, within the year fol- lowing the year of assessment. 4 The person charged may, however, within ten days after receiving the notice, make an amended return, or give notice in writing to the Surveyor that he abides by the former return (if any) made by him, accompanying the same with a declaration, signed and attested, containing 1 5 & 6 Yict. c. 35, s. 76. 2 5 & 6 Viet. c. 35, s. 75. a 43 & 44 Viet. c. 19, s. 63. * 43 & 44 Viet. c. 19, s. 64. E. K 194 INCOME TAX ACTS. Chap. in. the particulars prescribed by the * Taxes Manage- Suryeyor's ment Act, 1880. The Surveyor may object to the of objec- 6 return, or amended return ; or may certify his satis- supple- faction to the Greneral Commissioners. In the former return! 7 case ^ e Surveyor must give notice of his objection to i the person charged, and certify the return, or the amended return, and the cause of his objection, to the Greneral Commissioners, who must thereupon cause the assessment to be made upon the Surveyor's certificate of objection, and allow no abatement, except on the 2 appeal of the person charged. 3 To make a false declaration in this respect is a misde- meanour, and the penalty imprisonment for a period not exceeding six months, and a fine not exceeding treble the amount of duty charged. Apportionment of Assessment "by General Commis- sioners in Case of Divided Occupation. 4 If after the assessment the land, &c., which is the subject of it comes to be divided into two or more distinct occu- pations, the General Commissioners have power to apportion the duty among the occupiers upon the appeal of the parties interested. Assessment of Railways by the Special Commissioner* 5 The annual value of, or profits or gains arising 1 43 & 44 Yict. c. 19. 2 As to the mode of appealing, see post , pp. 274 278. s 43 & 44 Viet. c. 19, s. 66. 4 23 & 24 Viet. c. 14, s. 4. 6 23 & 24 Viet, c. 14, s. 5. INCOME TAX ACTS. 195 from, any railway are, l as we have said, assessed by Chap. III. the Special Commissioners. The mode of assessment by the Special Commissioners 2 will be described when we treat of duties payable under Schedule D. The Special Commissioners, upon making an assessment upon any railway company, notify the amount of the assessment to the secretary or other officer of the company upon whom the assessment is made. Time when Duties become payable. Duties of in- come tax, except such as are payable by way of deduction, or are assessable in respect of 3 railways, 4 generally become payable on the 1st of January in the year for which the duties are charged; but duties of income tax included in any assessment signed and allowed on or after any such 1st of January become payable on the day after that on which the; assessment is signed and allowed. Duties payable by way of deduction 5 must be deducted out of the sums- in respect of which they are charged at the times- when such sums become payable. 1 See ante, p. 172. 2 See post, pp. 245, 246. 3 As to when duties assessed on railways become payable, see post, pp. 212, 213. 4 43 & 44 Yict. c. 19, s. 82. 5 5 & 6 Yict. c. 35, s. 158. INCOME TAX ACTS. Chap. III. SUB-SECTION II. COLLECTION.* Proceedings after Assessment in order to the Collec- tion of the Duties. As soon as any assessments of income tax are signed and allowed by the General Commissioners, and 2 the time for hearing appeals has expired, the Clerk to the General Commissioners pre- Dupiicates pares 3 two duplicates of every assessment, in the ment. prescribed form, which are then signed and sealed by the General Commissioners. One of the duplicates is handed by the Commissioners to the Collector of the parish for which the assessment is made, with a warrant for collecting the duty. The other duplicate is delivered to the Surveyor of the district. 4 Assess- ments not made, or against which any appeal is depending, when the first assessments are signed and allowed, when made, or determined, are included in a separate form of assessment and duplicate, and then collected in the same manner as the duties charged by the first assessments. When the duties become payable, 5 the Collector demands the sums 1 Sect. 9 of the Taxes Management Act, 1880 (43 & 44 Yict, c. 19), contains a general saving of all powers for recovery of income tax contained in the Acts relating to income tax then in force, in cases not provided for by that Act, and so far as the same are not inconsistent with the express provi- sions of that Act. 2 As to the time for hearing appeals, see post, p. 275. 3 43 & 44 Yict. c. 19, s. 83. 4 43 & 44 Yict. c. 19, s. 84. 5 43 & 44 Yict. c. 19, s. 85. INCOME TAX ACTS. 197 from the persons charged with the same, and upon Chap. III. payment he gives a receipt in Hhe prescribed form. Cases in which Persons chargeable may deduct Sums paid by them for Duty from Payments made by them. It will be convenient to mention here the cases in which persons charged with duty under Schedule A. are authorized to deduct the whole, or part, of what is paid by them for duty from payments which they make to others, and so become in some sense collec- tors of the duty from the persons ultimately liable thereto. The cases referred to are the following : 1. 2 Where the occupier, not being the owner, of First case: Occupier any lands, tenements, or hereditaments, pays the of lands, duties assessed upon such lands, &c., he may deduct ducts out out of the next rent payable to the landlord so much payable to of what he has paid for duty as a rate upon the rent amount of payable equivalent to the rate of duty charged would thereon, amount to. But the whole sum to be deducted from the rent must not exceed the sum actually paid for duty by the occupier. 3 If the rate of income tax has varied during the period for which the rent is paid, so that the amount to be deducted cannot be calculated, except by taking a proportionate amount 1 That is, the form prescribed by the Board. 43 & 44 Viet, c. 19, ss. 5, 15 (3). The receipt is not liable to stamp duty, ante, pp. 41, 42. 2 5 & 6 Viet. c. 35, s. 60, No. 4, r. 9 ; 16 & 17 Viet. c. 34, s. 40. As to the cases in which occupiers are chargeable for owners, see ante, pp. 181 183. 3 27 & 28 Viet. c. 18, s. 15. 198 INCOME TAX ACTS. Chap. III. Second case : Mort- gagee in possession and in actual occupation of lands, &c. mort- gaged must allow duty on interest in accounts between himself and mort- gagor. Third case: Persons of several rates of income tax, such, proportionate amount may be deducted from the rent by the occupier. 1 A. mortgagee in possession, not in actual occupation of the land, &c. mortgaged, is liable to the same deduction as any other landlord would be. 2. 2 A mortgagee in possession, and in actual occupation of the lands, &c. mortgaged, in the settlement of accounts between himself and the mortgagor, must allow the duty payable in respect of the amount of interest due upon such mortgage, as so much interest received by him on account of such interest. 3 The provision we have just quoted for the case of a variation in the rate of income tax applies here, so that if the income tax has varied during the period through which the interest has accrued a proportionate amount of the several rates of income tax chargeable must be allowed. 3. 4 Every person liable to the payment of any rent, or any 5 yearly interest of money, or any an- 1 5 & 6 Yict. c. 35, s. 60, No. 4, r. 11. 2 5 & 6 Viet. c. 36, s. 60, No. 4, r. 11. 3 27 & 28 Yict. c. 18, s. 15. * 16 & 17 Viet. c. 34, s. 40. 5 The words "or other annual payment" shows that the payments before referred to are annual payments. Rent means annual rent, and yearly interest cannot mean interest for less than a year. The interest upon short loans, not intended to be continued, and not continued, beyond a year, is not "yearly interest" within the meaning of the section. But a common mortgage, although expressed to be for six INCOME TAX ACTS. nuity or other annual payment, as a charge on any Chap. III. property, whether the same is payable half-yearly, or liable to at any shorter or more distant periods, is authorized, yearly 11 on making such payment, to deduct thereout the amount of the rate of duty payable at the time when such payment becomes due ; and the person to whom such payment is to be made must allow such deduc- tion upon penalty of a forfeiture of 50/. for refusing to do so. But the sum deducted must not be greater than the amount of the duty actually paid. l The provision above mentioned for the case of a variation in the rate of income tax applies to the cases we are now considering. 4. 2 Any person paying any rent-charge under the Fourth 3 " Drainage Advances Acts " may from time to time Persons deduct thereout, in respect of the duty chargeable, rent- one-third part of the sum which the rate of such duty, computed on such rent-charge, amounts to ; and the deduction must be allowed by the receiver duct one- third of the duty months, is not, as a matter of business or in fact, a snort thereon. loan. Goslings and Sliarpe v. Blake, 23 Q. B. D. 324; 37 W. K. 774. 1 27 & 28 Viet. c. 18, s. 15. 2 16 & 17 Viet. c. 34, s. 42. Although sect. 15 of 27 & 28 Viet. c. 18, in terms applies only to cases within the 40th section of 16 & 17 Viet. c. 34, reason would seem to prescribe the application of the provision made by the first-named section to this case of a rent- charge under the Drainage Advances Acts. 3 9 & 10 Viet. c. 101 ; 10 & 11 Viet. c. 11 ; 11 & 12 Viet. c. 119 ; 13 & 14 Viet. c. 31 ; 19 & 20 Viet. c. 9. 200 INCOME TAX ACTS. Chap. III. Fifth case : Owner of lands subject to rent- charge in lieu of tithes, &c. may de- duct duty thereon. Penalties for re- fusing to allow de- duction. and collector of the rent-charge upon receipt of the residue of the rent-charge then due. 5. 1 When any lands, &c. are subject to the pay- ment of any rent-charge under the 2 Act passed for the Commutation of Tithes, or otherwise, or any annuity, fee farm rent, rent service, quit rent, sti- pend to any licensed curate, or other rent or annual payment charged thereon, the owner, not heing the occupier, if he has allowed to the occupier any de- duction from his rent in respect of duty paid by him under Schedule A., and the owner being also the occupier, may deduct out of every such rent- charge, &c., a proportionate part of the duty ; and such deduction must be allowed by the person re- ceiving, or entitled to, the rent-charge, &c. 3 If any person refuses to allow any deduction authorized to be made out of any payment of annual interest of money lent, or other debt bearing annual interest, secured by mortgage or otherwise, he for- feits for every such offence treble the value of the 1 5 & 6 Viet. c. 35, s. 60, No. 4, r. 10. We may repeat here, mutatis mutandis, the observation made on the preceding' page, note 2 . 2 6 & 7 Will. IV. c. 71. 3 5 & 6 Viet. c. 35, s. 103. If a tenant does not deduct the property tax paid by Tn'm from the next rent, he cannot afterwards recover it as money paid; but if the tenant abstains from deducting the tax upon the promise of the landlord to repay the amount of the tax, there is a good consideration for the promise, and the tenant may sue upon it. Lamb v. Brewster, L. E. 4 Q. B. D. 220; 48 L. J., Q. B. 421 ; 40 L. T. 537 ; 27 W. E. 478. INCOME TAX ACTS. 201 principal money or debt ; and if any person refuses clia P- nl - to allow any deduction authorized to be made out of any rent or other annual payment before mentioned, he forfeits the sum of 50/. All contracts, covenants, and agreements made for payment of any interest, rent, or other annual payment aforesaid, without allowing such deduction, are void. A tenant who had been assessed, and had Case of Swatman paid income tax under Schedule A. in respect v. Ambler. of land occupied by him, claimed to make the deduction from his next payment of rent. The landlord was not in fact liable to be assessed. He had, before the payment of the tax by the tenant, claimed exemption, and the exemption was, but subsequently to the payment, allowed. It was held that the tenant had nevertheless a right to make the deduction from his rent. Swatman v. Ambler, 24 L. J., Ex. 185. A lessee of land for a term of years had Case of power to dig brick earth and make and sell v. East- bricks. He paid (1) for surface rent 171. 10s. a year ; (2) for royalty, or brick rent, 1001. a year ; (3) for every 1,000 bricks above the first million made in any year 2s. It was held that the lessee was assessable under Schedule A. in respect of all three kinds of rent, and might make the deduction from his rent. Edmonds v. Eastwood, 27 L. J., Ex. 209. A coal-mine was sold upon terms that the Cases of purchaser should pay the purchase-money by Sns, Ind K5 202 INCOME TAX ACTS. Chap. III. Foley v. Fletcher. Case of A.-G.v. Shield. ase of Festing v. Taylor. half-yearly instalments, which varied according to the amount of coal gotten, the minimum in- stalment being 1501. a year. It was held that the purchaser was not entitled to make the deduction from the instalments payable by him. Taylor v. Evans, 25 L. J., Ex. 269. A somewhat similar case w&sFotcy v. Fletcher, 28 L. J., Ex. 100. S. enjoyed an annuity charged upon real property, which was to be paid " free and clear of all taxes and assessments." He refused to allow the owner of the property to make any deduction from the annuity. S. was held liable to the penalty imposed by the Income Tax Acts for refusing to allow the deduction of income tax authorized by those Acts from " rents or annual payments." Attorney-General v. Shield, 28 L. J., Ex. 49. Section 103 of 5 & 6 Viet, c. 35 does not apply to rent-charges granted by will ; so that, if a testator by his will grants a rent- charge to be paid free of income tax, the annuitant is entitled to have the full amount paid to him, without the tax being deducted. Festing v. Taylor, 32 L. J., Q. B. 41. If Payment of Duty is refused Remedy by Dis- tress. If any person charged refuses to pay the duty on demand made, the Collector ^ust distrain 1 43 & 44 Viet. c. 19, s. 86. The Crown's right of distress is universal (per James, L. J., In re W. J. Henley & Co., 26 INCOME TAX ACTS. 203 upon the premises charged with the duty, or must Chap. III. distrain the person charged by his goods and chattels ; for which he requires no other authority than l the warrant delivered to him upon his appoint- ment. 2 For the purpose of levying a distress in such a case, the Collector may, if necessary, obtain a warrant from the General Commissioners, authoriz- ing him to break open, in the daytime, any house or premises, calling to his assistance any constable, or other peace officer, for the parish ; but such last- mentioned warrant must be executed by, and in the presence of, the Collector. 2 Every distress levied by a Collector must be kept by him for five days, at the cost of the person refusing to pay ; and, if the duty is not paid within the five days, the distress must be appraised, that is, a value must be set upon it, by two inhabitants of the parish, or other sufficient persons, and then sold by public auction by the Collector or his deputy. If anything remains of the proceeds of sale, after deducting the duty, and the cost of taking, keeping, and selling the distress, it W. E. 885), and therefore the statute provides that the dis- tress may be either upon the premises charged, or upon the goods and chattels of the person charged, which may be else- where than upon the premises. The section above referred to adds, * ' and upon all such other goods and chattels as the Collector is hereby authorized to distrain," words which may have an application in cases of goods taken in execution, or seized by virtue of any process or assignment; see below. 1 See ante, p. 33. 2 43 & 44 Yict. c. 19, s. 86. 204 INCOME TAX ACTS. Chap. in. is restored to the owner. 1 If, at the time any duty Goods of income tax becomes in arrear, any goods or execution, chattels belonging to the person charged are taken oometiix ^ n execution, or are seized by virtue of any other arrefr" 1 process, except at the suit of a landlord for rent, or by virtue of any assignment, the person by whom the goods, &c., are so taken or seized must pay to the Collector all arrears of duty due at the time of execution, or seizure, or payable for the year in which the same is levied or made, not exceeding one year's duty; and if payment is not made by him the Collector must distrain, and sell, the goods, &c., as if no such execution, or seizure, had been levied, or made. If Payment of Duty is refused Remedy by Com- mittal of Defaulter. 2 If any duty of income tax is not paid within ten days after demand, and no sufficient distress is to be found, the Greneral Commissioners may, by warrant under their hands and seals, commit the person refusing to pay to prison, there to be kept without bail until payment is made, or security given for payment, of the duty, and of the cost of apprehending and conveying the defaulter to prison. 3 Any person so imprisoned may be liberated upon the warrant of the Greneral Commissioners, issued to the keeper of the prison, by the direction of the Treasury, or the Board. 1 43 & 44 Viet. c. 19, s. 88. 2 43 & 44 Viet. c. 19, s. 89. 3 43 & 44 Viet. c. 19, s. 91. INCOME TAX ACTS. 205 If Payment of Duty is refused Remedy ly Suit in Chap. Ill, the High Court. * The duties when assessed may be recovered, with full costs of suit and all charges attending the same, from the person charged there- with, by suit in the High Court, as a debt due to the Crown ; or by any other means by which any debt of record, or otherwise due to the Crown may at any time be sued, or prosecuted, for, or recovered ; as well as by the summary means before described. A 2 schedule of arrears certified to the High Court as 3 prescribed, and a 4 schedule of defaulters purporting to be made in pursuance of the 5 Taxes Manage- ment Act, 1880, and certified to the High Court under the hands of the Board, is sufficient evidence of a debt due to the Crown, and sufficient authority to a judge of the High Court to cause process to be issued against any defaulter named in any such schedule, to levy the sum in arrear and unpaid by the defaulter, and the production of a schedule of arrears or of defaulters purporting to be made in pursuance of the 5 Taxes Management Act, 1880, and purporting to contain the name of a defaulter, is sufficient evidence of the sum mentioned in such schedule having been duly charged and assessed upon 1 43 & 44 Viet. c. 19, s. 111. 2 As to schedules of arrears, see post, p. 208. 3 That is, in the form prescribed by the Board. 43 & 44 Viet. c. 19, s. 15 (2). 4 As to the schedules of defaulters, see post, pp. 210, 211. s 43 & 44 Viet. c. 19. 206 INCOME TAX ACTS. Chap. in. such defaulter, and of the same being due and owing, and in arrear, to the Crown. Proceeding in case the Person charged removes from Place of Assessment. 1 In case a person charged to any duty of income tax removes from the parish, &c. in which the assessment was made without paying the duty charged upon him, the General Commis- sioners for such parish, &c. sign, and transmit by the intervention of the Board, a certificate of the facts to the General Commissioners for the parish, &c. to which the defaulter has removed, and the last- mentioned Commissioners raise and levy the duty, and cause it to be paid to the Collector of Inland Revenue. If the removal is only from one parish, &c. within the jurisdiction of one set of Commissioners to another parish within the same jurisdiction, the Commissioners authorize the Collector for such last- mentioned parish, &c.,by certificate, to raise and levy the duty. Account by Collectors. 2 The Board may appoint in each year days of receipt for each county, 3 division, i 43 & 44 Viet. c. 19, s. 90. 3 43 & 44 Yict. c. 19, s. 100. 3 "Division" means and includes any hundred, rape, lathe, stewartry, or district, or any place of separate juris- diction under the Land Tax Acts. 43 & 44 Yict. c. 19, s. 5. INCOME TAX ACTS. 207 parish, or l group. 2 On the appointed day, which Chap. in. will be some day after the 1st of January in every year, every Collector must account for the full amount of the duties given him in charge to collect ; but, if required by the Board to do so, he must remit weekly or oftener to the Exchequer, in anticipation of the receipt, the amount of his collection, in the manner prescribed by the Board. He must 3 on the appointed Collector on ap- day of receipt (1) produce to the Collector of Inland pointed Be venue, or to the Surveyor, whenever he is required ^ p ro- by either of them to do so, his duplicate of assess- Duplicate ment, showing the sums collected by him duly written JjJgJJ? 8 ** off; (2) pay over to the Collector of Inland Revenue, 2. Pay or otherwise, as, and if so, required to do by the moneys Board, all moneys received by him and then in his required; hands and unaccounted for ; for which he is entitled schedules 1 to receive receipts or discharges ; (3) deliver then, or of arrears - within three days afterwards, to the General Com- missioners 4 schedules of arrears in the 5 prescribed form, with affidavits subscribed, to be made on his oath, or affirmation, and signed by him, setting forth the Christian and surname of each defaulter in his parish, or group, from whom he has demanded, but 1 "Group " means any parishes united or grouped for the purposes of collection of the duties of income tax. 43 & 44 Viet. c. 19, s. 5. 2 43 & 44 Yict. c. 19, ss. 100, 101. 3 43 & 44 Viet. c. 19, s. 103. 4 As to the schedules of arrears, see post, p. 208. 5 That is, in the form prescribed by the Board. 43 & 44 Viet. c. 19, s. 15 (2). 208 INCOME TAX ACTS. Chap. III. has not then received, payment of the duties given him in charge to collect, and the respective sums then in arrear from each such defaulter. The Collector must also answer any lawful question demanded of him by the Collector of Inland Revenue, or Surveyor, touching the duties given him in charge to collect ; and l may be put upon his oath, or made to affirm if he is a person allowed by law to substitute an affirmation for an oath, by the Collector of Inland Revenue, who is authorized to administer an oath or affirmation for the purpose. The substance of the answers given by the Collector to the ques- tions put to him must be reduced into writing in his presence, and he must then sign them. The Schedules of Arrears. 2 The schedule of arrears, being made, and delivered to the General Commis- sioners, 3 as we have described, remains with them for forty days, and during that period the Collector gives notice to the defaulters named in it, who are at liberty within the same period to pay their arrears with costs, and have the arrears discharged from the schedule. If they continue in default, the Commis- sioners may use any lawful means, within the same period of forty days, for the recovery of the arrears ; 4 but at the expiration of that period the schedule of 1 43 & 44 Viet. c. 19, s. 104. 2 43 & 44 Viet. c. 19, s. 105. 3 Ante, p. 207. 4 43 & 44 Viet. c. 19, s. 111. INCOME TAX ACTS. 209 arrears may be certified to the High Court by either Chap. III. the Collector of Inland Revenue, or the General Commissioners ; 1 the schedule itself, when so certified, being transmitted to the Board. The Board, again, on receiving the schedule of arrears, may direct the Collector to use any method allowed by law for the recovery of any arrears therein included ; but other- wise they forward the schedule to the High Court, certifying it under their hands ; 2 and the schedule so certified to the High Court by the General Commis- sioners and by the Board is sufficient evidence of a debt due to the Crown, and sufficient authority to a judge of the High Court to cause process to be issued against any defaulter named in the schedule to levy the sum in arrear, and unpaid by him. Schedules of Deficiencies. Besides the schedule of arrears, which he is bound to return, 3 every Collector must also make out a schedule of deficiencies, which is to contain the names, surnames, and places of abode of all persons within his district of collection from whom he has not been able to collect the duties for any of the following causes, viz. : 1. That the defaulter became bankrupt before the First day on which the duties became payable, and had not Bank- goods and chattels sufficient whereon to levy such duties within the district of collection, at any time since the duties became payable. 1 43 & 44 Viet. c. 19, s. 106. 2 43 & 44 Viet. c. 19, s. 111. 3 43 & 44 Viet. c. 19, ss. 108, 109. 210 INCOME TAX ACTS. Chap. in. 2. That the defaulter removed from the district of Second collection before the day on which the duties became itemoval of payable, without leaving therein goods and chattels defaulter. STlfficient ag a f oreS aid. Third 3. That there were not, nor are, any goods and That de- chattels of the defaulter whereon the duties, or any no goods part thereof, might, or may, be levied. chattels. An oath or affirmation is indorsed, and certified, on the schedule, that the sum for which the defaulter is returned in default is due, and wholly unpaid, either to the Collector, or to any other person for the Collector, to the best of the knowledge and belief of the Collector; and that the return is made for one or other of the causes above mentioned ; and the schedule must contain, besides the particulars aforesaid, the particular reason for returning the defaulter, and the particulars of the sum or sums charged upon him. The oath, or affirmation, indorsed upon the schedule is made, or subscribed, by the Collector. Schedules of Discharge and Default. x The General Commissioners, after examining the Collector upon oath, or affirmation, (1) ascertain the sums which, according to the 2 Income Tax Acts, or the 3 Taxes 1 43 & 44 Yict. c. 19, ss. 108, 109. 2 "Any Act, or part of any Act, relating to the assess- ment of any person, land, tenement, heritage, property, or profits whatsoever, to the income tax." 43 & 44 Yict. c. 19, s. 5. The phrase used in the place under reference is " the Tax Acts," the definition of which includes the definition above given of " Income Tax Acts." 3 43 & 44 Yict. c. 19. INCOME TAX ACTS. Management Act, 1880, have been, or may be, dis- Chap. III. charged for a cause specially allowed by such Acts, and make out their schedules of discharge containing such sums ; (2) make out their schedules of defaulters containing (a) the sums with which each defaulter ought to be charged, and the particulars thereof; and (b) the sums which have not been collected by reason of the Collector's neglect, and T for which he shall be held liable, and 2 which ought to be re- assessed on the parish. The schedules so made out by the General Commissioners are transmitted to the Board, and deposited at their head office. lumpers. 3 In case there is a failure on the part of the persons responsible for doing any of the following acts, viz. : 1. Assessing the duties in any parish 4 2. Returning the duplicates of the assessments 5 of the duties made for any parish 3. Raising or paying the several sums charged upon any person for the duties in any parish 6 to do any of them, the Board may at any time after such failure, set insupcr (as it is called) all sums appearing in arrear, and make a return by certificate thereof to 1 See 43 & 44 Viet. c. 19, s. 112 (3). 2 See 43 & 44 Viet. c. 19, s. 112 (4), and post, p. 212. 3 43 & 44 Viet. c. 19, s. 112. 4 As to assessment, see Chap. III., sub-sect. 1. s See ante, p. 196. 6 This default would be on the part either of Collectors or persons charged with duty. 212 INCOME TAX ACTS. Chap. in. be delivered to the l Queen's Eemembrancer. The return must specify 2 certain particulars; and any persons charged with the duties who may be in default are liable to process ; and, in the case of a When parish set insuper for a sum not accounted for to the liable to Collector of Inland Revenue, and contained in the merit. duplicate of assessment delivered to him, the parish is liable to be re-assessed, except when by special enactment relieved from liability to re-assessment. 3 Collection of Duties of Income Tax assessed upon Railways. 4 The duties assessed upon railway com- panies in England are paid by four quarterly pay- ments, namely, the first quarterly payment on or before the 20th day of June ; and the second, third, 1 The ' ' Queen's Eemembrancer " is an officer of the Supreme Court for revenue purposes. 2 See 43 & 44 Viet. c. 19, s. 112. The particulars to be specified are (1) the parish, division, and county where the failure has happened ; (2) the cause of such failure ; (3) the names of any two or more of the General Commissioners for the division in which the failure has happened ; (4) the names of the Assessors, and Collectors, and the several per- sons belonging to such parish charged with the duties, who have failed to pay them. 3 No parish is answerable for the acts, neglects, or de- faults of a Collector appointed by the Board, or who gives security to the Crown. 43 & 44 Yict. c. 19, s. 79 (1), ante, p. 37. 4 43 & 44 Yict. c. 19, s. 95. We have, for convenience sake, mentioned the assessment of railway companies in England at this place; but it appears from the enactment just quoted that such assessment is now made under Schedule D. INCOME TAX ACTS. 213 and fourth quarterly payments, on or before the Chft P- ni. 20th days of September, December, and March, respectively, in each year. The duties upon railway companies are assessed by the Special Commissioners, who, when authorized to make, sign, or allow, any assessment, have all the powers and authorities in relation to assessment, appeal, collection of duty, which the General Commissioners have. SECTION II. SCHEDULE B. ASSESSMENT AND COLLECTION.* What we have said of the assessment and collection of duties charged under Schedule A. is equally applicable, mutatis mutandis, to duties charged under Schedule B. SECTION III. SCHEDULE C. This schedule, it must be remembered, comprises interest, annuities, and dividends, payable out of public revenue. The annuities, &c., are paid through certain persons, or corporations, entrusted with the duty of paying the same, who are directed to deduct the tax from the annuity, &c., before paying it to the person entitled. Those mentioned in the 2 Income Tax Act, 1842, and in the second section of the Act 5 & 6 Yict. c. 80 (and the list is no doubt an exhaustive 1 See note *, p. 196, ante. 2 5 & 6 Yict. c. 35. 214 INCOME TAX ACTS. Chap. in. one) are l The Bank of England, 2 The Commissioners for Eeduction of the National Debt, 3 The Bank of Ireland, 4 persons entrusted w,ith the payment of annuities, &c., payable out of the revenue of any colony or settlement, 5 persons entrusted with the payment of annuities, &c., payable out of the revenue of any foreign state, or acting therein as agents, or in any other character, and 6 the Exchequer or other public office. The methods of assessing, and collecting, the duties under Schedule C. may con- veniently be described together. They differ, as will be seen, very materially from the methods employed to assess, and collect, the duties under Schedules A. andB. ASSESSMENT AND COLLECTION.* Wlio are Commissioners for Assessing the Ditties under Schedule C. 8 The Special Commissioners whom we now proceed to mention, are, with reference to the duties placed under their jurisdiction, respectively, the Commissioners appointed to act in all matters 1 5 & 6 Yict. c. 35, s. 89. 2 Ibid. 3 5 & 6 Viet. c. 35, s. 90. This section was repealed by the Statute Law Eevision Act, 1874, No. 2j(37 & ^38 Yict. c. 96), but see 16 & 17 Viet. c. 34, s. 11. 4 5 & 6 Viet. c. 35, s. 96. 5 5 & 6 Viet. c. 80, s. 2. 6 5 & 6 Viet. c. 35, s. 97. 7 See note *, p. 196, ante. 8 5 & 6 Viet. c. 35, s. 23. INCOME TAX ACTS. 215 relating thereto, l bu.t they have no power to summon Chap. III. any person to be examined before them. All en- quiries by, or before, such Special Commissioners are answered by affidavit, taken before one of the General Commissioners in his district. Annuities, fyc. payable by the Bank of England. The Governor and Directors of the Company of the Bank of England 2 are, as 3 we have said, Commissioners for the purpose of assessing and charging the duties payable under the 4 Income Tax Acts in respect of all annuities payable to the company at the receipt of the Exchequer, and the profits attached to the same and divided amongst the several proprietors, and in respect of all annuities, dividends, and shares of annuities, payable out of the revenue of the United Kingdom, and entrusted to the said Governor and Company for payment, 5 including dividends paid upon coupons attached to stock certificates issued under the 6 National Debt Act, 1870. 7 As often 1 The Special Commissioners have this power when acting as General Commissioners (see ante, p. 18), or on appeal, as in certain cases arising under Schedule D. (see post, pp. 302, 303). 5 & 6 Viet. c. 35, s. 23. - 5 & 6 Viet. c. 35, s. 24. 3 See ante, pp. 6, 7. 4 "Any Act, or part of any Act, relating to the assessment of any person, land, tenement, heritage, property, or profits whatever, to the income tax." See ante, p. 210, note 2 . 5 33 & 34 Viet. c. 71, s. 36. 6 33 & 34 Viet. c. 71. 7 5 & 6 Viet. c. 35, e. 89. 216 INCOME TAX ACTS. Chap. III. as payments become due upon the said annuities, &c., true accounts are made out in writing at the Bank, in books provided for the purpose, of the annui- ties (with the profits attached to the same) which are paid to the said company in respect of its corporate stock, and of the annuities, &c., entrusted to the com- pany for payment, and of the amount of duty charge- able thereon. In these books the separate account of each person entitled to any share of the said annuities, &c., is distinguished, so that each such share may be distinctly assessed ; and the Governor and Directors of the Company of the Bank of Eng- land, acting in their capacity as such Commissioners as aforesaid, make an assessment of the duty which appears to be payable on such accounts to the best of their judgment, and then deliver the books of assess- ment, signed by them, to the Commissioners for Special Purposes. 2 The last-named Commissioners cause two certificates on parchment to be made out under their hands and seals, containing the total amounts of duty, and of the annuities, &c. upon which the duty is charged, contained in each assess- ment, and transmit one of such certificates to the Governor and Directors of the Company, as Commis- sioners for making the assessment, and the other certificate to the 3 Head Officer of Inland Eevenue. 1 That is, the Board, and such persons as the Treasury appoint. Ante, pp. 5, 6. 2 5 & 6 Viet. c. 35, s. 89. 3 The Eeceiver-General of Inland Eeyenue. INCOME TAX ACTS. 217 Governor and Directors of the Bank of England, Chap. ill. on receiving notice from the Special Commissioners by certificate of the amount of each assessment, set apart and retain the amount of duty so assessed from each annuity, &c., before paying the same to the person entitled, who 2 is bound to allow what is so set apart and retained under penalty of a forfeiture of fifty pounds ; and 3 all moneys so set apart and retained are paid into an account kept at the Bank of England with the Receiver- General of Inland Eevenue. Annuities, fyc. payable by the Bank of Ireland. The Governor and Directors of the Company of the Bank of Ireland 4 are Commissioners for assessing and charging the duties payable under the 5 Income Tax Acts, in respect of all annuities, dividends, and shares of annuities, payable by them out of the revenue of the United Kingdom. 6 The duties chargeable upon such annuities, &c., are assessed and charged by the 1 5 & 6 Viet. c. 35, s. 93. 2 5 & 6 Viet. c. 35, s. 103. 3 5 & 6 Viet. c. 35, s. 94 ; 12 & 13 Viet. c. 1, s. 17. * 16 & 17 Viet. c. 34, s. 11. 5 " Any Act, or part of any Act, relating to the assessment of any person, land, tenement, heritage, property, or profits whatever, to the income tax." See ante, p. 210, note 2 . 6 5 & 6 Viet. c. 35, ss. 91, 93, 94. Sect. 91 is repealed by the Statute Law Eevision Act, 1874, No. 2 (37 & 38 Viet, c. 96), but the exemption of persons resident in Ireland from liability to the duties under this schedule is abrogated by 16 & 17 Viet. c. 34, s. 11. E. 218 INCOME TAX ACTS. Chap. III. Governor and Directors of the Company of the Bank of Ireland, communicated to the Special Commis- sioners certified by them, and afterwards set apart and retained, and paid into the account kept at the Bank of England with the Beceiver- General of Inland Revenue, in a manner precisely similar to 2 that in which the duties chargeable upon annuities, &c. entrusted for payment to the Bank of England are dealt with. Annuities payable by the Commissioners for the Reduction of the National Debt. The Commissioners for the Reduction of the National Debt 3 are, as 4 we have said, Commissioners for assessing and charging the duties payable under the 5 Income Tax Acts in respect of all annuities payable by them out of the revenue of the United Kingdom. The duties chargeable upon such annuities 6 are assessed and charged by the Commissioners for the Reduction of the National Debt, communicated to the Special Commissioners, certified by them, and afterwards set apart and retained, and paid into the account kept at 1 The Board, and such persons as the Treasury appoint. Ante, pp. 5, 6. 2 See ante, pp. 215217. 3 5 - & 6 Yict. c. 35, s. 28. 4 Ante, p. 7. 6 "Any Act, or part of any Act, relating to the assessment of any person, land, tenement, heritage, property, or profits whatever, to the income tax." See ante, p. 210, note 2 . 6 5 & 6 Viet. c. 35, ss. 89, 94; 12 & 13 Yict. c. 1, s. 17. INCOME TAX ACTS. 219 the Bank of England with the Eeceiver- General of Chap. ill. Inland Revenue in a manner precisely similar to Hhat in which the duties charged upon annuities, &c. entrusted for payment to the Bank of England are dealt with by them. Annuities payable oat of the Public Revenue of any Colony, fyc. 2 The Special Commissioners are Com- missioners for assessing the duties in respect of annuities, dividends, and shares of annuities, pay- ahle 3 out of the Revenue of any foreign state, or 1 See ante, pp. 215217. 2 The Board, and such persons as the Treasury appoint. Ante, pp. 5, 6. 3 5 & 6 Yict. c. 35, ss. 29, 96 ; 5 & 6 Yict. c. 80, s. 2. See ante, p. 97. A somewhat extended application is given to these sections by 29 & 30 Yict. c. 36, s. 9. The following are to be deemed persons entrusted with the payment of such dividends (1) The agent or other person having the ordinary custody of the book or list in which the name of the person entitled to the dividend, &c. is entered or registered (where such is the case) (29 & 30 Yict. c. 36, s. 9) ; (2) any banker, or person acting as a banker, who sells or otherwise realizes, coupons or warrants for, or bills of exchange purported to be drawn or made in payment of, any dividends (save such as are payable in the United Kingdom only), and pays over the proceeds to any person, or carries the same to his account ; (3) any person who, by means of coupons received from any other person, or otherwise on his behalf, obtains payment of any dividends elsewhere than in the United Kingdom ; (4) any dealer in coupons who purchases coupons for any dividends (save such as are payable in the United Kingdom only) otherwise than from a banker or person acting as a banker, or another dealer in coupons (48 & 49 Yict. c. 35, s. 26). The term " coupons" includes warrants for, or bills L2 220 INCOME TAX ACTS. Chap. III. lout of the public revenue of any colony, or settlement, belonging to the Crown of the United Kingdom, 2 or out of the stocks, funds, or shares, of any foreign or 3 colonial company, which are entrusted for payment to any person other than the Governor and Company of the Bank of England and the Commissioners for the Reduction of the National Debt ; and every such person entrusted with the payment of any such annuities, &c., must deliver into the Head Office of Inland Eevenue in England an account in writing, containing the names and residences of the persons to whom such annuities are payable, and a description of such annuities, &c , within one month after the accounts have been required by public notice in the London Grazette ; and must also, on demand by the inspector appointed for that purpose by the Board, deliver to him for the use of the Special Commissioners true accounts of the of exchange purporting to be drawn or made in payment of any dividends. Customs and Inland Eevenue Act, 1888 (51 Yict. c. 8), s. 24. A person entrusted with the payment of dividends, who performs all necessary acts, so that the income tax thereon may be assessed and paid, is entitled to receive as remuneration an allowance of so much (not being less than threepence) in the pound of the amount paid as may from time to time be fixed by the Treasury. But no banker is to be obliged to disclose any particulars relating to the affairs of any person on whose behalf he may be acting. Id. s. 25. 1 5 & 6 Viet. c. 35, s. 96. 2 16 & 17 Viet. c. 34, s. 10. 3 24 & 25 Viet. c. 36, s. 9. INCOME TAX ACTS. 221 amounts of the annuities, &c., payable by him. The Chap. in. Special Commissioners assess the duties upon such annuities, &c., and give notice of the assessment to the persons entrusted with payment of the annuities, &c., who must pay the duties thereon on behalf of the persons entitled thereto, out of the moneys in their hands, into the account kept at the Bank of England with the Receiver- Greneral of Inland Revenue, under a penalty of 100/. over and above the duties charged, for payment of which they are also personally answer- able, and are acquitted of the duties paid by them l as in the case of annuities paid by the Bank of England. Interest payable out of the Public Revenue on Securi- ties issued at the Exchequer or other Public Office. 2 The Commissioners for assessing the profits of offices in the Exchequer, or other public office, 3 are Com- missioners also for assessing the duties upon any interest payable out of the public revenue on securities issued at the Exchequer, or other public office. They act in that capacity in the same manner as 4 the Com- missioners who assess the profits arising from annuities payable out of the public revenue in other cases. The Commissioners authorized to act in relation to such securities as aforesaid appoint Assessors, and Collectors, of the duties arising from such securities from amongst 1 Ante, pp.210 217. 2 Ante, pp. 6, 7. 3 5 & 6 Viet. c. 35, s. 97. 4 Ante, pp. 215217. 222 INCOME TAX ACTS. Chap. III. the officers entrusted with the payment or discharge of such securities ; and the Assessors, and Collectors, so appointed compute the duties upon the securities at the time the same are paid or discharged ; and after computation of the duties enter the same in a certificate of assessment, and certify the same to the proper officer appointed for the payment or discharge of such securities. Such last-mentioned officer is empowered to stop and detain the duty, and to pay the same into the Bank of England, to the credit of the Receiver- Greneral of Inland Revenue, in discharge of the assessment. Every person receiving, or purchasing, any such security in circulation, with current interest thereon, is entitled to deduct from such interest the proportion of duty which will become chargeable thereon, as if the interest were then due, and charged with the said duty. l The penalty for not allowing any such deduction is the same as in other cases of payment of interest. Small Annuities, fyc. The following general pro- vision with regard to annuities, dividends, or shares of annuities, the half-yearly payment on which does not amount to 50s., must be noticed, viz. : 2 that the respective Commissioners for assessing annuities, &c. chargeable under Schedule C. are not required to make any assessments upon such small annuities as above mentioned, but they must be accounted for, 1 Ante, p. 199. 2 5 & 6 Viet. c. 35, s. 95. INCOME TAX ACTS. 223 and charged, under the l third case of Schedule D., Chap. III. by which profits of an uncertain value are directed to be charged, 2 except in the case of dividends payable upon coupons annexed to stock certificates issued under the 3 National Debt Act, 1870, from which income tax is to be deducted, although the dividend represented by the coupon does not amount to 50s. Time for Payment. The duties under Schedule C. being payable by way of deduction, 4 are not governed by the general rule, under which duties payable otherwise than by deduction become payable on the 1st of January in every year, but 5 must be deducted out of the moneys in respect of which they are charged at the times when such moneys become payable. SECTION IV. SCHEDULE D. This schedule, it will be remembered, is to a large extent, although not exclusively, supplementary to the other schedules ; and comprises (1) undertakings in connection with lands, &c., not mentioned in Schedule A. ; (2) profits of professions not contained in any other schedule ; (3) profits of an uncertain annual value not charged in Schedule A. ; (4) income 1 Ante, p. 156. 2 33 & 34 Viet. c. 71, s. 36. 3 33 & 34 Viet. c. 71. 4 43 & 44 Viet. c. 19, s. 82. 5 5 & 6 Viet. c. 35, s. 158. 224 INCOME TAX ACTS. Chap. in. arising from colonial and foreign securities ; (5) in- come arising from colonial and foreign possessions ; (6) profits not falling under any of the preceding heads. The provisions, therefore, for the assessment and collection of the duties under this schedule are many and various. We will deal with the provisions for assessment, and the provisions for collection, sepa- rately. SUB-SECTION 1. ASSESSMENT. Period for ichich Assessment made. ] Every assess- ment is made for the year commencing on the 6th day of April in any year, and ending on the 5th day of April following, each of such days being reckoned inclusively. Place of Charge. 2 The place in which the duty is to be charged depends to some extent upon the character of the person charged, thus : 1. House- 1. Every householder not a person engaged in any engaged in trade, manufacture, adventure, concern, profession, ' e> ' employment, or vocation, is charged in the parish or place in which his dwelling-house is situated 2. Person 2. Every person engaged in any trade, &c., is S^ e &c! n charged in the parish or place in which such trade, &c., is carried on or exercised 3. Person 3. Every person not a householder, and not en- house- gaged in any trade, &c., who has any place of ^ 43 & 44 Yict. c. 19, s. 48. 2 5 & 6 Viet. c. 35, s. 106. INCOME TAX ACTS. 225 ordinary residence, is charged in the parish, or place, Chap. in. in which he ordinarily resides holder, 4. Every person not before described is charged in engaged in the parish, or place, in which he resides at the time the n r general notices (described ante, p. 174) are given residence, and, in order to ascertain the place of charge, every- 4. Persons one who delivers a list or statement, as described ante, described, pp. 175, 178, is required to deliver at the same time a declaration in writing, signed by him, declaring in what place he is chargeable ; and if he is engaged in any trade, &o., and, if so, where it is carried on. But we must supplement what we have said about the place of charge by noticing the following pro- visions, viz. : 1. lf That w^here any trade is carried on in Great 1. When Britain by the manufacture of goods, wares, or mer- carried on chandise, the assessment must be at the place of Britain, manufacture, though the sale of such goods, &c., is elsewhere. 2. T That every person not engaged in any trade, 2. Persons &c., who has two or more houses, or places, at which gaged in he is ordinarily resident, must be charged in the having parish, or place, in which he is ordinarily resident at SSew- the beginning of each year, as the year is computed Sldences - for the purposes of the Income Tax Acts, or in which he comes ordinarily to reside after such general notices as aforesaid are given. 1 5 & 6 Viet. c. 35, s. 106. As to the computation of the year, see ante, p. 1. L5 226 INCOME TAX ACTS. Chap. in. 3. J That the duty to be assessed in respect of the 3. Profits profits or gains arising from foreign possessions, or from ng foreign securities, or in "the British plantations in coiomai 01 America," or in any other of her Majesty's dominions, sionT&c. ma J be assesse( i in that one of the following places London, Bristol, Liverpool, and Glasgow at, or nearest to, which such property shall have been first imported into Great Britain, or at, or nearest to, which the person who has received remittances, money, or value from thence, and arising from property not imported as aforesaid, resides, as if such duty had been assessed upon the profits or gains arising from trade or manufacture carried on in such one of the said places : Provided that (a) Profits, (a) Whenever the produce, or the profits or gains, &c. arising . . , . ... , ,, , from arising from such possessions, or securities, shall nave coiomai, r been imported partly into the port of London, and Sons, 8 " partly into the outports of Bristol, Liverpool, or partly into Glasgow, or shall have been received by any person London partly in the City of London, and partly in any of partly mto ^ e ga ^ outports, within the period of making 1 up outports of Bristol, the account on which the duty is chargeable, the or Gias- whole of the duty must be assessed and charged by the Commissioners acting for the City of London. ( b ) Profits, (k) Whenever such produce, &c., shall have been &c. of t ^ ( m . . foreign, or within such period wholly imported into, or received posses- ' at, the said outports of Bristol, Liverpool, and Glas- imported gow, and different parts thereof, shall have been 1 5 & 6 Yict. c. 35, s. 108. INCOME TAX ACTS. 227 imported into, or received at, two or more of such cha P- nl - outports, the duty chargeable thereon must be assessed wholly and charged in one account at such one of the said ports of places at which the major part in value of such pro- Liverpool, duce, &c., has been so imported or received. go w , and" 4. l That the profits arising from the London Docks, the East and West India Docks, and the Saint Katharine's Dock must be assessed by the Commis- sioners acting for the City of London. outports. arising from Who are Commissioners for assessing Duty under London Docks, &c. Schedule D. Subject to the right which, as 2 we shall presently explain, the person to be charged has of choosing the kind of Commissioners by whom he shall be assessed, and as a general rule, 3 the Greneral Commissioners act in all matters relating to the duties in Schedule D. ; 4 except in the case of rail- ways, the annual value of, or profits and gains arising from, which, are assessed by the Special Commis- sioners ; and except as follows : 1. 5 The Governor and Directors of the Company of 1. Duties the Bank of England are Commissioners for assessing profits, &c, and charging the duties in respect of all profits of England 1 5 & 6 Yict. c. 35, s. 109. 2 Post, p. 244. s 5 & 6 Yict. c. 35, s. 22. In certain particulars relating to the assessment of the duties under Schedule D., the Addi- tional Commissioners, or the General Commissioners acting as Additional Commissioners, act. See post, pp. 234 et seq. 4 29 & 30 Viet. c. 36, s. 8. 5 5 & 6 Yict. c. 35, s. 24. 228 INCOME TAX ACTS. Chap. in. the company chargeable under Schedule D., and assessed of all pensions and salaries payable by the corn- governor pany, an( l of all profits chargeable with duty and rectors" arising within any office or department under the management and control of the said Governor and Company. 2. Duties 2. 1F The Commissioners for the Eeduction of the ries, &c. National Debt are in like manner Commissioners for payable by . Commis- assessing and charging the duties in respect 01 all sioners for , - . - , , , Keduction salaries and pensions payable in any office or depart- ment under their management or control. th S em d by 3. 2 The Special Commissioners 3 are Commissioners 3. Duties f or assessing and charging the duties upon all in- dends, &c. terest, dividends, or other annual payments, payable out of or out of, or in respect of, the stocks, funds, or shares in respect of stock, of any foreign company, society, adventure, or con- foreign cern, or in respect of any security of any such com- pany, &c., and entrusted for payment to any person, corporation, &c., in this country. 4. 4 Subject to a certain power of control in the 4. Certain Treasury (who may determine that in any particular sessed by department, not being one of her Majesty's Courts 1 5 & 6 Viet. c. 35, s. 28. 2 That is, the Board, and such persons as are appointed by the Treasury. Ante, pp. 5, 6. 3 16 & 17 Yict. c. 34, s. 10. "Person entrusted with pay- ment " in this section has the enlarged meaning given to the same phrase in sect. 96 of 5 & 6 Viet. c. 35, and sect. 2 of o & 6 Yict. c. 80. See ante, p. 219, note 3 . 48 & 49 Yict. c. 51, s. 26. 4 5 & 6 Yict. c. 35, s. 30. INCOME TAX ACTS. 229 civil, judicial, or criminal, or an ecclesiastical, or Chap. 111. commissary, Court, Commissioners shall not be ap- the Lord pointed ; and how the officers of such department cellor" &c. shall be assessed), the Lord Chancellor, the judges, and the principal officer, or officers, of each Court, or public department of office under her Majesty, whether civil, judicial, or criminal, ecclesiastical or commissary, military or naval, respectively, have authority to appoint Commissioners in relation to the offices in each Court, or department, respectively from amongst the officers of each Court, or department of office, respectively. The persons so appointed, or any three or more of them, not in any case exceeding seven, are Commissioners in relation to the offices in each such Court, or department of office, respectively. Where the Commissioners of one department act in relation to any other department, the Assessors, and Collectors, for such other department are ap- pointed from the officers of such last-mentioned department. Notice of the appointment of Com- missioners must be given to the Treasury within a certain time ; and if no appointment of Commissioners is made within the time limited, of which failure to notify the appointment in due time is conclusive proof, the Commissioners acting in their several districts in relation to the duties upon lands and tenements, on notice of the default being given to them, act also in relation to the duties on offices, and employments of profit exercised within the same districts respectively. 230 INCOME TAX ACTS. Chap. III. 5. l The Speaker, and the principal clerk, of either 5. Certain House of Parliament, the principal, or other, officers assessed in the several counties palatine, and the Duchy of Speaker Cornwall, or in any ecclesiastical Court, or in any ci>ai P cierks inferior Court of Justice, whether of law, or equity, Houses of or CI> i m i na l> or justiciary, or under any ecclesiastical ment a "&c ^ody or corporation, whether aggregate or sole, appoint Commissioners from amongst the persons executing offices in either House of Parliament, or in their respective departments of office, and the persons so appointed, or any three of them, not in any case exceeding seven, are Commissioners in respect of the places, offices, and employments of profit, in each House of Parliament, and in each such department, respectively. The names of the persons so ap- pointed Commissioners must be transmitted to the Treasury within a certain time, and in default the Treasury appoint Commissioners; or, if the Treasury make no appointment, the Commissioners acting in relation to the duties on lands and tenements in their several districts, on notice of the default being given to them, act in relation to the duties on such offices, or employments of profit, exercised within the same districts respectively. 2 If in any Court, or department of office, there are not a sufficient number of officers proper to be appointed Commissioners, the Treasury may direct that the 1 5 & 6 Yict. c. 35, s. 31 . 2 16 & 17 Yict. c. 34, s. 26. INCOME TAX ACTS. 231 Commissioners for any other department may act ; Chap. III. and in default of both appointment and direction the General Commissioners in their respective districts act. Where the Assessment is made by the General Com- missioners or by the Special Commissioners at the Request of the Person chargeable. Notices, Lists, and Statements, fyc. What we have said of : the period for which the assessment is made, of 2 the mode of proceeding to obtain a return, of 3 the persons who are required to make out lists, &c., and of 4 the proceedings taken by the Assessor after notices given, in treating of the assessment of the duties under Schedule A., is applicable in the case of the duties in Schedule D. The only qualification that we have to introduce is, 5 that where the General Commissioners acting for any parish, or place, have had inserted in the notice that an office is opened for the receipt of statements of profits chargeable under Schedule D., and a proper person appointed to receive the same, and the time and place of attendance, in that case the statements are to be delivered at, and to, the appointed office, and person ; 6 and that the state- ment may be delivered sealed up, if superscribed with 1 Ante, p. 186. 2 Ante, pp. 174, 175. 3 Ante, pp. 175177. 4 Ante, pp. 185 et seq. 5 5 & 6 Viet. c. 35, s. 49. 6 5 & 6 Yict. c. 35, s. 110. 232 INCOME TAX ACTS. CJiap. in. the name, and place of abode, of, or place of exercising the profession, or carrying on the trade, by, the person by whom the same is made. Trade or Where Trade, fyc., is carried on by two or more profession _. , ~r r , . , carried on Persons, jointly. * Where a trade or profession is carried on by two or more persons jointly, the return rshlp ' must be made and stated jointly, and the duty is computed in one sum, and separately from any other duty chargeable on the same persons, or either, or any of them. The partner who is first named in the deed, or other instrument, of partnership, or, if there is no such deed or instrument, the partner who is named singly, or with precedence to the other partner or partners, in the usual style of the partnership, or if such precedent partner is not an acting partner, the preceding acting partner, if resident in Great Britain, must make the return on behalf of himself and of the other partner, or partners. If no such partner is resident in Great Britain the return must be made by the agent, manager, or factor, resident in Great Britain, for the partners. No separate return may be made in the case of a partnership by any partner, except for the purpose of claiming exemption, Change or of accounting for a separate concern. 2 If amongst nership. any persons engaged in any trade or profession in part- nership any change takes place in the partnership by 1 5 & 6 Yict. c. 35, s. 100, third rule applying to first and second cases. 2 Ibid., fourth rule applying to first and second cases. INCOME TAX ACTS. 233 death, or dissolution of partnership, as to all or any Chap. III. of the partners, or by admitting any other partner into the partnership, before the time of making the assessment, or within the period for which the assess- ment is made, or if any person has succeeded to any trade, or profession, within the respective periods aforesaid, the duty is charged according to the profits and gains of the business derived during the period of assessment notwithstanding such change, or succes- sion, unless the partners, or the person succeeding to the business, can prove to the satisfaction of the Com- missioners that the profits and gains of the business have fallen short, or will fall short, from some specific cause, since the change, or succession, took place, or by reason thereof. l Every statement of profits charge- Statement able under Schedule D. must include every source must in- chargeable thereunder on the person delivering the source, statement on his own account, or on account of any other person. But in cases where the same person is engaged in separate partnerships, or in different trades, &c., in more places than one, a separate assess- ment is made in respect of each trade, &c., at the place where such trade, &c., if singly carried on, ought to be charged. Every statement made on behalf of any other person for which such person is chargeable, or on behalf of any corporation, fellowship, fraternity, company, or society, must include every source of 1 5 & 6 Viet. c. 35, s. 100, fifth rule applying to first and second cases. 234 INCOME TAX ACTS. Chap. in. profit chargeable under Schedule D., and must be delivered in the division in which such person, cor- poration, &c., would be chargeable if acting on his, or their, own behalf. Case of The Bhyope Coal Company was an ordinary Mhyope partnership for the purpose of working certain mines in the county of Durham until the 21st December, 1875, when the assets of the company were sold to the Bhyope Coal Company, Limited. The shareholders in the new company were the partners in the old; the only change effected being that the old partners were incorporated as a limited company, in which they held the same interests as in the old company, but divided into partially paid up shares. The working of the mines never ceased. It was held that the case was within the fourth rule above stated. It was also held that an extraordinary depression in trade may be a " specific cause " within the meaning of the same rule. Ehyope Coal Com- pany v. Foyer, L. B., 7 Q. B. D. 485. Assessment in Case of Return made by Person chargeable. If required by the person chargeable, the assessment may be made by the l Special Commis- sioners, as we shall presently explain ; but otherwise 2 the statement is laid before the Additional Conamis- 1 That is, the Board, and such persons as the Treasury appoints. Ante, pp. 5, 6. 2 5 & 6 Yict. c. 35, s. 111. INCOME TAX ACTS. 235 sioners, or the l General Commissioners acting as Chap. III. Additional Commissioners in their respective districts, who appoint meetings for taking all statements delivered to them into consideration. The Surveyor has power to examine such statements, and the meetings of the Commissioners are appointed within a reasonable time after the examination has been made by the Surveyor. If the Additional Commis- sioners are satisfied that the statements are bond fide, and properly made, and if no objection to them is made by the Surveyor, they direct an assessment to be made of the duties chargeable on such statement. The Additional Commissioners 2 then cause certi- ficates of the assessments made by them to be made out, and entered in books provided for the purpose, and sign the assessments, which are then delivered under cover and sealed up, together with the state- ments made by the persons assessed, to the General Commissioners ; and after the expiration of fourteen days from the delivery of the certificates to the General Commissioners, and after notice of such delivery has been given to the Surveyor, the assess- ments are also delivered to the persons charged. 3 Any person charged, who feels himself aggrieved by an assessment made by the Additional Commis- sioners, may appeal to the General Commissioners, 1 As to General Commissioners acting as Additional Com- missioners, see ante, pp. 23, 24. 2 5 & 6 Viet. c. 35, s. 117. 3 5 & 6Yict. c. 35, s. 118. 236 INCOME TAX ACTS. Chap. m. and of this right of appeal we shall treat l here- after. If no appeal is made, and the General Commissioners^ approve the assessment, 2 they con- firm the same. If, however, the Surveyor, upon examining the statement made hy any person chargeahle, ohjeots to the same, and his objection is overruled hy the Additional Commissioners, s he may require such Commissioners to state specially, and sign, the case upon which the question arises, together with their determination thereon ; and the case, so stated and signed, is delivered to the Surveyor, to be transmitted by him to the General Commissioners for the district, who are bound to return the case so submitted to them, with their answer thereon, with all convenient speed ; and the assessment is altered, or confirmed, in accordance with the opinion of the General Commissioners. 4 And after an assessment has been made by the Additional Commissioners, the Surveyor may at all reasonable times examine the same before it has been delivered to the General Commissioners ; and, if he discovers any error there- in, which in his judgment requires amendment, he may certify the same to the Additional Commissioners, who must, if sufficient cause is shown, amend the same, as in their judgment the case may require ; 5 or, if they decline to amend the assessment, the 1 See post, pp. 296 et seq. * 5 & 6 Tict. c. 35, s. 122. 3 5 & 6 Yict. c. 35, s. 112. 4 5 & 6 Viet. c. 35, s. 115. s 5 & 6 Viet. c. 35, s. 116. :r 238 INCOME TAX ACTS. Chap. ill. best of their judgment, ought to be charged upon him. Such assessment is subject to appeal, as we shall presently describe. Amendment of Assessment. 2 If the Surveyor dis- covers that any profits have been omitted from the first assessment, or that any person chargeable has not made a full and proper, or any, return, or has been undercharged in the first assessment, or has obtained any allowance, abatement, or exemption, not authorized, the Additional Commissioners must, at any time after the first assessment has been signed and allowed, but within four months after the expira- tion of the year to which the first assessment relates, make an assessment on any such person in an additional first assessment in such sum as, according to their judgment, ought to be charged on such person, subject to objection by the Surveyor, and Ho appeal. Enquiries by the General Commissioners. 3 When- ever the General Commissioners are dissatisfied with any assessment returned to them by the Additional Commissioners, or require further information re- specting the same, they may put any question in writing touching such assessment, or any sums which have been set against, or deducted from, the profits 1 Post, pp. 296 et seq. 2 43 & 44 Yict. c. 19, s. 52. 3 5&6 Viet. c. 35, s/123. INCOME TAX ACTS. 239 or gains to be estimated in such assessment ; and Chap. III. may demand an answer in writing from, and signed by, the person to be charged ; and may issue their precept requiring true and particular answers to be given to the questions put within seven days after service of the precept ; and every such person must answer according to the precept within the time limited, in writing, or, within the same time, tender himself before the General Commissioners, to be examined by them viva voce ; but he is permitted to give his answers in writing or viva voce, as the case may be, without having taken any oath ; and may object to any question, and peremptorily refuse to answer any question. The substance of such answers as he may give viva voce must be reduced into writing in his presence, and read to him ; and he may alter any part thereof, and alter or amend any particular contained in his answers in writing, before being called upon to verify the same on oath, l which the General Commissioners may afterwards, if they think it necessary, require him to do. 2 The General Com- missioners may also summon in like manner any person whom they may think able to give evidence respecting the assessment made upon any other per- son to appear before them to be examined; and may examine every such person so summoned on oath, except the clerk, agent, or servant of the per- son to be charged, or other person confidentially 1 5 & 6 Yict. c. 35, s. 124. 2 5 & SYict. c. 35, s. 125. 240 INCOME TAX ACTS. Chap. in. intrusted, or employed, in the affairs of the person to be charged, who can only be examined in the same manner, and subject to the same restrictions, as is, or are, provided for the vim voce examination of any person touching the assessment made on him. The penalty for refusing to appear when summoned, or to be sworn, or to answer any lawful question put, is a sum not exceeding twenty pounds, and treble duty. Where Objection made by Surveyor, and allowed by General Commissioners, a Schedule required. 1 Whenever the General Commissioners allow an objection to any assessment made by the Surveyor, they direct their precept 2 to the person charged, to return to them within the time limited in the pre- cept a schedule containing such particulars as the Commissioners shall demand, for their information ; and the schedule must be delivered complete to the satisfaction of the Commissioners. The precept is delivered to the person to whom it is directed, or left at his last or usual place of abode, or if he has removed from the jurisdiction of the Commissioners, or cannot be found, or if his place of abode is not known, the precept is fixed on or near to the door of the church or chapel of the place where the Commis- 1 5 & 6 Viet. c. 35, s. 120. 2 The section mentions only " the person appealing." But the schedule is required, not only in the case of an appeal (as to which see post, pp. 298 et seq.), but also in the case mentioned in the text. INCOME TAX ACTS. 241 sioners meet in execution of their office ; and the Chap. III. precept is then binding upon the person to whom it is directed, and he must make the required return within the time limited, under *a penalty of a sum not exceeding twenty pounds and treble duty. 2 The Surveyor has free access at all reasonable times to the return, and may take copies, or extracts, of or from the same as he thinks necessary; and 3 he may, within a reasonable time to be allowed by the General Commissioners, after he has had examination of the schedule, object to the same or any part thereof in writing. If the Surveyor objects, he must deliver a notice in writing of the objection to the person to be charged, or leave the same at the last, or usual, place of abode of such person, under cover, sealed up, and directed to him, in order that he may, if he thinks fit, appeal against the objection to the General Commissioners. 4 If, upon receiving the objection of the Surveyor to any schedule, the General Commissioners disallow the objection, they may confirm, or alter, the assess- ment according to the schedule, as the case may require. 5 If the person charged appeals, the assess- ment cannot be confirmed, or altered, until the appeal is heard. 6 If, upon hearing the appeal, the General 1 5 & 6 Viet. c. 35, s. 128. 2 5 & 6 Viet. c. 35, s. 120. 3 5 & 6 Viet. c. 35, s. 121. 4 5 & 6 Viet. c. 35, s. 122. 5 5&6Vict. c. 35, s. 121. 6 5 & 6 Viet. c. 35, s. 122. 242 INCOME TAX ACTS. Chap. III. Commissioners are satisfied with the schedule, and have received no information of its insufficiency, they may also confirm, or alter, the assessment according to the schedule, as the case may re- quire. But, if the General Commissioners think that the schedule should be verified, they direct the Assessor to give notice to the person charged to ap- pear before them ; and he must appear accordingly and verify the contents of his schedule upon oath, and sign the same ; and after such verification the General Commissioners make a final assessment. ir The General Commissioners have the same powers of putting questions in writing, and calling upon the person questioned to verify his answers upon oath, with reference to any schedule, as we have 2 before described them to have with reference to an assess- ment. 3 In any case in which any person required to return a schedule neglects to do so, and in any case in which a schedule has been objected to by the Surveyor, and the objection has not been appealed against in proper time, and in any case in which a person called upon to verify his schedule or his- answers, or examination in writing, neglects to do- so, as well as in any case in which the General Commissioners agree to allow the objections made by any Surveyor, the General Commissioners, ac- cording to the best of their judgment, settle and 1 5 & 6 Viet. c. 35, ss. 123, 124. 2 Ante, pp. 238240. 3 5 & 6 Viet. c. 35, s. 126. INCOME TAX ACTS. ascertain in what sums such person ought to be cha P- charged, and make a final assessment. l Any person, however, who has delivered a schedule, may, if he discovers any omission or wrong statement therein, deliver an additional schedule rectifying such omis- sion or wrong statement; and upon doing so is exempt from liability to any proceeding for such omission or wrong statement; and, if he has neglected to deliver a schedule within the time limited, he may deliver a schedule at any time before any pro- ceeding has been taken to recover the penalty; and upon doing so is not liable to any proceeding for recovering the penalty. Even after proceedings have been commenced for recovering the penalty, the General Commissioners may, upon proof that no- fraud or evasion was intended, stay the proceedings- upon such terms as they think fit ; or, if any pro- ceeding has been commenced in any Court, the Judge of the Court may, upon a certificate from the General Commissioners that in their judgment no fraud or evasion was intended, stay the proceedings on suck terms as he may think fit. And if an imperfect schedule has been delivered, if the person delivering the same gives a sufficient reason why a perfect schedule cannot be delivered, the Commissioners may give further time for delivery of the schedule. These provisions apply equally to statements as to schedules, and to the Commissioners to whom 1 5 & 6 Viet. c. 35, s. 129. M2 243 244 INCOME TAX ACTS. Chap, III. statements are to be delivered, as to the General Commissioners. Assessment by Special Commissioners on Request of Person chargeable. 1 Any person chargeable, who does not claim the exemption granted to persons whose annual incomes are less than 150, may require that all proceedings in order to an assess- ment upon him be taken before the 2 Special Com- missioners instead of the Additional Commissioners or General Commissioners. He must deliver a notice of his request, with the list, declaration, and statement of his profits and gains, to the Assessor of the parish, to be by him transmitted to the Surveyor of the district in which he is chargeable. The Surveyor thereupon examines the list and statement, and assesses the duty according to his judgment, and delivers a certificate of the assessment, with the list, declaration, and assessment, to the Special Commissioners, who examine the same, and make, or sign and allow, such an assess- ment as appears to them just and proper. The person charged, and also the Surveyor, 3 has a right of appeal against the assessment so made. 4 The 1 5 & GVict. c. 35, s. 131. As to the exemption, see ante, p. 164. 2 That is, the Board, and such persons as the Treasury appoints. Ante, pp. 5, 6. 3 As to the appeal, see post, pp. 302, 303. 4 5 & 6 Yict. c. 35, s. 132. INCOME TAX ACTS. 245 Special Commissioners, when authorized to make, Chap. III. sign, or allow, any assessment, have all the powers which may be exercised by the General Commis- sioners, or by the Additional Commissioners in relation thereto. tomake ment, have all Where the Assessment is made by the Special Com- O f General Commis - Procedure Poivers of Special Commissioners, fyc. every case in which an assessment is made by the Special Commissioners, they notify the amount of the assessment to the person charged. In the case of interest, dividends, or other annual payments, payable by 2 foreign or colonial companies, and of 3 all dividends, interest, and other annual payments, where the right or title of the person to whom the same is payable is shown by the registration or entry of the name of such person in any book or list ordinarily kept in the United Kingdom, which, 4 as we have said, are assessed by the Special Commis- sioners, 5 all persons entrusted with the payment of such annuities, &c., or acting therein as agents, or in any other character, or having the custody of such book, or making such list, must without further 1 5 & 6 Viet. c. 35, s. 131. 2 16 & 17 Viet. c. 34, s. 10; 24 & 25 Viet. c. 91, s. 36. 3 29 & 30 Viet. c. 36, s. 9. 4 Ante, p. 228. 5 5 & 6 Viet. c. 80, e. 2. As to the extent of the phrase "person entrusted with payment," see ante, p. 219, note 3 . 246 INCOME TAX ACTS. Chap. m. notice deliver to the Board an account in writing con- taining a description of the annuities, &c., intrusted to them for payment, and other prescribed particulars, within one month after the same has been required by public notice in the "London Gazette;" and must also, on demand by the inspector authorized for that purpose by the Board, deliver to him for the use of the Special Commissioners true accounts of the annuities, &c. payable by them. The Special Com- missioners make the assessment on such annuities, &c., and give notice of the amounts of the assessments made by them to the respective persons intrusted with the payment of the annuities, &c. The penalty which any person intrusted with the payment of the annui- ties, &c., who neglects, or refuses, to deliver an account as aforesaid, incurs, is 100/. over and above the duty. As *we have said, the Special Commissioners have, in all cases in which they are authorized to act, the same powers as the Additional or the General Com- missioners. Assessments entered in Hooks, fyc. 2 The General Commissioners, and the Special Commissioners when authorized to act, enter the several amounts of the sums assessed by them in their Books of Assess- ment ; and from time to time make out and transmit to the Board accounts of the amount of duty assessed by them containing prescribed particulars. 1 Ante, p. 245. 2 5 & 6 Yict, c. 35, s. 136; 12 & 13 Yict. c. 1, s. 17. INCOME TAX ACTS. 247 Chap. III. SUB-SECTION 2. COLLECTION. l When Assessment made by General Commissioners. 2 All assessments made by the General Commissioners are entered in books with the names, and descrip- tions, and places of abode, of the persons, corpo- rations, or societies, charged thereunder ; and the entries are either numbered progressively or distin- guished by letters as the Commissioners think proper. If any person charged by any such assessment declares his intention of paying the duty to the proper officer for receipt within the time limited for payment, and the Commissioners are satisfied with such declaration, they deliver to such person, or to anyone attending on his behalf, a certificate under the hands of two of the Commissioners, specifying the amount of the sums to be paid within one year upon such assessment. The certificate is numbered or lettered with the same number or letter as the entry in the book of the Commissioners to which such certificate relates, without naming, or otherwise describing, the person charged ; and the certificate is a sufficient authority to the receiving officer to receive from time to time from any person producing the certificate the amount of the sums contained therein ; and on payment of the sums contained in any such certificate the receiving officer gives a certificate for 1 See note, p. 196, ante. 2 5 & 6 Yict. c. 35, s. 137. 248 INCOME TAX ACTS. Chap. III. the same, acknowledging the payment, l lf no decla- ration is made by the person charged, or if the Com- missioners are not satisfied with the declaration, they deliver a duplicate of the assessment made upon such person to the Collector, with their warrant for collecting the same. If after a declaration as afore- said is delivered, the duty is not paid in accordance therewith, the name of the defaulter, and the amount of the duty assessed upon him, is inserted in the duplicate of the Collector, and the warrant for col- lecting the same is then of like force as if the name and sum had been inserted therein at the time of issuing the warrant. 2 The General Commissioners are empowered to deliver to the receiving officers duplicates of the assessments made by them, con- taining the sums assessed upon every person to whom a certificate has been delivered by letter or number, without naming such persons, with their warrants for receiving the duties when the same become payable. 3 The duty payable on every such assessment must be paid by the person charged to the receiving officer before the day appointed for payment; and the certificate required to be given on payment must be delivered to the General Commissioners, or to one or more of them, or to their clerk at his office, before the time when the duty is payable, and their, or his, receipt taken for 1 5 & 6 Yict. c. 35, s. 138. 2 5 & 6 Viet. c. 35, s. 139. 3 5 & 6 Viet. c. 35, s. 140. INCOME TAX ACTS. 249 the same. If the duty is not paid, or the certifi- Chap. Ill, cate delivered as aforesaid, the General Commis- sioners deliver a duplicate of all sums assessed on the defaulter, together with their warrant, to such Collector as they may appoint to levy the sum in arrear and unpaid. The duties mentioned in the warrants delivered to the receiving officers are col- lected and levied as the duties under any other of the schedules are collected and levied. 1 The duty may, if the person chargeable so pleases, be paid in advance, and in that case an allowance by way of discount of 2L 10s. per cent, per annum will be made. Deduction of Duty from Interest, fyc. 2 Every per- son liable to the payment of any yearly interest of money, or any annuity, or annual payment, as a per- sonal debt, or obligation by virtue of any contract, may, on making such payment, deduct the amount of the rate of duty, which at the time when such payment becomes due is payable. 3 If the rate of income tax has varied during the period through which such payment has accrued, a proportionate amount of the several rates of income tax charge- able may be deducted. 4 A refusal to allow any 1 5 & 6 Viet. c. 35, s. 141 ; 52 & 53 Viet. c. 42, s. 10. 3 5 & 6 Viet. c. 35, s. 102 ; 16 & 17 Viet. c. 34, s. 40. As to the meaning of " yearly interest," see ante, p. 198, note 5 . 3 27 & 28 Viet. c. 18, s. 15. 4 5 & 6 Viet. c. 35, s. 103 ; 16 & 17 Viet. c. 34, s. 40. Where interest, &c. has been paid out of profits chargeable under Schedule D. without deduction, the Commissioners 250 INCOME TAX ACTS. Chap. III. such deduction renders the person refusing liable in some cases to forfeit treble the value of the debt, and in others to a penalty of fifty pounds. 1 And upon payment of any interest of money, or annuities, charged with income tax under Schedule D., and not payable, or not wholly payable, out of profits and gains brought into charge to such tax, the person by or through whom such interest, or annuities, shall be paid is to deduct thereout the rate of income tax in force at the time of such payment, and is forthwith to render an account to the Com- missioners of Inland Revenue of the amount so de- ducted, or of the amount deducted out of so much of the interest, or annuities, as is not paid out of profits or gains brought into charge, as the case may be ; and such amount is to be a debt from such person to Her Majesty, and recoverable as such accordingly, and 2 the provision in sect. 8 of 13 & 14 Yict. c. 97 may grant a certificate which will entitle the person charged to make the deduction. See post, p. 292. 1 Customs and Inland Eevenue Act, 1888 (51 Yict. c. 8), s. 24 (3). This enactment was suggested by the case of (Zresham Life Assurance Society v. Styles (ante, pp. 143 145), and " for the first time made it compulsory upon the persons liable in payment to retain income tax, upon their making payment out of the capital which they employ in trade, of any interest of money or annuities charged with the tax under Schedule D., and not payable or wholly payable out of profits brought into charge to such tax." Lord Halsbury, L. C., in that case. 2 This section makes money received for duty a debt to the Crown from the person receiving it, and provides for its recovery. INCOME TAX ACTS. 251 in relation to money in the hands of any person for Chap. III. legacy duty applies to money deducted by any person in respect of income tax. Under the above enactment a Eailway Com- pany which has made no profits during the period its works were under construction, but has during that period paid interest upon its share and debenture capital out of a fund pro- vided for the purpose, is bound to deduct income tax from the payments of interest so made, and the income tax so deducted becomes a debt to the Crown. Lord Advocate v. Forth Bridge Rail- way Co., 28 Sco. L. E. 576. A debtor assigned to trustees a fund in Court, Case of upon trust to pay a fixed sum yearly to his cre- ditors in payment of their debts pro raid with interest until payment. It was held that the trustees were entitled to deduct income tax on the payments made by them in respect of interest. Crane v. Kilpin, L. E., 6 Eq. 334. Where the Assessment is made by the Special Com- missioners. * All persons entrusted with payment of annuities, dividends, or shares of annuities, or interest, payable out of the revenues of any foreign state, or by foreign or colonial companies, and on all 1 5 & 6 Viet. c. 35, ss. 29, 96; 16 & 17 Viet. c. 34, s. 10; 24 & 25 Viet. c. 91, s. 36; 29 & 30 Viet. c. 36, s. 9. The phrase "person entrusted with payment," has the same ex- tent of meaning in the first three sections quoted, as to which see ante, p. 219, note 3 . 252 INCOME TAX ACTS. Chap. III. dividends, &c., the right to which of the person to whom the same may be payable is shown by the registration or entry of the name of such person in any book or list ordinarily kept in the United King- dom, and on all annuities, pensions, or other annual sums payable out of the funds of any institution in India, entrusted to any person in the United Kingdom for payment to any persons resident in the United Kingdom, on receiving the l notice of the amount of the assessments thereon given by the Special Com- missioners, must pay the duty on such annuities, &c., on behalf of the persons, corporations, and companies, entitled to the same out of the moneys in their hands. The persons entrusted with payment of the annuities, &c., must from time to time pay the duties assessed thereon into the Bank of England to the account kept there with the Receiver- General of Inland Revenue. 2 The Special Commissioners, when autho- rized to act in relation to the assessment, have all the powers of the General, or Additional, Commissioners in relation to the collection of the duties. SECTION Y. SCHEDULE E. ASSESSMENT AND COLLECTION^ Who are Commissioners for assessing the Duties under Schedule E. 4 The Commissioners authorized to 1 See ante, p. 221. 2 5 & 6 Viet. c. 35, s. 132. 3 See note *, p. 196, ante. 4 5 & 6 Viet. c. 35, ss. 30, 31, 34. INCOME TAX ACTS. 253 assess the duties chargeable under Schedule E. upon Chap. III. the salaries, &c., attached to the offices which *we have mentioned as included in this schedule, are the 2 respective Commissioners for all the offices in each department, and the assessment is made in the respective places in which such Commissioners respec- tively execute their offices. In all cases of duty chargeable under this schedule in which the Com- missioners just referred to have no jurisdiction, 3 the assessment is made by the General Commissioners, 4 except in the case of offices, and employments of 1 See ante, pp. 166, 167. 2 For an enumeration of these Commissioners, see ante, pp. 710. 3 5 & 6 Viet. c. 35, s. 22. The General Commissioners are Commissioners for assessing the duty upon all offices, and employments of profit (not being public offices, or employ- ments of profit, under her Majesty), in any county, riding, shire, city, liberty, town, or place, whether in the appoint- ment of the lieutenant, custos rotulorum, justices or magis- trates, commissioners for aids or taxes, or sheriff, of such county, &c., or of any trustees, or guardians of any trust, or fund, in such county, &c., and for all parochial offices in such county, &c. (except corporate offices in cities, corporate towns, boroughs, or places, or offices in cinque ports, in assessing the duties on which the mayor, aldermen, and common council, or the principal officers or members of the city, &c., or any three or more of them, not exceeding seven, act as Commissioners : ante, pp. 9, 10). 5 & 6 Viet. c. 35, s. 32. This section was repealed by sect. 9 of the Customs and Inland Bevenue Act, 1876 (39 & 40 Yict. c. 16), but was revived, with respect to the duties chargeable under Schedule E., by sect. 7 of the Customs, Inland Eevenue, and Savings Bank Act, 1877 (40 & 41 Viet. c. 13). 4 23 & 24 Viet. c. 14, s. 6. See post, pp. 259, 260. 254: INCOME TAX ACTS. Chap. III. profit held in or under any railway company, the assessment upon which is made by the Special Com- missioners. l Every person to be assessed for his office, or employment, is deemed to have exercised the same at the head office of the department under which such office or employment is held ; and every office is deemed to belong to, and to be assessed by, or under, the principal officers of that department by, or under, whom the appointment to such office is made ; but when such appointment is made by any inferior officer, the office is assessed by the same Commissioners as assess such inferior officer. But when any such appointment is made under the Great, or Privy, Seal, or under the Royal Sign Manual, or under the hands or seals of the Treasury, and the office is not exercised in the department of the Treasury, the officer holding the same is assessed in the depart- ment in which he exercises his office. But this is without prejudice to the right of the Commissioners of the district to assess the profits of offices within their respective jurisdictions, although such offices are not held under their appointment. 2 In all cases in which any annuity, or pension, is payable out of any particular branch of the public revenue, and at the office of that branch of revenue, the Commis- sioners acting for that department have authority to assess and levy the duty upon same as a salary, or wages, payable thereout. 1 5 & 6 Yict. c. 35, s. 147. 2 5 & 6 Yict. c. 35, s. 146, r. 10. INCOME TAX ACTS. 255 Assessment Period for which made. 1 The assess- Chap. in. ment in respect of annuities, pensions, or stipends, mentioned in Schedule E. is in force for one whole year, unless the same ceases, or expires, within the year by lapse, death, or otherwise ; from which period the assessment is discharged. 2 The assessments are in force for one year, commencing, and payable, at the like periods as the assessments in parishes are made payable. Qualification of Commissioners for Duties on Offices, fyc. 3 No qualification is required of any of the officers or persons who are Commissioners for the duties on offices, or employments of profit, or on pensions, stipends, or annuities, chargeable under Schedule E., and who act as such Commissioners by virtue of their several offices, other than such offices respectively. Proceedings in order to Assessment. 4 The Commis- sioners meet as soon after their appointment as they conveniently can in some convenient place, and, after qualifying themselves by taking 5 the prescribed oaths, they may elect a Clerk, and Assessors : and, 6 in 1 5 & 6 Yict. c. 35, s. 146, r. 1. 2 5 & 6 Yict. c. 35, s. 154. 3 5 & 6 Yict. c. 35, s. 156. * 5 & 6 Yict. c. 35, s. 150. 5 Ante, p. 10. 6 As to the cases in which the duties may be stopped or detained, see post, pp. 257, 258. 256 INCOME TAX ACTS. Chap. Ill cases in -which the duties cannot be stopped and detained at the departments of office of the Com- missioners respectively, or for which they respectively act, they may also elect separate Assessors from the officers in their respective departments. Such As- sessors, within a time fixed by the Commissioners, deliver to them their certificates of assessment in writing under their hands, and verified upon oath, of the full and just annual value of all offices, and em- ployments of profit, chargeable with duty, and of all pensions, and stipends, and of the names and surnames of the several officers, and persons, entitled to pensions, or stipends, and of the duties they ought to pay. The Assessors l assess themselves as well as all other persons whom they ought to assess ; and may have free access to all documents and papers what- ever in their respective offices touching the salaries, &c. of any person chargeable belonging to their respective offices. They may also, whenever neces- sary, require returns from the persons chargeable, in order that they may make a true assessment; but, 2 unless such a return is required by the Assessors, no person chargeable is to be liable to a penalty for not returning a statement of the profits arising from his office, pension, or stipend, in pursuance of any general notice. 3 Lists or accounts of all salaries, fees, wages, perquisites, and profits, pensions, and stipends, must * 5 & 6 Viet. c. 35, s. 150. 2 5 & 6 Yict. c. 35, s. 151. 3 5 & 6 Yict. c. 35, s. 154. INCOME TAX ACTS. 257 be delivered upon the request of the Assessors by the Chap. III. officers or their deputies, receivers, and paymasters, in every office for which Commissioners are appointed for raising the duties, to, or by, whom the same salaries are paid, or payable ; as well as by any agent by whom the same are payable. The penalties for not delivering such lists or accounts upon request are the same as those exacted for not delivering the other returns required by the Income Tax Act, 1842. The assessments made by the Assessors must be brought by them to the Commissioners appointed in regard of the same, who must sign the assessments. Stoppage of Duties. 2 In all cases in which any salaries, fees, or wages, or other perquisites, or profits, or any annuities, pensions, or stipends are payable at any public office, or by any officer of her Majesty's household, or by any of her Majesty's receivers, or paymasters, or by any agents employed in that behalf, the duties payable in respect thereof are detained and stopped thereout, if not otherwise paid; and, whenever such duties are assessed by the General Commissioners in their respective districts, they must transmit an account of the amount of the duty as- sessed to the office where the salaries, &c., are payable, in order that the duty assessed may be there stopped or detained. 3 In all cases in which the salaries, &c., of any officer chargeable do not arise out of any of 1 5 & 6 Viet. c. 35. 2 5 & 6 Viet. c. 35, s. 146, r. 5. 3 5 & 6 Viet. c. 35, s. 146, r. 6. 258 INCOME TAX ACTS. Chap. in. the offices mentioned, but out of some other office, or employment of profit, chargeable with duty, and the salaries, &c., are payable at such office by any officer thereof, or by any receiver, or by any agent, employed in that behalf, the duties chargeable on such salaries, &c., are also stopped or detained thereout, if not other- wise paid. 1 Such portion of the duties on offices, or employments of profit, or on annuities, pensions, or stipends, charged with any sum of money payable to any other person, is deducted out of the sum payable to such other person as a like rate on such sum would amount to ; and all such persons, their agents, or re- ceivers, must allow such deductions and payments upon receipt of the residues of such sums. 2 And such portions of the duties charged on any office, or employment of profit, executed by any deputy, or clerk, or other person employed under the principal in such office, and paid by such principal out of his salary, &c., is deducted out of the salary, &c., so pay- able as a like rate on such salary, &c., would amount to ; and all such deputies, &c., must allow to their respective principals such deductions and payments on receipt of the residues of such salaries, &c. 3 Every person refusing to allow any deduction of duty authorized to be made incurs a penalty of fifty pounds. 4 In estimating the duty payable for any 1 5 & 6 Yict. c. 35, s. 146, r. 7. 2 5 & 6 Yict. c. 35, s. 146, r. 8. 3 5 & 6 Yict. c. 35, s. 103. 4 5 & 6 Yict. c. 35, s. 146, r. 9. INCOME TAX ACTS. 259 such office, or employment of profit, or any pension, Chap. III. annuity, or stipend, all official deductions and pay- ments made upon receipt of the salaries, fees, wages, perquisites, and profits thereof, or in passing the accounts belonging to such office, or upon the receipt of such pension, annuity, or stipend, must be allowed, to be deducted, if a due account thereof is rendered to the Commissioners and proved to their satisfaction. Additional Assessment. 1 Where any person who holds, or exercises, any public office, or employment of profit, becomes entitled to any additional salary, fees, or emoluments, during any year of assessment beyond the amount for which any assessment was made upon him, or beyond the amount at which at the commencement of the year of assessment he was liable to be charged, an additional or supplemental assessment is from time to time, as often as the case requires, made upon such person for the additional salary, &c., so that he may be assessed and charged for the full amount of the whole of the salary, &c., which he receives, or becomes entitled to, during the year of assessment. Duties in respect of Offices, fyc., in or under any Railway Company. 2 The Special Commissioners, 1 16 & 17 Viet. c. 34, s. 53. 2 23 & 24 Yict. c. 14, s. 6; 40 & 41 Viet. c. 13, s. 7. A railway company is not liable to be assessed in respect of wages paid by them to persons employed by them at weekly wages. It would seem that any such persons, if their in- 260 INCOME TAX ACTS. Chap. III. when they have assessed the duty payable in re- spect of any office, or employment of profit, in or under any railway company, notify the particulars thereof to the secretary, or other officer, of the company, and the assessment is then deemed to be an assessment upon the company, and is paid, col- lected, and levied accordingly. The company, or their secretary, or other officer, may deduct or retain out of the fees, emoluments, or salary of each person in their employment the duty charged in respect of his profits or gains. When any Office, fyc., is executed by Deputy. 1 When any office, or employment of profit, charge- able with duty is executed by deputy, and the deputy is in receipt of the profits thereof, he is answerable for, and must pay the assessment charged thereon, and may deduct the same out of the profits of such office, or employment. And where the salaries, fees, wages, emoluments, or profits of any officer, or officers, in any such office are receivable by one or more of the said officers for the use of such officer, or officers, or as a fund to be divided amongst such officers in certain proportions, the officer, or officers, receiving such salaries is, or are, answerable for the duties charged thereon, and must pay the comes amount to 150Z. a year, are liable to be assessed under Schedule D. Attorney- General v. The Lancashire and Yorkshire Railway Company, 33 L. J., Ex. 163. 1 5 & 6 Yict. c. 35, s. 153. INCOME TAX ACTS. 261 same, and deduct them out of the funds provided Chap. ill. for such respective offices, or employments, before any division or apportionment thereof. In case of refusal to pay, or non-payment, the deputy, or receiver, is liable to such distress, and to all such other remedies, and penalties, respectively, as is, or are, prescribed against any person having the office or employment. Delivery of Duplicates of Assessments to Collectors. 1 The respective Commissioners for duties upon offices, in all cases in which Collectors are authorized to be appointed, cause like duplicates of assessment to be made, and delivered to the Collectors, with like warrants to collect the duties, as 2 are given to Collectors for any parish or place; and the Collectors of the duties on offices have like authority to demand and levy the said duties as 2 is given to Collectors of any parish or place. 3 In all cases in which the duties on any salaries, fees, wages, perquisites or profits of any public office are detained and stopped out of the same salaries, &c., the respective Commissioners cause like duplicates to be delivered to the proper officers in the respective offices, who keep true accounts of all moneys stopped and detained, and are answerable for the same. 1 5 & 6 Viet. c. 35, s. 154. 2 See ante, p. 196. 3 5 & 6 Viet. c. 35, s. 154. 262 INCOME TAX ACTS. CHAPTER IY. ALLOWANCES, ABATEMENTS, RELIEFS, AND CORRECTION OF ERRONEOUS ASSESSMENTS. IN the preceding portion of this book we have dealt with the authorities concerned in assessing, and col- lecting, the income tax, with the property, and profits, upon which the tax is charged, and with the ma- chinery by means of which the tax is assessed, and collected. We have now to describe the methods by which persons charged obtain the allowances and abatements, which they are entitled to claim, and secure the rectification of erroneous assessments made upon them. In dealing with this subject we shall adopt the plan we have previously employed, and divide the present chapter into sections corresponding with the five Schedules under which the duties of income tax are charged. SECTION I. SCHEDULE A. Allowances to Ecclesiastical Persons in respect of Tenths, tyc. As x we have already seen, 2 allowances are made for the amount of the tenths, and first 1 Ante, pp. 72, 73. 2 5 & 6 Viet. c. 35, s. 60, No. 5, XT. 1, 2, 3. INCOME TAX ACTS. 263 fruits, duties and fees on presentations, paid by any Chap. IV. ecclesiastical person within the year preceding that in which the assessment is made ; for procurations, and synodals, paid by ecclesiastical persons, on an average of seven years preceding that in which the assessment is made ; and for repairs of collegiate churches and chapels, and chancels of churches, or of any college or hall in any of the universities of Great Britain by any ecclesiastical or collegiate body, rector, vicar, or other person, bound to repair the same, on an average of twenty-one years preceding that in which the assessment is made. l The allow- Allow- ances in respect of the charges enumerated may be b^made? 7 made to the ecclesiastical, or collegiate, body, rector, deduction vicar, or other person, liable to such charges respec- tively in one sum, either by deducting the same from the assessment made upon him (with deductions so made we have not now to deal), or by certificate, or by 2 In case the allowance has not been made by way of deduction from the assessment, the person entitled thereto must claim the allowance at any time 3 within three years after the expiration of the year of assess- ment, before the General Commissioners for the district in which the property charged with the pay- ments in respect of which the allowance is made is situate. The General Commissioners, upon due proof before them that the claimant is entitled to the 1 5 & 6 Viet. c. 35, s. 60, No. 5. 2 5 & 6 Viet. c. 35, s. 61. 3 23 & 24 Viet. c. 14, s. 10. 264 INCOME TAX ACTS. Chap. IV. allowance which he claims, certify the particulars and amount of the allowance to the Special Commis- sioners at the 1 Chief Office of Inland Revenue in England, and the Special Commissioners then grant an order for the payment of such allowance, directed either to the Eeceiver- General of Inland Revenue, or to an officer for receipt, or collector, of the duties, or to a distributor, or sub-distributor, of stamps, as may be most convenient for the person entitled to the allowance, and upon the delivery of the order to the Receiver- Greneral or other officer to whom the same is directed, he pays the amount of the allow- ance to the person entitled thereto, taking a receipt by indorsement upon the order. Allowance for Diminished Value of Machinery by wear and tear. In the case of any 2 concern charge- able under Schedule A. by reference to the rules of Schedule D., 3 when any machinery or plant is let for the purposes of the concern, to the person, or com- pany, by whom the concern is carried on, upon such terms that the burden of maintaining and restoring the machinery, or plant, falls upon the lessor, he is entitled, on claim made to the G-eneral, or Special, 1 12 & 13 Viet. c. 1, s. 17. 2 See ante, p. 54. 3 41 & 42 Viet. c. 15, s. 12. We are dealing now, it will be observed, only with the claim to repayment made by the lessor of machinery, &c. As to the deduction for diminished value of machinery, &c., by wear and tear made upon assess- ment of any such concern as above mentioned, see ante, p. 60. INCOME TAX ACTS. 265 Commissioners in the ] manner prescribed by sect. 61 Chap. iv. of the 2 Income Tax Act, 1842, to have repaid to him such a portion of the sum which has been as- sessed and charged in respect of the machinery or plant, and deducted by the lessee on payment of the rent, as represents the income tax upon such an amount as the Commissioners think just and reason- able as representing the diminished value by reason of wear and tear of such machinery or plant during the year. But no such claim is allowed unless it is made within twelve calendar months after the expi- ration of the year of assessment. Exemption of Persons whose Income is less than 150 /. a year from Duty, and Mode of claiming Exemp- tion. 3 Any person chargeable to the duties either by way of assessment or deduction, is exempt if his annual income is less than 150/. ; and, if he has paid, or been charged with, duty, he is entitled to be repaid the amount of all payments, and deductions, made by, or against, him on account of duty, except, of course, such sums paid, or charged, on account of duty as he is entitled to charge against any other person, or to deduct out of any payment to which he may be, or become, liable. The modes of proceed- ing to claim the exemption differ according as the 1 See ante, p. 263. 2 5 & 6 Viet. c. 35. 3 5 & 6 Viet. c. 35, ss. 163, 164; and 39 & 40 Viet. c. 16, s. 8. E. N 266 INCOME TAX ACTS. Chap. IV. claim is made before assessment, or after the duty has been charged by way of deduction, and are as follows : i. Mode of 1. 1 If the claim is made before assessment, ing in the claimant within the time limited for deliver- ismade ing the lists, declarations, and statements, re- giment 8 ." quired from him, or within such further time as the Commissioners for special cause assigned allow, must deliver to the Assessor of the parish or place in which he resides, a notice of his claim to exemption, with a declaration and statement 2 in the prescribed form, signed by him, setting forth all the particular sources from which his income arises, and the amount of that part of his income which arises from each source specified, and every sum of annual interest, or other annual payment, reserved, or charged thereon, by which the income is diminished, and also every sum which the claimant has- charged, or is entitled to charge, against any other person, for, or on account of, the duty, or which he is entitled to deduct or retain from or out of any payment to which he is, or may become, liable. 3 The claim must be made to the Commissioners of the district in which the claimant resides, whether he is personally 1 5 & 6 Yict. c. 35, s. 164. 2 The Board have a general authority to prescribe, supply, and approve forms. 43 & 44 Yict. c. 19, s. 15. 3 5 & 6 Yict. c. 35, s. 169. INCOME TAX ACTS. 267 charged in such district or not. l The claim Chap. IV. may be made by any guardian, trustee, attor- ney, agent, or factor, acting for the claimant, in any case in which satisfactory proof is afforded that the claimant is unable to attend in person, as well as in cases in which such guardian, &c., is authorized to act for another for the purpose of being assessed on his account in the first instance. 2 The Surveyor is at liberty to peruse and examine, and to take copies of, or extracts from, the declaration and statement delivered by the claimant, or on his behalf. The notice, declaration, and statement, when received by the Assessor, is transmitted by him to the Com- missioners, and if the Surveyor does not object to the declaration within forty days, the Com- missioners may allow the claim to exemption,, and discharge the assessment upon the claimant,, either in his own name, or in the name of his lessee or tenant. If it appears that any pro- perty, or profits, of the claimant is, or are, assessed, or liable to be assessed, in any other district, the Commissioners certify to the Board the allowance of the claim to exemption, and the Board direct the assessment made upon the property, or profits, of the claimant in such other district to be discharged, either in his own 1 5 & 6 Viet. c. 35, s. 170. 2 5 & 6 Viet. c. 35, s. 164. N2 268 Chap. IV. 2. Mode of proceed- ing in case claim is made after the duty has been charged. INCOME TAX ACTS. name, or in the name of his lessee or tenant. If the Surveyor objects to the claim to exemp- tion in writing, and suggests that he has reason to believe that the income of the claimant, or any other particulars required to be set forth in the declaration or statement, is, or are, not truly set forth in any specified particular, the merits of the claim to exemption are heard and deter- mined on appeal before the General Commis- sioners, as other appeals are heard and deter- mined before them ; and if the claim is allowed on appeal, the General Commissioners issue all necessary certificates consequent thereon. 2. If the claim to exemption is made after the duty has been charged by assessment or by way of deduction, Hhen, if the claim has been allowed by the General Commissioners, and it is proved to their satisfaction that the claimant has been charged to, and has paid, any duty by way of deduction from any rent, annuity, interest, or other annual payment, to which he is entitled, and from which deduction is autho- rized, the General Commissioners certify to the Special Commissioners at the head office of Inland Revenue in England the amount, and the particulars, or nature, of the payment out of which, and the name, and place of abode, of the person by whom, such deduction has been made, 1 5 & 6 Yict. c. 35, s. 165; 12 & 13 Viet. c. 1, s. 17. INCOME TAX ACTS. 269 and other prescribed particulars ; and thereupon Chap. rv. the Special Commissioners issue to the claimant an order directed to the Eeceiver- General of Inland Revenue, or to an officer for receipt, or Collector, of the duties, or to a distributor, or sub-distributor, of stamps, for repayment of the duty certified to have been paid by him ; and such duty is accordingly repaid in the same way as the allowances mentioned Before. 2 But every claim for repayment of duty must be made within three years after the end of the year of assessment to which the claim relates. 3 The annual value of lands, &c., belonging to, or How . , , , . . . . -T annual occupied by, any person claiming exemption on the value of ground of his yearly income being less than 150/. is estimated estimated, for the purpose of ascertaining his title to purpose of such exemption, according to the 4 rules and direc- tions contained in the Schedules A. and B. respec- tively. The income arising from the occupation by |Jj such claimant of lands, &c., is deemed, for the pur- than pose aforesaid, to be equal in England to one-half of the full annual value thereof, estimated according to such rules and directions. Where the claimant is proprietor as well as occupier, the amount deemed to be the income arising from the occupation as afore- said, is added to the full annual value of the lands, &c., 1 See ante, p. 264. 2 23 & 24 Viet. c. 14, s. 10. 3 5 & 6 Yict. c. 35, s. 167. 4 See ante, pp. 48 et seq. 270 INCOME TAX ACTS. Chap. IV. and the aggregate amount is deemed, for the pur- pose aforesaid, to be the income of the claimant arising from the lands, &c., of which he is proprietor and occupier. The income arising from any lease of, or composition for, tithes is deemed, for the pur- pose aforesaid, to be equal to one- fourth of the full annual value of such tithes estimated as aforesaid. Copar- l Coparceners, joint tenants, or tenants in common, joint ' of the profits of any property, and joint tenants or and te-' tenants in partnership of lands or tenements, being common in the actual and joint occupation thereof in partner- neramay sn ip> an( ^ entitled to the profits thereof in shares, severally an( ^ Personally labouring therein, or managing the same, may severally claim the exemption according to their respective shares and interests ; and the claims, when duly proved to the satisfaction of the Commissioners to whom the same are made, may be proceeded upon as in the case of several interests. But the profits so arising are not in any case charged separately to the duty, in respect of the occupation of lands, where lands are let, or underlet, without relinquishment of the possession by the lessor, or where the lessee or tenant is not exclusively in the possession or occupation of the lands so let. 2 A11 claims for repayment of duty must be made within three years next after the end of the year of assess- ment to which the claim relates. 1 5 & 6 Yict. c. 35, s. 168. 2 23 & 24 Viet. c. 14, s. 10. INCOME TAX ACTS. 271 Abatement of Duty allowed to Persons whose Income Chap. IV. is under 400/. a year. 1 Any person chargeable to the duties, either by way of assessment or deduction, if his annual income exceeds 150/. a year, but is less than 40 O/. a year, is entitled, if he has paid, or been charged with, duty, to be relieved from so much of the duties assessed upon, or paid by, him as an assess- ment, or charge, of the said duties upon 120/. of his income amounts to. The relief, if not given by reduction or abatement of the assessment, upon the person entitled to relief, is given by the repayment to him of so much of the excess as he has paid, in the same way as repayment is made to a person entitled to exemption on account of his annual income being less than 150/. a year. Abatement of Duty in respect of Premiums paid on Life Assurances and Purchases of Deferred Annuities, and Mode of claiming same. Any person who has been assessed under Schedule A., and has paid the duty assessed upon him, or has been charged with it by way of deduction, may, if he has effected a life assurance, or purchased a deferred annuity, as 2 before explained, make a claim to the Commissioners for Special Purposes for repayment of such a proportion of the duty paid by him as the amount of the annual premium paid by him bears to the whole amount of 1 39 & 40 Viet. c. 16, s. 8. 2 Ante, pp. 8789. 272 INCOME TAX ACTS. Chap, IV. his profits and gains on which he is chargeable under all, or any of, the schedules, and, on proof of the facts to the satisfaction of the Commissioners, is entitled to have such repayment made. Allowances in respect of Payments out of Tithe Rent- Charge. 1 As we have already explained, allowances are made for parochial rates, taxes, and assessments, charged upon, or in respect of, any rent-charge con- firmed under the Act passed for the commutation of tithes, on the amount paid in the year in which the assessment is made. 2 These allowances are not made by way of deduction from the assessments, but by certificate in 3 the manner explained with refer- ence to allowances for tenths, &c. Alloivances in respect of Land Tax, Drainage Charges, fyc. 1 As we have already explained, allowances are made for the amount of the land tax charged on lands, &c., under the 38 Geo. III. c. 5, where the land tax has not been redeemed, and for drainage, and other, charges. These allowances seem to be made by way of deduction from the assessment ; so that with regard to them no further explanation is necessary. Allowances for Colleges and Halls in Universities, Hospitals, Sfc. 4 As we have already explained, 1 Ante, p. 73. 2 5 & 6 Viet. c. 35, s. 60, No. 5, and s. 61. 3 Ante, pp. 262264. 4 Ante, pp. 75, 76. INCOME TAX ACTS. 273 allowances are made for the duties charged on any Chap. iv. college or hall in any of the Universities of Great Britain in respect of public buildings and offices belonging to such college or hall in certain cases ; and on any hospital, public school, or almshouse, in respect of the public buildings, &c., belonging to such hospital, public school, or almshouse, in certain cases. l These allowances are directed to be made by the Greneral Commissioners in their respective dis- tricts. Alloivances for Rents of Lands, fyc., belonging to Hospitals, Sfc. 2 As we have already explained, allowances are made for the duties charged on the rents and profits of lands, &c., belonging to any hospital, public school, or almshouse, or vested in trustees for charitable purposes. 3 These allowances are made by the Special Commissioners, on proof before them of the due application of such rents and profits to charitable purposes only, and in so far as the same are applied to charitable purposes only. The claim may be made, and proved, by any steward, agent, or factor, acting for such hospital, school, almshouse, or trust for charitable purposes, by affidavit taken before any Commissioner in the district in which the claimant resides. The affidavit must state the amount of the duties chargeable, and 1 5 & 6 Yict. c. 35, s. 61, No. 6. 2 Ante, p. 82. 3 5 & 6 Yict. c. 35, s. 61, No. 6, and s. 62. XT fi 274 INCOME TAX ACTS. Chap. IV. the application of the rents and profits on which the duties are charged. The Special Commissioners give a certificate of the allowance, and an order for pay- ment thereof in the manner Before explained. 2 The claim must be made within three years next after the end of the year of assessment to which the claim relates. 3 The claim to exemption of any trade union entitled thereto under the " Trade Union (Provident Funds) Act, 1893," must be claimed, and will be allowed, in the same manner. Appeal against first Assessment Notice of Day for. As soon as the assessments for any parish or place have been allowed and signed by the General Com- missioners in the manner we have 4 before described, 5 they cause notice that the assessments have been signed and allowed, and of the day for hearing appeals from the assessments, to be given, either by delivering to the Assessor of such parish, &c., a copy of the assessments, for the inspection of the persons charged thereby, and a public notice of the day of appeal to be affixed on, or near to, the church door, or on any other public place in the parish ; or by delivering to each person charged the amount of his assessment with a note of the day of appeal. The notices must be given at least fourteen days before 1 Ante, p. 264. 2 23 & 24 Yict. c. 14. s. 10. 3 56 Viet. c. 2, s. 2. See ante, p. 86. * Ante, pp. 192, 193. 6 5 & 6 Yict. c. 35, s. 80 ; 43 & 44 Yict. c. 19, s. 57. INCOME TAX ACTS. 275 the day fixed for appealing. l The Clerk to the Com- Chap. IV. missioners informs the Surveyor of the day fixed for . appealing. Any person aggrieved by an assessment Time f r upon him included in any first, or additional first, against J ... first* pr assessment may give ten days' notice of objection in additional writing to the Surveyor within the time limited for sessment. hearing appeals, and, upon giving such notice, he becomes entitled to appeal to the General Commis- sioners against the , assessment within twenty-one days after the day on which he received notice of the assessment. The Greneral Commissioners cause notice of the day of appeal to be given to every appellant. The Commissioners are bound to meet from time to time, with or without adjournment, for the purpose of hearing appeals, until all appeals have been deter- mined. Except in cases in which they are 2 specially authorized to rectify assessments otherwise, no assess- ment delivered to the Greneral Commissioners may be altered by them before the time for hearing and determining appeals, and then only in cases of charges appealed against, and upon hearing the appeal on a day duly appointed. Any person alter- ing any assessment wrongfully after it has been allowed becomes liable to a penalty of 50/. Proceedings on Appeal. 3 The appellant must appear before the Greneral Commissioners on the day 1 43 & 44 Yict. c. 19, s. 57. 2 Ante, pp. 191, 192. 3 43 & 44 Yict. c. 19, s. 57. 276 INCOME TAX ACTS. Chap. IV. appointed, in person ; no barrister, solicitor, or per- son practising the law, being allowed to plead for him. However, in cases in which persons are chargeable in respect of property or profits not their own, they may of course appeal, and appear upon the appeal, as if the assessment had been made in respect of property or profits to which they were beneficially entitled. J No abatement, or reduction, in the charge made upon any assess- ment, or surcharge, may be made by the General Commissioners, upon the hearing of any appeal, unless the appellant proves to them by evidence given by him upon oath, or affirmation, or by other lawful evidence produced by him, that he is overcharged in the assessment, or surcharge, against which he appeals. The Surveyor may attend the hearing of the appeal. He may be present during the whole time occupied by the Commissioners in hearing and in determining the appeal ; and he may give his reasons in support of the assessment, or sur- charge, appealed against, and produce any lawful evidence in support of such assessment, or surcharge. Valuation 2 If upon the appeal any dispute arises about the cases. annual value of any lands, &c., 3 situate elsewhere than in the Metropolis, and the General Commissioners 1 43 & 44 Yict. c. 19, s. 57. 2 5 & 6 Yict. c. 35, s. 81. 3 32 & 33 Yict. c. 67, s. 77. In the " Metropolis" the Valuation List is conclusive as to "annual value." ante, p. 187. INCOME TAX ACTS. 277 think it necessary, or 1 the appellant requires them, Chap. IV. to have a valuation of such lands, &c., made by a skilled person, they may direct the appellant to have a valuation made by any person they may name; and the costs of the valuation abide the final deter- mination of the Commissioners, and are in their dis- cretion. 2 The Commissioners have power to rectify the assessment appealed against, not only by re- ducing it in case the appellant proves that he has been overcharged, but also by increasing it in case it is proved that he has not been sufficiently charged. 3 When the General Commissioners have determined the appeal, their determination is final, unless a case for the opinion of the High Court has been required in the way we shall 4 presently describe ; and is then capable of alteration only by order of the High Court ; and 5 precludes the Surveyor from afterwards making a further charge for the same year on the person whose case is determined by the appeal, in respect of the property or profits included in the assessment appealed against and determined. The appeal is made, as we have said, to the General Com- missioners of the district within which the assess- ment was made ; but 6 if the person assessed has 1 16 & 17 Yict. c. 34, s. 47. 2 5 & 6 Viet. c. 35, ss. 81, 82 ; 43 & 44 Viet. c. 19, s. 57. 3 43 & 44 Viet. c. 19, s. 57. 4 Post, pp. 280282. 5 43 & 44 Viet. c. 19, s. 58. 6 16 & 17 Viet. c. 34, s. 55. 278 INCOME TAX ACTS. Chap. IV. moved out of such district without appealing, the Board may, if they think fit, upon his application, authorize the Commissioners of the district to which he has removed to hear and determine his appeal, as if it had heen prosecuted before the General Commis- sioners for the district in which he was assessed. Appeal for Apportionment in Case of Divided Occupa- tion. T If after assessment made, the land, &c., which is the subject of it has been divided into two or more distinct occupations, any of the occupiers may appeal to the General Commissioners for the district to settle and adjust what proportion of the duty charged shall be paid by each occupier. The General Commis- sioners thereupon make an apportionment of the duty, and the apportioned duty is collected and levied in like manner as the duty charged by an original assessment. Relief to Owners who are also Occupiers for Purposes of Husbandry when Profits fall short of Assessment. "We have 2 already stated the relief afforded to owners who are also occupiers, and also to occupiers, of land for the purposes of husbandry only, in case of the profits and gains arising from the occupation of the lands during the year falling short of the sum on which the assessment was made. 3 The appeal is 1 23 & 24 Yict. c. 14, s. 4. 2 Ante, pp. 87, 95. 3 14 & 15 Yict. c. 12, s. 3, which fixes the procedure. The INCOME TAX ACTS. 279 made to the Commissioners by whom the assessment Chap. IV. made within three calendar months after the expiration of the year of assessment. Notice in writing of the appeal must be given to the Surveyor of the district. If the abatement is allowed, and the whole sum assessed has been paid, the amount of the sum overpaid is certified and repaid, in the same way as an * overpayment of duty under Schedule D. is certified and repaid. Relief for Losses caused by Flood or Tempest. 2 Whenever loss is sustained by any flood or tempest on the growing crops, or on the stock, on lands let to a tenant at a reserved rent without fine, or lands so let are by flood, or tempest, rendered incapable of cul- tivation for any year, and the owner has in considera- tion of the loss agreed to make an abatement in the rent paid by the tenant for any year, the General Commissioners may, upon proof of the facts by oath, make an abatement in the assessment made in respect of the property in such lands for the same year for abatement allowed was extended to all occupiers of land for the purposes of husbandry, not being also the owners thereof, and to all owners of land being also the occupiers thereof, and occupying the same for the purposes of husbandry, and obtaining their livelihood principally by husbandry, by 16 & 17 Viet. c. 34, s. 46 ; and to all owners of land occupying the same for the purposes of husbandry, by 43 & 44 Viet. c. 20, s. 52. 1 Post, pp. 303 et seq. 2 5 & 6 Viet. c. 35, e. 83. 280 INCOME TAX ACTS. Chap. IV, which an abatement has been made in the rent ; and may also make an abatement in the assessment made in respect of the occupations of the lands for the same year. 1 If, in such a case, the owner is an infant, idiot, lunatic, or under other disability, and incapable of consenting to any abatement in the rent, the abate- ment may nevertheless be made in the assessment made in respect of the occupation. 2 And if in such a case, the owner of the lands is also the occupier, the abatement may still be made in the several assess- ments in respect of the property in, and occupation of, the lands. 3 The penalty for making a false or fraudulent claim for abatement is the forfeiture of 100J. Case for Opinion of the High Court. 4 When the G-eneral Commissioners have determined any appeal, either the appellant or the Surveyor may, if he is dissatisfied with the decision as being 5 erroneous in point of law, declare his dissatisfaction to the Commis- sioners who heard the appeal, immediately after their decision is announced ; and having done so may, within twenty- one days after the determination, address a notice in writing to the Clerk of the Commissioners 1 5 & 6 Viet. c. 35, s. 84. 2 5 & 6 Viet. c. 35, s. 85. s 5 & 6 Viet. c. 35, s. 86. * 43 & 44 Viet. c. 19, s. 59. 5 There is no appeal on a question of fact from the decision, of the Commissioners. INCOME TAX ACTS, 281 requiring the Commissioners to state and sign a case Chap. IV. for the Opinion of the High Court. He must, how- ever, pay a fee of twenty shillings to the Clerk before he is entitled to have the case stated. The case sets forth the facts, and the determination of the Commis- sioners, and is delivered to the person requiring it, who must, within seven days after receiving the case, transmit it to the High Court of Justice, and pre- viously, or at the same time, give notice in writing of the case having been stated on his application, and a copy of the case to the other party, Surveyor or appel- lant, as the case may be. The High Court hear and determine the question or questions of law arising on the case transmitted, and thereupon reverse, affirm, or amend, the determination of the Commissioners ; or they may remit the matter to the Commissioners with their opinion thereon. They may make such order in relation to the matter, including an order as to costs, as they see fit ; and the orders so made of the High Court are 2 final, and conclusive on all parties. But the High Court may, if they think fit, send the case back for amendment before delivering judgment. 1 The Court will decline to express any opinion on points of law not raised before the Commissioners. Bray v. Justices of Lancashire, 22 Q. B. D. 484; 37 W. E. 392: 58 L. J., M. C. 54. 2 Unless the orders are appealed. See below. The decision 1 of the High Court upon a case stated is an " order," not a "judgment," and the appeal must be brought within twenty- one days. Onslow v. Commissioners of Inland Revenue, 25 Q. B. D. 465 ; 38 W. E. 728. 282 INCOME TAX ACTS. Income tax must "be paid notwith- standing pendency of case. Chap. IV, The jurisdiction of the High Court in this respect may be exercised by a Judge sitting in Chambers, and in vacation as well as in term time. An appeal lies from the decision of the High Court, or of any Judge, to the Court of Appeal, and thence to the House of Lords. But notwithstanding that a case so stated is pending before the High Court, the in- colne tax must be paid according to the assessment of the Commissioners by whom the case was stated ; and if the amount of the assessment is afterwards altered by the High Court, the difference, if too much duty has been paid, is repaid with such interest as the High Court may allow, and if too little duty has been paid, is deemed arrears, except that it involves no penalty, and is payable and recoverable as arrears. Appeal from Additional first Assessment. ! An addi- tional first assessment allowed by the General Com- missioners is subject to appeal in the same manner as a first assessment. Appeal from Surveyor's Charges. A certificate by the Surveyor of the particulars of any omission to assess any person liable to the duties, and of the charge which ought to be made upon such person, allowed by the General Commissioners, is 2 subject to appeal in the same manner as a first assessment, except that the person charged has 3 ten days after 1 As to additional first assessments, see ante, p. 192. 2 43 & 44 Yict. c. 19, s. 63. 3 43 & 44 Yict. c. 19, s. 64. INCOME TAX ACTS. 283 service of the notice of charge in which to deliver an Chap. IV. amended return, and ] the delivery of such amended return, if objected to by the Surveyor, is a sufficient notice of appeal ; or if the person charged makes no amended return within the ten days, he may, on the day appointed for hearing appeals, appear before the Commissioners, who must hear and determine the case, although no notice of appeal has been given. If the Commissioners have no meeting within the time limited for hearing appeals from the charges of the Surveyor, or if the Surveyor has not had notice of a meeting of the Commissioners, they must sign and allow the certificates at their first meeting held thereafter, and afterwards hear and determine all appeals. Appeal against Surcharges. 2 Appeals against sur- charges are heard and determined in the same manner as appeals against first assessments. But if the per- son surcharged is prevented by absence, or sickness, or other sufficient cause, from appealing within twenty- one days after the date of the notice of charge, or from attending in person within such time, the Com- missioners may postpone the hearing of the appeal for such time as they may think necessary. The " suffi- cient cause " above mentioned must be proved before the Commissioners on the oath or solemn affirmation 1 43 & 44 Yict. c. 19, s. 65. 2 43 & 44 Yict. c. 19, s. 67. 284 INCOME TAX ACTS. Chap. IV. of the person appealing, or otherwise. l If the sur- charge is allowed by the Commissioners, in whole or in part, the assessment on the amount of the sur- charge allowed is made in treble the rate of duty ; but the Greneral Commissioners may remit, in whole or in part, the treble duty, and charge the single duty only, when they are of opinion : (a) That the original return would have enabled the Surveyor to amend the assessment ; (b) That there was no intention to defraud the revenue ; (c) That the person charged was prevented from making an amended return by sickness, or other sufficient cause ; (d) That there was reasonable cause of doubt or controversy on the part of the appellant on the subject-matter of appeal. Appeal in respect of Duties charged upon Mines of Coal, fyc. 9 Quarries, may be to the Special Commissioners. 2 Any person assessed to the duty chargeable under Schedule A. in respect of any mine of coal, tin, lead, copper, mundic, iron, or any other mine, or any quarry of stone, or slate, may, if he thinks fit, appeal against such assessment to the Special Commissioners instead of to the General Commissioners, upon giving due notice of his intention to do so ; and thereupon the 1 43 & 44 Viet. c. 19, s. 68. 2 23 & 24 Yict. c. 14, s. 7. INCOME TAX ACTS. 285 appeal is heard and determined by two or more of the Chap. IV. Special Commissioners, in like manner as an l appeal against an assessment of the duties under Schedule D. Relief from Double Assessments. 2 Whenever any person has been assessed, either on his own account or on behalf of another, and is by any error or mis- take again assessed for the same cause, and on the same account, and for the same year, he may apply to the General Commissioners acting for the division or place for which he has been assessed by error or mistake, for the purpose of being relieved from such double assessment ; and the Greneral Commissioners, on due proof thereof to their satisfaction, must cause the assessment, or such part thereof as is a double charge, to be vacated. The proof may be made either by a certificate of the assessment made upon the applicant under the hands of the Commissioners by whom he has been rightly assessed for the matter or cause in question, certifying that such matter or cause is included in an assessment made by them on the applicant, on the same account and for the same year, or by other lawful evidence given of those facts upon the oath of any credible witness. 3 And whenever it is proved to the satisfaction of the Board that a per- son has been assessed more than once to the duties for the same cause, and for the same year, they must 1 See post, pp. 301 et seq. 2 5 & 6 Yict. c. 35, s. 171. 3 43 & 44 Viet. c. 19, s. 60. 286 INCOME TAX ACTS. Chap. IV. direct the whole, or such part of such one or more of the assessments as appears to he an overcharge, to he vacated ; and thereupon the same is hy such order vacated accordingly, *And whenever it is proved to the satisfaction of the Board that any such douhle assessment has heen made, and has not heen vacated, and that payment has heen made of hoth assessments, they may order the Receiver- General of Inland Revenue, or any officer for receipt, to repay the sum so erroneously and doubly assessed and paid. 2 But the claim for repayment must he made within three years next after the end of the year of assess- ment to which the claim relates. Relief from a douhle assessment must he obtained in the manner indicated in the enactments above referred to, and cannot be obtained by means of a Petition of Right. The Holborn Viaduct Land Co., Limited, v. The Queen, (unreported). SECTION II. SCHEDULE B. Mode of appealing against Assessment, and of claiming Exemptions, Allowances, and Abatements. The mode of appealing against an assessment under Schedule B., and of claiming such of the exemptions, allowances, and abatements, mentioned under the head of Sche- dule A., as may be claimed upon any assessment under 1 5 & 6 Yict. a 35, s. 171 ; 12 & 13 Viet. c. 1, s. 17. 2 5&6Vict. c. 35, s. 171. INCOME TAX ACTS. 287 Schedule B., is similar to that adopted in the case of Chap. IV. an appeal, or claim, having reference to an assessment under Schedule A. T The notices of first assessments given by the Assessors, and of the days fixed for appeals, include assessments under Schedule B., as well as assessments under Schedule A. 2 If an occupier of lands for purposes of husbandry only seeks an 3 adjustment of his liability with reference to the amount of a loss sustained and to the aggre- gate amount of his income for the year, he must give a notice in writing to the Surveyor for the district, within six months after the year of assessment, of intention to apply to the General Commissioners for such relief ; and the Commissioners, on proof to their satisfaction of the amount of the loss, and of payment of income tax upon the aggregate amount of the appellant's income, will give a certificate authorizing repayment of so much of the sum paid for income tax as would represent the tax upon income equal to the amount of the loss. Such certificate may extend to give exemption or relief by way of abatement in accordance with the provisions of the Income Tax Acts. Upon receipt of the certificate, the Commis- sioners of Inland Revenue are to cause repayment to be made in conformity therewith. Any fraud or contrivance in making any such application is punish- 1 5 & 6 Yict. c. 35, s. 80; 43 & 44 Yict. c. 19, s. 57. 2 53 & 54 Viet. c. 8, s. 23. 3 See ante, p. 95. 288 INCOME TAX ACTS. Chap. IV. able by a penalty of 50/., recoverable as a penalty imposed by virtue of the l Taxes Management Act, 1880. SECTION III. SCHEDULE C. 2 Claim of Exemption of Property of Friendly Society invested in Public Securities in Bank of England. 3 Any such exemption may be claimed and the right thereto proved by any trustee, or treasurer, of the society, or by any member of the society, before the Special Commissioners. 4 Claim of Exemption of Stock, fyc., of Charitable Institutions By whom made. 5 The application of the stock, &c., to charitable purposes may be proved before the Special Commissioners by any agent, or factor, on behalf of the institution, or by any of its members, or trustees. 6 The claim to exemption by any trade union entitled thereto under the " Trade Union (Provident Funds) Act, 1893," is to be claimed and allowed in the same manner as is pre- scribed by law in the case of income applicable and applied to charitable purposes. 1 43 & 44 Viet. c. 19. 2 As to tliis claim, see ante, p. 98. 3 5 & 6 Yict. c. 35, s. 88, r. 1. 4 As to this claim, see ante, p. 100. 5 5 & 6 Viet. c. 35, s. 88, r. 3. 6 56 Viet. c. 2, s. 2 ; see ante, p. 100. INCOME TAX ACTS. 289 1 Claim of Exemption of Stock, fyc., belonging to her Chap. IV. Majesty in the Books of the Bank of England, and to any - accredited Minister of any Foreign State resident in Great Britain, if standing in the name of any Trustee _ By whom macle.*The property in the stock, &c., may be proved before the Special Commissioners by the trustee in whose name it stands. All Claims of Exemption under Rules in Schedule C. To whom and where to be made. * All claims of exemp- tion under any of the rules contained in Schedule C. must be made to the Special Commissioners at the head office of Inland Eevenue in England, according to the following rules : 1. Every claim must be in writing, in *the pre- First rule scribed form ; and the Special Commissioners fS. f must require the same to be verified on the affidavit of every such person, as they may think necessary. The Special Commissioners have authority to require from every person whom they may think proper to examine touching such claim, true answers upon oath to all such questions as they may think ma- terial. 2. Whenever the Special Commissioners allow Second any such exemption, they give an order 1 As to this claim, see ante, p. 101. 2 5 & 6 Viet. c. 35, s. 88, r. 5. 3 5 & 6 Yict. c. 35, s. 98. 4 That is, in such form as the Board direct 290 INCOME TAX ACTS. Chap. iv. payment of the sums retained for the duties payment on the annuities, dividends, and shares, in allowance respect of which they have allowed such ex- emption emption, to the respective claimants, or to the attorneys, or agents, who have been authorized to receive the annuities, &c., on behalf of the claimants, and the payment is made in the same manner as Ms provided with respect to allowances granted under No. 5 of Schedule A. 2 But the claim must be made within three years next after the end of the year of assess- ment to which the claim relates. Claim of Exemption by a Person whose Yearly Income is less than 150/., and of Abatement by a Person whose Yearly Income is less than 400/. 3 This exemption, and abatement, respectively, may be claimed by persons chargeable under Schedule C. ; but, inasmuch as the claim is not made under the rules contained in that schedule, it would seem that it must be made in the manner described when 4 we were treating of similar claims made by persons chargeable under Schedule A. The same remark applies to the claim for abatement allowed on account of life assurance, and purchase of deferred annuities. 1 See ante, p. 263. 2 23 & 24 Yict. c. 14, s. 10. 3 5 & 6 Yict. c. 35, ss. 163170; 39 & 40 Yict. c. 16, s. 8. 4 Ante, pp. 265269, 271. INCOME TAX ACTS. 291 Relief against Double Assessment. The duties under Chap. IV. Schedule C. being levied by way of deduction from the annuities, &c., upon which they are charged, it is difficult to see how a case of double assessment can arise with reference to them ; but if any such case does occur, Hhe enactments 2 we have quoted in dealing with cases of double assessment under Schedule A., which oblige the Board, upon proof of the double assessment being made, 3 within the time limited, to their satisfaction, to vacate the erroneous assessment, and to order the repayment of duty paid under it, will enable a person so charged by error under Schedule C. to obtain the relief to which he is entitled. Case for Opinion of the High Court. In case, too, of any appeal to the Special Commissioners, the appellant, if dissatisfied with their determination, as being erroneous in point of law, 4 may have a case submitted for the opinion of the High Court; the procedure being similar to that 5 we have described when dealing with cases for the opinion of the High Court having reference to the duties charged under Schedule A. G An appeal lies from the decision of 1 5 & 6 Viet. c. 35, s. 171 ; 43 & 44 Viet. c. 19, s. 60. 2 Ante, pp. 285, 286. 3 Three years. 23 & 24 Viet. c. 14, s. 10. * 43 & 44 Viet. c. 19, s. 59. See ante, p. 280, note 5 , 5 Ante, pp. 280, 282. 6 41 & 42 Viet. c. 15, s. 15. o2 292 INCOME TAX ACTS. Chap. iv. the High Court to Her Majesty's Court of Appeal ; and from thence to the House of Lords. SECTION IY. SCHEDULE D. Deductions on Payment of Interest of Money, fyc., from Profits charged under Schedule D. J Whenever it is proved to the satisfaction of the Commissioners acting for the district in which the person making the application resides, that any interest of money, annuity, or other annual payment, is annually paid out of the profits and gains bond fide accounted for, and charged, under Schedule D., without any deduc- tion on account thereof, such Commissioners may grant a certificate under the hands of any two of them, in the 2 prescribed form, and such certificate will entitle the person so assessed, upon payment of such interest, &c., to deduct so much as the duty upon such interest would amount to ; and such deduction must he allowed by the person entitled to receive such interest, &c. But no such certificate is required when such payments are made out of the profits or gains arising from lands, tenements, or hereditaments, or of any office, or employment of profit, or out of any annuity, pension, or stipend, or any dividend or share in public annuities, in order to authorize the making of such deductions. 1 5 & 6 Viet. c. 35, s. 104. 2 The Board have a general authority to prescribe, supply, and approve forms. 43 & 44 Viet. c. 19, s. 15. INCOME TAX ACTS. 293 Exemption in Case of Charitable Institutions from Chap. IV. Duties on Interest chargeable under Schedule D. 1 Every corporation, fraternity, or society of persons, and trustee, for charitable purposes only, is entitled to the same exemption in respect of any yearly interest, or other annual payment, chargeable under Schedule D., in so far as the same is applied to charitable purposes only, as 2 is allowed to such cor- poration, &c., in respect of any stock, or dividends, chargeable under Schedule C., and applied to like purposes. The exemption is allowed by the Special Commissioners, on due proof before them ; and the amount of the duties paid by such corporation, &c., in respect of such interest or annual payment, either by deduction or otherwise, is repaid under the order of the Special Commissioners in the 3 same manner as sums allowed by them in pursuance of any exemption contained in Schedule C. are repaid. 4 The claim to exemption by any trade union en- titled thereto under the " Trade Union (Provident Funds) Act, 1893," is to be claimed and allowed in the same manner as is prescribed by law in the case of income applicable and applied to charitable pur- poses. If it was the intention of those who framed Case of the section above referred to, to effectuate an of Psalms and Hymns v. Whit- 1 5 & 6 Viet. c. 35, s. 105. well. 2 See ante, p. 100. 3 See ante, p. 288. 4 56 Viet. c. 2, s. 2. 294 INCOME TAX ACTS. Chap. IV. intention similar to that expressed in Schedule C., with regard to stock of charitable institutions, that intention has not been effectuated. Certain trustees published a hymn book, and in accord- ance with the directions of the trust deed dis- tributed the profits among widows and orphans of Baptist ministers and missionaries. It was held that such profits were ordinary trade profits, not " yearly interest " or an " annual payment " within the meaning of this section, and were, therefore, not exempt from income tax. The Trustees of Psalms and Hymns v. Whitwell, 7 T. L. E. 164. Exemption in Case of Persons whose Income is less ihan 150/. a Year ; and Abatement in case of Persons whose Income is less than 40 OL a Year. x This ex- emption, and abatement, respectively, may be claimed in respect of duties charged under Schedule D., as well as in respect of duties charged under Schedule A. ; and the mode of claiming the exemption or abatement with reference to duties charged under Schedule D. is similar to 2 that prescribed for claim- ing the same with reference to duties charged under Schedule A. Abatement on Account of Life Assurance, or Purchase of Deferred Annuity. The claim to this abatement, in 1 5 & 6 Yict. c. 35, ss. 163170 ; 39 & 40 Yict. c. 16, s. 8. 2 See ante, pp. 265269, 271. INCOME TAX ACTS. 295 case the duty has been assessed without deduction on Chap. iv. that account and has been paid as assessed, is made in like manner as a similar 1 claim by a person charged under Schedule A. Allowance on ^Account of Diminished Value of Machinery by Wear and Tear. 2 In the case of any trade, manufacture, or concern in the nature of trade, chargeable under Schedule D., when any machinery or plant used for the purposes of the trade, &c., is let upon such terms that the burden of maintaining, and restoring, the same falls upon the lessor, he is entitled, upon claim made to the Special, or General, Commissioners in the manner prescribed by sect. 61 of 5 & 6 Yict. c. 35, to have repaid to him such a portion of the sum which has been assessed and charged in respect of the machinery or plant, and deducted by the lessee on payment of the rent, as represents the income tax upon such an amount as the Commissioners think reasonable, as representing the diminished value by reason of wear and tear of the machinery or plant during the year. But no such claim is allowed, unless it is made within twelve calendar months after the expiration of the year of assessment. 1 See ante, pp. 271, 272. 2 41 & 42 Viet. c. 15, s. 12. We are dealing now, it will be observed, only with the claim to repayment made by the lessor of machinery, &c. As to the deduction for diminished value of machinery, &c., made upon assessment of any such trade, &c., as above mentioned, see ante, p. 60. 296 INCOME TAX ACTS. Chap, IV. Appeal against Assessment made by Additional Com- missioners, fyc. Notice of Day for. x If any person thinks himself aggrieved by an assessment made by the Additional Commissioners, or by any objection to such assessment made by any Surveyor, he may appeal to the General Commissioners, in the same district in which the assessment was made. Ten days' notice of the intention to appeal must be given to the Surveyor. 2 If the person assessed removes from the district in which he was assessed without appealing, and afterwards desires to appeal, the Board may, if they think fit, upon his application, authorize the General Commissioners for the district to which he has removed, to hear and determine his appeal, in like manner as if it had been prosecuted before the General Commissioners for the district in which he was assessed. The General Commissioners must from time to time appoint days for hearing appeals as soon after any assessment is returned to them by the Additional Commissioners as can con- veniently be done; and the Assessors must give notice of the days so appointed to the different appellants. The meetings of the Commissioners for the purpose of hearing appeals are held from time to time, within the time limited by the Commis- sioners, 3 who cause a general notice to be fixed up 1 5 & 6 Viet. c. 35, s. 118. 2 16 & 17 Viet. c. 34, s. 55. 3 5&6 Viet. c. 35, s. 119. INCOME TAX ACTS. in their office, or left with their clerk, and also Chap. IV. to be affixed on, or near to, the door of the church, or chapel, of the parish or place ; or, if such parish or place has no church, or chapel, then on, or near to, the door of the church, or chapel, of some adjoining parish or place, limiting the time for hearing all appeals. *No appeal can, as a general rule, be received after the time so limited, except 2 on account of diminution of income, 3 but if any person is prevented by absence, sickness, or other reasonable cause, to be allowed by the Commissioners, from making, or proceeding upon, his appeal within the time so limited, the Commissioners may give further time for that purpose ; or may admit the appeal to- be made by any agent, clerk, or servant, on behalf of such appellant; and 4 if the appeal is made on behalf of any person who is absent out of the realm, or prevented by sickness from attending in person within the time so limited, the Commissioners may postpone such appeal from time to time, or admit other proof than the oath of the appellant of the- truth of 5 the several matters required to be proved by his oath. 1 5 & 6 Viet. c. 35, ss. 118 and 119. 2 As to appeals on account of diminution of income, see post, pp. 303306. 3 5 & 6 Viet. c. 35, s. 118. 4 5&6 Viet. c. 35, s. 119. 6 As to these matters, see ante, pp. 275 278. o5 298 INCOME TAX ACTS. Chap. IV. Proceedings after Notice of Appeal given, and when Objection of Surveyor allowed. l The General Com- missioners, upon receiving notice of appeal against any assessment made by the Additional Commis- sioners, and also whenever they see cause to allow an objection of the Surveyor to such assessment, direct their precept to the appellant to return to them, within the time limited in the precept, a schedule containing such particulars as the Commissioners may demand respecting the property of the appellant, or the trade, manufacture, adventure, or concern in the nature of trade, or the profession, employment, or vocation, carried on and exercised by the appellant, and the amount of the balance of his profits and gains, distinguishing the amounts received from each 2 separate source, or respecting the particulars of the deductions from any of such profits or gains made in the statements or schedules delivered by him. The Commissioners may demand such schedules at their discretion, whenever they think them necessary, from time to time, until a complete schedule satisfactory to them of all the particulars required by them has been delivered. The precept of the Commissioners is delivered to the appellant, or left at his last, or usual, place of abode; or, if the appellant has removed from the jurisdiction of the Commissioners, or cannot be found, is fixed on, or near to, the door 1 5 & 6 Viet. c. 35, s. 120. 2 As to these sources, see ante, pp. 124, 154, 156, 158 and 162. INCOME TAX ACTS. 299 of the church, or chapel, of the place where the Chap. IV. Commissioners meet, and is thereupon binding upon the appellant. The Surveyor has free access, at all reasonable times, to any schedule delivered in pur- suance of the precept of the Commissioners, and may take such copies thereof, or extracts therefrom, as he may think necessary. l He may within a reasonable time after examining any such schedule, to be allowed by the Commissioners, object to the schedule, or any part thereof, and state his objection in writing ; and in such case he must deliver a notice in writing of his objection, under cover, sealed up, and directed to the appellant, or leave the same at his last, or usual, place of abode, in order that the appellant may, if he thinks fit, appeal from the objection to the Com- missioners. No assessment can be confirmed, or altered, until the appeal upon the objection, or the assessment, has been heard and determined. 2 If upon receiving the objection of the Surveyor to any schedule the Commissioners see cause to disallow the objection, or if upon hearing any appeal they are satisfied with the assessment made by the Additional Commissioners, or if after delivery of a schedule they are satisfied therewith, and have received no information of its insufficiency, the General Com- missioners direct such assessment to be confirmed, or altered, as the case requires. But if the Greneral 1 5 & 6 Viet. c. 35, s. 121. 2 5 & 6 Viet. c. 35, s. 122. 300 INCOME TAX ACTS. Chap. IV. Commissioners think that the statement upon which the Additional Commissioners made their assessment, or the schedule delivered to themselves, should be verified, they direct the Assessor to give notice to the person charged to appear before them to verify the statement or schedule, and such person must appear accordingly and verify the contents of his statement or schedule on oath and sign the same ; but he is at liberty to amend the statement or schedule before being required to take the oath. The Commissioners may also, if they are dissatisfied with any assessment returned to them by the Additional Commissioners, or with any schedule delivered to them, or if they require any further information, make the enquiries and proceed in the manner we have before described. After such oath, and whenever the statement or schedule has not been objected to, and the Commis- sioners are satisfied therewith, they make an assess- ment according to the statement or schedule, which is final and conclusive as to the matters contained in the statement or schedule. 2 When any person has neglected, or refused, to return a schedule according to the exigency of the precept of the Commissioners, or any clerk, agent, or servant, of any such person, being summoned, has neglected, or refused, to appear before the Commissioners to be examined, or if any such person, or his clerk, agent, or servant, being 1 Ante, pp. 238240. 2 5 & 6 Yict. c. 35, s. 126. INCOME TAX ACTS. 301 summoned has declined to answer any question put Chap. IV. to him in writing, or viva voce, by the Commissioners, or where any schedule delivered has been objected to and the objection has not been appealed against, or when any person being required to verify his state- ment or schedule, or his answers, or examination in writing, shall have neglected, or refused, to do so, or when the Commissioners agree to allow the objec- tions, or any of them, made by the Surveyor, the Commissioners settle and ascertain according to the best of their judgment in what sums the person chargeable ought to be charged, and make an assess- ment accordingly, which is final and conclusive. l In every case in which the General Commissioners have made any increased assessment upon the amount contained in the statement or schedule of the person to be charged, or at any time discover that any increase ought to be made, whether upon the sur- charge of the Surveyor, or from his information or otherwise, they may charge such person in a sum not exceeding treble the amount by which the duties have been increased, unless he makes it appear to the satisfaction of the Commissioners that the omission complained of did not proceed from any fraud, covin, act, or contrivance, or from gross, or wilful neglect. Appeal may be to Special Commissioners instead of to General Commissioners. 2 In any case in which an 1 5 & 6 Yict. c. 35, s. 127. 2 5 & 6 Viet. c. 35, 8. 130. 302 INCOME TAX ACTS. Chap. IV. appeal is allowed to be made to the General Commis- sioners against any assessment under Schedule D., or against any objection of the Surveyor to such assess- ment, or against any surcharge of the duties, he may, if he thinks fit, instead of appealing to the General Commissioners, appeal to the Special Com- missioners. In that case he must give notice in writing of his intention to the Surveyor, within the time limited for notice of appeal to the General Com- missioners in similar cases. The appeal is then heard and determined by two or more of the Special Commissioners directed by the Board to hear appeals in the district in which the appellant is chargeable ; and their determination is final and conclusive. But every appeal upon a claim to exemption on account of the appellant's income being less than 150/. a year, or l upon a claim to abatement on account of the appellant's income being less than 40 O/. a year, must be made to the General Commissioners. Appeal in Case of Assessment by Special Commis- sioners on Application of Persons chargeable. 2 An assessment made by the Special Commissioners upon the application of the person chargeable is subject to appeal by either the person charged, or the Sur- veyor ; and the appeal is made in like manner, and i 5 & 6 Yict. c. 35, s. 130; 16 & 17 Viet. c. 34, s. 28 ; 39 & 40 Viet. c. 16, s. 8. 5 & 6 Viet. c. 35, s. 131. INCOME TAX ACTS. 303 under like rules and regulations, as l an appeal Chap. iv. against an assessment made by the Additional Com- missioners ; but every such, appeal is heard and determined by the Special Commissioners directed by the Board to hear appeals in the district. If either the person charged, or the Surveyor, thinks the determination of the Special Commissioners on any such appeal is wrong, and then expresses himself dissatisfied therewith, the Commissioners must, if required, state specially, and sign, the case upon which the question arises, with their determination thereon, and transmit the same to the Board for their opinion, who, with all convenient speed, state, and subscribe, their opinion on the case so trans- mitted, and according to the opinion of the Board, whose decision is final and conclusive, the assess- ment is altered or confirmed. Relief on Account of Diminution of Income. 2 If 3 within, or at the end of, the year current at the time of making any assessment, or at the end of any year when such assessment ought to have been made, any person charged to the duties under Schedule D., 1 See ante, pp. 296 et seq. 2 5 & 6 Yict. c. 35, s. 133. 3 That is "in as short a time as, by using all reasonable and proper exertions, the party claiming can possibly have ascertained the fact and amount of the overpayment." Lord Esher, M. E., in Reg. v. Commissioners of Income Tax, In re Cape Copper Mining Co., 21 Q. B. D. 313 ; 36 W. E. 776; 57 L. J., Q. B. 513; and see JRussell v. North of Scot- land Bank, 28 Sco. L. E. 389. 304 INCOME TAX ACTS. Chap. IV. finds, and proves to the satisfaction of the General Commissioners, that his profits and gains during such year fell short of the sum at which those profits and gains were computed, in respect of the same 1 source of profit as that upon which the computation was made, the Commissioners may amend the assess- ment for such current year as the case may require ; and, if the sum assessed has been paid, they certify under their hands to the Special Commissioners, at the 2 Chief Office for Inland Eevenue in England, the amount of the sum overpaid upon the assessment, and thereupon the Special Commissioners 3 issue an order for the repayment of the sum overpaid, directed to the Receiver General of Inland Revenue, or to an officer for receipt, or Collector, of the duties, or to a distributor, or sub-distributor, of stamps, as in the case of 4 allowances granted under No. 5 of Schedule A. 5 But no such reduction or repayment will be made in any case unless the profits of the year of assessment are proved to be less than the profits for one year on the average of the last three years, including the year of assessment; and no such 1 As to the sources of profit, see ante, pp. 124, 154, 156, 158 and 162. 2 12 & 13 Yict. c. 1, s. 17. 3 If the Special Commissioners wrongfully decline to issue an order for repayment, a mandamus will lie to compel them. Reg. v. Commissioners of Income Tax, In re Cape Copper Mining Co., ubi sup. 4 As to these aUowances, see ante, pp. 262264, 275. 6 28 & 29 Viet. c. 30, s. 6. INCOME TAX ACTS. 305 relief will exceed in amount the difference between Chap. IV. the sum on which the assessment has been made and such average profits for one year as aforesaid. *And in case any person charged to the duties under Sche- dule D. ceases to exercise the profession or to carry on the trade, employment, or vocation in respect of which the assessment was made, or dies, or becomes bankrupt or insolvent before the end of the year for making the assessment, or from any other specific cause, is deprived of, or loses, the profits or gains on which the computation of duty was made, such per- son, or his executors or administrators, may apply to the Greneral Commissioners of the district within three calendar months after the end of such year; and upon proof of the facts to the satisfaction of the Commissioners, they may amend the assessment as the case may require, and give such relief to the person charged, or to his executors or administrators, as is just. In cases requiring the same, the Com- missioners may order repayment to be made as above of the sum overpaid. But when any person has succeeded to the trade or business of the person charged, no abatement is made, unless the Com- missioners are satisfied that the profits and gains of such trade or business have fallen short from some specific cause since such change or succession took place. 2 If a person who has sustained a loss in any 1 5 & 6 Viet. c. 35, s. 134. 2 53 & 54 Viet. c. 8, s. 23. 306 INCOME TAX ACTS. Chap. IV. trade, manufacture, adventure or concern, or profes- sion, employment or vocation, carried on by him either solely or in partnership, seeks an adjustment of his liability by reference to the loss, and to the aggregate amount of his income for the year, he may obtain such adjustment in the manner before stated. Appeal against Surveyor's Charges and against Sur- charges. What 2 has been said of appeals against a Surveyor's charges, and against surcharges under Schedule A., applies equally to appeals against similar charges and surcharges under Schedule D. Case for Opinion of High Court. 3 Upon the de- termination of any appeal by the Greneral Commis- sioners, or by the Special Commissioners, either the appellant or Surveyor may, if dissatisfied with the determination as being erroneous in point of law, require a case to be stated in the manner we have 4 before described. 5 An appeal lies from the decision of the High Court to Her Majesty's Court of Appeal, and from thence to the House of Lords. Relief from Double Assessment. 6 Whenever it ap- pears to the Board that a person has been assessed 1 See ante, pp. 303 et seq. 2 Ante, pp. 282 et seq. 3 43 & 44 Viet. c. 19, s. 59. 4 Ante, pp. 280, 282. 5 41 & 42 Viet. c. 15, s. 15 ; 43 & 44 Yict. c. 19, s. 59. e 43 & 44 Yict. c. 19, s. 60. INCOME TAX ACTS. 307 more than once to the duties for the same cause and Cha?. iv. for the same year, they direct the whole, or such part, of any assessment appearing to be an overcharge to be vacated. SECTION Y. SCHEDULE E. Claims of Exemption , Appeals, 8fc. upon Assessments under Schedule E. There is not much to be said with regard to claims of exemption, and abatement, and appeals made upon assessments under Schedule E. The necessity for making such claims or appeals can rarely, if ever, arise in cases where the assessment is made by the Commissioners for the particular office, or department, in which the employment of profit, which is the subject of assessment, is carried on. In cases where the assessment is made by the General Commissioners of a district, much of what we have said upon the subject of claims and appeals in dealing with assessments made under the other schedules, will be applicable to assessments under Schedule E. We will add only the following provisions, which have special reference to the last-mentioned assess- ments : 1. J When a change has taken place during the year of assessment in any office or employ- ment, chargeable under Schedule E., the assessment in respect of such office or em- ployment is levied for the whole year, not- withstanding such change, without any new 1 5 & 6 Yict. c. 35, s. 146, r. 1. 308 INCOME TAX ACTS. Chap. IV. assessment ; but the person quitting such office or employment, or dying within the year, or his executors or administrators, is, or are, liahle for the arrears due before, or at the time of, his so quitting such office or employ- ment, or dying, and for such further period of time as shall then have elapsed, to be settled by the respective Commissioners; and his successor has a right to be repaid such sums as he has paid for duty on account of such portion of the year as aforesaid; and each such assessment remains in force for one whole year unless the office, or employment, or the annuity, pension, or stipend, payable in respect thereof ceases, or expires within the year by lapse, death, or otherwise, from which period the assessment is discharged. 2. 1 In every case in which any person holding any office or employment, or being entitled to any pension, or stipend, claims to be exempt from such assessment, the Commissioners must nevertheless set down in such assessment the name of such person, and the full and just value of such office, &c. ; and the claim to such exemption must be preferred, and exa- mined, and the merits thereof heard and determined, under the regulations in force with respect to other assessments. 1 5 & 6 Viet. c. 35, 8. 152. INCOME TAX ACTS. 309 3. l ln cases of claim to exemption on account of Chap. rv. the claimant's income being less than 1501. a year, where the whole income of the claimant arises from an office, or employment of profit, the duties whereon are cognizable before the Commissioners of a department of office, or from a pension, or stipend, the claim may be made to, and allowed by, the Com- missioners of the department in which the duties are cognizable ; and if the claimant is out of Great Britain the facts required to be stated in support of the claim may be stated by affidavit taken before any person having authority to administer an oath in the place where the claimant resides. 1 5 & 6 Yict. c. 35, s. 169. INDEX. A. ABATEMENT, on account of life insurance or purchase of deferred annuity, 87_89, 96, 101, 128, 129, 169. how claimed, 271, 294. in respect of 120/. of income where yearly income is less than 400Z. a year, 89, 90, 96, 97, 101, 102, 164, 170, 171. how claimed, 265270, 290, 294. See also DEDUCTION AND ALLOWANCES EXEMPTION. ABSENTEES. See PERSONS EESIDING OUT OF GREAT BRITAIN. ABSENTEES, temporary. See PERSONS WHO GO ABROAD FOR PURPOSES OF TEMPORARY EESIDENCE. ACCOUNT, by Collectors. See COLLECTORS. of salaries chargeable under Schedule E. to be delivered on request of Assessor, 256, 257. See also STATEMENT. ACTIONS, against Commissioners and other officers, limitation of, 38, 39. against Collectors appointed by General Commissioners must be defended by Commissioners, 39. for recovery of penalties exceeding 20?. imposed by Income Tax Acts, 39, 40. See also EECOVERY OF DUTIES. ADDITIONAL ASSESSMENT. See ASSESSMENT. ADDITIONAL COMMISSIONERS. See COMMISSIONERS. 312 INDEX. ADDITIONAL SALAEY during year of assessment, how charged under Schedule E., 259. ADMINISTRATORS. See EXECUTORS AND ADMINISTRATORS. ADVERTISEMENTS, a question whether cost of, may be de- ducted from profits of trade, 150, note 1 . AFFIDAVIT, inquiries by, or before, Special Commissioners, answered by, 215. claims for allowances for rents of lands, &c., belonging to hospitals, public schools, or almshouses, or vested in trustees for charitable purposes, made by, 273. claims of exemption under rules in Schedule C., must be verified by, 289. See also STAMP DUTY. AGENT OF BANK, occupying part of bank premises rent free, not compelled to bring value of free residence into ac- count (Tennant v. Smith), 165. AGENTS, statements by, may be signed by one of, on behalf of him- self and others, 177. for persons resident out of Great Britain, chargeable for profits of principals, 179, 180. only chargeable if principal cannot be got at, 179, note 3 . being charged, may retain duties, 181. of partners resident abroad must make return, 232. AGREEMENT, when rent fixed by, determines annual value, 48, 49. for payment of any interest, rent, or annual payment, with- out deduction of duty, void, 201. ALDERMEN. See MAYOR. ALLOWANCES. See DEDUCTIONS AND ALLOWANCES. ALMSHOUSES. See AFFIDAVIT; DEDUCTIONS AND ALLOW- ANCES. ALUM MINES AND WORKS. See ANNUAL VALUE. AMBASSADORS. See FOREIGN MINISTERS. AMENDMENT OF ASSESSMENT. See ASSESSMENT. INDEX. 313 ANNUAL VALUE, OF PROPERTY CHARGEABLE UNDER SCHEDULE A., general rule for ascertaining, 48. extent of application of general rule, 49, 50. special rules for ascertaining if owner pays rates and taxes, by law a charge upon occupier, 49. if occupier pays rates and taxes, by law a charge upon owner, 49. if rent depends on price of corn, &c., 50. if whole or part of rent reserved in corn or grain, 50. if rent depends on actual produce of land, 50. of tithes taken in kind, 51. of ecclesiastical dues, 51. of compositions, rents, and money payments, in lieu of tithes, other than tithe rentcharges, 51, 52. of manors and other royalties, 52. of fines upon demise, 53. of other profits arising from land not in occupation of person chargeable, and not before enumerated, 53. if the possession, or interest, of the party to be charged has commenced within the time for which the average by which the annual value is to be estimated is directed to be taken, 53, 71, 72. of quarries of stone, slate, limestone, or chalk, 54. of mines of coal, tin, lead, copper, mundic, iron and other mines (except alum mines), 55, 56. of iron works, gas works in England, salt springs, alum mines or works, water works, streams of water, canals, inland navigations, docks, drains and levels, fishings, rights of market, fairs, tolls, railways and other ways, bridges, ferries and other like concerns, 59, 60. of gas works on the continent of Europe, or in the Colonies, 59, note 4 . UNDER SCHEDULE B., rules for ascertaining, generally the same as under Schedule A., 92. in case of land subject to tithe rentcharge, and lands tithe free, 92. in case of lands subject to modus, 93. in case of lands subject to modus and tithe, 93. ANNUAL VALUE of lands, &c., how estimated for purpose of claiming exemption on ground of annual income being less than 150?., 269, 270. E. P 314 INDEX. ANNUITIES, charged on any property, duty may be deducted on pay- ment, 198, 199. payable to, or by, Bank of England, 215 217. payable by Bank of Ireland, 217, 218. payable by Commissioners for Eeduction of National Debt, 218, 219. payable out of public revenue of any Foreign State, or any Colony, 219, 220. See also SMALL ANNUITIES. deferred, allowances on account of purchase of. See DE- DUCTIONS AND ALLOWANCES. ANNUITY paid out of profits accounted for and charged without deduction under Schedule D., certificate to entitle person assessed to deduct duty, 292. APPEAL, none on question of fact from decision of Commissioners, 280, note 5 . on question of law, lies from High Court to Court of Appeal and House of Lords, 282, 291, 306. APPEALS, UNDER SCHEDULE A., against first assessment, 274 278. notice of day appointed for, must be given, 274. and to every appellant, 275. notice of objection to found appeal, 275. meetings of Commissioners for hearing, 275. (generally) no assessment may be altered except upon, 275. proceedings upon, 275 278. Surveyor may attend hearing, 276. valuation of lands, &c., may be had upon, in certain cases, 276, 277. but not in respect of lands, &c., in the metropolis, 276. decision of General Commissioners upon, final, except in case of Appeal to High Court, 277. made to General Commissioners, 277. in case person charged has removed, Board may authorize Commissioners of district to which he has removed to hear appeal, 277, 278. for apportionment in case of divided occupation, 278. against additional first assessment, 282. against Surveyor's charges, 282, 283. INDEX. 315 APPEALS continued. UNDER SCHEDULE A. continued. against surcharges, 283, 284. in respect of duties charged upon mines and quarries, may be to Special Commissioners, 284, 285. UNDER SCHEDULE B., mode of appealing, 286 288. UNDER SCHEDULE D., against assessment made by Additional Commissioners, 296301. notice of intention to appeal must be given to Surveyor, 296. in case person charged has removed and afterwards desires to appeal, Board may authorize Commissioners of dis- trict to which he has removed to hear appeal, 296. General Commissioners appoint days for hearing, 296. notice of days appointed for, must be given to appellants, 296. (generally) no appeal can be heard after time limited, except on account of diminution of income, 297. but Commissioners may give further time in certain cases, 297. if appellant cannot appear personally, agent, clerk, or servant, may, in certain cases, appear for him, 297. Commissioners may postpone appeal, or admit other proof than oath of appellant, 297. proceedings after notice of appeal given, and Surveyor's objection allowed, 298301. appellant may be required to return a schedule, 298. may be to Special Commissioners instead of to General Commissioners, 301, 302. in case of assessment by Special Commissioners on appli- cation by person chargeable, 302, 303. APPORTIONMENT, in case of divided occupation. See APPEALS. APPRAISEMENT. See STAMP DUTY. ARMT5T, office of any commissioned officer in, chargeable under- ScheduleE., 167. ARREARS. See EXECUTION CREDITOR INSUPERS RECOVERY OF DUTY. ARREARS, SCHEDULES OF. See SCHEDULES OF ARREARS. p2 316 INDEX. \ ASSESSMENT, UNDER SCHEDULE A., who are Commissioners for making, 172. place of charge, 173, 174. mode of proceeding to obtain return, 174, 175. persons required to make out lists, &c., 175 177. lists, &c., how to be made out, 177, 178. persons chargeable, 179. persons chargeable in respect of profits not their own, 179181. persons abroad but ordinarily resident in Great Britain, 185. persons temporarily resident in Great Britain, 185. proceedings after notices given, 185. period for which made, 186. in case of return made by person chargeable, 186 189. Assessor's certificates of, 190. amendment of, by Surveyor, 191, 192. additional first, 192. allowance of, 192, 193. omissions from first, or additional first, how dealt with, 193, 194. apportionment of, in case of divided occupation, 194. of railways, 194, 195. not made or allowed when first assessment allowed, in- cluded in separate form of assessment, 195. UNDER SCHEDULE B., 213. UNDER SCHEDULE C., who are Commissioners for making, 214. on annuities, &c. , payable to, or by, Bank of England, 215217. on annuities, &c., payable by Bank of Ireland, 217, 218. on annuities payable by Commissioners for Beduction of National Debt, 218, 219. on annuities, &c., payable out of Eevenue of Foreign State, or Colonial Eevenues, 219221. on interest on Exchequer Securities, 221, 222. on small annuities, of which half-yearly payment does not amount to 50s., 222, 223. UNDER SCHEDULE D., period for which made, 224. place of charge, 224227. for householders not engaged in trade or profession, 224. for person engaged in trade or profession, 224. for person not householder and not engaged in trade or profession, 224, 225. INDEX. 317 ASSESSMENT continued. UNDER SCHEDULE D. continued. place of charge continued. for person not before described, 225. where trade is carried on in Great Britain, place of charge is place of manufacture, not of sale, of goods, 225. person not engaged in trade or profession having two residences may be charged at his ordinary residence, 225. of profits arising from foreign or colonial possessions, 226, 227. of profits arising from London Docks, East and West India Docks, and St. Katharine's Dock, 227. who are Commissioners for making, 227 231. on profits of, and pensions and salaries payable by, Bank of England, 227, 228. on salaries and pensions payable in any office under control of Commissioners for Eeduction of the National Debt, 228. on Dividends, &c., payable in respect of stock of foreign company, 228. on offices in Courts of law, &c., 228, 229. on offices in Houses of Parliament, Counties Pala- tine, Courts of Justice, &c., 230, 231. When assessment made by General Commissioners or by Special Commissioners at request of person charged. mode of proceeding to obtain return, 231. persons required to make out lists, 231. proceedings after notices given, 231. General Commissioners may open office for receipt of statements of profits chargeable under Schedule D., 231, 232. where trade or profession carried on by two or more jointly, 232234. where there has been a change in a partnership, 232, 233. where a person is engaged in separate partnerships, 233. in case of return made by person chargeable, 234 237. in case no return made by person chargeable, 237, 238. amendment of, by Additional Commissioner, 238. inquiries by General Commissioners upon, 238 240. proceeding upon allowance of Surveyor's objection to, 240244. by Special Commissioners on request of person charge- able, 244, 245. 318 INDEX. ASSESSMENT continued. UNDER SCHEDULE D. continued. When assessment made ~by Special Commissioners, procedure and powers of Special Commissioners, 245, 246. UNDER SCHEDULE E., who are Commissioners for making, 252 254. period for which made, 255. proceedings in order to, 255 257. additional, 259. See also ASSESSORS DUPLICATES OF ASSESSMENTS. ASSESSOES, how appointed by General Commissioners, 27, 28. period for which appointment made, 28. when appointed by magistrates, 28, 29. when Surveyors may execute duties of, 29. not appointed in the Metropolis, 29 31. no persons inhabiting any city, &c., can be compelled to serve as, outside its limits, 31. declaration to be made by, before acting, 31. remuneration of, 31. special provision for exercise of duties of, sometimes made in Annual Income Tax Act, 31, 32. notices by, 174, 175, 191, 242, 274, 287, 296, 300. lists to be delivered to, 177. verification upon oath of fixing of general notices by, 185. how assessment made by, 186189. may apply for instruction to Commissioners or Surveyor, 186. may estimate value of house or land of less annual value than 10/. without return, 188. may require tenant to produce lease or agreement of tenancy, 188. if no lease or agreement, may make assessment upon written account by tenant, 189. certificates of assessment by, 190, 191. may inspect rate books, 191. in case of failure to assess by, duties in arrear may be set insuper, 211. may be appointed by Commissioners for assessing duties on interest on Exchequer Securities, 221. may be directed by General Commissioners to give notice to person charged to appear and verify schedule, 242, 299, 300. notice of desire to be assessed by Special Commissioners, in respect of profits chargeable under Schedule D., must be delivered to, 244. INDEX. 319 ASSESSOES continued. appointed by Commissioners acting under Schedule E. , 255, 236. so appointed must assess themselves and others, 256. and may have access to all documents, 256. and may require returns, 256. notices of claims to exemption on account of annual income- being less than 150?., must be delivered to, 266. and transmitted by them to Commissioners, 267. ASYLUM. See HOSPITAL. AUDITOES. See OFFICERS OF COMPANIES. B. BAD DEBTS, deduction for, 126. BANK AGENT occupying part of premises rent free. See AGENT. BANK OF ENGLAND. See GOVERNOR AND DIRECTORS OF. BANK OF IEELAND. See GOVERNOR AND DIRECTORS OF. BAERISTEE. See LEGAL ADVISER. BETTING. See PROFESSIONAL BOOKMAKERS. BILLS OF MOETALITY. See WEEKLY BILLS OF MORTALITY. BOAED, THE. See COMMISSIONERS OF INLAND EEVENUE. BODIES POLITIC, are chargeable with income tax, 180. officer acting as treasurer, &c. , of, must do all acts requisite for assessment, 180, 181. BONUS paid by Life Assurance Company to policy holders is "profits" (Lasty. London Assurance Corporation], 137 143. BOOKMAKEES. See PROFESSIONAL BOOKMAKERS. BOOKS OF ASSESSMENT kept by General and Special Com- missioners, 188. 320 INDEX. BOEOUGH, of Bouthwark, within limits of " Chief Office of Excise," 4. when General Commissioners for County may act for, 14, 15. no person inhabiting any, can be compelled to be an Assessor outside its limits, 31. BOKOUGHS. See OFFICES. BEEWEE, may not deduct premiums paid for leases of public houses (Watney v. Musgrave), 150. See PREMIUMS. BEIDGES. See ANNUAL VALUE. BEITISH MUSEUM, allowances to be made to trustees of, 87. stock vested in trustees of, exempt from duty, 100. salaries payable out of Exchequer to trustees of, exempt from duty, 100. but salaries of persons employed under trustees of, to be charged, 100. BUILDINGS, occupied for purposes of trade or profession not chargeable under Schedule B., 91. deduction may be made for rent of, in estimating pro- fits chargeable under Schedule D., 127, 130. used for Divine worship stock or dividends applicable to repair of. See EXEMPTION. public, of colleges, halls in universities, hospitals, and literary and scientific institutions. See DEDUCTIONS AND ALLOWANCES. C. CANALS, profits of, where charged, 173. See also ANNUAL VALUE. CAPITAL, no deduction to be made in respect of expenditure of (Addie & Sons v. Solicitor of Inland Revenue], 56, 57, 126; (Highland Railway Company v. Balder ston], 132 ; (Alexandria Water Company v. Musgrave], 145; (Gillatt & Watts v. Colqu- 7*oim),148,149; ( Watney v.Musgrave') ,150, 151; (Reid 's Brewery Company v. Neale], 151; (Arizona Copper Company v. Smiles), 153. INDEX. 321 CASE FOE OPINION" OF HIGH COUET, when allowed, 280, 291, 306. proceedings upon, 280 282. income tax must be paid notwithstanding pendency of, 282. CATHEDEAL, stock or dividends applicable to repairs of. See EXEMPTION. CEMETEEY COMPANIES (Edinburgh Southern Cemetery Com- pany v. Kinmont], 67, 68; (Paddington Burial Board), 121, 122. CEETIFICATES, of payment of interest, &c., out of profits accounted for and charged under Schedule D., 249, note \ 292. not required in case of payment out of profits of land, &c. office or employment of profit, or public annuity, 292. CHALK QUAEEIES. See ANNUAL VALUE. CHAMBEELAINS. See OFFICERS OF COMPANIES. CHANCELLOE. See LORD CHANCELLOR. CHANCELS, repairs of. See DEDUCTIONS AND ALLOWANCES. CHAPEL, repairs of. See DEDUCTIONS AND ALLOWANCES. stock or dividends applicable to repairs of. See EXEMPTION. CHAEGIE, PLACE OF. See PLACE OF CHARGE. CHAEITABLE INSTITUTIONS, stock of. See EXEMPTION. And see also CHARITY LANDS. CHAEITABLE PUEPOSES (Reginav. Commissioners of Income Tax ; Commissioners for Special Purposes v. Pemsel), 82 86. CHAEITY LANDS. See DEDUCTIONS AND ALLOWANCES. CHUECHES, repairs of. See DEDUCTIONS AND ALLOWANCES. stock or dividends applicable to repairs of. See EXEMPTION. CINQUE POETS. See OFFICES. CITIES COEPOEATE. See OFFICES. p5 322 INDEX. CITY, of London, within limits of "Chief Office of Excise," 4. of Westminster, within limits of "Chief Office of Excise," 4. when General Commissioners for County may act for, 14, 15. in certain cities persons may be chosen to act as General Commissioners with the General Commissioners chosen in the ordinary way, 16, 17. qualification of General Commissioner for any. See COM- MISSIONERS FOR GENERAL PURPOSES. no person inhabiting any, can be compelled to be Assessor outside its limits, 31. profits of any office in, chargeable under Schedule E., 167. who are Commissioners for assessing offices in a, 253, note 3 . CLEEGYMAN may deduct from profits of his profession ex- penses necessarily incurred in performance of duty, 72, note l t 97, note 2 , 155, 156. See also GIFT OF MONEY. CLEEK TO GENEEAL COMMISSIONEES, how appointed, 24. not removable except for just cause, 24. may not receive any fees, &c., except from person appointed by Board, 24. vacancy in office of, how filled up, 25. wilfully misconducting himself incurs penalty, 25. acts as Clerk to Additional Commissioners, 25. acting before taking oath incurs penalty, 25. Commissioners acting under Schedule E. may appoint a, 255. COAL MINES. See ANNUAL VALUE. COLLECTION, of duties under Schedule A., 196213. of duties under Schedule B., 213. of duties under Schedule C., 214223. of duties under Schedule D., 247 252. of duties under Schedule E., 252261. See also COLLECTORS. COLLECTOES, how appointed, 3235. nomination of, 32. acceptance of office by, not compulsory, 33. notice must be given by, if office declined, 33. INDEX. 323 COLLECTORS continued. appointment of, 33. appointment must be notified to, 33. when power to appoint, vests in Board, 34, 35. vacancy caused by death of, how filled, 34. Board may require security to be given by, 34, 35. Land Tax, and General, Commissioners may require secu- rity to be given by, 36. two or more inhabitants of district may require security to be given by, 36. parish answerable for, if security not given by, 37. must take prescribed oath, 37. remuneration of, 37, 38. receipt given by, on payment of duty, 196, 197. account by, 206, 207. remittance of collection by, 207. must answer lawful questions of Surveyor, or Collector of Inland Revenue, 208. See also COLLECTION. COLLECTOES OP INLAND KEVENUE, 5. COLLEGES, repairs of. See DEDUCTIONS AND ALLOWANCES. stock and dividends applicable to repairs of. See EXEMP- TION. COLLEGIATE CHUECHES, repairs of. See DEDUCTIONS AND ALLOWANCES. COLONIAL COMPANIES, securities given by, chargeable under Schedule D., 158, 159. COLONIAL POSSESSIONS, profits arising from, chargeable under Schedule D., 162. COLONIAL EEVENUES, annuities payable out of. See ANNUITIES. COLONIAL SECUEITIES, profits arising from, chargeable under Schedule D., 158. COLONIES, gas works in, chargeable under Schedule D., 59, note 4 . See also COLONIAL COMPANIES COLONIAL POSSES- SIONS COLONIAL EEVENUES COLONIAL SECUEITIES. COMMISSARY COUET under her Majesty, Commissioners in relation to offices in any, 7, 8, 228, 229. 324 INDEX. COMMISSIONED OFFICEE. See ARMY MILITIA NAVY- VOLUNTEERS. COMMISSIONERS, who are, for assessing duties under the different schedules. See ASSESSMENT. for assessing duties on offices, no qualification required of, 255. COMMISSIONERS, ADDITIONAL, who are, 20. how appointed, 21. qualification required of, 21. notice of appointment of, 21, 22. oath to be taken by, 22. may be divided into committees, 22. how many form a quorum, 22. General Commissioners may be appointed to act as, 23. Clerk to. See CLERK TO GENERAL COMMISSIONERS. assessment by, if duties chargeable under Schedule D., 234238. may refer assessment to General Commissioners, 237. COMMISSIONERS FOR GENERAL PURPOSES, act for Special Commissioners in certain cases, 10. who are, 1 1 . how selected, 12, 14. vacancies among, how supplied, 14 16. if in any district there is not a sufficient number of persons qualified to be, 14. or a neglect to appoint, 17, 18. or refusal to act, 17, 18. estate qualification for in England, except in Monmouthshire, 18, 19. in Wales and Monmouthshire, 19, 20. in certain cities and towns, 18, 19. in other cities and towns, &c., 19. oath to be taken by, 20. Clerk of. See CLERK TO GENERAL COMMISSIONERS. may require overseers to produce rate books, and may in- spect, and take copies of, same, 192, 193. may summon Assessors and overseers, and examine them on oath, 193. allowance of assessments by, 192, 193. allowance of Surveyor's certificate by, 193. must make assessment on Surveyor's certificate of objection, 194. INDEX. 325 COMMISSIONEKS FOR GENERAL PURPOSES contd. allow no abatement from assessment, except on appeal, 194, 275. apportionment of assessment by, in cases of divided occu- pation, 194. may open office for receipt of statements of profits charge- able under Schedule D., 231. may make inquiries into assessment, under Schedule D. made by Additional Commissioners, 237. proceedings by, on objection to Surveyor's assessment, 299301. See also ASSESSMENT. COMMISSIONERS OF INLAND REVENUE, who are, 3, 4. how appointed, 4. hold office during pleasure, 4. their chief office, 4. called " the Board" in Taxes Management Act, 1880... 5. may mitigate, or stay, or compound, proceedings for penal- ties in High Court, 41. COMMISSIONERS FOR REDUCTION OF NATIONAL DEBT, assess income tax in respect of annuities, salaries, and pen- sions payable by them, 7, 218, 228. COMMISSIONERS FOR SPECIAL PURPOSES, who are, 5 -11. appointed by Treasury, how, 5, 6. no qualification required of, 6. salary of, 6. account of appointments of, laid before Parliament, 6. appointment of, notified to Board, 10. otherwise appointment devolves on Treasury, 10. oath to be taken by, 10. act for General Commissioners in certain cases, 18. assessment of railways by, 60, note 1 , 172, 194, 195. are Commissioners for assessing duty on certain annuities, dividends, interest, and shares, 214 221. assessment of duties chargeable under Schedule D. by, on request of person chargeable, 244. See also ASSESSMENT. COMMISSIONERS OF HER MAJESTY'S TREASURY, who are, 3. called " the Treasury " in Taxes Management Act, 1880... 3. 326 INDEX. COMMISSIONERS OF HER MAJESTY'S TREASURY ctd. have control and superintendence as regards assessment and collection of income tax, 3. appoint Special Commissioners, 5, 6. control appointment of Commissioners in certain depart- ments of office, 8, 228, 229. appoint Commissioners in case of neglect to appoint, 10. COMMITTAL. See RECOVERY OF DUTIES. COMMITTEES, chargeable for idiots, lunatics, or insane persons under their care, 179. must make out statements, 175 178. being charged may retain duties, 181. COMMON COUNCIL. See MAYOR. COMMON, TENANTS IN. See JOINT TENANTS. COMPANY, in city corporate, who are Commissioners for assessing income tax on public offices in, 9, 10. chargeable as a "person," 104. when " resident" in England, 104. place of registration of, not conclusive as to place of resi- dence of, 104. profits of any office held under any public, chargeable under Schedule E., 167. See also COLONIAL COMPANIES FOREIGN COMPANIES OFFICERS OF COMPANIES STATEMENT. COMPOSITIONS IN LIEU OF TITHES. See ANNUAL YALUE. CONSTABLES and police officers must aid in the execution of Income Tax Acts, 41. CONTINENT OF EUROPE, gasworks on, chargeable under Schedule D., 59, note 4 . CONTRACTS for payment of any interest, rent, or annual pay- ment, without deduction of duty, void, 201. CO-OPERATIYE SOCIETIES, charge of income tax upon (Last v. London Assurance Corporation, per Lord Bramwell), 142. INDEX. 327 COPARCENERS. See JOINT TENANTS. COPPER MINES. See ANNUAL VALUE. CORNWALL, DUCHY OF. See DUCHY OF CORNWALL. CORPORATION, owning waterworks (Glasgow Corporation Waterworks), 61 64; (Mayor, &c. of Dublin v. M'Adam), 64, 65. owning gasworks (Glasgow Gas Commissioners], 65, 66 ; (Dillon v. Corporation of Haverfordwest], 67, 68 ; (Clayton v. Newcastle-under-Lyme Corporation], 133. owning cemeteries (Portolello Town Councils. Sulley], 69, 70. owning markets (Attorney -Generals. Scott], 121 ; (Birming- ham Corporation], 130, 131. profits of any office held under any, chargeable under Schedule E., 167. See also CITIES CORPORATE OFFICERS OF COMPANIES STATEMENT. COSTS, of valuation of land, &c., on appeal, 277. on case submitted to High Court, 281. COUNTIES, offices in, chargeable under Schedule E., 167. who are Commissioners for assessing officers in, 253, note 3 . COUNTIES PALATINE, principal or other officers in, may appoint Commissioners for assessing duties of income tax, 9." COURTS, civil, judicial, criminal, or ecclesiastical, or military or naval, may appoint Commissioners for assessing duties of income tax, 9. CRIMINAL COURTS. See COURTS. CROWN, prerogative of, exempts from taxation (Coomler v. Justices of Berks], 45, 46; (Adam v. Maughan), 46, 47; but see Bray v. Justices of Lancashire, 47, 48. may make the charge, where profits or gains may be charged under either of two classes or sources under Schedule D., as may be most to its advantage, 124, note l . CURATORS, chargeable for infants, 179. must make out statements, 175, 176. being charged, may retain duties, 181. 328 INDEX. D. DEALER IN CATTLE, duty charged in respect of land occu- pied by, 90, note l , 156, 157. DEALER IN MILK, duty charged in respect of land occupied by, 90, note 1 , 156, 157. DEATH. See EXECUTORS AND ADMINISTRATORS. DEBTS, no deduction for, except bad debts, 126. See also DOUBTFUL DEBTS. DECLARATION, to be made by Assessor before acting, 31. to be made by persons acting for idiots, lunatics, or insane persons, or persons resident out of Great Britain, 176, 178. by persons chargeable, or agents of persons incapacitated or abroad, 177, 178. See also STAMP DUTY STATEMENT. DEDUCTION, by owners of mines for pit sinking, when not allowed (Addie & Sons v. Solicitor of Inland Revenue; Coltness Iron Co. y. Black), 56, 57. for past losses in dead rent and royalties, not allowed (Broughton and Plas Power Coal Co.), 57, 58. for expenditure incurred to enable a person to enter a trade, not allowed (Dillon v. Corporation of Haverf or divest), 66, 67. for sinking fund, not allowed (Edinburgh Southern Cemetery Co.), 67, 68 ; (Blake v. Imperial Brazilian Railway Co.), 133, 134; (Nizam's Guaranteed Slate Rail. Co. v. Wyatt), 134, 135. for interest paid on borrowed capital, not allowed (Portolello Town Council v. Sulky), 69, 70. from profits of company in respect of interest payable to foreign bondholders, cannot be allowed (Alexandria Water Co. v. Musgrave), 135. none can be made for sums written off to form a reserve fund for contingencies or improvement of premises (Forder y. Handy side), -111. INDEX. 329 DEDUCTION continued. for premium paid on lease (Gillatt and Watts v. ColquTioun), 148, 149. by freeholder carrying on trade on his own premises for a sum which would represent a fair rent, 149, note l . for advertisements in trade (Watney v. Musgrave), 150, 151, and 150, note ! . for bonus paid on borrowed capital, not allowed (Arizona Copper Co. v. Smiles), 153. DEDUCTION OF DUTY, by occupier for rent, 197, 198 ; (Swatman v. Ambler), 201 ; (Edmonds v. Eastwood), 201. by mortgagor from interest, 198. by person liable to payment of rent, or yearly interest of money, or annuity, 198, 199, 249, 250. from rentcharge under Drainage Advances Acts, 199, 200. from tithe rentcharge, 200. agreements for payments without deduction, void, 201. from interest upon Exchequer Securities, 222. from sums charged on offices, &c., chargeable under Sche- dule E., 257259. from salaries, &c. of deputies executing offices chargeable under Schedule E., 258. by deputy receiving profits of office, 260, 261. by officer receiving fund for payment of salaries, &c., 260, 261. See also STOPPAGE or DUTIES CERTIFICATES. DEDUCTIONS AND ALLOWANCES, UNDER SCHEDULE A., allowed to clergymen, or ministers of any religious de- nomination, for expenses incurred in performance of duty, 72, note l , loo. for tenths and first fruits, duties, and fees on presenta- tions, 72. how made, 262264. for procurations and synodals, 73. how made, 262 264. for repairs of collegiate churches and chapels, chancels of churches, colleges and halls, 73. how made, 262264. for parochial rates and taxes on tithe rentcharge, 52, note \ 73, 184. how made, 272. for tithe rentcharge (when owner thereof assessed for), 183, 184. 330 INDEX. DEDUCTIONS AND ALLOWANCES continued. UNDER SCHEDULE A. continued. for expenses of collection of tithe rentcharge (Stevens v. Bishop}, 184, 185. for land tax, 73. how made, 272. for drainage rates, &c., 73 (Hesketh v. Bray\ 74. how made, 272. for wear and tear of machinery, 60, 75, 264, 265. how made, 264, 265. for colleges and halls in universities, 75, 76. how made, 272, 273. for hospitals, public schools, and almshouses, 76. how made, 273, 274. for literary or scientific institutions, 82. for charity lands, 82. how made, 273. made to British Museum, 87. made to owner of land when profits fall short of assess- ment, 87. how made, 278, 279. on account of life insurance or purchase of deferred annuity, 87 89. how claimed, 271, 272. in case of annual income being less than 400?., 89, 90. how claimed, 271. UNDER SCHEDULE B., similar to those under Schedule A., 94, 95. in case of diminished profits from occupation of land, 95, 96. on account of life insurance or purchase of deferred annuity, 96. in case of annual income being less than 400L, 96, 97. mode of claim, 286, 287. UNDER SCHEDULE C., on account of life insurance, or purchase of deferred annuity, 101. in case of annual income being less than 400Z., 101, 102. how claimed, 290. UNDER SCHEDULE D., in case of profits arising from 1st source, 125 130. in case of profits arising from 2nd source, 154 156. in case of profits arising from 3rd source, 157, 158. in case of profits arising from 4th source, 159. in case of profits arising from 5th source, 162. in case of profits arising from 6th source, 163. how claimed, 292, 294, 295. INDEX. 331 DEDUCTIONS AND ALLOWANCES continued. UNDER SCHEDULE E., for duties on sums payable by Act of Parliament, 167, 168. for official deductions and payments, 168. for travelling expenses, horse keep, and other expendi- ture, 168 (Bowers v. Harding], 168, 169. for life insurance, or purchase of deferred annuity, 169. in case of annual income being less than 400?., 170, 171. how claimed, 307 309. See also ABATEMENT EXEMPTION RELIEF. DEER FOEEST is within sect. 60 of 5 & 6 Viet. c. 35 (case of Sir G. N. Broke Middltton), 93, 94. DEFERRED ANNUITY, allowance on account of purchase of. See DEDUCTIONS AND ALLOWANCES. DEPRECIATION OF MACHINERY. See MACHINERY, WEAR AND TEAR OF. DEPUTY, must allow deduction of duty paid by principal from salary, 258. is answerable for duty, if in receipt of profits of office, 260. may deduct duty paid, 260. DIMINISHED INCOME. See RELIEF. ''DIMINISHED VALUE" OF STOCK, meaning of phrase (Caledonian Eail. Co. v. Banks), 131. DIRECTORS of company not entitled to deduct expenses of travelling to place of meeting (Revel v. Directors of Elworthy Brothers & Co., Limited], 168, note 2 . DISTRESS. See RECOVERY OF DUTY. DISTRICTS FOR PURPOSES OF LAND TAX. See LAND TAX DISTRICTS. DIVIDENDS. See ANNUITIES. DIVISION OF PARISHES, 27, note 2 . DOCKS. See ANNUAL VALUE EAST AND WEST INDIA DOCKS LONDON DOCKS ST. KATHARINE'S DOCK. DOUBLE ASSESSMENT. See RELIEF. 332 INDEX. DOUBTFUL DEBTS, value of, may be estimated, 165, 166. DRAINAGE EATES. See DEDUCTION OF DUTY DEDUCTIONS AND ALLOWANCES. DRAINS, profits of, where charged, 173. See also ANNUAL VALUE. DUCHY OF CORNWALL, officers of, have authority to ap- point Commissioners for assessing duties on offices, 9, 230. DUES, ECCLESIASTICAL. See ANNUAL VALUE. DUPLICATES OF ASSESSMENTS, prepared by Clerk to General Commissioners, 196. signed and sealed by General Commissioners, 196. delivered to Collector and Surveyor, 196. DUTY, variation in rate of. See VARIATION IN RATE OF DUTY. DWELLING-HOUSES, occupied with farms of lands, or tithes, for farming purposes, not chargeable under Schedule B., 91. parts of, being used for purposes of trade or profession, a sum for rent thereof may be deducted from profits of trade or profession, 127, 130, 156. if of less annual value than 10?., or let for a period less than a year, owner chargeable for, 182. occupied by foreign minister, owner chargeable for, 183. let in apartments, owner chargeable for, 183. but in default of payment by owner, duty levied upon occupiers, 183. divided into distinct properties, duties charged upon occu- piers, 183. if of less annual value than 10Z., value of, may be estimated without a return, 188. E. EAST AND WEST INDIA DOCKS, profits arising from, assessed by Commissioners for City of London, 227. ECCLESIASTICAL BODY, office under any, charged under Schedule E., 167. ECCLESIASTICAL COURTS. See COURTS. INDEX. 333 EMPLOYES. See LIST. receiving share of profits in addition to fixed wages (Last v. London Assurance Corporation, per Lord Bramwell), 142. EXCHEQUER, offices in, Commissioners for assessing duties on, 6, 7. EXCHEQUER SECURITIES, Commissioners for assessing duties on, 221. EXECUTION CREDITOR (not being landlord) must pay arrears of income tax, 204. EXECUTORS AND ADMINISTRATORS, chargeable for person dying, 179. may retain duty paid out of moneys coming to their hands, 181. EXEMPTION, from income tax in case of annual income being less than 150?., 89, 96, 101, 102, 164, 170, 171. how claimed, 265271, 286, 287, 290, 294, 309. of stock of friendly societies, 98. how made, 288. of stock of savings banks, 98. of stock of charitable institutions, 100. how made, 288, 293. of trustees of British Museum, 100. of salary payable out of Exchequer to trustees of British Museum, 100. of certain trade unions, 86, 100, 101. how made, 274, 293. of stock applicable to repairs of cathedral, college, church, chapel or building for Divine worship, 100. claims of, under rules in Schedule C., how made, 289, 290. of stock standing in name of Treasury, 101. of stock standing in name of Commissioners for Reduction of National Debt, 101. of stock belonging to her Majesty, 101. how made, 289. of stock belonging to Foreign Ministers, 101. how made, 289. See also DEDUCTIONS AND ALLOWANCES. EXPENSES of travelling in performance of duties of office or employment, chargeable under Schedule E., or of keeping a horse necessary for fulfilment of duties, may be deducted, 168 (Bowers v. Harding], 168, 169. But see DIKECTOES. 334 INDEX. F. FACTORS, chargeable for profits of principals, 179, 180. being charged, may retain duties, 181. PAIRS. See ANNUAL VALUE. FARMER may elect to be charged under Schedule D., 90, note ', 103, note 3 . FELLOWSHIP, return of profits to be made by officer of. See OFFICERS OF COMPANIES. FERRIES. See ANNUAL VALUE. FINANCIAL YEAR, what, 1. PINES UPON DEMISE, if applied as productive capital may be discharged from duty, 53. See also ANNUAL VALUE. FIRE INSURANCE COMPANY, not entitled to make a de- duction from profits in respect of unearned premiums (Iirij>cris. 6d. " The most sensible, useful, practical little work on solicitors' book-keeping that we have seen." Law Students' Journal. BUILDING SOCIETIES. Wurtzburg on Building Societies, The Law relating to Building Societies, with Appendices containing the Statutes, Regulations, Act of Sederunt, and Precedents of Rules and Assurances. Third Edition. By E. A. WURTZBURG, Esq., Barrister-at-Law. Demy 8vo. 1895. 15*. " Will be of use not only to lawyers but also to secretaries and directors of building societies. It is a carefully arranged and carefully written book." Law Times. CARDINAL RULES, See " Legal Interpretation." CARRIERS. Carver's Treatise on the Law relating to the Car- riage of Goods by Sea. Third Edition. By THOMAS GILBERT CARVER, Esq., K.C. Royal 8vo. 1900. II. 16s. " A recognized authority." Solicitors' Journal. " Mr. Carver's work stands in the first rank of text-books written by living authors." Law Quarterly Review. " The law of common carriers is nowhere better explained." Law Times. Macnamara's Digest of the Law of Carriers of Goods and Pas- sengers by Land and Internal Navigation. 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By FRANCIS BEAUFORT PALMER, Esq., Barrister-at-Law, Author of " Company Precedents," &c. Royal 8vo. 1901. 12*. 6d. " The work is a marvel for clearness, fulness, and accuracy, nothing could be better." Law Notes. " Of especial use to students and business men who need a clear exposition by a master hand." Law Journal. The subject is dealt with in a clear and comprehensive manner, and in such the arrangement and typography are excellent, and the whole of the Statute Law an indispensable adjunct is collected in an appendix. Perhaps what practising lawyers and business men will value most is the precious quality Of practicality." Law Quarterly Review. " Popular in style, also accurate, with sufficient references to authorities to make the book useful to the practitioner." The Times. Palmer's Companies Act, 1900, with Explanatory Notes, and Appendix containing Prescribed and other Forms, together with Addenda to "Company Precedents." Second Edition. By FRANCIS BEAUFORT PALMER, Esq., Barrister-at-Law. Royal 8vo. 1901. 7s. 6d. "It is essentially a book that all interested in companies or company law should procure." Law Times. " This book will be indispensable in considering the new requirements, and how they are to be met." Solicitors' Journal. Palmer's Company Precedents, For use in relation to Companies subject to the Companies Acts. Part I. COMPANY FORMS. Arranged as follows: Promoters, Prospectuses, Underwriting, Agreements, Memoranda and Articles of Association, Private Companies, Employes' Benefits, Resolutions, Notices, Certificates, Powers of Attorney, Debentures and Debenture Stock, Banking and Advance Securities, Petitions, Writs, Pleadings, Judgments and Orders, Reconstruction, Amalgamation, Special Acts. With Copious Notes and an Appendix containing the Acts and Rules. Seventh Edition. By FRANCIS BEAUFORT PALMER, Esq. , Barrister- at- Law, assisted by the Hon. 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" The result of much careful study Simply invaluable to debenture- holders and to the legal advisers of such investors." Financial News. "Embraces practically the whole law relating to debentures and debenture stock. . . . Must take front rank among the works on the subject." Law Times. Palmer's Private Companies and Syndicates, their Formation and Advantages ; being a Concise Popular Statement of the Mode of Con- verting a Business into a Private Company, and of establishing and working Private Companies and Syndicates for Miscellaneous Pur- poses. Sixteenth Edition. By F. B. PALMEE, Esq., Barrister-at- Law. 12mo. 1901. Net, Is. ** All standard Law Works are kept in Stock, in law calf and other binding* . 6 STEVENS AND SONS, LIMITED, COMPANY LtW -continued. 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Royal 8vo. 1892. 21. 10*. " This and the companion treatise on the law of torts are the most complete works on these subjects, and form an almost indispensable part of every lawyer's library." Law Journal. Anson's Principles of the English Law of Contract. By Sir W. R. ANSON, Bart., Barrister-at-Law. Ninth Edit. 1899. 10*. 6^. Fry, Vide "Specific Performance." Leake's Law of Contracts. A Digest of Principles of the Law of Contracts. Fourth Edition. By A. E. RANDALL, Esq., Barrister- at-Law. (In preparation.} Pollock's Principles of Contract. Being a Treatise on the General Principles relating to the Validity of Agreements in the Law of England. Sixth Edition. By Sir FREDERICK POLLOCK, Bart., Bar- rister-at-Law, Author of "The Law of Torts," "Digest of the Law of Partnership," &c. Demy 8vo. 1894. 28*. "A work which, in our opinion, shows great ability, a discerning intellect, a comprehensive mind, and painstaking industry." Law Journal. 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He has evidently taken great pains to incorporate the effect of the Land Transfer Act of 1897." The Times. CORONERS. Jervis on Coroners. The Coroners Acts, 1887 and 1892. With Forms and Precedents. Sixth Edition. By R. E. MELSHEIMEE, Esq., Barrister-at-Law. Post 8vo. 1898. 10*. 6d. COSTS, Johnson's Bills of Costs in the High Court of Justice and Court of Appeal, in the House of Lords and the Privy Council ; with the Scales of Costs and Tables of Fees in use in the Houses of Lords and Commons, relative to Private Bills ; Election Petitions, Parliamentary and Municipal. Inquiries and Arbitrations under the Lands Clauses Consolidation Act, the Light Railway Act and other Arbitrations. Proceedings in the Court of the Railway and Canal Commission, in the County Court and the Mayor's Courts. The Scales of Costs and Tables of Fees in use in the Court of Passage, Liverpool. Conveyancing Costs and Costs between Solicitors and their Clients ; with Orders and Rules as to Costs and Court Fees, and Notes and Decisions relating thereto. By HORACE MAXWELL JOHNSON, Esq., Barrister-at-Law. Second Edition. Royal 8vo. 1901. 11. 15s. "A useful and sufficient guide to the subject." Law Quarterly Review. " It is difficult to conceive how any costs clerk or solicitor can go wrong with a work of this kind to guide him." Law Times. " We consider the book marvellously accurate, and we are able to commend it in all confidence. On the law of bills of costs the practitioner, let his business be as wide as it may, wants nothing but such a work as the one before us." Law Notes. %* All standard Law Works are kept in Slock, in law calf and otltcr bindings. 8 STEVENS AND SONS, LIMITED, COST S continued. Summerhays and Toogood's Precedents of Bills of Costs, Seventh Edition. By THOENTON TOOGOOD, THOMAS CHARLES SUMMEE- HAYS, and C. GILBEET BAEBEE, Solicitors. Royal 8vo. 1896. 11. 10*. Webster's Parliamentary Costs. Private Bills, Election Petitions, Appeals, House of Lords. Fourth Edition. By C. CAVANAGH, Esq., Barrister-at-Law. Post 8vo. 1881. 20*. COUNTY CpURTS, The Annual County Court Practice, 1901, With SUPPLEMENT containing New Rules, &c. By His Honour Judge SMYLY, K.C., assisted by W. J. BEOOKS, Esq., Barrister-at-Law. 2 vols. 8vo. II. 5s. " Invaluable to the County Court practitioner." Law Journal. COVENANTS, Hamilton's Concise Treatise on the Law of Covenants. By G. BALDWIN HAMILTON, Esq., Barrister-at-Law. Demy 8vo. 1888. 7*. 6d. CRIMINALLAW, Archbold's Pleading, Evidence and Practice in Criminal Cases. With the Statutes, Precedents of Indictments, &c. Twenty- second Edition. By WILLIAM F. CEAIES and GUY STEPHEN- SON, Esqrs., Barristers- at-Law. Demy 8vo. 1900. 11. 11*. 6d. " Archbold ' is the one indispensable book for every barrister or solicitor who practises regularly in the criminal Courts." Solicitors' Journal, March 3, 1900. Chitty's Collection of Statutes relating to Criminal Law. (Re- printed from ' ' Chitty ' s Statutes. ' ' ) With an Introduction and Index. By W. F. CEAIES, Esq., Barrister-at-Law. Royal 8vo. 1894. 10*. Disney and Gundry's Criminal Law, A Sketch of its Principles and Practice. By HENEY W. DISNEY and HAEOLD GUNDEY, Esqrs., Barristers-at-Law. Demy 8vo. 1895. 7*. Qd. "We think -we have here just what students want." Law Times. Kershaw's Brief Aids to Criminal Law. With Notes on the Pro- cedure and Evidence. By HILTON KEESHAW, Esq., Barrister-at- Law. Royal 12mo. 1897. 3*. Roscoe's Digest of the Law of Evidence in Criminal Cases. Twelfth Edition. By A. P. PEECEVAL KEEP, Esq., Barrister-at- Law. DemySvo. 1898. 11. 11*. 6d. "To the criminal lawyer it is his guide, philosophei and friend. What Boscoe says most judges will accept without question." Law Times. Russell's Treatise on Crimes and Misdemeanors, Sixth Edit. By HOEACE SMITH, Esq., Metropolitan Police Magistrate, and A. P. PEECEVAL KEEP, Esq. 3 vols. Roy. 8vo. 1896. 51. 15*. 6d. "No library can be said to be complete without Russell on Crimes." Law Times. *' Indispensable in every Court of criminal justice." The Times. Shirley's Sketch of the Criminal Law. Second Edition. ByCnAELES STEPHEN HUNTEE, Esq., Barrister-at-Law. Demy8vo. 1889. 7*. 6d. Warburton. Vide " Leading Cases." DEATH DUTI ES. Freeth's Acts relating to the Estate Duty and other Death Duties, with an Appendix containing the Rules Regulating Proceedings in England, Scotland and Ireland in Appeals under the Acts and a List of the Estate Duty Forms, with copies of some which are only issued on Special Application. Third Edition. By EVELYN FEEETH, Esq., Registrar of Estate Duties for Ireland, formerly Deputy -Controller of Legacy and Succession Duties. DemySvo. 1901. 12*. 6^. " The official position of the Author renders his opinion on questions of proce- dure of great value, and we think that this book will be found very useful to solicitors who have to prepare accounts for duty." Solicitors' Journal. Harman's Finance Act, T 894, so far as it relates to the Death Duties. With an Introduction and Notes, and an Appendix of Forms. By J. E. HAEMAN, Esq., Barrister-at-Law. Royal 12mo. 1894. 5s. DECISIONS OF SIR GEORGE JESS EL Peter's Analysis and Digest of the Decisions of Sir George Jessel ; with Notes, &c. By APSLEY PETEE PETEE, Solicitor. Demy 8vo. 1883. 16*. %* All standard Law Works are kept in Stock, in law calf and other bindings. 119 & 120, CHANCERY LANE, LONDON, W.O. 9 DEBENTURES AND DEBENTURE STOCK. Palmer's Com- pany Precedents. For use in relation to Companies subject to the Companies Acts. Part III. DEBENTURES AND DEBENTURE STOCK, including Debentures, Trust Deeds, Stock Certificates, Resolutions, Prospectuses, Writs, Pleadings, Judgments, Orders, Receiverships, Notices, Mis- cellaneous. With Copious Notes. Eighth Edition. By FRANCIS BEAUFORT PALMEE, Esq., Barrister- at-Law. Royal 8 vo. 1900. 21*. " The result of much careful study Simply invaluable to debenture- holders and to the legal advisers of such investors." Financial News, March 15. " Embraces practically the -whole law relating to debentures and debenture stock Must take front rank among the works on the subject." Law Times. DIARY. Lawyers' Companion (The) and Diary, and London and Provincial Law Directory for 1901. For the use of the Legal Profession, Public Companies, Justices, Merchants, Estate Agents, Auctioneers, &c., &c. Edited by EDWIN LAYMAN, Esq., Barrister-at- Law ; and contains Tables of Costs in the High Court of Judicature and County Court, &c. ; Monthly Diary of County, Local Government, and Parish Business ; Oaths in Supreme Court ; Summary of Sta- tutes of 1900 ; Alphabetical Index to the Practical Statutes since 1820; Schedule of Stamp Duties; Legal Time, Interest, Discount, Income, Wages and other Tables ; the New Death Duties ; and a variety of matters of practical utility : together with a complete List of the English Bar, and London and Country Solicitors, with date of admission and appointments. PUBLISHED ANNUALLY. Fifty-fifth Issue. 1901. Issued in the following forms, octavo size, strongly bound in cloth : 1. Two days on a page, plain ...*... 5s. Qd. 2. The above, INTERLEAVED with plain paper . . . .70 3. Two days on a page, ruled, with or without money columns . 5 6 4. The above, with money columns, INTERLEAVED with plain paper 8 5. Whole page for each day, plain . . . . . .76 6. The above, INTERLEAVED with plain paper . . . .96 7. Whole page for each day, ruled, with or without money columns 8 6 8. The above, INTERLEAVED with plain paper . . . 106 9. Three days on a page, ruled blue lines, without money columns . 3 6 The Diary contains memoranda of Legal Business throughout the Year, with an Index for ready reference. " The amount of information packed within the covers of this well-known book of reference is almost incredible. In addition to the Diary, it contains nearly 800 pages of closely printed matter, none of which could be omitted without, perhaps, detracting from the usefulness of the book. The publishers seem to have made it their aim to include in the Companion every item of information which the most exacting lawyer could reasonably expect to find in its pages, and it may safely be said that no practising solicitor, who has experienced the luxury of having it at his elbow, will ever be likely to try to do without it." Law Journal. " The legal Whitaker." Saturday Review. DICTIONARY. The Pocket Law Lexicon. Explaining Technical Words, Phrases and Maxims of the English, Scotch and Roman Law, to which is added a complete List of Law Reports, with their Abbre- viations. Third Edit. By HENRY G. RAWSON and JAMES F. REMNANT, Esqrs., Barristers-at-Law. Ecap. 8vo. 1893. 6*. 6d. " A wonderful little legal Dictionary." Indermaur's Law Students' Journal. Wharton's Law Lexicon. Forming an Epitome of the Law of Eng- land, and containing full Explanations of the Technical Terms and Phrases thereof, both Ancient and Modern ; including the various Legal Terms used in Commercial Business. Together with a Trans- lation of the Latin Law Maxims and selected Titles from the Civil, Scotch and Indian Law. Ninth Edition. By J. M. LELY, Esq., Barrister-at-Law. Super-royal 8vo. 1892. 11. 18*. " On almost every point both student and practitioner can gather information from this invaluable book, which ought to be in every lawyer's office." Law Notes. " One of the first books which every articled clerk and bar student should pro- cure." Law Students' Journal. %* All standard Law Works are kept in Stock, in law calf and other bindings. B 10 STEVENS AND SONS, LIMITED, DIGESTS, Campbell's Ruling Cases. Arranged, Annotated, and Edited by ROBEBT CAMPBELL, of Lincoln's Inn, Esq., Barrister- at- Law, Advocate of the Scotch Bar, assisted by other Members of the Bar. With American Notes by IRVING BBOWNE, formerly Editor of the American Reports, and the Hon. LEONAED A. JONES. Royal 8vo. 1894-1901. Half vellum, gilt top, net, each 25*. The following Volumes have been published : I. Abandonment Action. II. Action Amendment. III. Ancient Light- Banker. IV.- Bankruptcy Bill of Lading. Y. Bill of Sale Conflict of Laws. VI. Contract. VII. Conversion Counsel. VIII.- Criminal Law Deed. IX. Defamation Dramatic and Musical Copyright. X. Easement Estate. XI. Estoppel Execution. XII. Executor Indemnity. XIII. Infant Insurance. XIV. Insurance Interpretation. XV. Judge Landlord and Tenant XVI. Larceny Mandate. XVII. Manorial Right- Mistake. XVIII. Mortgage-Negllgen.ce. XIX. Negligen.ee Partnership. XX. Patent. XXI. Payment Purchase for Value without Notice. XXII. Quo Warranto Release. XXIII.-Relief-Sea. XXIV. Search Warrant Telegraph. (Nearly ready.} XXV. Tenant-Wills. (In the press.} %* The Volumes are sold separately. An Addendum, containing, under the appropriate title and rule, Notes of Cases published since the issue of Volume I., thus bringing all the Volumes up to date, also a complete Index of Cases and a general Index to the whole work. (In preparation.} PLAN OP THE WORK. All the useful authorities of English Case Law, from the earliest period to the present time, on points of general application, are collected and arranged in alphabetical order of subjects. The matter under each alphabetical heading is arranged in sections, in an order indicated at the commencement of the heading. The more im- portant and Ruling Cases are set forth at length, subject only to abridg- ment where the original report is unnecessarily diffuse. The effect of the less important or subordinate cases is stated briefly in the Notes. The aim of the Work is to furnish the practitioner with English Case Law in such a form that he will readily find the information he requires for ordinary purposes. The Ruling Case will inform him, or refresh his memory, as to the principles ; and the Notes will show in detail how the principles have been applied or modified in other cases. " A Cyclopaedia of law .... most ably executed, learned, accurate, clear, concise ; but perhaps its chief merit is that it impresses on us what the practising English lawyer is too apt to forget -that English law really is a body of prin- ciples." The British Review. " One of the most ambitious, and ought to be, when it is complete, one of the most generally useful legal works which the present century has produced." Literature. " A perfect storehouse of the principles established and illustrated by our case law and that of the United States." Law Times. " The general scheme appears to be excellent, and its execution reflects the greatest credit on everybody concerned. It may, indeed, be said to constitute, for the present, the high- water mark of the science of book-making." Sat. Eev. " The Series has been maintained at a high level of excellence." The Times. Marsden, Vide "Shipping." Mews' Digest of Cases relating to Criminal Law down to the end of 1897, By JOHN MEWS, Esq., Barrister-at-Law. Royal 8vo. 1898. 25*. %* All standard Law Works are kept in Stock, in law calf and other bindings. 119 & 120, CHANCERY LANE, LONDON, W.C. 11 DIGEST S continued. MEWS' DIGEST OF ENGLISH CASE LAW. Containing the Reported Decisions of the Superior Courts, and a Selection from those of the Irish Courts, to the end of 1897. (Being a New Edition of * ' Fisher's Common Law Digest and Chitty's Equity Index.") Under the general Editorship of JOHN MEWS, assisted by W. F. BARKY, E. E. H. BIRCH, A. H. BITTLESTON, B. A. COHEN, W. I. COOK, E. W. HANSELL, J. S. HENDERSON, A. LAWRENCE, J. M. LELY, R. C. MACKENZIE, E. MAXSON, R. G. MARSDEN, H. J. NEWBOLT, A. E. RANDALL, J. RITCHIE, J. SMITH, J. F. WALEY, T. H. WALKER, and W. A. G. WOODS, Esqrs., Barristers-at-Law. InlGvols. Royal 8 vo. 20 (Bound in half calf , gilt top, 3 net extra.} "A vast undertaking. . . . We have tested several parts of the work, with the result of confirming our impression as to the accuracy of a work which is indis- pensable to lawyers." The Times. %* Lists of Cases followed, overruled, questioned, &c., have been omitted from this DIGEST, but a New Edition of DALE and LEHMANN'S 4 * OVERRULED CASES" brought down to the end of 1900, by W. A. G. WOODS and J. RITCHIE, Esqrs., Barristers -at -Law, is nearly ready for the press. The Annual Digest for 1898, 1899 and 1900. By JOHN MEWS, Esq., Barrister- at-Law. Royal 8vo. each 15*. * # * This Digest is also issued quarterly, each part being cumulative. Price to Subscribers, for the four parts payable in advance, net 17*. " The practice of the law without Mews' Annual would be almost an impos- sibility." Law Times. Law Journal Quinquennial Digest, 1890-95. An Analytical Digest of Cases Published in the Law Journal Reports, and the Law Reports, from Michaelmas Sittings, 1890, to Trinity Sittings, 1895. By GEORGE A. STREETEN, Esq., Barrister-at-Law. 1896. II. 10*. " Extremely well done, with abundance of headings and cross references . . . could not be done better." Law Times. Law Journal Quinquennial Digest, 1896-1900, (In the press.} Talbot and Fort's Index of Cases Judicially noticed (1865 1890) ; being a List of all Cases cited in Judgments reported from Michaelmas Term, 1865 to the end of 1890, with the places where they are so cited. By GEORGE JOHN TALBOT and HUGH FORT, Esqrs., Barristers-at-Law. Royal 8vo. 1891. 25*. " This is an invaluable tool for the worker among cases." Solicitors 1 Journal. Woods and Ritchie's Digest of Cases, Overruled, Approved, or otherwise specially considered in the English Courts to the end of 1 900 : with Extracts from the Judgments dealing with the same. By W. A. G. WOODS and J. RITCHIE, Esqrs., Barristers-at- Law. Being a New Edition of " Dale and Lehmann's Digest." (In preparation.) DISCOVERY, Sichel and Chance's Discovery, The Law relating to Interrogatories, Production, Inspection of Documents, and Dis- covery, as well in the Superior as in the Inferior Courts, together with an Appendix of the Acts, Forms and Orders. By WALTER S. SICHEL. and WILLIAM CHANCE, Esqrs., Barristers-at-Law. Demy 8vo. 1883. 12*. DISTRESS, Oldham and Foster on the Law of Distress. A Treatise on the Law of Distress, with an Appendix of Forms, Table of Statutes, &c. Second Edition. By ARTHUR OLDHAM and A. LA TROBE FOSTER, Esqrs., Barristers-at-Law. Demy 8vo. 1889. 18*. DISTRICT COUNCILS.-Chambers' Digest of the Law relating to District Councils, so far as regards the Constitution, Powers and Duties of such Councils (including Municipal Corporations) in the matter of Public Health and Local Government. Ninth Edition. By GEORGE F. CHAMBERS, Esq., Barrister-at-Law. Royal 8vo. 1895. IQs. %* All standard Law Works are kept in Stock, in law calf and other bindings. B2 12 STEVENS AND SONS, LIMITED, DIVORCE, Browne and Powles' Law and Practice in Divorce and Matrimonial Causes. Sixth Edition. By L. D. POWLES, Esq., Barrister-at-Law. Demy 8vo. 1897. 25*. "The practitioner's standard work on divorce practice." Law Quar. Rev. Kelly's French Law, Vide "Marriage." DOGS, Lupton's Law relating to Dogs, By FBEDEBICK LUPTON, Solicitor. Royal 12mo. 1888. 5s. DOMESDAY BOOK AND BEYOND, Three Essays in the Early History of England, By Professor MAITLAND. 1897. 8vo. los. EASEMENTS Campbell's RulingCases. Vol. X. Ffe" Digests." Goddard's Treatise on the Law of Easements. BY JOHN LEY- BOUEN GODDARD, Esq., Barrister -at -Law. Fifth Edition. Demy 8vo. 1896. 11. 5s. "Nowhere has the subject been treated so exhaustively, and, we may add, so scientifically, as by Mr. Goddard. We recommend it to the most careful study of the law student, as well as to the library of the practitioner." Law Times. Innes' Digest of the Law of Easements. Sixth Edition. By L. C. INNES, lately one of the Judges of Her Majesty's High Court of Judicature, Madras. Royal 12mo. 1900. 7*. &d. " Constructed with considerable care and pains." Law Journal. " "We have only the pleasing duty remaining of recommending the book to those in search of a concise treatise on the law of Easements." Law; Notes. ECCLESIASTICAL LAW, Phillimore's Ecclesiastical Law of the Church of England, By the late Sir ROBEBT PHILLIMOEE, Bart., D.C.L. Second Edition, by his son Sir WALTER G-EOEQE FRANK PHILLIMOEE, Bart., D.C.L., assisted by C. F. JEMMETT, B.C.L., LL.M., Barrister-at-Law. 2 vols. Royal 8vo. 1895. 3J. 3*. " The task of re-editing Phillimore's ' Ecclesiastical Law ' was not an easy one. Sir Walter Phillimore has executed it with brilliant success. He has brought to the work all his father's subdued enthusiasm for the Church, he has omitted nothing that lent value to the original treatise, he has expunged from it what could be spared, and has added to it everything that the ecclesiastical lawyer can possibly need to know." Law Journal. Whitehead's Church Law. Being a Concise Dictionary of Statutes, Canons, Regulations, and Decided Cases affecting the Clergy and Laity. Second Edition. By BENJAMIN WHITEHEAD, Esq., Barrister- at-Law. Demy 8vo. 1899. 10*. 6d. 11 A perfect mine of learning on all topics ecclesiastical." Daily Telegraph. " Mr. Whitehead has amassed a great deal of information which it would be very difficult to find in any other book, and he has presented it in a clear and concise form. It is a book which will be useful to lawyers and laymen." Law Times. ELECTIONS, Day's Election Cases in 1892 and 1893, Being a Collection of the Points of Law and Practice, together with Reports of the Judgments. By S. H. DAT, Esq., Barrister-at-Law, Editor of "Rogers on Elections." Royal 12mo. 1894. 7*. 6d. Hedderwick's Parliamentary Election Manual : A Practical Handbook on the Law and Conduct of Parliamentary Elections in Great Britain and Ireland, designed for the Instruction and Guidance of Candidates, Agents, Canvassers, Volunteer Assistants, &c. Second Edition. By T. C. H. HEDDEBWICK, Esq., Barrister-at- Law. Demy 12mo. 1900. 10*. 6d. " The work is pre-eminently practical, concise and clear." Solicitors' Journal. " One of the best books of the kind that we are acquainted with." Law Journal. Hunt's Metropolitan Borough Councils Elections: A Guide to the Election of the Mayor, Aldermen, and Councillors of Metropolitan Boroughs. By JOHN HUNT, Esq., Barrister-at-Law. Demy 8vo. 1900. 3s. 6d. %* All standard Law Works are kept in Stock, in law calf and other bindings. 119 & 120, CHANCERY LANE, LONDON, W.C. 13 ELECTIONS continued. Rogers' Law and Practice of Elections, Vol. I. REGISTRATION, including the Practice in Registration Appeals; Parliamentary, Municipal, and Local Government; with Appendices of Statutes, Orders in Council, and Forms. Sixteenth Edition ; with Addenda of Statutes to 1900. By MAURICE POWELL, Esq., Barrister-at-Law. Royal 12mo. 1897. II. Is. " The practitioner will find within these covers everything which he can be expected to know, well arranged and carefully stated." Law Times. Vol. II. PARLIAMENTARY ELECTIONS AND PETITIONS ; with Appen- dices of Statutes, Rules and Forms. Seventeenth Edition. Revised by S. H. DAY, Esq., Barrister-at-Law. Royal 12mo. 1900. II. Is. " The acknowledged authority on election law." Law Journal. "The leading book on the difficult subjects of elections and election peti- tions." Law Times. " We have nothing but praise for this work as a trustworthy guide for candi- dates and agents." /Solicitors' Journal. Vol. III. MUNICIPAL AND OTHER ELECTIONS AND PETITIONS, with Appendices of Statutes, Rules, and Forms. Seventeenth Edit. By SAMUEL H. DAY, Esq., Barrister-at-Law. Royal 12mo. 1894. II. Is. This Volume treats of Elections to Municipal Councils (including the City of London), County Councils, Parish Councils, Rural and Urban District Councils, Boards of Guardians (within and without London], Metropolitan Vestries, School Boards. EMPLOYERS' LIABILITY, Mozley-Stark, Fir. HOI.LIT'S Lecture. Smith's Practical Exposition of the Principles of Equity, illus- trated by the Leading Decisions thereon. For the use of Students and Practitioners. Second Edition. By H. ARTHUR SMITH, M.A., LL.B., Esq., Barrister-at-Law. Demy 8vo. 1888. 21*. %* All standard Law Works are kept in Stock, in law calf and other bindings. 14 STEVENS AND SONS, LIMITED, EQ U I JY continued. Williams' Outlines of Equity. A Concise View of the Principles of Modern Equity. By SYDNEY E. WILLIAMS, Esq., Barrister-at-Law. Author of "The Law relating to Legal Eepresentatives," &c. Royal 12mo. 1900. 5*. " The accuracy it combines with conciseness is remarkable." Law Magazine. ESTATE DUTIES, Freeth, Fwfe " Death Duties." ESTOPPEL, Everest and Strode's Law of Estoppel, By LANCELOT FIELDING EVEREST, and EDMUND STRODE, Esqrs., Barristers-at-Law. Demy 8vo. 1884. 18*. Ewart's Exposition of the Principles of Estoppel by Misrepre- sentation, By JOHN S. EWABT, Esq., K.C. of the Canadian Bar. Demy 8vo. 1900. 25s. EVIDENCE, Campbell's Ruling Cases, Vol.XI. Ffo" Digests." Wills' Theory and Practice of the Law of Evidence. By WM. WILLS, Esq., Barrister-at-Law. Demy 8vo. 1894. 10s. 6d. "It contains a large amount of valuable information, very tersely and accurately conveyed." Law Times. 44 We consider that Mr. Wills has given the profession a useful book on a difficult subject." Law Notes. EVIDENCE ON COMMISSION, Hume-Williams and Macklin's Taking of Evidence on Commission: including therein Special Examinations, Letters of Request, Mandamus and Examinations hefore an Examiner of the Court. By W. E. HUME- WILLIAMS and A. ROMER MACKLIN, Barristers-at-Law. Demy 8vo. 1895. 12s. Qd. EXAMINATION GUIDES. Bar Examination Guide. By H. D. WOODCOCK, and R. C. MAXWELL, Esqrs., Barristers-at-Law. Vols. I. to V. (1895-1899). Each, net 7s. Cd. Bar Examination Guide Lecture Supplement, 1896, Netls. Uttley's How to Become a Solicitor; or, Hints for Articled Clerks, By T. F. UTTLEY, Solicitor. Royal 12mo. 1894. 5s. EXECUTIONS, Edwards' Law of Execution upon Judgments and Orders of the Chancery and Queen's Bench Divisions, By C. J. EDWARDS, Esq., Barrister-at-Law. Demy 8vo. 1888. 16*. EXECUTORS. Macaskie's Treatise on the Law of Executors and Administrators, By S. C. MACASKIE, Esq., Barrister-at-Law. 8vo. 1881. 10*. 6d. Williams' Law of Executors and Administrators, Ninth Edition. By the Right Hon. Sir ROLAND VAUQHAN WILLIAMS, a Lord Justice of Appeal. 2 vols. Roy. 8vo. 1893. 3/. 16*. "We can conscientiously say that the present edition will not only sustain, but enhance the high reputation which the book has always enjoyed. The want of a new edition has been distinctly felt for some time, and in this work, and in this work only, will the practitioner now find the entire law relating to executors and administrators treated in an exhaustive and authoritative fashion, and thoroughly brought down to the present date." Law Journal. Williams' Law relating to Legal Representatives, Real and Personal. By SYDNEY E. WILLIAMS, Esq., Author of "Law of Account," " Outlines of Equity," &c. Demy 8vo. 1899. 10*. "We can commend to both branches of the profession, and more especially to solicitors." Law Times. " An excellent law book, excellently got up, and though it deals with a subject on which there is an ample literature, its existence is justified by its aim at being ' in as short a form as possible, a summary of the law of legal representatives as modified by the Land Transfer Act, 1897.' "Pall Mall Gazette. FARM, LAW OF, Dixon's Law of the Farm: including the Cases and Statutes relating to the subject ; and the Agricultural Customs of England and Wales. Fifth Edition. By AUBREY J. SPENCER, Esq., Barrister-at-Law. Demy 8vo. 1892. 26s. " A complete modern compendium on agricultural matters." Law Times. * # * All standard Law Works are kept in Stocky in law calf and oilier bindings. 119 & 120, CHANCERY LANE, LONDON, W.C. 15 FIXTU RES, Amos and Ferard on the Law of Fixtures and other Property partaking both of a Real and Personal Nature. Third Edition. By C. A. FERAKD and W. ROWLAND ROBEETS, Esqrs., Bar- risters-at-Law. Demy 8vo. 1883. 18*. FORMS, Chitty's Forms of Practical Proceedings in the Queen's Bench Division. Thirteenth Edition. By T. W. CHITTY and HEEBEET CHITTY, Esqrs., Barristers-at-Law. (In preparation.) DanielPs Forms and Precedents of Proceedings in the Chan- cery Division of the High Court of Justice and on Appeal therefrom, Fifth Edition. By CHAELES BUENEY, B.A., a Master of the Supreme Court. Royal 8vo. (In the press.) " The standard work on Chancery Procedure." Law Quarterly Review. Seton, Vide " Equity." FRAUD AND MISREPRESENTATION. MoncreifFs Treatise on the Law relating to Fraud and Misrepresentation, By the Hon. F. MONCEEIFF, Barrister-at-Law. 8vo. 1891. 21s. FRENCH LAW. Cachard's French Civil Code. By HENRY CACHAED, B.A., and Counsellor-at-Law of the New York Bar, Licencie en Droit de la Faculte de Paris. Demy 8vo. 1895. 20*. Goirand's Treatise upon French Commercial Law and the Practice of all the Courts. With a Theoretical and Practical Commentary. The text of the laws relating thereto, including the entire Code of Commerce, with a Dictionary of French Judicial Terms. Second Edition. By LEOPOLD GOIEAND, Licencie en droit. Demy 8vo. 1898. 11. Sewell's Outline of French Law as affecting British Subjects, By J. T. B. SEWELL, M.A., LL.D., Solicitor. Demy 8vo. 1897. 10s. 6d. GAME LAWS, Warry's Game Laws of England, With an Appendix of the Statutes relating to Game. By G. TAYLOE WAEEY, Esq., Barrister-at-Law. Royal 12mo. 1896. 10s. 6d. " The author has treated the subject in a clear and lucid style." Law Times. GOLD COAST ORDINANCES. Griffith's Ordinances of the Gold Coast Colony. By Sir WILLIAM BRANDFOED GRIFFITH, Chief Justice of the Gold Coast Colony. 2 vols. Roy. 8vo. 1898. 3/. GOODWILL Allan's Law relating to Goodwill. By CHAELES E. ALLAN,M.A., LL.B., Esq., Barrister-at-Law. Demy 8vo. 1889. 7s. Qd. Sebastian, Vide "Trade Marks." HACKNEY CARRIAGES, Vide "Motor Cars." HIGHWAYS. Chambers' Law relating to Highways and Bridges. By G-EOEQE F. CHAMBERS, Esq., Barrister-at-Law. 1878. 7*. Qd. HOUSE TAX. Ellis' Guide to the House Tax Acts, for the use of the Payer of Inhabited House Duty in England. By AETHUB M.ELLIS, LL.B. (Lond.), Solicitor, Author of "A Guide to the Income Tax Acts." Royal 12mo. 1885. 6*. " We have found the information accurate, complete and very clearly ex- pressed." Solicitors 1 Journal. HUSBAND AND WIFE. Lush's Law of Husband and Wife, within the jurisdiction of the Queen's Bench and Chancery Divisions, By C. MONTAGUE LUSH, Esq., Barrister-at-Law. Second Edition. By the Author and W. H. GRIFFITH, Esq., Barrister-at- Law. Demy 8vo. 1896. 11. 5s. "To the practising lawyer the work will be of the utmost importance." Law Times. " This book will certainly be consulted when difficulties arise relative to the position. of married women." Law Journal. %* All standard Law Works are kept in Stock, in law calf and other bindings. 16 STEVENS AND SONS, LIMITED, INCOME TAX. Ellis' Guide to the Income Tax Acts. For the use of the English Income Tax Payer. Third Edition. By ARTHUB M. ELLIS, LL.B. (Lond.), Solicitor. Royal 12mo. 1893. 7*. 6d. " Contains in a convenient form the law bearing upon the Income Tax." Law Times. Robinson's Law relating to Income Tax; with the Statutes, Forms, and Decided Cases in the Courts of England, Scotland, and Ireland. By ARTHUR ROBINSON, Esq., Barrister-at-Law. Royal 8vo. 1895. 21*. "The standard work on a complicated and difficult subject." Law Journal. INLAND REVENUE. Highmore's Summary Proceedings in Inland Revenue Cases in England and Wales. Second Edition. By N. J. HIGHMORE, Esq., Barrister-at-Law, and of the Solicitors' Department, Inland Revenue. Roy.l2mo. 1887. 7s. 6d. Highmore's Inland Revenue Regulation Act, 1890. as amended by the Public Accounts and Charges Act, 1891, and the Finance Act, 1896, with other Acts ; with Notes, Table of Cases, &c. By NATHANIEL J. 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Demy 8vo. 1895. 10*. 6d. %* All standard Law Works are kept in Stock, in law calf and other bindings. 119 & 120, CHANCERY LANE, LONDON, W.C. 21 MERCANTILE LAW. Smith's Compendium of Mercantile Law, Tenth Edition. By JOHN MACDONKLL, Esq., C.B., a Master of the Supreme Court of Judicature, assisted by GEO. HTJMPHBEYS, Esq., Barrister-at-Law. 2 vols. Royal 8vo. 1890. 21. 2*. " Of the greatest value to the mercantile lawyer." Law Times. " One of the most scientific treatises extant on mercantile law." Sol. Jl. . Tudor's Selection of Leading Cases on Mercantile and Maritime Law, With Notes. By O. D. TUDOB, Esq., Barrister-at-Law. Third Edition. Royal 8vo. 1884. 21. 2*. Wilson's Mercantile Handbook of the Liabilities of Merchant, Shipowner, and Underwriter on Shipments by General Ves- sels, By A. WILSON, Solicitor and Notary. Royal 12mo. 1883. 6*. MERCHANDISE MARKS ACT. Payn's Merchandise Marks Act,1 887, By H.PAYN, Barrister-at-Law. Royall2mo. 1888. 3s. 6d. 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"Almost in valuable to a Nisi Prius practitioner. . . . We have nothing but praise for the new edition." Law Quarterly Review. NOTARY. Brooke's Treatise on the Office and Practice of a NotaryofEngland . With a fall collection of Precedents. Sixth Eel. By JAMES CEAKSTOUN, Esq., Barrister- at-Law. Demy 8vo. 1901. 25*. OATHS. Stringer's Oaths and Affirmations in Great Britain and Ireland; being a Collection of Statutes, Cases, and Forms, with Notes and Practical Directions for the use of Commissioners for Oaths, and of all Courts of Civil Procedure and Offices attached thereto. By FRANCIS A. STRINGEB, of the Central Office, Royal Courts of Justice, one of the Editors of the "Annual Practice." Second Edition. Crown 8vo. 1893. 4*. " Indispensable to all commissioners." Solicitors? Journal. OTTOMAN CIVIL LAW, Grigs by 's Medjelle, or Ottoman Civil Law. Translated into English. By W. E. GBIGSBY, LL.D., Esq., Barrister-at-Law. Demy 8vo. 1895. 21*. PARISH LAW. Humphreys' Parish Councils. The Law relating to Parish Councils, being the Local Government Act, 1894 ; with an Appendix of Statutes, together with an Introduction, Notes, and a Copious Index. Second Edition. By GEOBGE HUMPHREYS, Esq., Barrister-at-Law, Author of * ' The Lawrelating to County Councils," &c. Royal 8vo. 1895. 10*. Steer's Parish Law. Being a Digest of the Law relating to the Civil and Ecclesiastical Government of Parishes and the Relief of the Poor. Sixth Edition. By W. H. MACNAMARA, Esq., Assistant Master of the Supreme Court, Registrar of the Court constituted under the Benefices Act, 1898. Demy 8vo. 1899. 20*. " Of great service both to lawyers and to parochial officers." Solicitors' Jour. " A most useful book of reference on all matters connected with the parish, both civil and ecclesiastical." Law Journal. PARTNERSHIP. Pollock's Digest of the Law of Partnership. Seventh Edition. With an Appendix of Forms. By Sir FEEDEBICK POLLOCK, Bart., Barrister-at-Law, Author of "Principles of Con- tract," "The Law of Torts," &c. DemySvo. 1900. 10*. ''We are confident this book will be most popular as well as extremely useful." Law Time*. *' Of the execution of the work we can speak in terms of the highest praise. The language is simple, concise, and clear." L"w Magazine. " Praiseworthy in design, scholarly and complete in execution." Sat. Review. PATENTS. Campbell's Ruling Cases, Vol. XX. Vide "Digests," p. 10. Edmunds on Patents. The Law and Practice of Letters Patent for Inventions. By LEWIS EDMUNDS, K.C. Second Edition. By T. M. STEVENS, Esq., Barrister-at-Law. Roy. 8vo. 1897. 11. 12*. We have nothing but commendation for the book." Solicitors' Journal. " It would be difficult to make it more complete." Law Times. Edmunds' Patents, Designs and Trade Marks Acts, 1883 to 1888, Consolidated with an Index. Second Edition. By LEWIS EDMUXDS, K.C., D.Sc., LL.B. Imp. 8vo. 1895. Net Is. 6d. 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With Dissertations and Copious Notes on the Law and Practice. By ROBEET MOEEIS, Esq., Barrister-at-Law. Royal 8vo. 1887. 11. 6*. Thompson's Handbook of Patent Law of all Countries, By WM. P. THOMPSON. Tenth Edition, with Addendum. 12mo. 1899. Net, 29. 6d. Thompson's Handbook of British Patent Law. Eleventh Edition. 12mo. 1899. Net, 6d. PAWN BROKING, Attenborough's Law of Pawnbroking, with the Pawnbrokers Act, 1872, and the Factors Act, 1889, and Notes thereon, By CHAELES L. ATTENBOEOUOH, Esq., Barrister- at-Law. Post 8vo. 1897. Net, 3*. PERSONAL PROPERTY, Smith, Vide "Real Property." PLEADING, Bullen and Leake's Precedents of Pleadings, with Notes and Rules relating to Pleading. Fifth Edition. Revised and Adapted to the Present Practice in the Queen's Bench Division of the High Court of Justice. By THOMAS J. BULLEN, Esq., Barrister- at-Law, CYEIL DODD, Esq., K.C., and C. W. CLIFFOED, Esq., Bar- rister-at-Law. Demy8vo. 1897. 38*. " The standard work on modern pleading." Law Journal. 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" Practitioners who require a comprehensive treatise on railway law will find it indispensable." Law Journal. Campbell's Ruling Cases. Vol. XXII. Vide "Digests," p. 10. RATES AND RATING. Castle's Law and Practice of Rating. Third Edition. By EDWARD JAMES CASTLB, Esq., one of His Majesty's Counsel. Demy 8vo. 1895. 25$. " A sure and safe guide." Law Magazine. " Mr. Castle's book has hitherto held a very high place, and the success that has attended it seems assured to the new edition." Law Journal. " A compendious treatise, which has earned the goodwill of the Profession on account of its conciseness, its lucidity, and its accuracy." Law Times. Chambers' Law relating to Local Rates; with especial reference to the Powers and Duties of Rate-levying Local Authorities, and their Officers ; comprising the Statutes in full and a Digest of 718 Cases. Second Edition. By G. F. CHAMBERS, Esq., Barrister-at- Law. Royal 8vo. 1889. 10*. 6d. REAL PROPERTY. 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Pulling's Shipping Code; being the Merchant Shipping Act, 1894 (57