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IN this Work it has been attempted to deal with the Income Tax Acts in a methodical and readily compre- hensible manner, but at the same time to give the Acts themselves, and not only the subject-matter. To attain this object the subject has been divided into three main heads Part I. Creation of Officials; Part II. Procedure ;. Part III. The Schedules ; while in Part IV. is placed the small though important subject of Persons to be charged, together with a few sections from the Acts which do not come naturally in the previous parts. The Author feels that although the arrangement is so simple, the sections of the Acts are less readily to be found than if the Acts had simply been given with the sections in their natural order. To remedy this defect, he has in Part II. adhered to the arrangement in the Taxes Management Act, 1880, as far as possible, and in Part III. to that of the Income Tax Act, 1842, in a similar manner. In addition to this, an index of all the sections in the Income Tax Acts has been given, and the Acts of 1842 and 1853 have been given in their natural form in the Appendix. IV PREFACE. So few questions arise as to Procedure, that it has not been thought necessary to repeat the Taxes Manage- ment Act, 1880, in the Appendix. Particular attention has been paid to the Index, which it has been endeavoured to make as exhaustive as possible. The Author hopes that Part III. of this Work may be of some little assistance to the legal profession and to the Income Tax officials throughout the country. In Part III. it has been endeavoured to collect the whole of the Law relating to the Schedules, having as founda- tion the Income Tax Act, 1842, to which has been added the alterations made by various enactments and the cases dealing with the subject. A. ROBINSON. 1, MITKE COTJET BUILDINGS, TEMPLE, E.G. CONTENTS. PAGE PREFACE - - - - - - - - iii CONTENTS - - -- - - - -v INDEX OF CASES - - xi INDEX OF STATUTES - - xvii ADDENDA AND ERRATA - - xx INTEODUCTION . xxi Part I. CEEATION OF OFFICIALS. 1. Appointment of General Commissioners - Qualification for General Commissioners 2. Appointment of Clerk Remuneration of Clerk ... 3. Appointment of Additional Commissioners Qualification for Additional Commissioners 4. Appointment of Special Commissioners Functions of Special Commissioners - Remuneration of Special Commissioners - 5. Various Persons who are to be Commissioners Exemption of Commissioners from certain offices 6. Appointment of Assessors - Penalties on Assessors - Remuneration of Assessors 7. Appointment of Collectors Grouping of Parishes - Nomination Security to the Crown Appointment by Board - Security to the Commissioners Exemption from Stamp Duty Liability of Parishes - Remuneration of Collectors Appointment of Collectors (Scotland) - 8. Appointment of Surveyors and Inspectors 9. Oaths to be taken by Officials - VI CONTENTS. Part II. PEOCEDUEE (APPLICABLE GENEEALLY, AS DISTINCT FKOM THAT GIVEN FOE PAETICULAE SCHEDULES). PAGE 1. Preliminary - - 39, &c. Definitions - - - - - . _ 40 The Commissioners Meetings, &c. - - - - 43 Parishes - ______ 46 Poor Law Parishes - - - 47 Transfer of Parishes - - - 48 Union of Parishes - - - 49 Parochial Books - - 53 2. Assessment - - 53, &c. Notices Lists Statements," &c. - 53 Place of Assessment - - - - - - 62 Year of Assessment - - - - --65 Assessors' certificates - - - - - -66 Examination and Amendment of Assessments - - 67, 68 Errors- - - - - - - 69 Allowance of Assessments - - - 69 Omissions from First Assessments - - - - 70 Amended Eeturn - - - - - --71 3. Appeals - - . - 73 Appeals against Surcharges - - - - 75 4. Cases for the opinion of the High Court - - - 76 5. Miscellaneous - - - - - 78, &c. Double Assessments - - - - - -79 Books of Assessments - - - - ..79 Changes - - - . - 80 Supplementary Assessments - - - - 80 Charge Duplicates - - - - - - 80 6. Claims of Exemption - - - - - 81 7. Collection - 85, &c. Time for Payment - - _ - --86 Collectors' Duplicates - - - - - -86 Additional First Assessments - - - - 87 Demand - _ 87 Eecovery - - - - _ . __88 Certificates of Eemoval - - - _ - 91 Prisoners - - - - _ _ --92 Parents and Guardians - - - - - 92 Number or Letter Assessments - - - - - 93 Special Assessments - - - _ _ - 93 Savings - - - - . . . . 93 CONTENTS. VU PAGE Kecovery in Ireland - - - - - -93 Recovery in Scotland - - - - - 94 Payment in Postage Stamps - - - - - 96 Payment by Post Office Orders - - - - 97 8. Receipt and Account - 97, &c. Receipts - -_--__ 97 Schedules of Arrears - - - - - - 99 Schedules of Deficiencies - - - - - 100 Re-delivery of Books by Collectors - - - - 101 Proceedings for Arrears - - - - --102 Insupers - - - - - -102 Recovery of Re-assessments - - - - - 103 Receipts exempted from Stamp Duty - - - 103 9. Forms - - - 104 10. Actions against Commissioners and Officers - - - 105 11. Penalties - - - - - - - 106 12. Execution of Warrants .... 107 Obstruction - - - - --107 13. Perjury and Forgery - - - - - 107 14. Proceedings against Collectors - ... 109 Failure to raise Duties (England) - - - - 109 Examination of Collectors (England) - - - 110 Revocation of Appointments - - 110 Seizure of Estates - - - - - --110 Actions on Collectors' Bonds - - - - 112 Penalties on Collectors - - - - --113 Part III. THE SCHEDULES. Grant of the Duties of Income Tax - - - - 116 SCHEDULE (A.). No. I. General Rule for estimating Lands, Tenements, Hereditaments, or Heritages mentioned in Sche- dule (A.) - - 121 II. Rules for estimating the Lands, Tenements, Here- ditaments, or Heritages herein mentioned which are not to be charged according to the preceding General Rule - - - - - 123 Vlll CONTENTS. PAGE No. m. Eules for estimating the Lands, Tenements, Here- ditaments, or Heritages hereinafter mentioned which are not to be charged according to the pre- ceding General Rule - - - 124 IV. Eules and Regulations respecting the said Duties - 134 V, Particular Deductions and Allowances in respect of the Duties under Schedule (A.) - - 146 VI. Allowances to be made in respect of the said Duties in Schedule (A.) - - 149 SCHEDULE (B.). VUL. Eules for assessing and charging the Properties under Schedule (B.) - 154 VTTT. Eules for estimating the Properties hereinafter next mentioned under Schedule (B.) - - - - 156 SCHEDULES (A.) AND (B.). IX. Eules for charging the said Duties under Schedules (A.) and (B.) - 156 X. Eules for estimating the annual Value of Properties before described in Schedules (A.) and (B.) or either of them - - - - 157 XI. Assessment under Schedules (A.) and (B.) - - 159 Procedure, Abatements, &c. - - 161, &c. SCHEDULE (0.). Eules for assessing and charging the Duties under Schedule (C.) - 178 Exemptions under Schedule (0.) - - - 179 Procedure, &c. - - 181, &c. SCHEDULE (D.). First Case. Duties to be charged in respect of any Trade, Manu- facture, Adventure, or Concern in the nature of Trade, not contained in any other Schedule of this Act - - 197 Second Case. The Duty to be charged in respect of Professions, Employments, or Vocations, not contained in any other Schedule of this Act - - 209 Third Case. The Duty to be charged in respect of Profits of an uncertain annual Value not charged in Schedule (A.) - 217 Fourth Case. The Duty to be charged in respect of Interest arising from Securities in the British Plantations in America, or in any other of Her Majesty's Dominions out of the United Kingdom, and Foreign Securities, except such Annuities, Dividends and Shares, as are directed to be charged under Schedule (0.) of this Act - - 218 CONTENTS. IX PAGE Fifth Case. The Duty to be charged in respect of Possessions in the British Plantations in America, or in any other of Her Majesty's Dominions out of the United King- dom, and Foreign Possessions - - 220 Sixth Case. The Duty to be charged in respect of any annual Profits or Grains not falling under any of the foregoing Rules, and not charged by virtue of any of the other Schedules contained in this Act - - - - 222 Losses in Separate Businesses ... - 223 Interest, Annuities, &c. - - - - 225 Foreign Dividends, &c. - .... 228 Foreign and Colonial Dividends, &c. - - - - - 233 Void Agreements, &c. _..--- 235 Deduction of Duty - - - 239 Exemptions under Schedule (D.), &c. .... 243 Procedure, &c. ... 247 Abatements under Schedule (D.) ----- 263 Procedure, &c. - ... 267 SCHEDULE (E.). Rules for charging the said Duties - - - 271 Procedure, &c. ... ... 277 Part IV. A. PERSONS TO BE CHARGED. (a) Not dealt with by the Income Tax Acts. Exemption of the Crown - - - - - -283 (b) Dealt with by Rules in the Acts applicable to all the Schedules. 1. Temporary Absentees and Residents - - - 285 2. Corporations and Societies - - 288 3. Trustees, Guardians, Factors, and Agents - - - - 288 4. Receivers of Trust Property - - 290 5. Married Women - - - - 291 6. Deceased Persons - - - 292 7. No exemption by Letters Patent - - - 292 8. Exemption and Abatement for small Incomes - - - 293 X CONTENTS. B. MISCELLANEOUS SECTIONS OF GKENEEAL APPLICATION. PAGE When the Duties are to be detained - - - 296 Certain Deductions not allowed - - 296 Commissioners to settle Differences respecting Deductions on account of Duties - - - 296 Occupations divided during the year of Assessment - 297 Non-payment of Duties not to disqualify from voting at Elections forM.P's. - - - 297 Provisions applied to any particular Schedule may extend to another Schedule in charging the Duty - - 298 APPENDIX. 1. THE INTERPRETATION OF THE INCOME TAX ACTS - - 301 2. EXTRAORDINARY EEMEDIES IN INCOME TAX CASES - 302 3. THE METROPOLIS - - 304 4. IRELAND - - 305 5. THE INCOME TAX ACT, 1842 - - - - 314 6. THE INCOME TAX ACT, 1853 - - 427 7. SCHEDULES TO THE TAXES MANAGEMENT ACT, 1880 - - 448 INDEX 475 INDEX OF CASES. PAGE ABADAM v. Abadam - - - - - 237, 238 Aberdeen Commissioners of Supply v. Russell - - - 228 Adam v. Maugh.au (Magistrates and Town Council of Edinburgh, v. Survey or of Taxes, 8.C.) - - - - - -285 Addie v. Solicitor of Inland Revenue 130, 132, 205, 206 Allan v. Hamilton Waterworks Commissioners - 128 Alexandria Water Co. v. Musgrave - 209, 296 Amherst (Lord) v. Lord Somers ------ 284 Andrew i 1 . Hancock - . - - - - - - 141 Andrews v. Mayor of Bristol - - - - - -153 Anglo-Continental Guano Works v. Bell - - - - 209 Arizona Copper Co. v. Surveyor of Taxes - 204 Att.-Gen. v. Alexander - - - - - - - 193 Att.-Gen. v. Black 127, 129, 196, 199, 222 Att.-Gen. v. Borrodaile - 197, 215 Att.-Gen. v. Coote - - 192, 286 Att.-Gen. v. Lancashire and Yorkshire Rail. Co. - - 271, 274 Att.-Gen. v. Scott ----- -223 Att.-Gen. v. Shield - 166, 235 Att.-Gen. v. Sully (Sully v. Att.-Gen., S.C.) - - 194 Atwood v. Lamprey - - - - - - -- 242 Baker v. Davis -------- 140 Bannerman v. Young _____ 237, 238 Bartholomay Brewery of Rochester v. Wyatt - 193, 221, 222 Bebb v. Bunny - 225, 241, 242 Beche (De la) v, James ------- 284 Bent v. Roberts - - 285 Birmingham, In re Corporation of ----- 223 Blake v. Imperial Brazilian Rail. Co. - - - - 227 Blake v. Mayor of London - - - - - 151, 152 Bowers v. Harding - 78, 271, 278, 291 Bray v. Justices of Lancashire ------ 285 Bristol Poor (Governors of) v. Wait - - - - - 285 Broughton Coal Co. v. Kirkpatrick _____ 133 Brown v. Watt (Inland Revenue v. Watt, S.C.) - 208, 223 Burnley Steamship Co. v. Aiken - - - - 208 Buckle, Re - - - 237 Butcher v. Barclay - _____ 243 Xll INDEX OF CASES. PAGB Calcutta Jute Mills v. Nicholson - - 193, 220, 221 Caledonian Bail. Co. v. Inland Eevenue (Caledonian Kail. Co. v. Special Commissioners, 8.0.} - - 207 Campbell v. Inland Eevenue (Campbell v. Lord Advocate, S.C.) - - 122 Cawse v. Notts Lunatic Hospital - - 152 Cesana Sulphur Co. v. Nicholson - - 193, 220, 221 Charlton v. Corke - 212 Clayton v. Newcastle-under-Lyme Corporation - - - 133 Clennell v. Eead - - 142 Clerical, Medical, and General Assurance v. Carter - - 58, 225, 226 Colbron v. Travers ______ 166, 167 Colquhoun v. Brook - 191, 193, 220, 221, 222, 287, 301 Colquhoun v. Heddon - - - 246 Coltness Iron Co. v. Black - - 130, 132, 198, 203, 205, 301 Commissioners for Special Purposes of the Income Tax v. Pemsel - 153, 303 Cook v. Knott - - 278 Coomber v. Berks JJ. - - 138, 283, 284, 285 Crane v. Kilpin ----.- - 243 Gumming v. Bedborough - _ - - - _ 141 Currie v. Goold - - 242 Dawson v. Dawson - - 241 Denby v. Moore ----- - 141 Denver Hotel Co. v. Andrews (reversed on appeal: see "Addenda," p. xx) - 196 (see "Addenda"), 222 Dillon v. Corporation of Haverfordwest - 130, 134, 213 Dinning v. Henderson - - - 241, 242 Dublin Corporation v. M'Adam - - 127, 129, 199 Duval v. Mount - - - _ 241 Edinburgh Southern Cemetery Co. v. Surveyor of Taxes (Edinburgh Southern Cemetery Co. v. Solicitor of Inland Eevenue, S.C.) -127, 133 Edmonds v. Eastwood - 122, 124, 127 Erichson v. Last - - 194 Testing v. Taylor - - 236, 237 Fletcher, Ex parte - - - - - - - - 259 Floyer v. Bankes --____ 235 Foley v. Fletcher - - -197,227 Forder v. Handyside - 132, 203, 204, 205, 206, 207 Franklin v. Carter - - - - - - --140 Fraser v. Fraser - - 242 Fuller v. Abbott - - 236 Gabell v. Shevell- - - - - - 140 Galashiels Provident Building Society v, Newlands - - - - 243 Gambia v. Overseers of Lydford - - 285 Gilbertson v. Ferguson - - 231 Gillatt and "Watts v. Colquhoun - - - 203, 204 Glasgow Water Commissioners v. Inland Eevenue - - - - 128 Glasgow Water Commissioners v. Miller- - 128 INDEX OF CASES. Xlll Glasgow Gas Commissioners v. Inland Revenue - - - 128 Gleadow v. Leetham ------- 238 Goslings and Sharpe v. Blake - 140, 226, 242 Graham v. Tate -------- 141 Grainger and Son v. Gough - - 196, 289 Greig v. Edinburgh University ------ 285 Gresham Life Assurance v. Styles - - 198, 203, 208, 209, 212, 213 Hall v. King's Lynn Commissioners - 132 Hamilton Waterworks v. Allan (Allan v. Hamilton Waterworks Com- missioners, S.C.} - - - - - - --128 Henley, Re - 89 Hesketh v. Bray - - - 147 Highland Kail. Co. v. Income Tax Commissioners (Highland Bail. Co. v. Special Commissioners (No. 1), S.C.) - 133 Highland Eail. Co. v. Special Commissioners (No. 2). (The reference should be 26 Sc. L. E. 657, and not 23 Sc. L. E. 116 ; and 2 Tax Gas. 485, instead of 2 Tax Gas. 151) - - - - - - 207 Hodgson v. Local Board of Carlisle - - - 284 Holborn Viaduct Land Co. v. E. - -302, 303 Holroyd v. Wyatt - - 241 Howe v. Synge - - - - - - - 236 Humble v. Humble - - - - - - -241 Imperial Continental Gas Assoc. v. Nicholson 127, 193, 220, 221 Imperial Fire Insurance v. Wilson - - - - - - 200 Inland Eevenue v. Farie (Miller v. Farie, S.C.) - - 131, 133 Inland Eevenue v. Glasgow Gas Commissioners (Glasgow Gas Commis- sioners v. Inland Eevenue, S.C.) - - - - - - 128 Inland Eevenue v. Eoyal College of Surgeons of Edinburgh - - 152 Inland Eevenue v. Strang - -210, 275 Inland Eevenue v. Town and County Bank (Eussell v. Town and County Bank, fif.C7.J- - - _ 199, 214 Inland Eevenue v. Watt ----- -208, 223 Jones v. Cwmorthen Slate Co. - - - - - 126 Jones v. Mersey Docks - - - 285 Kepp v. Wiggett - - 86 Kinloch's Trustees v. Kinloch -237, 238 Knowles v. MacAdam ------- 130 Lamb v. Brewster - - 236 Lancashire JJ. v. Cheetham ------ 285 Lancashire JJ. v. Shelf ord - - -284, 285 Langston v. Glasson - - - - - - -271 Last v. London Assurance Corporation - - 59, 198, 199, 200, 201 Lethbridge v. Thurlow - - - 238 Lloyd r. Solicitor of Inland Eevenue - 192,193,287 XIV INDEX OF CASES. PAGE London Bank of Mexico and South America v. Apthorpe (there should be an additional reference on p. 213. See " Addenda," and p. 196) - 193, 196, 213, 221 London (City of) Contract Corporation v. Styles - - - 205 Lord Advocate v. Forth Bridge Kail. Co. - - 235 Lothian v. Macrae ----- - 212 Lovat (Lord) v. Leeds (Duchess of) - 237, 238 Mackay v. Stoke-upon-Trent - - 285 Mackie's Trustees v. Mackie - - 237 M'Dougal v. Sutherland - - 211, 272, 295 Macgregor v. Inland Eevenue (Macfarlan) - - 143 Magistrates and Town Council of Edinburgh v. Surveyor of Taxes (Adam v. Maughan, S.C.) - - 285 Martin v. Assessment Committee of West Derby - - 285 Maughan (Surveyor of Taxes) v. Edinburgh and District Water Trust - 69 Maughan (Surveyor of Taxes) v. General Trustees of the Free Church of Scotland (Surveyor of Taxes v. General Trustees of the Free Church of Scotland, 8.0.) - 153 Menzies v. Solicitor of Inland Eevenue - - 122 Mersey Docks v. Cameron 283, 284, 285 Mersey Docks v. Jones (Jones v. The Mersey Docks, S.C.) - - - 285 Mersey Docks v. Lucas - 129,198,199 Mersey Loan and Discount Co. v. Wootten - - - 209 Micklethwait, Re - 301 Middlesbrough Building Society, He - 242 Middleton v. Lord Advocate (Middleton v. Inland Eevenue, S.C.) - 155 Miller v. Farie - - 131, 133 Miller v. Glasgow Water Commissioners (Glasgow Water Commissioners v. Miller, 8.C.) - - - - - - 128 Morant (Surveyor of Taxes) v. Wheal Grenville Mining Co. - - 132 Mossev. Salt- - - 241 Mostyn (Lord) v. London (Surveyor of Taxes) - - 124 Nathan, Ee - -302, 303 Needham v. Bowers - - - - - -151 New York Life Assurance v. Styles - - 198, 199, 201 Nizam's State Eailway v. Wyatt- _____ 228 Norfolk (Duke of ) v. Lamarque - -124,137 Northern Assurance Co. v. Inland Eevenue - - - 202 Northern Investment Co. of New Zealand v. Smiles (Smiles v. Northern Investment Co. of New Zealand, 8.0.) - - - 43, 219 North British Bail. Co. v. Abercorn (Duke of) - - 227 Paddington Burial Board v. Inland Eevenue - - 129, 199 Partridge v. Mallandaine _____ -209,210 Partington v. Att.-Gen. - - _ _ _ 301 Philips v. Beer - ______ 140 Pocock v. Eustace _____ 140 Pommery v. Apthorpe - -194, 195 Portobello Town Council v. Sulley (Surveyor of Taxes) - 130 INDEX OF CASES. XV PAGE E. v. Chew -----____ 259 E. v. Commissioners of Income Tax - - - 120, 155 E. v. Cook - - -283, 284 E. v. Hurdis - ---_._ 284 E. v, Manchester - _____ 284 E. v. McCann - ______ 285 E. v. Ponsonby (Lady E.) - - - 284 E. v. Shepherd - - 284 B. v. Special Commissioners (Cape Copper Case) - ' 263, 264, 302, 303 E. v. Special Commissioners (Yorkshire Penny Bank) - 180 E. v. St. Martin's, Leicester - - - - - _ 285 E. v. Stewart - - 284, 285 E. v. Temple- - - - - _ - -- 285 E. v. "Wallingham Union -----__ 285 E. v. West Derby - _____ 285 Reid's Brewery Co. v. Male - 204, 213 Eevell (Surveyor of Taxes) v. Directors of Elworthy Brothers - - 278 Eodgers Trustees v. Eodgers ______ 238 Eogers v. Solicitor of Inland Eevenue _ _ _ _ 192, 286 Eothschild and Son v. Commissioners of Inland Eevenue - - 78 Eussell v. North of Scotland Bank, Limited - - 263, 264 Eussell v. Town and County Bank - - 199, 214 Eyhope Coal Co. v. Foyer - ... _ 131, 137, 202, 216, 222 Sadler v. Eickards -----__ 238 San Paulo Brazilian Bail. Co. v. Carter (reversed on appeal: see "Ad- denda," p. xx) - 196 (see "Addenda "), 222 St. Andrew's Hospital, Northampton v. Shearsmith - 244 Scottish Investment Trust v. Surveyor of Taxes - - - - 202 Scottish Mortgage Co. of New Mexico v. Income Tax Commissioners - 219 Scottish Union and National Insurance v. Inland Eevenue - 200, 201, 226 Scottish Union and National Insurance v. Inland Eevenue - 78 Smiles v. Australian Mortgage and Agency Co. - - - 219 Smiles v. Northern Investment Co. of New Zealand - - 43, 219 Smith v. Birmingham ______ 284, 285 Smith v. "Westinghouse Brake Co. _____ 204 Spragg v. Hammond - - - - - --141 Sowrey v. King's Lynn Commissioners - - - - - 129 Stevens v. Bishop - - - - - - -- 137 Sulley (Surveyor of Taxes) v. Eoyal College of Surgeons of Edinburgh (see Inland Eevenue v, Eoyal College of Surgeons of Edinburgh, S. C, ) - 1 52 Sully v. Att.-Gen. - - - 194 Surveyor of Taxes v. General Trustees of Free Church of Scotland - 153 Swatman v. Ambler - - - - - - --140 Taylor v. Evans - - 122, 226 Tennant v. Smith - - 211, 223, 271, 272, 294, 297 Texas Land and Mortgage Co. v. Hotham - 205 Tinckler v. Prentice - - - 140, 236 Tischler v. Apthorpe ______ 195, 289 XVI INDEX OF CASES. PAGE Trustees of Psalms and Hymns v. Wnitwell (Surveyor of Taxes) - - 244 Tumricliffe v. Overseers of Bradford - - 285 Turner v. Cuxon - - -210,275 Turner v, Mullineux ___-'_ - 237 Udney v. East India Co. - - 227 Wall v. Wall - - 239 Watney v. Musgrave - - 204, 205 Weavers of Ayr (Corporation of) v. Bone - - - 243 Werle v. Colquhoun - - 194, 195, 289 Webber v. Corporation of Glasgow - - 224 Williams v. Marson - - 237 Wilson v. Paterson - - 243 Young v. Commissioners of Inland Eevenue - 192, 193, 286 INDEX OF STATUTES. PAGE 43 Geo. 3, c. 161, 8. 60 .... 62 48 Geo. 3, c. 141, s. 12 .... 49 5 & 6 Viet. c. 35, s. 1 [Repealed"], s. 2 [Repealed]. e.3 39 s. 4 1 s. 5 3 8. 6 4 8. 7 5 8.8 5 8. 9 9 8. 10 6 8. 11 7 8. 12 7 8. 13 8 s. 14 8 8. 15 8 s. 16 11 s. 17 14 8. 18 43 8. 19 12 s. 20 13 8. 21 13 s. 22 42 s. 23 15 s. 24 16 s. 25 [Repealed"}, a. 26 [Repealed]. s. 27 17 s. 28 17 s. 29 17 s. 30 18 8. 31 19 s. 32 20 s. 33 21 s. 34 22 s. 35 22 s. 36 24 s. 37 36 s. 38 37 s. 39 285 s. 40 288 8. 41 288 s. 42 290 s. 43 290 s. 44 290 s. 45 291 s. 46 53 s. 47 54 s. 48 00 s. 49 55 s. 50 56 8. 51 56 s. 52 57 s. 53 58 s. 54 59 s. 55 59 s. 56 60 s. 57 61 s. 58 61 s. 59 61 s. 60 . . 120, &c. R. 5& s. 62 153 s. 63 154 s. 64 159 s. 65 161 s. 66 161 s. 67 163 s. 68 164 s. 69 164 s. 70 , 165 s. 71 165 s. 72 166 s. 73 166 s. 74 167 s. 75 , 167 s. 76 , 168 s. 77 , 169 s. 78 169 s. 79 169 s. 80 170 8. 81 , 170 s. 82 , 171 s. 83 172 s. 84 , 173 s. 85 173 s. 86 173 s. 87 176 s. 88 178, &c. s. 89 181 s. 90 [Repealed]. 8. 91 [Repealed], s. 92 [Repealed]. s. 93 182 s. 94 183 s. 95 183 s. 96 184 s. 97 188 s. 98 189 s. 99 190 s. 100 190, &c. s. 101 222 s. 102 224 s. 103 235 s. 104 239 s. 105 243 s. 106 247 s. 107 [Repealed]. s. 108 248 s. 109 250 a. 110 250 s. Ill 250 s. 112 251 s. 113 251 s. 114 251 s. 115 252 s. 116 252 s. 117 252 s. 118 253 s. 119 253 s. 120 254 s. 121 255 s. 122 255 s. 123 266 b XV111 INDEX OF STATUTES. 5 & 6 Viet. c. 35, s. 124 PAGE 257 5 & 6 Viet, c. 35, s. 193 [Repealed], PAGE s. 125 257 s. 194 [Repealed], s. 126 258 c. 37, s. 3 .... 50 s. 127 259 8. 4 .... 51 s. 128 259 8. 5 .... 61 s. 129 260 c. 80, s. 2 185, 229 s. 130 260 14 & 15 Viet. c. 12, s. 3 .... 174 s. 131 261 16 & 17 Viet. s. 132 262 c. 34, s. 1 [Repealed]. s. 133 263 s. 2 116, 120, 154, 178, B. 134 266 190 271, &c. s. 135 267 s. 3 118 s. 136 267 B. 4 .... 118 s. 137 267 s. 5 .... 118 s. 138 268 s. 6 287 s. 139 268 s. 7 218, 305 s. 140 269 s. 8 305 s. 141 269 s. 9 .... 23 s. 142 270 s. 10 .... 228 s. 143 [Repealed], s. 11 .... 306 s. 144 [Repealed]. 8. 12 .... 306 s. 145 [Repealed], s. 13 .... 307 s. 146 271, 273, &c. s. 14 . . . . 307 8. 147 277 s. 15 .... 308 s. 148 [Repealed], s. 16 308 s. 149 277 s. 17 .... 308 s. 150 279 s. 18 309 s. 151 280 s. 19 .... 309 s. 152 280 s. 20 .... 309 s. 153 ,...-, 280 s. 21 .... 310 s. 154 . 280 s. 22 .... 310 s. 155 281 s. 23 .... 310 s. 156 282 s. 24 , .... 311 B. 157 282 s. 25 .... 311 s. 158 141, 240,296 s. 26 .... 19 s. 159 296 s. 27 [Repealed], s. 160 296 s. 28 .... 311 s. 161 67 s. 29 311 s. 162 75 s. 30 176, 266 s. 163 293 s. 31 " .... 311 s. 164 81 s. 32 . ... 136 s. 165 82 s. 33 .... 312 s. 166 83 s. 34 146 s. 167 84 s. 35 .... 142 s. 168 84 s. 36 144 s. 169 85 s. 37 147 s. 170 85 s. 38 .. .. 148 s. 171 79 s. 39 156 s. 172 85 s. 40 138, 239 s. 173 92 s. 41 .... 312 s. 174 33 s. 42 . . . . 149 B. 175 [Repealed], s. 43 .... 312 s. 176 65 s. 44 [Repealed], B. 177 63 8. 45 [Repealed], s. 178 65 B. 46 . 174 s. 179 103 s. 47 .... 171 s. 180 107 s. 48 .... 211 8. 181 108 s. 49 ... 244 s. 182 108 s. 50 ... 197 s. 183 11, 27 s. 51 ... 278 s. 184 297 s. 52 ... 211 s. 185 88 s. 53 ... 273 s. 186 16 s. 54 ... 245 s. 187 292 a. 55 ... 74 B. 188 298 s. 56 . .. 60 s. 189 , . See Appendix s. 57 [Repealed] s. 190 s. 58 . .. 312 s. 191 45 s. 59 [Repealed], 8. 192 298 c. 91, s. 1 ... 246 INDEX OF STATUTES. XIX 17 & 18 Viet. c. 24, s. 3 PAGE 189 43 & 44 Viet, c. 19, s. 45 PAOK 26 8. 5 306 s. 46 26 18 & 19 Viet. c. 35, s. 1 ... 247 s. 47 [Repealed] .... 27 19 & 20 Viet. c. 80, s. 1 ... 157 s. 48 .... 66 22 & 23 Viet. c. 18, s. 6 ... 247 s. 49 .. 66 23 & 24 Viet, c. 14, s. 4 297 s. 50 .... 66 s. 51 .... 68 8. 5 126 B. 52 . . 68 8. 6 274 s. 53 .... 62 8. 7 172 8. 54 63 8. 10 85 s. 55 . 69 24 & 25 Viet. c. 91, s. 36 . 232 s. 56 69 27 & 28 Viet. c. 18, s. 15 . 28 & 29 Viet c 30 s 6 .. 139, 240 264 s. 57 73 s. 58 .... 74 29 & 30 Viet, c. 36, s. 8 126 s. 59 .... 76 8. 60 .... 79 8 61 7Q s. 9 . . 186, 232 s. 62 80 31 & 32 Viet c 28 s 5 233 s. 63 .... 70 32 & 33 Viet. c. 67 304 s. 64 .... 71 33 & 34 Viet. c. 71, s. 36 . 184 s. 65 s. 66 .... 72 72 35 & 36 Viet. c. 82, s. 1 ... 11 s. 67 .... 75 39 & 40 Viet c 16 s 8 OQQ s. 68 .... 76 41 & 42 Viet. c. 15, s. 12 . 42 & 43 Viet. c. 21, s. 18 . .. 132, 206 288 8. 69 .... 80 s. 70 .... 80 s. 71 29 43 & 44 Viet. c. 19, 8. 3 [Repealed]. s. 4 299 B. 72 .... 29 s. 73 .... 29 s. 74 .... 31 40 s. 75 .... 31 s. 6 299 s. 76 .... 32 s. 7 299 s. 77 .... 32 8. 8 299 s. 78 .... 33 s 9 299 s. 79 34 8. 10 300 s. 80 [Repealed] .... .... 34 s. 12 [Repealed]. 8. 13 ...... 42 s. 81 .... 36 s. 82 .... 86 8. 14 [Repealed]. 8. 15 104 s. 83 .... 86 s. 84 .... 87 s. 16 104 s. 85 .... 87 8. 17 37 s. 86 .... 88 s. 18 37 s. 87 .... 90 s. 19 105 s. 88 .... 90 s. 20 105 s. 89 .... 90 s. 21 106 s. 90 .... 91 s. 22 107 8. 91 .... 92 s. 23 107 s. 92 .... 92 . B. 24 313 s. 93 .... 93 B 25 (effect of) . 43 s. 94 .... 93 s. 26 43 8. 95 .... 93 s. 27 8 s. 96 .... 93 s. 28 3 s. 97 .... 94 B. 29 44 s. 98 .... 96 s 30 .... 44 s. 99 97 8. 31 44 8. 100 .... 97 s. 32 44 s. 101 97 8 33 45 s. 102 .... 98 s. 34 , 45 s. 103 .... 98 s. 35 45 s. 104 .... 98 s. 36 .. 48 s. 105 .... 99 s 37 . . 49 s. 106 .... 99 s 38 .. 47 s. 107 .... 100 s. 39 53 s. 108 .... 100 s 40 23 s. 109 101 8 41 9 8. 110 .... 101 8 42 .24 s. Ill .... 102 g 43 25 8. 112 102 s, 44 26 s. 113 .... 103 b2 XX INDEX OF STATUTES. 43 & 44 Viet. PAGE c. 19, s. 115 109 s. 116 109 s. 117 110 s. 118 110 s. 119 112 s. 120 112 s. 121 113 c. 20, s. 52 175 44 & 45 Viet. c. 12, B. 23 88 s. 25 63 46 & 47 Viet. c. 55, s. 12 44 s.13 48 47 & 48 Viet. c. 62, s. 6 46 s. 7 25, 92, 96 48 & 49 Viet. c. 51, s. 25 27, 34 s. 26 187, 233 50 & 51 Viet. c. 15, s. 18 154 51 & 52 Viet. c. 8, s. 24 188, 234 52 & 53 Viet. c. 42, B. 10 270 s. 12.. . 150 52 & 53 Viet. PAGE c. 42, s. 13 10 s. 14 115 53 & 54 Viet. c. 8, s. 23 175, 265 B. 24 292 B. 27 47 s. 28 22 s. 30 120 54 & 55 Viet. c. 13, s. 1 10, 28 s. 2 8. 3 8. 4 10 28 35 s. 5 11, 28, 35 s. 6 29, 35 55 & 56 Viet. c. 25, s. I [Effect of] . . 29, 35 56 Viet. c. 2 [c. 14 by error in body of work] a. 13 151 56 & 57 Viet. c. 39, s. 24 179, 245 57 & 58 Viet. c. 30, s. 33 116, 117 s. 34 291, 294 s. 35 145 s. 36 180, 244 s. 37 121 s. 38.. . 119 ADDENDA AND EEEATA. In the Income Tax Act, 1842 (5 & 6 Viet. c. 35), the words "be it enacted that" are repealed in most of the sections by the Statute Law Revision (No. 2) Act, 1888 (51 & 52 Viet. c. 57). The words have not been omitted in the body of the work. Page 151. For "56 Viet. c. 14," read " 56 Viet. c. 2." ,, 196. After the case of " Grainger and Son v. Gough," add the case of " Denver Hotel Co. v. Andrews (Surveyor of Taxes], $c., infra." 207. Reference to last case on page, for " 23 Sc. L. R. 116; 2 Tax Gas. 151," read " 26 Sc. L. R. 657 ; 2 Tax Cas. 485." ,, 213. London Sank of Mexico and South America v. Apthorpe, to reference add " affirmed on appeal, this point not being argued, see p. 196." ,, 222. 1894, The Denver Hotel Co. v. Andrews (Surveyor of Taxes) and The St. Paulo Brazilian Railway Co. \. Carter (Surveyor of Taxes], 11 T. L. R. 85. These cases were reversed on appeal after this work had gone to press (W. N. 1895, p. 27). In the latter case (the former case on appeal was considered to follow the latter, which was first argued) it was held that the business was partly carried on in the United Kingdom, and the case came within London Bank of Mexico and South America v. Apthorpe, (1891) 2 Q. B. 378, and not within 1889, Colqu- houn v. Brooks, 14 Ap. Cas. 493. The facts showed that the company was an English company resident in England ; the business was carried on under the direction of the directors in England ; the plant was bought in England ; the accounts were kept there, and all meetings were held and dividends paid there ; the superintendent in Brazil was a salaried servant. INTKODUCTION. THOUGH the income tax is a tax which, from its con- tinuous imposition, appears to be perpetual, it is really freshly imposed each year, and depends for its existence on a statute passed each year for the express purpose of giving life to it. This statute is, as a rule, a short Act, and will trouble us very little, but it incorporates all the prior enactments applicable to income tax and thus makes them continuing. We have said that it incorporates all the prior enactments, but amongst these there are three that stand much above the others on account of their length and importance. These are : (1.) The Income Tax Act, 1842 ; 5-6 v. c. 35. (2.) The Income Tax Act, 1853 ; ie-7 v. c. 34. (3.) The Taxes Management Act, 1880. 43-4 v. c. 19. The first and last of these create the body of officials to be employed in gathering the tax, and also deal with the procedure to be followed thereon. The second is chiefly important as giving the schedules, five in number, into which property is divided for the purposes of the tax. These are as follows : Schedule (A.) imposes the tax on the ownership of lands, tenements, and hereditaments: Schedule (B.) on the occupation of the same : Schedule (C.) on interest, annuities, and dividends payable out of any public revenue : Schedule (D.) on profits from trades and professions, and on interest of money, annuities, &c. Schedule (E.) on public offices or employments of XX11 INTKODUCTION. profit, and upon annuities, pensions, &c. payable out of the public revenue except those charged under Schedule (C.). These schedules replace those in the Act of 1842, but the provisions with regard to them are principally contained in that Act. Income tax law, the outline of which has just been indicated, divides naturally into the following heads : A. Creation of officials. B. Procedure of general application. With these heads the Income Tax Act, 1842, and the Taxes Management Act, 1880, principally deal. C. The charging schedules. With this head the Income Tax Acts, 1842 and 1853, principally deal. This will explain the arrangement adopted in the book, wherein it is attempted to collect under the third head the mass of matter which is of the greatest importance to the general practitioner. The Taxes Management Act, 1880, is taken as the basis of pro- cedure, and, when practicable, the order of the sections in that Act is followed. Similarly, the Income Tax Act, 1842, is taken as the basis of the part dealing with the schedules. It should be noted that a number of minute verbal alterations have been made in the Acts of 1842 and 1853. The statutes are given, as amended, in the body of the work : the amending statutes will be found in the notes to the statutes in the Appendix. Ireland. Prior to the Income Tax Act, 1853, the income tax 16-7 v. c. 34. ^ not extend to Ireland. By the Income Tax Act, 1853, it was extended to Ireland, but there are a number of sections in the Act of 1853 which alter the pro- cedure, &c. in that country. These will be found collected in the Appendix. The There are certain special regulations as to the Metro- rop ' polis with regard to Schedules (A.) and (B.). These INTRODUCTION. XX111 will be found in the Metropolis Valuation Act, 1869, and 32-3 v. c. 67. are given in the Appendix. As an introduction to the study of the income tax the following extract from the twenty-eighth report of the Commissioners of Inland Revenue will be found of great service. Extract from the Twenty- eighth Report of the Commissioners of Inland Revenue. Of all the taxes under the control of this board, there is none which can compare with the property and income tax, or, as it is popularly called, the income tax, in respect of the difficult questions which arise in its administration. The tax affects a much greater number of persons than any other direct tax, and as the charges imposed by it are so heavy, it is no wonder that they are keenly scrutinised. The origin of the tax dates from 1798. In that year History of the an Act was introduced at the instance of Mr. Pitt, entitled il An Act for granting to his Majesty an aid and contribution for the prosecution of the war." This Act did not, in fact, impose a duty upon property, but imposed additional duties of assessed taxes, regulated by the amount of income which the person charged with assessed taxes possessed, provided such person possessed an income of 60/. a year or upwards. The produce of the tax for the first year under that system was 1,855,996/. In the year 1799, by the Act of the 39 Geo. III. c. 13, the duties granted by the above-mentioned Act of 1798 were repealed, and in lieu thereof a duty was imposed upon incomes at the rate of 10 per cent. By this Act all per- sons were required to make returns of the whole of their income, from whatsoever source the same was derived, exemption being granted to those whose incomes were under 60/. a year, and reduced rates charged on incomes between that amount and 200/. a year. The produce of the tax in the first year after this alteration was 6,046,624/., or about a quarter of a million for every penny of the tax. XXIV INTRODUCTION. In 1803 the present system of charging incomes upon all property and profit at their first source was intro- duced, and the return of the whole income, previously required, was abandoned. By this Act (43 Geo. III. c. 122) the various descriptions of income chargeable with duty were, for the first time, distributed under the several Schedules (A.), (B.), (C.), (D.), and (E.), as at present. A poundage rate, varying from 3d. to lie?, in the pound, was imposed upon all incomes between 601. and 150/. a year, and 5 per cent, upon all incomes amounting to or exceeding the latter sum. The profits of farmers were assumed, for the purposes of the Act, to be three-fourths of the annual value of the lands and tenements they occupied if the land were in England, and one-half in Scotland, instead of requiring from that class a return of their actual profits, as in the case of trades and professions generally. Exemption was con- fined to incomes of less than 60/. a year, from whatever source arising. The principle of taxing income at its source is thus explained in some observations on the tax, published at the time under the authority of Government. " As the former duty was imposed on a general account of income from all sources, the present duty is imposed on each source, by itself, in the hands of the first possessor, at the same time permitting its diffusion through every natural channel in its course to the hands of the ultimate proprietor. Instead of the land- lord and the various claimants upon him in succes- sion, it looks to the occupier only. Instead of the creditor, it looks to the fund from which the debt is answered. In the place of a complicated account, col- lected from the various sources from which the income of an individual is derived, it applies to the source itself to answer for its increase. By these means its object is attained with more facility and certainty, and with less intricacy and disclosure, diminishing the occasions of evasion by the means of exaction ; thus, the charge is gradually diffused from the first possessor to the ultimate INTRODUCTION. XXV proprietor, the private transactions of life are protected from the public eye, and the revenue is more effectually guarded." The produce of the tax under this system at the reduced rate of 5 per cent, was almost equal to that of 1799, when the rate was 10 per cent. Between the years 1803 and 1806 several Acts were passed relating to the income tax, which made no altera- tion in the principle, but in the latter year, by 46 Geo. III. c. 65, the rate of duty was again increased to 10 percent. The exemption on incomes from realized property under 60/. a year (which before existed) was, with a few excep- tions, repealed ; entire exemption was limited to incomes under 50/. a year in the whole, and a graduated scale imposed upon incomes between 50/. and 150/. a year, but limited to profits of trades, professions, and offices. The following extract from the guide book, published by the tax office at that period, will explain the grounds for the alteration. It states " that the regulation in the former Act by which exemption was granted on the whole of every person's income under 60/. a year, which was intended to have a strict and limited operation, has been introductive of the greatest frauds upon the public. It is notorious that persons living in easy circumstances, nay, even in apparent affluence, have returned their income under 60/., although their annual expenditure has been treble that sum, and to whom there was no ground for imputing extravagance. The income of whole parishes has been swept away by this fraud, such persons generally bringing their income below 601. Hence it is that the Legislature found the necessity of confining the exemptions to 50^., that their former returns may be made use of." By this Act of 1806, the dividends in the public funds, which had hitherto been returned by the recipients as a part of their income, were for the first time brought within the principle which charged income at its first source, provision being made that the bank should make the assessment, and deduct the tax from the dividends, XXVI INTRODUCTION. instead of a return for assessment being required from the proprietors of the stock. An exemption was, how- ever, granted for that portion of the funds which was the bond fide property of foreigners resident abroad. An allowance for the repairs of buildings, which before existed, was taken away by this Act, and abatements, previously allowed to persons with a certain number of children, were likewise discontinued. The allowance for life assurance was confined to persons whose incomes were less than 150/. a year. In the year 1816 the income tax ceased. It was not revived till the year 1842, when it was re-imposed by Sir Robert Peel's Government, not as a war tax, but for the purpose of repairing the deficiency which then occurred in the revenue to meet the expenditure of the country, and to enable the Government to make some reforms, with the view of benefiting the commerce and manufactures of the kingdom. Sir Robert Peel's Act followed the general principles laid down in that of 1806; the duty was imposed at the rate of Id. in the pound, being 21. 18s. 4t/. per cent., and total exemption was granted to persons whose whole income was under 1501. a year. By the Act of 1842 the duty on farmers was imposed on half the annual value of the lands and tenements occupied in England instead of three-fourths, and on about one-third in Scotland instead of one-half as under the former Act of 1806. From that time till 1853 but little alteration was made in the law. In 1853 Mr. Glad- stone introduced an Act by which the tax was re-imposed for a period of seven years, with various alterations and modifications. By this Act the original rate of duty of 7d. in the pound was continued for two years, Qd. in the pound was imposed for the next two years, and 5d. for the remaining period of three years, ending 5th April, 1860, when it was intended to cease altogether, and the duties under Schedule (B.) were proportioned accord- ingly. The total exemption accorded to incomes under INTRODUCTION. XXY11 150/. was repealed, and limited to incomes under 100/. Incomes amounting to 100/. and not amounting to 150/. were not subjected to the full amount of tax payable on property and profits generally. The rate of duty on such incomes was fixed at 5d. in the pound annually for the whole period of seven years. The additional amount thus brought into charge on incomes from WOl. to 1501. was in Great Britain 14,467, 300^., which at 5d. in the pound produced a revenue of 301, 320/. Under this Act the income tax was for the first time extended to Ireland. The profits of farmers in Ireland were estimated at the same rate as those in Scotland ; that is to say, at about one-third of the annual value. On the declaration of war with Russia it was found necessary to double the income tax from the 5th April, 1854 ; and a further increase was afterwards imposed by the Act 18 Viet. c. 20, from the 5th April, 1855, of 2d. in the pound on incomes of 150/. a year or upwards, and of Ij^d. in the pound on incomes amounting to 100/. and not to 15QL a year, making Is. 4d. in the former case, and 1 I^d. in the latter. This is the highest point to which the tax has ever been raised since its re-imposition in 1842. The Act which granted the duty of Is. 4d. in the pound declared that it should continue in force until the 6th April after the expiration of one year from the ratification of the treaty of peace. As this did not take place until the financial year 1856, the Act did not expire until the 5th April, 1858. In 1857, however, the tax was reduced to Id. in the pound. The Russian war upset the calculations that had been made in 1853 as to the cessation of the income tax in 1860. Instead of being abolished in that year it was charged at the rate of lOd. In 1863 an important alteration was made in favour of the class of incomes termed by Mr. Gladstone u minor incomes," which were previously exempted when under 100/. a year, and were taxed at less than the full rate when between 100/. and 150^. The total exemption of incomes under WOL a year XXV111 INTRODUCTION. was continued, but, in place of the lower rate on incomes between 100?. and 150?., an abatement of 60?. was allowed in assessing all incomes of 100?. and under 2001. a year. In laying his proposal before the House of Commons Mr. Gladstone stated that in his opinion " the sore place, above and beyond all others, in the working of the income tax is at the point where incomes range from 100?. to 200?. per annum," and he expressed his con- viction that the effect of his plan, if adopted, would be 11 to mitigate in a remarkable degree the difficulties which are now felt in the application of the tax to the lower incomes, especially at the two critical points of IOOL and 150?. a year." The allowance relieved from tax in the year 1863-64 income amounting to about 10,000,000?., and in the following year to upwards of 12,000,000?., and it is believed that the produce of the tax was thus reduced by about 75,000?. per penny. In 1872 Mr. Lowe increased the abatement granted to the smaller incomes, and allowed 80?. to be deducted from all incomes between 100?. and 300?. By so doing he afforded relief in the course of the two years fol- lowing to nearly 130,000 persons, while the amount of income on which abatements could be granted was increased in the same time from about 18,000,000?. to 34,000,000?., and it is estimated that the produce of the tax was reduced by about 50,000?. per penny. The year 1874 is memorable in the history of the income tax, both on account of Mr. Gladstone's offer to repeal it altogether, and also from the fact that after the change of government which took place in that year the rate of the tax was reduced by Sir Stafford Northcote to 2d., the lowest point which it has ever reached. In 1876 Sir Stafford Northcote again extended the system of exemptions and abatements. The limit of total exemption was raised from 100?. to 150?., while an abatement of 120?. was allowed on all incomes between INTRODUCTION. XXIX 1501. and 400 per annum, instead of the existing allowance of 80/. on incomes under 300/. Inasmuch as we have no means of ascertaining the numbers of persons who are totally exempt from income tax, it is impossible to state the effect of these measures separately. Sir Stafford Northcote estimated the combined loss at 130,000/. per penny, but it is now believed that the loss, by raising the limit of total exemption from WOL to 150/., did not much exceed 60,000/. per penny. Upon this assumption the total effect of the two reductions must have been much less than estimated, inasmuch as the claims for abatement on incomes under 400/. in 1876-77 was only 156,000^. per penny, against 163,000/. per penny claimed on incomes under 300/. in 1875-76; the reason being, of course, that the exemption of incomes under 1 501. reduced the claims for abatement on incomes under 400/. Altogether, we are inclined to put the net loss at from 50,000^. to 60,000/. per penny. This is the last change we need notice in the history of the income tax, and we may now turn to a description of the tax itself and of its different schedules. (As to further alterations, see the Finance Act, 1894.) The Assessment and Collection of the Income Tax. The assessment and collection of the income tax is Theassess- entrusted mainly to local Commissioners, who are known JS^on of as the General or District Commissioners of Taxes. * he income tax. These Commissioners are appointed by the Land Tax Page i. Commissioners out of their own body, and are indepen- dent of the Government. The qualification of a General Commissioner is fixed, Page 6. with some exceptions, at an annual income of 2001. from real or personal estate. The General Commissioners appoint Additional Com- Page n. missioners, whose qualification is one-half that of the General Commissioners. XXX INTRODUCTION. None of these Commissioners receive any emolument Page 22. in respect of the valuable services they render, but they are entitled to exemption from all parochial offices, and from serving on juries. The powers of the General Commissioners are, as their name implies, of a general character. In the district for which they act they appoint the necessary local officers, they sign and allow all income tax assessments, and Page 42. they hear appeals. It is, of course, provided that no Commissioners shall hear any appeals against assess- Page 45. ments they have themselves made, or in which they are personally interested. Page 250, &c. The powers of the Additional Commissioners are limited to the examination of the returns and the making of the assessments under Schedule (D.). A General Commissioner may, on an emergency, act as an Additional Commissioner. There are two other bodies of Commissioners employed in the assessment of the income tax, viz., the Special Commissioners and the Commissioners for public offices. Of the latter it is unnecessary to speak at length, as their duties are, for the most part, of a routine character, and consist of assessing the salaries of persons employed under the Government or in any public capacity. The former are appointed by the Crown, and their most important functions are the making of assessments PS. isi, 26i. under Schedule (C.), and of assessments under Sche- dule (D.) in any case where the taxpayer may elect to be assessed by them instead of by the local Commis- Page 126. sioners of taxes, the assessing of railway companies, and PS. 17, 229. of dividends payable in this country out of foreign and colonial revenues, or on the stocks, funds, or shares of Page 260. foreign and colonial companies. Also the hearing of appeals against the assessments made by themselves and those made by the local Commissioners under Sche- dule (D.) where the taxpayer requires it, as he may do if he appeals when he first receives notice of the assess- ment. It must, however, be pointed out that appeals INTRODUCTION. XXXI made at the end of the year on the ground of the actual profits falling short of the amounts assessed must be heard by the body of Commissioners which fixed the original assessment. The Special Commissioners are paid by salary. Page 16. The local officers appointed by the General or Dis- trict Commissioners are : 1st. The clerk to the Commissioners. 2nd. Assessors. 3rd. Parochial collectors. The clerk, as his title implies, has to perform all the Clerk. clerical duties in connection with the proceedings of the District Commissioners of Taxes. He convenes and attends all their meetings, keeping minutes of the trans- actions. He summons before the Commissioners persons nominated as assessors of taxes, and takes care that such persons receive the official forms in blank and books of instructions necessary for the preparation of the returns and assessments. After the Additional Commissioners and the assessors have completed and certified the assess- ments and have delivered them to the General Commis- sioners, and they have approved them, it devolves upon the clerk to compute the duty payable on each charge, to give notices of charge, speaking generally, to the persons assessed, and to cast and total the assessment books, delivering to the collector of inland revenue an account of the total sums payable by each parish, and the names and addresses of the parochial collectors of taxes. The clerk, who is usually a solicitor, is the legal adviser of the Commissioners, and it is his duty to pre- pare any case demanded for the opinion of the High Court of Justice by appellants or by the surveyor of taxes on behalf of the Crown, who may be dissatisfied with the decision of the Commissioners on any point of law. Clerks to Commissioners are paid by poundage on the assessments. (This is now altered, see p. 10.) XXX11 INTRODUCTION. Assessors. The assessor for each parish having, as we have seen, Page 53, &c. received the official forms of returns and assessments in blank, is charged with the duty of delivering the forms of returns at the dwelling-house of the inhabitants, first having inserted in such forms the names of the persons in question. Page 54. The persons thus served with returns are required to fill them up and deliver them to the assessor within a period of twenty-one days. As regards Schedules (A.) and (B.), as a general rule, the assessors have no difficulty in obtaining returns from the occupiers of the rent or value of the land or premises occupied. On receipt of the returns of rent or value the assessor is required to enter the particulars under the PS. 66, 159. appropriate headings in the assessment form. If the assessor be dissatisfied with the returns in any case, or no returns have been made to him, he is required to make his own estimates of the annual value of the pro- perties, either by comparison with the poor rate or Page 167. otherwise. The returns and assessment forms are de- livered by him to the District Commissioners. Page 55. As regards Schedule (D.) it is necessary to mention that returns may be delivered by the persons making the same, either to the assessor or at the office of the clerk to the Commissioners. The Schedule (D.) returns are required by the in- Page250. struction on the form to be- sent in " under cover and Page 66. sealed." Where persons served with return forms have failed to fill them up and send them in, the assessor has to make an estimate of the profits which, according to the best of his judgment and information, ought to have been returned for assessment by the persons in default. PS. 66, 250. The returns and the assessors' estimates under- Sche- dule (D.), which are also delivered to the District Com- missioners, are afterwards referred to and considered by the Additional Commissioners of Income Tax, whose functions, as has been already shown, exclusively relate to Schedule (D.). INTRODUCTION. XXXlll Under Schedule (E.) the assessors' duties are so similar PS. 66, 279. to his duties under Schedule (D.) that it is not necessary to describe them in detail. If the General Commissioners are satisfied that the assessments delivered to them are made in accordance with the provisions of the Act of Parliament they accept the same, subject to examination by the surveyor of Page 67. taxes, who is empowered to rectify any errors which he may discover therein. If, after examination by the surveyor, the Commissioners are satisfied that the as- sessments are " made truly and without fraud, and so as to charge the properties and persons contained therein with the full duty which ought to be charged," they sign Page 69. and allow them. Notices of charge are given to the taxpayers in due PS- 170, 253. course to enable those who desire to do so to appeal against their assessments. Assessors are appointed annually, and are paid by PS. 24, 27. poundage. (This is now altered, see p. 27.) The office Page 26. is one of a compulsory nature, and anyone appointed to it is obliged to perform its duties. In practice, how- ever, no difficulty is found in obtaining assessors who are quite willing to serve. By a special Act of Parliament our own surveyors of taxes are the assessors in the metropolis, so far as the assessments under Schedules (A.) and (B.) (and inhabited Page 25. house duty) are concerned. Parochial collectors are also in most cases appointed Collectors, annually by the District Commissioners, but if the Pa & e29 - appointments be not made on or before the 31st of May in any year, the appointment for that and every subse- Page 31. quent year vests in this Board. The number of appoint- ments which have in this way devolved upon us is not inconsiderable, and naturally increases from year to year. The office of parochial collector is not now compulsory, Page 30. though it was so until a few years ago, and it is open to any person to decline the appointment within fourteen days of his nomination thereto. R. c XXXIV INTRODUCTION. Page si. We are authorized to require strict security to be given by any parochial collector appointed by the District Commissioners, and with regard to parochial collectors appointed by ourselves, it is our practice to take security, unless the amount to be collected is trifling. The func- tions of a parochial collector are to obtain the payment of the tax from the persons by whom it is payable, and Page 86. in cases of non-payment to enforce the law. He is sup- plied by the Commissioners with copies of the assess- ments in their completed state, and with a warrant to enforce payment of the amounts included therein, and Page 88. by the surveyor with forms of receipts which he gives when the money is paid. In cases of difficulty he is guided by the advice of the clerk to the Commissioners as to the steps he should take. Page 86. The tax in respect of each financial year ending on the 5th of April is due on or before the 1st of the pre- ceding January. Page 87. The first step taken by the parochial collector is to make a personal demand at the residence or place of business of the tax payer. If the tax be not then paid, he leaves a notice showing the sum due, and the time and place at which it can be paid ; but he is not bound to make any further application for it. Page 97. The parochial collectors pay over or transmit the money they receive to the collectors of inland revenue. The collector of inland revenue receives from the clerk to the Commissioners a certificate showing the amount of duty charged in each parish in his division, and for this sum the parochial collector must account. If he fail to do so, the collector of inland revenue returns the amount Page us. unaccounted for in a certificate, and the parochial collec- tor is liable to process for a penalty of 50/., and of 51. per cent, on the amount named in the certificate. PS. 99, 100. The parochial collector accounts for the sum uncol- lected by delivering to the collector of inland revenue two schedules, verified on oath, one showing the names INTRODUCTION. XXXV of persons from whom payment has not been obtained, although demanded, and the other the names of those from whom it cannot be procured in consequence of their bankruptcy or removal. This schedule also contains a statement of any sums to be discharged from assessment by reason of relief granted on appeal, and of houses in respect of which the duty is not payable on account of their being uninhabited. As a check upon the parochial collector, he is required, Page 113. under a penalty of Wl. for every offence, to give receipts Page 104. for all duties paid to him on forms provided by us, and to insert in the counterfoil of the receipt the name of the taxpayer, the amount of the payment, and the date when paid. Parochial collectors are paid by poundage. (This is now altered, see p. 34.) The same person may fill the two offices of assessor and parochial collector. The next classes of officers to whom we must allude are Surveyors and the inspectors and surveyors of taxes, who form part of " our establishment. Surveyors of taxes are located in the most important towns throughout the United Kingdom. The inspectors, who are appointed from the ranks of the surveyors, are stationed at the head offices in London, Edinburgh, and Dublin, and are employed in the general superintendence of the business relating to taxes. The powers of the inspectors and surveyors were, for the most part, given to them by an Act passed in 1810, now embodied in the Taxes Management Act of 1880, which authorizes them, inter alia, to examine the returns Page 67. and assessments both before and after they are signed and allowed by the District Commissioners. It was originally intended that the mode of assessment and collection should be the same in Scotland as in England, but it was found that in Scotland the system of local assessors did not answer. The poundage was so small that few cared to undertake the office, and, in c2 XXXVI INTRODUCTION. fact, local assessors hardly ever acted. It, therefore, Page 25. became necessary to pass an Act of Parliament (45 Geo. III. c. 95) for the purpose of giving the surveyor of taxes the power of making assessments under Sche- dules (A.), (B.), and (E.). Page 250. The assessments under Schedule (D.) are made by the Additional Commissioners. Ireland. In Ireland the system of assessment and collection is quite different to that in force in England and Scotland. There are no District Commissioners and no assessors, Pa. 308, 3io. but the assessments are all made by the Special Com- missioners, who are assisted by the local knowledge of the surveyors of taxes. Page 310. Appeals are heard in the first instance by the Special Commissioners, but they can be re-heard by various local authorities, such as the assistant barrister for the county, the recorder, and, in the county of Dublin, by the chair- man of the sessions of the peace. Parochial collectors in Ireland are appointed for the Page 3ii. collection of the tax under Schedules (A.) and (B.) by the Special Commissioners. Their duties are similar to those discharged by the parochial collectors in England. The duties under Schedules (D.) and (E.) are paid direct to the collectors of inland revenue. Allowances, &c. Page 153. We now come to a different subject. There are many cases in which money is paid to the revenue, but which is ultimately refunded to the persons charged on their proving their title to repayment. A great number of repayments have to be made in connection with charities. Under Schedule (A.) the occupiers of properties owned by charities which are exempt from the income tax, are charged in the same manner as occupiers of other pro- perties, and in the first instance pay the tax and deduct the amount so paid from their rents. Repayment is then applied for by the trustees of the charities, who in order to obtain it must satisfy the Special Commissioners INTRODUCTION. XXXV11 of the justice of their claims. Where charities have satisfactorily proved once for all their claims to exemp- tion, the process of payment and repayment becomes unnecessary, as the duty is subsequently discharged from assessment, but repayments are made amounting to nearly 50,000/. annually in cases where no permanent claim to exemption has been established. Under Schedules (C.) and (D.) again there are many PS. 190, 243. applications for repayment on the part of charities in cases where the tax is paid by deduction from dividends and interest. In a similar manner all persons who are entitled to Page 293. exemption or abatement on the ground of their incomes being under 150/., or 400/. (now 160/. and 500/.) respec- tively, must apply for repayment in cases where the tax has been paid on their behalf by deduction from the sources of their incomes. There are also many other cases where money has Page 245. to be returned. The allowance which is made for life insurance premiums is often not claimed till after the tax has been paid, while many persons establish claims to return of duty by appeal at the end of the year for which they have been assessed, and have paid the tax. In fact, we find that altogether no fewer than 86,620 claims for repayment were admitted in the year 18823. We now proceed to consider each separate schedule of the income tax in detail. SCHEDULE (A.). Schedule (A.). The tax under Schedule (A.) is charged upon all Page 120. 11 lands, tenements, hereditaments, or heritages in re- spect of the property thereof." Under this schedule the owner of lands or houses is taxed, whether they are or are not in his own occu- pation. In England the tax under Schedule (A.) (with the Page ise. XXXV111 INTRODUCTION. exception of that 011 houses under 101. in value, which is assessed on the landlord) is obtained from the occupier, Page 138. who, if not the owner, recovers from the latter the tax he has paid for him under Schedule (A.) by deducting it from his rent. In Scotland the tax under Schedule (A.) is usually Page 307. paid by the owner as a matter of convenience, but in Ireland it is by law chargeable on him. All real property is liable to income tax under Sche- dule (A.), but the following exceptions are made either by law or concession in favour of Page 283. 1st. Crown property, such as public offices, law courts and prisons. Page 149. 2nd. Certain properties belonging to charitable or educational bodies, such as hospitals, public schools, public buildings belonging to colleges and halls in the universities, almshouses, public lunatic asylums, &c. 3rd. Public parks or recreation grounds. (Any profit made from them is charged under Sche- dule (D.).) Page 125. 4th. Certain properties being the realty of railways, canals, quarries, mines, &c., from which no income or benefit is derived beyond the general profits of the concern to which they belong. Page 126. These concerns (railways, &c.) are, however, charge- able on their profits under the rules of Schedule (D.). Lands, whether cultivated or uncultivated, and tene- ments are charged according to their gross annual value. Page 165. In the case of unoccupied houses, owners can obtain relief from the payment of duty. Page 165. In the case of land, however, whether occupied or not, payment of the tax is required ; but during the last few years, owing to agricultural depression, this rule has Page 307. been modified. The income tax in Ireland has been collected only on the actual amounts of the rents re- ceived, and in England and Scotland, when rents have been abated, a corresponding deduction has been made INTRODUCTION. XXXIX in the tax, while, iu the case of farms for which no tenants have been found, and which have been wholly unproductive, the District Commissioners have been per- mitted to grant total relief. In addition to lands and tenements, some other classes of property are chargeable under Schedule (A.), such as Page 123. profits derived irom manors and certain royalties. In England new assessments under Schedule (A.) are made once in three years. When a new assessment is to be made the assessor is supplied with copies of the poor rate assessments, from which he can see the amount at which each property is rated to the poor. In the metropolis the gross value contained in the Page 304. valuation list in force is the value upon which the income tax is charged. It is the duty of each occupier elsewhere than in the metropolis, to render a return to the assessor of the rent Page 163. or value of the lands, tenements, &c. in his occupation. The assessor is thus enabled, by comparison with the poor rate, to form an opinion as to the value of each property, and he frames his assessment accordingly. The assessment, when duly prepared, is sent, as 'we have seen, to the District Commissioners, but before it is signed and allowed by them, it is examined by the Page 168. surveyor of taxes, who compares it with the poor rate and with previous income tax assessments, and amends it where necessary. In this way accurate assessments are obtained, but during the second and third years of their currency they are subject to a decrease if the property diminishes in value, and in certain cases to an increase, if it is found Page 176. that the original assessments were insufficient. In Scotland and in Ireland the assessments under Schedule (A.) are also made tiiennially, but in Scotland Page 122. the annual value of property is based on the valuation roll, while in Ireland it is made by law to depend simply Page 307. on the existing valuation for the poor rate. xl INTRODUCTION. The only exception to this rule in Ireland occurs in cases where the rack-rent of a property is less than the Page SOT. poor law valuation. In such cases the rent is taken to be the annual value, and the tax is charged upon it accordingly. The tenant is chargeable on the difference. Page 170. As soon as the assessments have been completed, notices of charge are issued in order to enable any tax- payer to appeal if he thinks proper to do so. His appeal must be, in England and Scotland, to the District Corn- Page 3io. missioners, and in Ireland, in the first instance, to the Special Commissioners. The gross amount of property assessed under Sche- dule (A.) in the year 1883-84 was 193,344,924^. This was reduced to 175,555,583^. by deductions, exemptions, and abatements, chiefly in respect of the small incomes under 15QL or 400/. per annum. Schedule (B.). SCHEDULE (B.). Page 154. The tax under Schedule (B.) is chargeable in respect of the occupation of all lands. It is in effect a charge on the profits made by the occupier from the exercise of his capital and skill in husbandry, just as under Schedule (D.) a charge is made on the trader in respect of the profits derived by him from the exercise of his capital and skill in trade. The rules in the Income Tax Acts for " assessing and Page 154. charging the properties under Schedule (B.) " direct that the duties under that schedule " shall be charged in addition to the duties to be charged under Schedule (A.) on all lands, &c. (with certain exceptions) u on the full amount of the annual value thereof, estimated as by this Act is directed." Page 121. The u annual value" for purposes of the income tax may, in popular language, be described as the best rent that can be obtained when the landlord and tenant respectively bear their own burdens. Page 84. An occupier's profits in England are supposed to represent half of the annual value of the property he INTRODUCTION. xli occupies, and in Scotland and Ireland about one-third of such value. The English occupier, however, receives an abatement Page 155. of one-eighth of the amount of duty charged upon him under Schedule (B.). Under the Income Tax Act of 1803, occupiers were charged on three-fourths of the annual value in England, and on one-half of the annual value in Scotland ; but in 1842 the present bases were substituted. Page 84. In 1853, when the income tax was extended to Ireland, Page 3ii. that country was placed on the same footing as Scotland. It was, doubtless, owing to the fact in 1803 farmers did not as a rule keep trade accounts, that this system was adopted of charging them by calculating their profits as bearing a certain proportion to the annual value of their holdings. When the income tax was re-imposed in 1842 by Sir Robert Peel, the same system was followed. A suggestion was made by Lord Howick that it would be better to charge farmers under Schedule (D.), but it appears not to have met with any considerable support. As a reason for the reduction of the bases of charge under Schedule (B.) from the amounts at which they had been fixed under the former income tax, Sir Robert Peel expressed " his perfect conviction that the rent of the farmer had been raised in proportion to his profits," and stated that the reduction was " consistent with justice." The considerable reduction made, in 1842, in the duties on the importation of foreign corn, may also have influenced the Government of the day in lowering the bases of income tax charge on the farmer. It will thus appear that the tax under Schedule (B.) is levied in a rough-and-ready fashion, but it is most important to remember that in England, Scotland, and Ireland alike occupiers can, if they please, appeal at the Page 174. end of any year, and pay income tax only on the profits they have actually made, just as a trader can appeal under Schedule (D.). INTRODUCTION. This right of appeal was granted in 1851 to farmers gaining their livelihood principally by husbandry, and it has since been extended to all persons occupying lands for the purposes of husbandry only, whether they gain their principal livelihood thereby or not. The assessments under Schedule (B.) are made in the same manner as those under Schedule (A.), and do not require a separate description. New assessments are made every three years. The rule as to appeals at the time against assessments is the same as that under Schedule (A.). The special right of appeal at the end of the year, to which we have just referred, is a separate matter. The gross amount of property assessed under Schedule (B.) in the year 1883-84 was 65,514,180^. This was reduced very largely, however, by the deduc- tions and abatements allowed on small incomes, and the net assessment only amounted to 33,460,049/. Tithe rent- Tithe Rentcharges. charges. It will now be desirable to notice the question of tithes, as affecting the assessments under Schedules (A.) and (B.), as some misapprehension seems to exist in regard to the subject. Tithes were originally paid in kind to the tithe owner by the occupier out of the produce of the land in his occupation. The Act 6 & 7 Will. IV. c. 71, provided for the com- mutation of these tithes into tithe rentcharges, for which the landowner, instead of the occupier, was practically made responsible, though the rentcharges are still paid in many cases by the occupier under arrangement with the owner. Under Schedule (A.) of the Income Tax Act of 1842, Page 136. the tax in respect of tithe rentcharges was paid, in the first instance, either by the landowner or the occupier, and subsequently deducted from the rentcharge paid by them to the tithe owner. By the Income Tax Act of 1853, the owner of a tithe INTRODUCTION. rentcharge was permitted to claim to be assessed by direct charge on himself instead of indirectly. Where he avails himself of this option, he pays the tax on his rentcharge direct to the tax collector, but where he leaves the tithes to be charged in detail in the Sche- dule (A.) assessment, the owners or occupiers charged with the tax under that Schedule are, of course, entitled, PS. iss, 143. on paying the tithe rentcharge, to deduct the income tax applicable to the rentcharge. In Scotland and Ireland, in which latter country the Land Commission usually stands in the place of the tithe owner, the tax on rentcharges is almost always paid indirectly. The following examples may be of service in illustrat- ing the various methods in which tithe rentcharges are paid and charged with income tax under Schedule (A.). We assume the landlord to be the owner of 500 acres of land of an annual value of 500/., on which there is a tithe rentcharge of 50/. per annum due to the tithe owner. The income tax on this sum of oQL must, under any circumstances, be finally borne by the tithe owner, and the tax on the remaining 450/. by the landlord. 1. Suppose that the landlord keeps his land in his own PS. 135, 142. occupation, and that the tithe owner makes no return, and does not therefore pay the tax directly. The land- lord is assessed on 500/. per annum, and pays tax accord- ingly, but when he pays the 5QL to the tithe owner he deducts the income tax from that amount. 2. Suppose that the landlord keeps the land in his own Page 136. occupation, but that the tithe owner makes a return of the tithe rentcharge, and pays the tax on the amount himself, then the landlord is only assessed on 4:501. under Schedule (A.). 3. Suppose that the landlord lets the land to a tenant PS. 135, us, at a rack-rent of 500/., and continues himself to pay the 50/. to the tithe owner, and that the tithe owner does not make any return, then the tenant pays the whole tax on 500/., but deducts it from the rent he pays to the land- INTRODUCTION. lord, while the landlord again deducts the tax from the 501. which he pays to the tithe owner as rentcharge. PS. 136, IBS. 4. Suppose that the landlord lets the land to the tenant at a rack-rent of 500/., and continues himself to pay the 501. to the tithe owner, but that the tithe owner does make a return and pays the tax on his 501. direct, then the tenant would be assessed and would pay tax on 45 01. only, and would deduct from his rent of 500/. the amount only of the tax he actually paid, while the landlord would pay the 50/. to the tithe owner without any deduction. PS. 135, 138 5. Suppose that the landlord lets the land to the tenant at a rent of 45 01. only, on condition that the tenant pays the tithe owner the 501. , and the tithe owner makes no return, then the tenant pays the tax on the whole 500^, but deducts the tax from the landlord in respect of the rent of 450/., and from the tithe owner in respect of the 501. tithe rentcharge. PP. 136, 138. 6. Suppose, lastly, that the landlord lets the land to the tenant at a rent of 501. only, on condition that the tenant pays the tithe owner the 50/., and that the tithe owner does make a return and pays the tax direct, then the tenant is assessed and pays the tax on 4501. only, deducting it again in respect of his rent to the landlord, but he pays the 50/. to the tithe owner without any deduction. We have thus far dealt with tithe rentcharges under Schedule (A.) only ; let us now consider them in connec- tion with Schedule (B.). Schedule (B.) is, as we have said, a tax on the occu- pier's profits. It is clear that tithe rentcharges cannot possibly form part of any farmer's profits, and, as a matter of fact, they do not, under any circumstances, increase the tax borne by him under Schedule (B.). Nevertheless, it appears to some persons that they have this effect, and we must explain how the misapprehension arises. If we look back at the sixth case we have mentioned, in which the landlord lets the land to the tenant for INTRODUCTION. 45 01. only, on condition that the tenant pays the tithe owner the 501. tithe rentcharge, and in which the tithe owner makes a return and pays the tax on the 50L him- self, we see that the tenant has to pay the tax under Schedule (A.) on 450^. only, which he subsequently recovers from the landlord. But, under Schedule (B.), the tenant will be charged on 500/. We believe it is this difference in the amount of the assessments under the two schedules which has led to the erroneous idea that Schedule (B.) can be affected by the tithe rent- charge. This is certainly not the case. If the tenant pays the tithe rentcharge he does so in consideration of a reduced rent which does not repre- sent the full value of the lands. The full value in this instance being 500/., the tenant is charged on that amount. In some of the cases we have quoted, the tenant, under Schedule (A.), has to pay the tax in the first place on the whole 500/., in others on 450/. only, always getting back again from the landlord and the tithe owner the whole amount he has so paid, but in all the cases his assessment under Schedule (B.) must be based on 500/., which is the annual value of the property in his occupation, and the standard by which his profits must be estimated. We might, by way of further illustration, revert to the fifth example before quoted, and assume the tithe rentcharge to be 100/. instead of 501. a year; then the rent payable to the landlord would be proportionately less, viz., 400/., instead of 450/. The assessment would be the same, and the tenant would in the aggregate deduct the same amount of income tax under Sche- dule (A.), but in different proportions, viz., from the landlord on 400/. instead of on 450/. ; and from the tithe owner on 1001. instead of on 501. ; he himself being charged with the same amount of tax under Schedule (B.)- INTRODUCTION. Schedule (C.). SCHEDULE (C.). Page 178. Under this schedule are charged " all profits arising from interest, annuities, dividends, and shares of an- nuities payable to any person, body politic or corporate, company or society, whether corporate or not corporate, out of any public revenue." The term public revenue means not only the revenue of the United Kingdom, but also that of any foreign or colonial government. The great distinction between the mode of assessment under Schedule (C.) and that applicable to the other schedules of the Income Tax Acts is, that returns are not called for from the taxpayer under this schedule. In the case of interest paid out of the revenue of the United Kingdom, with certain small exceptions, the Page isi. assessment is made by the directors of the Bank of England, and on payment of the interest to the investors the tax is deducted by the Bank and subsequently paid into the Exchequer. The same rule applies to annuities paid by the National Debt Commissioners. With regard to payments to persons in this country Page 185. of interest, &c. out of foreign and colonial revenues, the assessments are made by the Special Commissioners on the agents entrusted with such payments, and the agents are responsible for the tax which they deduct from the dividends they distribute to the stockholders. Page 179. The stocks of friendly societies, industrial, and pro- vident societies, in certain cases, savings banks and charities, are exempt from the tax, and also stock which is devoted under trust to the repairs of any cathedral, college, church, chapel, or other building solely for the purpose of divine worship. Page isi. Stocks belonging to her Majesty or to any accredited minister of any foreign state, resident in Great Britain, and stocks standing in the name of the Lords of the INTRODUCTION. Treasury and the Commissioners for the Reduction of the National Debt are also exempt by law. The amount of income assessed under Schedule (C.) in 1883-84 was 40,580,574*. SCHEDULE (D.). Scheduie(D.). Schedule (D.) is a charge upon " profits arising from p age 193. professions, trades, employments, or vocations," and also upon all " interest of money, annuities and other annual profits and gains not otherwise charged with income tax." Schedule (D.) is essentially a tax on trade and pro- fessional profits. All persons chargeable under Schedule (D.) are re- p s . 55, 201. quired, as we have seen, to make returns for assessment either to the District Commissioners or to the Special Commissioners. If the return is made to the District Commissioners, it must be made in the parish or place Page 247. where the trade, &c. is carried on ; but in the case of manufacturers of goods, the return for the assessment is to be made at the place of manufacture, although the sales of such goods may be elsewhere. The classes of profits chargeable under Schedule (D.) are extremely numerous and vary greatly in character, and different averages for estimating the duties payable have consequently been adopted. In some cases, the assessment is made to depend on the actual amount received within the year, while in other cases the profits of the previous year are taken as the guide. This is the practice with railways, quarries, ironworks, &c., where the profits are calculated on the amount received in the Page 125. year immediately preceding that in which the assessment is made. In the case of mines, the average profits for five years Page 125. are taken as the basis of the assessment. But in the case of ordinary trades and professions the Page 197. returns for assessment are based on the average profits INTRODUCTION. for the three preceding years ; but if the business has commenced within three years, then on the average profits from the period of commencing the same, or, if it has only commenced within the year of actual assess- ment, then on the presumed profits for the year. In estimating such profits and gains for assessment to income tax, under Schedule (D.), certain deductions from the gross profits are allowed, of which the following are the most important : Page 202. 1st. For repairs of premises occupied for the purposes of trade or manufacture, and for supply or repairs of Page 203. implements, utensils, or articles employed. 2nd. For bad debts, or such part thereof as shall be proved to the Page 206. satisfaction of the Commissioners to be such. 3rd. For the sum representing diminished value by reason of wear and tear of machinery or plant. Assessments under Schedule (D.) are made annually, and any person neglecting to make a return is liable to a penalty of 50, or to be surcharged. PS. 253, 260. Should a person be dissatisfied with the assessment made upon him under Schedule (D.), it is open to him to appeal at once, either to the District or to the Special Commissioners. Page 263. Again, if at the end of the year of assessment he finds that he has not realized the amount of profits charged, it is open to him to make a further appeal, but in this case the appeal must be to the Commissioners by whom the assessment was made. In 1883-84, the gross amount of profits assessed under Schedule (D.) was 291,336,955*. This was reduced to 252,022,97 H. by deductions, exemptions, and abatements, mainly in respect of the small incomes under 150/. or 400*. Schedule (E.). SCHEDULE (E.). Page 271. Assessments under Schedule (E.) are made in respect of every public office or employment of profit, and upon every annuity, pension, or stipend payable by her INTRODUCTION. xlix Majesty, or out of the public revenue of the United Kingdom (except annuities charged to the duties under Schedule (C.)). Rather less than one-half of the tax under this Sche- dule is charged on official salaries and pensions, including the Army and Navy. The other portion is charged on salaries, &c., of clerks and others in mercantile employ, including banks, rail- way officials, and other concerns. Assessments under Schedule (E.) in respect of all government departments, are made by the Commis- sioners of Income Tax for Public Offices, and the tax is deducted from the actual salaries paid. In the case of public appointments of a local character, the names of persons liable to assessment are sent by some responsible authority to the district assessors, who then proceed in the ordinary course to get the assess- ments completed, after which the parochial collectors apply for payment of the duty. The gross amount of salaries, &c., charged under Schedule (E.) was, in 1883-84, 37,733,566^. This was reduced, by deductions, exemptions, and abatements, chiefly in respect of the incomes under 150/. and 400/., to 29,510,323/. d INCOME TAX ACTS. PART I. CREATION OF OFFICIALS. 1, The Appointment of the General Commissioners. The Income Tax Act, 1842 5 &6 Viet. 4. And whereas it is expedient to appoint Commissioners for c ' 35 ' 8 ' 4 ' the general purposes of this Act from and amongst the persons sioners of appointed Commissioners for the execution of an Act passed in the aStrict'^ee thirty-eighth year of the reign of King Greorge the Third, intituled ings to ap- " An Act for granting an Aid to His Majesty by a Land Tax, to be raised in Great Britain for the Service of the Year One thousand the g enera j i , , . , purposes of seven hundred and ninety-eight, or from and amongst the persons this Act. appointed Commissioners for the execution of the said Act by any subsequent Act of Parliament passed or to be passed, to act in the execution of this Act, so far as relates to the powers hereby vested in such Commissioners ; be it enacted, that the several persons ap- pointed or to be appointed Commissioners for putting in execution the said Land Tax Act in the respective parts of the United Kingdom therein mentioned, being respectively qualified to act as Commissioners in the execution of the said Land Tax Act, shall meet within the county, riding, shire, or stewartry, or within each hundred, rape, lathe, or wapentake of the county, riding, shire, or stewartry for which they are or shall be respectively appointed Commissioners of the said Land Tax Act, or within such other division of the said county, riding, shire, or stewartry as the Commissioners of Inland Revenue shall direct, and also within 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 said Land Tax Act within the same, which meeting shall be convened from time to time by the Commissioners of Inland Revenue, when and as they shall R. B CREATION OF OFFICIALS. Manner of choosing 1 Commis- and supplying vacancies. In want of Land Tax Commis- sioners, other fit persons residing in the district may be named ; or from ad- joining districts. deem necessary, by notice inserted in the " London Gazette " and " Edinburgh Gazette " for England and Scotland respectively, and shall be held at such time and place as shall be appointed by such notice ; and at every such meeting the said Commissioners of the Land Tax Act, or the major part of them then present, shall choose and set down in writing the names of such of the Commis- sioners appointed as aforesaid who shall respectively be qualified as hereinafter is required (a) , and who shall be fit and proper to act as Commissioners for the general purposes of this Act in such county, riding, shire, or stewartry aforesaid, and in each and every district within each respective hundred, rape, lathe, wapentake, or other division aforesaid, and within each city, borough, cinque port, liberty, franchise, town, and place aforesaid, observing always in the execution of this Act the same limits which shall have been or may be settled for the districts under the Acts relating to the duties of assessed taxes : and the names of such persons who shall be so chosen shall be set down in the order in which the major part of the Commissioners then present shall judge fit they should respectively be appointed Commissioners in their respective districts ; and any seven, or any less number than seven, not being in any case less than three, of the persons so set down, and in the order in which they shall be so set down in such list, shall be Commissioners for the general purposes of this Act, and of the duties granted as aforesaid, and they are hereby required to take upon themselves the execution of this Act, and of the said duties, as such Commissioners for general purposes; and any seven, or any less number than seven, not being in any case less than three, of the persons so set down next in order in the list of names before mentioned, shall be Commissioners to supply vacancies as the same may arise in the manner hereinafter mentioned : Provided always, that if at any such meeting as aforesaid the Commissioners shall not find amongst the Commissioners appointed for executing the said Land Tax Act, and set down in manner aforesaid, the names of seven persons to act and seven others to supply vacancies in each such district, it shall be lawful for them to appoint any persons residing within such district who shall respectively be qualified as hereinafter is required, and who in their judgment shall be fit and proper, to be Commissioners for the general purposes of this Act, until the number of seven in each such list shall be completed, although such persons shall not have been appointed to act as Commissioners in the execution of the said Land Tax Act : Provided also, that if at such meeting the Commissioners shall not find and set down fourteen persons of the descriptions before mentioned to act as Commissioners and to supply vacancies in each such district, it APPOINTMENT OF THE GENERAL COMMISSIONERS. 3 shall be lawful for them to select such number of persons as shall be requisite from the persons acting as Commissioners for executing the said Land Tax Act in or for any adjoining or neighbouring district of the same county, riding, division, shire, stewartry, city, town, or place, in order that there shall be no failure in the execution of this Act ; and the names of such respective persons who shall have been so chosen as aforesaid shall be transmitted to the chief office of Inland Revenue in England and Scotland respec- tively in the order in which they shall have been set down in such lists : Provided always, that where seven persons, qualified as Where seven hereinafter is required, shall be chosen to act as Commissioners for be'chosen no any district as aforesaid, no other person shall interfere as a others to act. Commissioner in the execution of this Act so long as such seven persons shall continue to act, except hi the cases hereinafter mentioned. (a) See post, p. 6. As to Scotland, see also the Customs and Inland Revenue Act, 1893, s. 7. 56 Viet c 7, s. 7. The Taxes Management Act, 1880 43 & 44 Viet. 28. The Board may, if they think fit, authorize the increase of i , . . The Board the number of persons to be chosen (jreneral Commissioners for any (Commis- division and of persons to supply vacancies amongst such Commis- sioners to any number not exceeding fourteen respectively, and such may increase persons shall be appointed and chosen according to the regulations General Corn- contained in section four of the Income Tax Act, 1842. missioners. This section does not apply to Ireland. See the Taxes Management Act, 43 & 44 Viet. 1880, s. 2o. c. 19, s. 25. The Income Tax Act, 1842 5 & 6 Viet. 5. And be it enacted, that within and for each of the cities and Within cer- tow r ns hereinafter mentioned, (videlicet,) London, Bristol, Exeter, tain cities and Kingston-upon-Hull, Newcastle-upon-Tyne, Norwich, Binning- ^J^? ham, Liverpool, Leeds, Manchester, Bang's Lynn, and Great sioners may Yarmouth, it shall be lawful for the persons hereinafter mentioned act w ith those to choose Commissioners, and persons to supply their vacancies, to act together with the persons to be chosen or appointed as before Commis- directed ; and that in and for the city of London two Commis- 81 sioners, and two to supply their vacancies, shall be named by the mayor and aldermen of London out of eight persons, four of whom shall be aldermen, to be returned to them by the common council ; two other Commissioners, and two to supply their vacancies, by the Bank of England ; one other Commissioner, and one other to supply his vacancy, by each of the companies hereinafter men- tioned ; (videlicet,} the governor and directors of the Royal Exchange Assurance Company, the governor and directors of the u2 CREATION OP OFFICIALS. London Assurance Company, the directors for conducting and managing the affairs of the East and West India Dock Company, and the directors for conducting and managing the London Dock Company, and the St. Katherine Dock Company, respectively, for the time being ; and that it shall be lawful for the magistrates and justices of the peace acting in and for the city of Norwich to choose eight persons to be Commissioners, and eight persons to supply their vacancies, not more than four of the said eight Commissioners, and not more than four of the said eight persons to supply their vacancies, to be chosen from out of the said magistrates and justices, and the remaining four Commissioners, and four persons to supply their vacancies, to be chosen from the inhabitants of the said city ; and in and for each of the other cities and towns before mentioned it shall be lawful for the magistrates and justices of the peace acting in and for the said cities and towns respectively, together with the jus- tices of the peace acting in and for the county, riding, or division wherein the same respectively are situate, to choose eight persons to be Commissioners, and eight persons to supply their vacancies, as herein is mentioned ; and the persons so to be chosen by the Land Tax Commissioners as aforesaid, together with the other persons respectively to be chosen as herein is particularly directed, shall be Commissioners for the purposes of this Act, and to supply their vacancies, as the same may arise, within and for the several districts in which such cities and towns respectively shall be situate, or which shall be formed by such cities and towns respectively, and for such other places which have usually been assessed in the same district with such cities and towns respectively towards the aid by a land tax ; and the names of all persons so chosen as last aforesaid shall be returned to the Commissioners of Inland Revenue. 5 & 6 Viet. 6. Provided always, and be it enacted, that in case there shall _L ' ' not be a sufficient number of Commissioners chosen or appointed cient Commis- for general purposes as aforesaid, or to supply vacancies, capable of act i n g according to the qualification required by this Act for any cities and city, borough, town, or place, then and in every such case any Comm'is- person qualified to act for the county at large, or riding, in which sioners f or the or adjoining which such city, borough, town, or place shall be county may . . be chosen. situate, may be chosen to act as a Commissioner for such city, Power to borough, town, or place : Provided also, that any person residing eons duly^" ^ u an J county, riding, division, city, town, or place where a Com- qualified, missioner shall be wanting, and qualified as hereinafter mentioned, although not n - J i named Com- who shall be willing to act as a Commissioner for general purposes f as a f resa id, i n an j district where a Commissioner shall be want- ing, may be chosen in manner aforesaid to be such Commissioner, APPOINTMENT OF THE GENERAL COMMISSIONERS. 5 although such person shall not have been appointed to act in the execution of the said Land Tax Act ; anything hereinbefore con- tained to the contrary notwithstanding. 7. And be it enacted, that when any Commissioner for general 5 & 6 Viet. purposes shall die, or decline to act, or having begun to act shall I ' 8 " IT . , r . How vacan- decline to act any further therein, the remaining Commissioners ties among shall choose one or more of the persons on the list to supply s"^^^^" vacancies, who shall be appointed in the place of the Commissioner te supplied. so refusing or declining to act, or dying, provided the person so to be appointed to supply such vacancy shall have been chosen in the same manner as the person so refusing or declining to act, or dying ; and the several Commissioners of Land Tax shall at such their meetings, convened in manner aforesaid (a), and the several persons authorized to appoint Commissioners for the several cities and towns aforesaid shall, on notice thereof from the clerk to the acting Commissioners for the same cities and towns respectively, as often as occasion shall require, select and add new names to the persons before chosen to supply vacancies, who shall respectively be Commissioners for general purposes, as and when such vacancies shall happen : Provided always, that if the list for supplying vacancies to be made and renewed as aforesaid shall at any time be defective, so that the due number of Commissioners cannot be supplied therefrom, the same shall be filled up and renewed from time to time by the acting Commissioners for general purposes in the district where such failure shall have happened. (a) See sect. 4, p. 1. 8. And be it enacted, that if in any district there shall be a 5 & 6 Viet, neglect in appointing Commissioners for general purposes as hereby Commis . is directed, or the Commissioners so appointed shall neglect or refuse sioners of to act, or having begun to act shall decline to act further therein, it Act to execute shall be lawful for the Commissioners appointed to execute the said t he , Act in Land Tax Act, being respectively qualified as directed by this Act, pointing other and they and every of them, not in any case exceeding the number ^ ; s " or on of seven, on notice of such neglect and want of appointment, given neglect of to their clerk, by any inspector or surveyor of taxes duly authorized 8 j oners ap _ to give such notice by the Commissioners of Inland Revenue, shall pointed under J 1 1 l ^ 18 Act and they are hereby strictly enjoined and required to take upon themselves forthwith the execution of this Act, and to do and execute all matters and things which Commissioners chosen in pursuance of this Act are hereby required and empowered to do ; and if in any district there shall be a want of such last-mentioned Commissioners, the Commissioners of any adjoining district in the. CREATION OF OFFICIALS. and Commis- sioners for special pur- poses on neg- lect of Land Tax Commis- sioners. same county, riding, or division, being respectively qualified as directed by this Act, shall, on like notice as aforesaid, execute this Act as such Commissioners, by themselves, or in concurrence with any persons willing to act as Commissioners of the district where this Act shall require to be executed ; and if the persons aforesaid to whom such notice shall have been given shall not take upon themselves the execution of this Act, within ten days next after such notice given, or shall not proceed therein with due diligence, then and in every such case it shall be lawful for the Commissioners for special purposes, to be appointed under the authority of this Act, to execute this Act in such district in all matters and things hereby directed to be done by Commissioners for general purposes : Provided always, that where Commissioners willing to act in each district shall not be returned to the Chief Office of Inland Revenue in England and Scotland respectively as aforesaid, then and in such case it shall be lawful for the said Commissioners of Inland Revenue to cause such notices as aforesaid to be given to two or more of the persons on whom the right of executing this Act shall devolve in pursuance of the directions of this Act before mentioned. 5 & 6 Viet. c. 35, s. 10. Qualification of Commis- sioners for districts or divisions of counties and for certain cities and towns in England. (Qualification for the General Commissioners. 10. And be it enacted, that no person herein required to be qualified in respect of estate shall be capable of acting as a Com- missioner for general purposes in the execution of this Act for any district or division of any county at large within England (the county of Monmouth, and the dominion of Wales excepted), or of any of the ridings of the county of York, or of the county or divi- sions of Lincoln, or in or of any of the several cities and towns of London, "Westminster, Bristol, Exeter, Kingston -upon -Hull, Newcastle-upon-Tyne, Norwich, Birmingham, Liverpool, Leeds, Manchester, King's Lynn, and Great Yarmouth, unless such person be seised or possessed of lands, tenements, or hereditaments in Great Britain of the value of two hundred pounds per annum or more, of his own estate, being freehold or copyhold, or leasehold for a term whereof not less than seven years are unexpired, over and above all ground rents, incumbrances, and reservations payable out of the same respectively, or unless such person shall be possessed of personal estate of the value of five thousand pounds, or a per- sonal estate, or an interest therein, producing an annual income of two hundred pounds, or of lands, tenements, or hereditaments, and personal estate, or an interest therein, being together of the annual value of two hundred pounds, estimating in every such case APPOINTMENT OF THE GENERAL COMMISSIONERS. 7 one hundred pounds personal estate as equivalent to four pounds per annum, and an interest from personal estate of four pounds per annum as equivalent to one hundred pounds personal estate, or unless such person be the eldest son of some person who shall be seised or possessed of a like estate of thrice the value required as the qualification of a Commissioner, in right of his own estate, for such county at large, riding, division, or city. 11. And be it enacted, that no person herein required to be 5 & evict qualified in respect of estate shall be capable of acting as a Com- ' . . . . . Qualification missioner for general purposes in execution of this Act in any for the county district or division of the county of Monmouth, or of any county in Wales, or for any city, borough, cinque port, liberty, franchise, ^ "Wales, and town, or place in England or Wales (other than the cities and towns towns, or ' hereinbefore mentioned), unless such person be seised or possessed P^cesnot . ' * * before men- of an estate of the like nature and of four-fifths of the value tioned. required for the estate of a Commissioner acting for a district or division of a county at large in England as aforesaid, or unless such person be the eldest son of some person who shall be seised or possessed of some estate of thrice the value required as the quali- fication of a Commissioner, in right of his own estate, for the same county, city, borough, cinque port, liberty, franchise, town, or place. 12. And be it enacted, that no person hereby required to be 5 & 6 Viet. qualified in respect of estate shall be capable of acting as a Com- c> 35 ' 8 ' 12> . . ,, -. . . ,, ,, . . , ,, Qualification missioner ior general purposes in execution 01 this Act tor any f or shires in shire in Scotland unless such person be enfeoft in superiority or Scotland - property, or possessed as proprietor or life renter, of lands in Scotland to the extent of one hundred and fifty pounds Scots per annum valued rent, or unless such person be possessed of personal estate of the value of five thousand pounds, or of personal estate, or an interest therein, producing an annual income of two hundred pounds sterling, or be enfeoft or possessed as aforesaid of lands and personal estate, or an interest therein, being together of the annual value of two hundred pounds sterling, estimating in every such case one hundred pounds personal estate as equivalent to four pounds per annum, and an interest from personal estate of four pounds per annum, as equivalent to one hundred pounds personal estate, or unless such person be the eldest son of some person who shall be enfeoft or possessed of a like estate of twice the value required as the qualification of a Commissioner, in right of his own estate, for such shire. CREATION OF OFFICIALS. 5 & 6 Viet. c. 35, s. 13. For cities or boroughs in Scotland. 5 & 6 Viet. c. 35, s. 14. Qualification in lands need not be in the county. Proof of qualification. 5 & 6 Viet. c. 35, s. 15. Qualification not required for certain officers acting as Commis- sioners, nor for special Commis- sioners. 43 & 44 Viet. c.l9,s.27(2). 13. And be it enacted, that no person herein required to be qualified in respect of estate shall be capable of acting as a Com- missioner for general purposes in execution of this Act for any city or borough in Scotland unless such person be enf eoft or possessed of an estate of the like nature and of three fifths of the value required for the estate of a Commissioner acting for any shire in Scotland, or unless such person be the eldest son of some person enfeoft or possessed of some estate of thrice the value required as the qualification of a Commissioner, in right of his own estate, for the same city or borough. 14. Provided always, and be it enacted, that no estate consisting of lands or tenements, as the qualification of a Commissioner, shall be required to be situate in the county, riding, or division for which any person shall be a Commissioner : Provided also, that the proof of qualification where required shall lie on the person acting in the execution of this Act, in such manner as is by law directed with respect to Commissioners acting in the execution of the said Land Tax Act. 15. Provided also, and be it enacted, that nothing herein con- tained shall be construed to require any qualification of a Commis- sioner in the district of the palaces of Whitehall and St. James Westminster, for any officer who shall have heretofore acted or may hereafter act as a Commissioner for putting in execution the said Land Tax Act in the said district, other than the possession of their respective offices; nor in any shire in Scotland, for any provost, baillie, dean of guild, treasurer, master of the Merchants Company, or deacon convenor of the trades for the time being of any royal burgh in Scotland, nor any baillie for the time being of any borough of regality or barony of Scotland, nor the factors for the time being on the several forfeited estates annexed to the Crown by an Act passed in the twenty-fifth year of the reign of King George the Second, who shall be respectively appointed Commis- sioners for executing the said Land Tax Act in any shire in Scot- land ; nor for any Commissioner for special purposes acting in the execution of any of the powers or provisions of this Act. The Taxes Management Act, 1880 27. (2.) The sheriff depute or substitute of any county or division in Scotland for the time being shall be ex officio and with- out other qualification a general Commissioner for such county or division. APPOINTMENT OF CLERKS. 2. Appointment of Clerks. The Income Tax Act, 1842 5 & 6 Viet. 9. And be it enacted, that the Commissioners to be appointed ' ' f' 9 ' for general purposes in manner aforesaid shall appoint a clerk, and sioners may if necessary an assistant clerk, for the duties to be assessed by them * mt t in each district, who shall execute their office according to the assistant, regulations of this Act and the Acts herein respectively mentioned or referred to ; and every such clerk and assistant shall act as such, as well in all matters and things to be done by, under, and before the respective Commissioners for general purposes, as by, under, and before the respective additional Commissioners hereinafter mentioned in the respective districts ; provided that no more than one clerk's assistant shall be appointed for any district without the approbation of the Commissioners of Inland Revenue, on a state- ment made to them by the Commissioners for general purposes of the necessity thereof in consideration of the extent or population of the district ; and if any clerk or clerk's assistant appointed under Penalty on the authority of this Act, who shall have taken the oath herein- ^g t ant for after required, shall wilfully obstruct or delay the execution of this misconduct. Act, or shall negligently conduct or wilfully misconduct himself in the execution of this Act, he shall forfeit the sum of one hundred pounds, and shall be dismissed from the said office, and be rendered incapable of again acting as clerk or clerk's assistant in the execu- tion of this Act or any other Act for granting duties under the management of the Commissioners of Inland Revenue. Clerk. The Taxes Management Act, 1880 43 & 44 Viet. 41 (1.) (a). At their first meeting in each year to be held in c> 19) 8> 41> England before the tenth and in Scotland before the thirtieth day of April, the General Commissioners or the major part of them shall elect a fit person to be their clerk, and one other fit person, if the said Commissioners shall deem it necessary, to be his assistant, for all the assessments to be made of the several duties with which the said Commissioners shall be charged within their respective limits for one year, and the person so elected shall by virtue of such election be the sole clerk to such Commissioners for all the said assessments to be made by them for such year, and shall not be removeable from his said office during the year for which he shall be appointed as aforesaid, except for just cause, and at a meeting of the Commissioners for that purpose duly summoned by notice in writing signed by such Commissioners, or in Scotland by their respective conveners, and served on each of the Commissioners who 10 CREATION OF OFFICIALS. shall have qualified in and for the division, and by the major part of the Commissioners present at such meeting. Remunera- (2.) (b). The clerk shall have as remuneration the allowances as on ' appearing in the First Schedule. Delay of clerk (3.) If a clerk or clerk's assistant wilfully obstructs or delays asutant. ^ execu ti on O f foe Tax Acts or this Act, or negligently conducts or wilfully misconducts himself in the execution of any of such Acts, he shall incur a penalty of one hundred pounds, and shall be dismissed from the office of clerk and be incapable of again acting as clerk or clerk's assistant. Clerk not to (4.) No clerk shall demand, take, or receive any fee, gratuity, or 3es ' perquisite for anything to be done by him as clerk by virtue and under the authority of this Act or the Tax Acts from any person other than the person appointed by the Board to pay the allowances which such clerk may be entitled to. (5.) [Refers to Land Tax.~\ Vacancy in (6.) In the event of a vacancy occurring in the course of any office of clerk . year by the death, dismissal, or resignation of any clerk or otherwise, the Land Tax Commissioners and General Commissioners respec- tively shall fill up such vacancy by the election in manner aforesaid of a person to be clerk for the remainder of such year. 43 & 44 Viet. (<*) This section does not apply to Ireland. The Taxes Management Act, c. 19, s. 25. 1880, s. 25. (V) See the later Abts below as to the present remuneration of clerks. (Sub-sect. (2) is now repealed by the Statute Law Eevision Act, 1894.) Remuneration of Clerk. 52 & 53 Viet. The Inland Eevenue Act, 1889 13. It shall be lawful for the Commissioners of Inland Revenue, of law as to with the consent of the Treasury, to grant, in addition to the allow- derkTtoCom- ances an( ^ remuneration payable to clerks to Commissioners of missioners of Income Tax and Inhabited House Duties by virtue of the Taxes Taxes Management Act, 1880, such further sums for expenses incurred other than necessary office expenses, and by way of additional remuneration as they may deem expedient. 54 & 55 Viet. The Taxes (Regulation of Remuneration) Act, 1891 c ' ' s ' ' 1. The allowances and remuneration which a clerk to Commis- poundage to sioners of Income Tax and Inhabited House Duties and an assessor clerks to Com- ^ entitled to receive by virtue of the Taxes Management Act, missioners and assessors. 1880, are hereby abolished as respects the year commencing on the sixth of April, 1891, and any subsequent year. 54 & 55 Viet. 2. The person holding the office of clerk to the Commissioners Allowances to ^ I ncome Tax and Inhabited House Duties shall, in lieu of the clerks to Com- allowances and remuneration which he would have received if this mssoners. APPOINTMENT OF CLEEKS. 11 Act had not been passed, receive a sum not less than the amount paid to the clerk by way of poundage for the year which com- menced on the sixth day of April, 1890, and also a further sum not less than one-third of the aggregate amount allowed to the clerk for expenses necessarily incurred in the due execution of the Acts relating to the Land Tax and Inhabited House Duties during the same year and the two preceding years. 5. The Taxes Management Act, 1880, shall be read, as respects 54 & 55 Viet, the year commencing on the sixth day of April, 1891, and any c ' 13) s ' 5 " subsequent year, as if the amount to be received by the clerk under O f 43 & 44 this Act were substituted for all the allowances and remuneration Vlct> c- 19- in clause one in the First Schedule to that Act. . . , The Income Tax (Public Offices) Act, 1872 35 & 35 Viet. The Treasury may, if they think special circumstances require c ' ' 8 ' l ' it, by minute assign such remuneration as they may think expedient to any such assessor ( B ' ' be entitled to any part of the reward hereby given to such clerk, except the assistant (if any) to such clerk, whose compensation shall be apportioned and settled by the respective Commissioners ; nor shall such clerk, under any pretence whatever, demand, take, clerk not to or receive any fee, gratuity, or perquisite, for any matter or thing teke fees - to be done by him by virtue and under the authority of this Act, from any person, other than the proper officer for receipt, in manner aforesaid : . 3. Appointment of Additional Commissioners, Qualification of Additional Commissioners. The Income Tax Act, 1842 5 & 6 Viet. 16. And be it enacted, that whenever it shall be deemed by c - 3o> 8 - 16 ' the Commissioners for the general purposes of this Act to be ex- additional pedient that certain of the powers herein contained shall be executed Commis- sioners, by Commissioners other than and in addition to the persons to be 12 CREATION OF OFFICIALS. their quali- fication. In default of naming addi- tional Com- missioners. chosen or appointed as aforesaid, such additional Commissioners shall be chosen by the Commissioners for general purposes acting in the same district ; for which purpose the said Commissioners, being duly qualified as required by this Act, shall, with the consent of the major part of them assembled at any meeting to be held for that purpose, set down in writing lists of the names of such persons residing within their respective districts as shall in the opinion of such Commissioners be fit and proper persons to act as such addi- tional Commissioners, which lists shall contain the names of so many of those persons as the said Commissioners shall in their discretion, after taking into consideration the size of each district, and the number of persons to be assessed therein, think requisite for the due execution of this Act ; which lists, being respectively signed by such Commissioners, shall be a sufficient authority for such additional Commissioners being respectively qualified as hereinafter is mentioned, and they are hereby authorized to take upon themselves the execution of the several powers of this Act according to the provisions thereof : Provided always, that the persons appointed to supply vacancies in any district may be chosen and act as additional Commissioners until their services shall be required as Commissioners for general purposes : Provided also, that no person shall be capable of acting as such additional Com- missioner who shall not be seised or enfeoft or possessed of an estate of the like nature, and of one-half the value, herein required for the estate of a Commissioner for general purposes in the same district : Provided also, that where no additional Commissioners shall be named and appointed in any district the Commissioners appointed for general purposes shall execute this Act in such dis- trict in all matters and things hereby authorized to be done by additional Commissioners. 5 & 6 Viet. c. 35, s. 19. Notice to be given to ad- ditional Com- missioners to take upon themselves the execution of this Act. 19. And be it enacted, that whenever the said Commissioners for general purposes shall have named such additional Commis- sioners as aforesaid, they shall cause notice thereof in writing, signed by two or more of them, to be delivered to the said addi- tional Commissioners by the assessors of the respective parishes or places where they reside, naming the day and place appointed by the Commissioners for general purposes for the first meeting of the said additional Commissioners, and which meeting shall be ap- pointed to be held not later than ten days after the date of such notice ; and the said respective assessors shall, without delay, cause the respective persons so named to be summoned, by notice in writing, either given personally or left at their respective places of abode, to assemble, at the time and place mentioned in such APPOINTMENT OF ADDITIONAL COMMISSIONERS. 13 notice, for the purpose of qualifying themselves to act in the exe- cution of the powers vested in them by this Act ; and the said The oath to Commissioners for general purposes shall administer the oath to tered to them. such additional Commissioners required by this Act to be taken by them (a), and shall then and there appoint a day for the said addi- tional Commissioners to bring in their certificates of assessment in the manner herein directed ; and the clerk to the Commissioners Clerk. in each district, or his assistant, shall also be appointed clerk to the additional Commissioners appointed for the same district, and shall attend the said additional Commissioners at their meetings as their clerk. (a) Post, sect. 38, p. 38, and Form, p. 419. 20. And be it enacted, that it shall be lawful for the Commis- 5 & 6 Viet. sioners for general purposes, whenever in their judgment the same ^. ?'. 8 ' shall be requisite, to divide such additional Commissioners into dis- additional trict committees, and to allot to each committee distinct parishes, wards, or places in which such committees shall separately act in committees. the execution of this Act, but so that the meetings of such com- mittee shall be appointed at such times as that the clerk to such Commissioners may attend every meeting : Provided always, that Number of not more than seven persons shall act together as additional Com- commission- missioners for the same district not being formed into several eraineach .... i i committee or divisions as aforesaid, nor any greater number act together in the district. same committee ; and that where more than seven persons shall attend as such additional Commissioners at any meeting, either for the whole of any district or for any division thereof, the seven persons first in their order on the list signed by the Commissioners for general purposes then present shall act, and the rest shall with- draw from such meeting : Provided also, that not less than two additional Commissioners shall be competent to form any meeting either for any district or division thereof, and that any two of them, or the major part of them then present, shall be competent to do any act authorized by this Act. 21. Provided always, and be it enacted, that if it shall appear 5 & s Viet. to the Commissioners for general purposes, whether they shall have F rappoint- been chosen as aforesaid or shall act by virtue of their appointment ing a greater of Commissioners for executing the said Land Tax Act, to be expe- Commls- dient that a greater number than seven Commissioners for general sioners for ., in general pur- purposes, possessing the qualification required ior sucn Uommis- pose s instead sioners, should be appointed for any district, instead of appointing p f n ^k QIial Commissioners possessing only the qualification required for addi- sioners. tional Commissioners as before mentioned, it shall be lawful for 14 CREATION OF OFFICIALS. IVo of them to execute the office of additional Commis- sioners. Where none such are ap- pointed, then Commis- sioners for general pur- poses may act. If not suffi- cient, then others may be taken out of the adjoining district. 5 & 6 Viet. c. 35, s. 17. Appointment of Commis- sioners in places not having per- sons qualified. them to appoint such greater number, not in any case exceeding the number of seven, observing, with regard to such appointments, the same rules as in the first appointment of Commissioners for general purposes, but nevertheless, without adding thereto any persons to supply their vacancies ; and in every case, of appointing such increased number of Commissioners for general purposes it shall be lawful for the said Commissioners, at their first meeting after such appointment, and they are hereby required, to choose indifferently by lot such number of their own body, not less than two or more than seven, to execute the office vested in additional Commissioners by this Act, and the persons so chosen shall be additional Commissioners for executing this Act and the powers hereby vested in additional Commissioners, and they are hereby required to execute this Act accordingly, and the remaining Com- missioners not so chosen by lot shall execute the powers vested in the Commissioners for general purposes; provided also, that where no such additional Commissioners shall have been appointed specially to execute the powers vested in additional Commissioners, the Commissioners acting in the execution of the powers of this Act, whether chosen as aforesaid or not, shall divide themselves in such manner that two Commissioners at the least shall be appointed to execute the powers vested in additional Commissioners by this Act ; and if in such case there shall not be two remaining persons at least qualified to act as Commissioners for general purposes in such district, then the persons qualified to act in the execution of the powers of this Act as Commissioners for general purposes in any adjoining district of the same county, riding, division, shire, or stewartry, or such number of them as shall be requisite, shall execute this Act and the powers hereby vested in Commissioners for general purposes in and for such first-mentioned district. 17. Provided always, and be it enacted, that if in any city, liberty, franchise, cinque port, town, or place, for which separate Commissioners have been appointed to act in execution of the said Land Tax Act, there shall not be found a sufficient number of persons, qualified as directed by this Act, and willing to act as Commissioners for general purposes, or as additional Commis- sioners, it shall be lawful to appoint, as such Commissioners or additional Commissioners, any persons residing in such city, liberty, franchise, cinque port, town, or place, who shall be liable to be assessed under the provisions contained in this Act for annual profits, however arising, to the amount of two hundred pounds or upwards. APPOINTMENT OF SPECIAL COMMISSIONERS. 15 4. Appointment of Special Commissioners. Functions of Special Commissioners. The Income Tax Act, 1842 5 & 6 Viet. 23. And be it enacted, that the Commissioners of Inland Revenue for the time being, together with such persons as shall 8ioners for i .. .--j A i _ . 8jp6ci3(l pur* be appointed Commissioners tor special purposes as next herein- poses. after mentioned, shall be Commissioners for the special purposes of this Act ; and it shall be lawful for the Treasury, by warrant, from time to time to appoint such and so many other persons to be Commissioners for such special purposes as they respectively shall think expedient ; which said Commissioners of Inland Revenue, and Functions of Commissioners so to be appointed as last aforesaid, without other missioners m ~ qualification being required than the possession of their respective offices, shall have full authority to execute the several powers given by this Act to Commissioners for special purposes, either in rela- tion to the allowances specified in Number VI. Schedule (A.) of this Act, or in relation to the special exemptions granted from the duties mentioned in Schedule (C.) of this Act, or to the charging and assessing the profits arising from annuities, dividends, and shares of annuities paid in the United Kingdom out of the revenues of any foreign state, as herein mentioned, and also in relation to the examining, auditing, checking, and clearing the books and accounts of dividends delivered to the Commissioners of Inland Revenue under the authority of this Act, and shall also have full authority to do any other act, matter, or thing hereby directed or required to be done by Commissioners for special purposes ; and all powers, provisions, clauses, matters, and things contained in this Act for ascertaining the amount of any duty, exemption, or allowance mentioned in this Act shall be used, practised, and put in execution by the said Commissioners for special purposes in ascertaining the amount of duty or any exemp- tion or allowance placed under their cognizance or jurisdiction : Provided always, that it shall not be lawful for the said Commis- Their pro- . i / i i- jr i- ceeding-s to be sioners for special purposes (except when acting in tne execution by affidavit of this Act in the place of Commissioners for general purposes, or without vird * 4 ,,?.,,., VOCe examma ' on any appeal in the cases authorized by this Act,) to summon tion. any person to be examined before them, but all inquiries by or before the said Commissioners for special purposes (except in the several cases aforesaid) shall be answered by affidavit, to be taken before one of the Commissioners for general purposes in their respective districts ; and such Commissioners for special purposes shall have authority to use, exercise, and apply all the powers of this Act as effectually as any other Commissioners are hereby 16 CREATION OF OFFICIALS. authorized to use, exercise, or apply the same, so far as the same powers relate to the jurisdiction given to the said Commissioners for special purposes; and the said Commissioners for special purposes shall and may be allowed such salary for their pains and trouble, and such incidental expenses, as the Treasury shall direct Appointments to be paid to them : Provided always, that the Treasury shall cause sioners with an account of all appointments of Commissioners for special pur- salaries to be poses ^th salaries to be laid before each House of Parliament Parliament, within twenty days after their appointment respectively, if Parlia- ment shall then be sitting, and if Parliament shall not be sitting then within twenty days after the next meeting of Parliament. 5 & 6 Viet. c ' > s - Treasury to settle allow- Commis- sioners, sur- other officers, and to dis- charge inci- dental ex- penses. Remuneration of Special Commissioners. 186. Provided always, that it shall be lawful for the Treasury to settle and appoint such salaries and allowances for the service, ri . . pains, and labour of the Commissioners for special purposes, inspectors, surveyors, and other officers to be employed in the execution of this Act, and otherwise in relation thereto, and also to discharge such incident charges and expenses attending the execution of this Act, as the Treasury shall think fit and reasonable in that behalf. 5 & 6 Viet. c. 35, s. 24. Governor and directors of Commis- assessing duties on all annuities, dividends, salaries 8 '&c payable by on their ' profits. 5. Various Persons who are to be Commissioners. The Income Tax Act, 1842 24. And be it enacted, that the governor and directors of the company of the Bank of England shall be Commissioners for r J executing this Act, for the purpose of assessing and charging the duties hereby granted in respect of all annuities payable 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 res p ec t of all annuities, dividends, and shares of annuities payable out of the revenue of the United Kingdom to any persons, corpora- tions, or companies whatever, and which shall have been intrusted to the said governor and company for such payment, and in respect of all other annuities, dividends, and shares of annuities which shall have been intrusted to the said governor and company for payment as aforesaid, and in respect of all profits and gains of the said company chargeable under Schedule (D.) of this Act, and in respect of all other dividends, annuities, pensions, and salaries payable by the said company, and also in respect of all other profits chargeable with duty under this Act, and arising within any office or department under the management or control of the said VARIOUS PERSONS WHO ARE TO BE COMMISSIONERS. 17 governor and company; and the said Commissioners shall have authority to use, exercise, and apply all the powers of this Act as fully and effectually as the Commissioners for the general purposes of this Act are authorized to use, exercise, or apply the same, so far as the same relate to the said duties to be assessed and charged by the said governor and directors, and shall make their assessments of the said duties under and subject to the rules, regulations, and exemptions contained in the several Schedules of this Act under which such duties are respectively chargeable, 27. And be it enacted, that the directors of the East India 6 & 6 Viet. Company shall be Commissioners for executing this Act, and with Directors of the like powers as aforesaid, for the purpose of assessing and the East charging the duties hereby granted in respect of the interest pay- pa ny tobe" able on the bonds of the said company, and in respect of all Commis- dividends, annuities, pensions, and salaries payable by the said assessing company, and also in respect of all other profits and gains charge- ^^st 11 able with duty under this Act, and arising within any office or dividends, department under the management or control of the said company, pensions,' which assessments shall be made under and subject to the rules, salaries, &c. payable by regulations, and exemptions contained in the several schedules them. under which the said duties are respectively chargeable. 28. And be it enacted, that the Commissioners for the reduction 5 & 6 Viet. of the national debt shall be Commissioners for executing this Act, and with the like powers as aforesaid, for the purpose of sionersfor assessing and charging the duties hereby granted in respect of all O f na ti ona i annuities payable by them out of the revenue of the United King- debt to assess \ J J . . . the duties on dom, and in respect of all salaries and pensions payable in any all annuities office or department under their management or control ; and the **f J^laa*' said Commissioners shall make their assessments of the said duties ries and under and subject to the rules, regulations, and exemptions con- p tained in the several schedules under which the said duties are respectively chargeable. 29. And be it enacted, that the said Commissioners for special 5 & 6 Viet. purposes shall be Commissioners under the regulations of this c ' omnlifl _ Act, and with the like powers as aforesaid, for the purpose of sioners for assessing and charging the duties hereby made payable on all f ore ign dividends and shares of annuities payable out of the revenue of dividends. any foreign state to any persons, corporations, companies, or societies in the United Kingdom, which shall have been or shall be intrusted for such payment to any person, corporation, com- pany, or society whatever in the United Kingdom, other than and except the several companies aforesaid, which assessments shall be R. 18 CKEATION OF OFFICIALS. made under and subject to the rules, regulations, and exemptions contained in Schedule (0.) of this Act. 5 & 6 Viofc. 30. And for the ordering, raising, levying, and paying of the A ointment 8a ^ sums ^ mone 7 t ere ^y made payable on offices and employ- of Commis- ments of profit, be it enacted, that the Lord High Chancellor, the thTdutieTon J U( % es > an d the principal officer or officers of each Court or public offices in the department of office under her Majesty throughout the United Courts or ^. r T, n, ^ U v M jL-i i public de- Kingdom, whether the same shall be civil, judicial, or criminal, partments. ecclesiastical or commissary, military or naval, shall respectively have authority to appoint Commissioners from and amongst the officers of each Court or department of office respectively ; and the persons so appointed, or any three or more of them, not in any case exceeding seven, shall be Commissioners for executing this Act in relation to the offices in each such Court or department Power re- respectively : Provided always, that in relation to each department Treasurywith of office, not being one of her Majesty's Courts, civil, judicial, or respect to the criminal, or an ecclesiastical or commissary Court, the Treasury assessing of . public de- shall, whenever they may think it expedient, settle and determine 1 s ' in what particular departments Commissioners shall not be appointed, and in such case shall settle and determine in what other department of office the officers of that department wherein Com- missioners shall not be appointed shall be assessed ; and also when- ever there shall be any default in the offices of any department, or in any Court aforesaid, in appointing Commissioners, the Treasury shall, within the time herein limited, appoint fit and proper per- sons to be Commissioners for executing this Act in the several Courts or departments of offices aforesaid for which they shall be appointed from and amongst the officers in the several depart- ments respectively, uniting for the purposes of this Act, in cases requiring the same, two or more offices under the same Commis- sioners, but nevertheless with distinct officers from each office so united for assessing and collecting the duties, as directed by this Act ; and where any dispute shall arise touching the department in which any office is executed, the Treasury shall determine the same : Provided also that where the Commissioners of one depart- ment shall execute this Act in relation to any other department, the assessors and collectors for such other department shall be appointed from the officers of such other department, with all the powers and privileges appertaining to such appointments : Provided also, that where no appointment shall be made of Commissioners before the expiration of the time limited by this Act, the Com- missioners for executing this Act in relation to the duties on lands and tenements shall, on due notice in the manner herein VAEIOUS PEESONS WHO ARE TO BE COMMISSIONERS. 19 directed, execute this Act in their several districts in relation to the said duties on offices and employments of profit exercised within the same districts respectively ; and the appointment of such Commissioners for offices and employments of profit shall be notified to the Commissioners of Inland Eevenue ; and the want of such notification in due time shall be deemed full proof of default in making such appointment. The Income Tax Act, 1853 16 & 17 Viet. 26. Where in any Court or department of office there shall not ^o'tob-' be a sufficient number of officers proper to be appointed Commis- Commis- sioners for executing this Act in relation to the duties on offices and employments of profit in such Court or department of office, it shall be lawful for the Treasury to direct that the Commissioners Court or de- f or any other department shall execute this Act in relation to the offices P artment - and employments of profit in any such Court or department as afore- said ; and in default of a sufficient number of Commissioners being appointed in any such Court or department, and of such direction as aforesaid, the Commissioners for General Purposes in their respective districts in England and Scotland respectively, and the Commissioners for special purposes in Ireland, shall respectively put this Act in execution in relation to the duties on offices and employments in any such Court or department as aforesaid ; and Powers of wherever in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, any power or direction is given to general pur- the Commissioners for executing the said Act in relation to the duties on duties on lands and tenements to execute the same in their several ^.^d ^ districts in relation to the duties on offices and employments of Ireland by profit, every such power and direction shall, in relation to the goners for duties on offices and employments of profit in Ireland under this special pur- Act, be executed and carried out by the Commissioners for Special Purposes. The Income Tax Act, 1842 5 & 6 Viet. 31. And be it enacted, that the speaker and the principal clerk ' of either House of Parliament, the principal or other officers in the sioners for several counties palatine, and the Duchy of Cornwall, or in any O ffi ces ^ ecclesiastical Court, or in any inferior court of justice, whether of Houses of . i .Parliament, law or equity, or criminal or justiciary, or under any ecclesiastical counties body or corporation, whether aggregate or sole, throughout Great j^^?' Britain (a), shall appoint Commissioners from and amongst the Courts, and persons executing offices in either House of Parliament, or in their respective departments of office ; and the persons so appointed, or any three or more of them, not in any case exceeding seven, shall c2 20 CREATION OF OFFICIALS. 5 & 6 Viet. c. 35, s. 32. Commis- sioners for the duties on offices in cities and boroughs, and all other offices not under the Crown, in counties, ridings, &c. be Commissioners for executing this Act, in relation to the places, offices, and employments of profit in each House of Parliament, and in each such department respectively ; which appointments shall be made, and the names of the Commissioners shall be trans- mitted to the Commissioners of Inland Revenue within the time herein limited, or in default thereof such appointments shall be made by the Treasury: Provided always, that where no such appointment as last mentioned shall be made before the expiration of the time limited by this Act, the Commissioners for executing this Act in relation to the duties on lands and tenements shall, in their several districts, on due notice of such default in the manner herein directed, also execute this Act in relation to the duties on such offices or employments of profit exercised within the same districts respectively; and the want of notification of any such appointment to the Commissioners of Inland Revenue in due time shall be deemed full proof of default in making such appointment, (a) As to Ireland, see 16 & 17 Viet. c. 34, s. 20, post, p. 309. 32. And be it enacted, that the mayor, aldermen, and common council, or the principal officers or members, by whatever name they shall be called, of every corporate city, borough, town, or place, and of every cinque port, throughout Great Britain (a), or any three or more of them, not in any case exceeding seven, shall be Commissioners for executing this Act, and the powers herein contained, 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 corporate or not corporate, within such city, corporation, or cinque port ; and that for all offices or employments of profit (not being public offices or employments of profit under her Majesty) in any county, riding, city, liberty, franchise, town, or place, whether in the appointment of the lieutenant, custos rotulormn, or the justices or magistrates, or Commissioners for aids or taxes, or sheriff of such county, riding, city, liberty, franchise, town, or place, or of any trustees or guar- dians of any trust or fund in such county, riding, city, town, or place, and for all parochial offices in such county, riding, city, town, or place, (except corporate offices in cities, corporate towns, boroughs, or places, or offices in cinque ports as aforesaid,) the Commissioners for executing this Act in relation to the duties on lands and tenements shall, in their several districts, also execute this Act in relation to the said duties on offices in such county, riding, city, liberty, franchise, town, or place ; and such respective Commissioners shall and may exercise any of the powers contained in this Act, in relation to any of the duties herein mentioned, for VARIOUS PERSONS WHO ARE TO BE COMMISSIONERS. 21 causing due returns to be made from the respective officers within their respective jurisdictions, and for compelling the assessors to make their assessments, and return the same, and for the due collection of and accounting for the said duties, and may act therein in all respects as fully and effectually as any other Com- missioners are hereby empowered to act in relation to the said other duties; provided the moneys collected of the said duties, under the respective Commissioners acting for such offices in corporate cities, boroughs, towns, or places aforesaid, or in the cinque ports, or in the several counties, ridings, divisions, cities, liberties, franchises, towns, and places, shall be paid to the proper officer for receipt for the county or riding, and not otherwise, and that the like duplicates shall be delivered of such last-mentioned duties as in other cases where the same are directed to be paid in like manner. (a) As to Ireland, see 16 & 17 Viet. c. 34, s. 20, post, p. 309. Sect. 32 was repealed by the Customs and Inland Eevenue Act, 1876, s. 9, but was revived by sect. 7 of the Customs, Inland Revenue, and Savings Bank Act, 1877. Both sect. 9 of the Customs and Inland Revenue Act, 1876, and sect. 7 of the Customs, Inland Revenue, and Savings Bank Act, 1877, are repealed by the Statute Law Revision Act, 1883, leaving sect. 32 intact. 33. And be it enacted, that the appointment of Commissioners 5 & 6 Viet. for executing this Act in relation to the duties on offices and c ' '. 8 ' ', , ~ . Appointment employments of profit as aforesaid shall be notified to the Commis- of Commis- sioners of Inland Eevenue, within one calendar month after the passing of this Act, with respect to the first assessment under the the Inland same, and within one calendar month after the fifth day of April offices ; in in any future year ; and in default thereof the appointment of such Commissioners shall devolve on the Treasury, and on the Commis- cation, the sioners of the district, in succession as aforesaid : Provided always, to devolve on that such appointment by the Treasury shall take place within one ^^easury, calendar month after the notification of such default as aforesaid niissioners of from the Commissioners of Inland Eevenue ; and in case of no j e e ^jf appointment as last aforesaid, notified to the Commissioners of the Act. Inland Eevenue in like manner, the execution of this Act shall devolve on the Commissioners appointed for the district in relation to the duties on lands, tenements, and hereditaments ; and every such appointment shall be until other Commissioners shall be appointed, and may be renewed annually on or before the fifth day of April in each year during the continuance of this Act : Provided Commis- . , sioners ap- always, that the Commissioners so to be appointed may continue o pointed may act from year to year, so long as they are respectively willing to ^ tinue to act, without any new appointment, unless it shall be deemed 22 CEEATION OF OFFICIALS. 5 & 6 Viet. c. 35, s. 34. Commis- sioners for the duties on pensions and stipends payable by her Majesty. 53 & 54 Viet. c. 8, s. 28. Assessment of Universities of Oxford and Cambridge. expedient under the powers of this Act that any department for which Commissioners have been appointed should be assessed under the Commissioners of any other department. 34. And be it enacted, that for the better execution of this Act, so far as the same relates to the- duties hereby granted on pensions or stipends payable by her Majesty, or out of the public revenue, contained in Schedule (E.), and for the ordering, raising, levying, and paying of the duties hereby made payable thereon, in cases not otherwise provided for by this Act, the paymasters of civil services, and such other persons as the Treasury shall appoint, shall be Commissioners for executing this Act, and all the powers herein contained, in relation to the said last-mentioned duties, or shall respectively appoint Commissioners from and amongst the officers of those departments for such purposes. The Customs and Inland Revenue Act, 1890 28. Notwithstanding any enactment to the contrary, the assess- ment and collection of the duties of income tax, and of the duties on inhabited houses within the Universities of Oxford and Cambridge, shall be deemed to have been as from the fifth day of April, 1886, and shall be subject to the provisions following (that is to say) : (a) Any college or hall for the time being attached to or associated with the University of Oxford, and all offices and employments in connexion therewith, and persons residing therein, shall be within the jurisdiction of the General Commissioners for that University : (b) The General Commissioners for the University of Cambridge, shall be the Commissioners for the said duties in respect of all the University buildings, and the colleges, halls, and public hostels for the time being attached to or associated with that University, and of all offices and employments in connexion therewith, and of all the profits or gains of all persons residing therein : (c) Each of the said jurisdictions shall be deemed to be one parish or place for the purposes of assessment and collection. 5 & 6 Viet, c. 35, s. 35. Commis- sioners en- titled to certificates Exemption of Commissioners from certain Offices. The Income Tax Act, 1842 35. And be it enacted, that every person acting as a Commis- sioner as aforesaid in the execution of this Act shall on request be entitled unto a certificate thereof under the hands of the Commis- VARIOUS PERSONS WHO ARE TO BE COMMISSIONERS. 23 sioners of Inland Revenue, which certificate shall continue in force exempting so long only as such person shall continue to act as such Commis- ^hand sioner, and shall be revokable by the Treasury, by any instrument ward offices. in writing, when it shall appear to them that such person hath neglected to perform his duty as such Commissioner; and the person to whom such certificate shall have been granted shall, during the continuance thereof in force, be discharged of and from all parish and ward offices within the parish or ward wherein such person shall dwell, which said certificate shall be enrolled by the clerk of the peace of the county or city in which the same shall be granted, for which enrolment the said clerk of the peace shall have for his fee the sum of one shilling, and no more ; and the said clerk of the peace shall cause every certificate revoked in manner aforesaid to be taken off the roll on notice thereof to be given to him by the Commissioners of Inland Revenue. The Taxes Management Act, 1880 43 & 44 Viet. c. 19 s. 40. 40. Every General Commissioner or Additional Commissioner to Exemption whom a certificate has been or shall be granted by the Board under of Commis- the thirty-fifth section of the Income Tax Act, 1842, shall, so long serving on* as such certificate continues in force, be discharged, not only from i 111168 - the several offices referred to in the said enactment, but also from serving on juries in the county where he dwells. This section does not apply to Ireland. The Taxes Management Act, 43 & 44 Viet. 1880, s. 25. o. 19, s. 25. The Income Tax Act, 1853 16 & 17 Viet. 9. The several persons chosen or appointed under the provisions ' ' of the said first-mentioned Act (a) to be respectively Commissioners sioners ap- for the general purposes of the said Act, and to be respectively former Acts additional or other Commissioners, being respectively duly qualified *.* missioners in that behalf, and also the several persons appointed to be and under this who on the fifth day of April one thousand eight hundred and fifty-three were Commissioners for the special purposes of the said Act, shall, without any further or other election, nomination, or appointment respectively, be such Commissioners as aforesaid for the like purposes under this Act ; and wherever in the said Act, or in any Act relating to the duties thereby granted, mention is made of the Commissioners of Stamps and Taxes, the same in relation to the duties granted by this Act shall be construed and deemed to designate the Commissioners of Inland Revenue : Provided that no persons shall be Commissioners to supply vacancies amongst the said Commissioners for General Purposes except such persons as shall after the passing of this Act be chosen for that purpose in the manner provided by the said first-mentioned Act. (a) I. e., the Income Tax Act, 1842. 24 CEEATION OF OFFICIALS. 6. Appointment of Assessors, 5 & 6 Viet. c. 35, s. 36. Appointment of assessors The Income Tax Act, 1842 36. And be it enacted, that in England the Commissioners for G-eneral Purposes may appoint assessors and collectors for the duties and collectors. /_ . ; T rr granted by this Act in like manner as assessors and collectors may- be appointed by the Taxes Management Act, 1880 ; and in Scot- land the said Commissioners for General Purposes may in like manner appoint assessors for the said duties hereby granted ; and the same persons who now are or may be appointed collectors or officers for collecting and receiving the land tax and assessed taxes in Scotland under the authority of the Act in that behalf made, and none other, shall be collectors and receivers of the duties granted by this Act. 43 & 44 Viet. c. 19, s. 42. Appointment Assessors. The Taxes Management Act, 1880 42. (1.) The General Commissioners shall in England before the tenth and in Scotland before the thirtieth day of April in each year direct their several and joint precept to such inhabitants of each parish, and such number of them as they think most con- venient, to be assessors for such parish, requiring them to appear before the said Commissioners at such place and at such time not exceeding ten days after the date of the precept as they appoint. (2.) At such their appearances the General Commissioners shall appoint such of the said inhabitants as they think proper to be the assessors for such parish, and shall give them instructions how they are to make their certificates and assessments, and shall then and there appoint another day, which day shall not be later in England than the twentieth day of July, and in Scotland than the first Wednesday in August in the same year, for them to appear before the Commissioners, and bring in their certificates of assessments, which shall be verified upon their oaths or solemn affirmations, and not otherwise. (3.) An assessor's appointment shall be and continue for and during the year to commence on the sixth day of April in each year, and until other assessors shall be appointed for the same parishes, and for the same duties. (4.) In every parish wherein assessors are not appointed before the times limited in each year to serve for the year ensuing, the last appointment of assessors for the parish shall continue in force until other assessors are appointed for the parish, and for the same duties. (5.) Notice of continuance in office of an assessor as aforesaid shall be given to him by the General Commissioners or by the APPOINTMENT OF ASSESSORS. 25 surveyor. By such notice such assessor may be required to attend on a day and place named therein, 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. (6.) In a parish where two able and sufficient inhabitants cannot be found, the Greneral Commissioners shall nominate and appoint fit persons residing near such parish to be assessors for the parish. (7.) If a failure happens in the appointment of the assessor for Justices may any parish, whereby the assessment of the duties is likely to be a PP mt - delayed, the magistrates or justices of the peace having jurisdiction in or over such parish, or any two of them, shall, on notice of such default given them by the surveyor, appoint an assessor, observing therein the rules and regulations prescribed by this Act for the appointment of such officer by Commissioners. This section does not apply to Ireland: Taxes Management Act, 1880, s. 25. 43 & 44 Viet. c. 19, s. 25. The Bevenue Act, 1884 47 & 48 Viet. 7. (3.) Where an officer of Inland Revenue has been appointed c< ' 8 * to be an assessor within any county or burgh for the purposes of the Act of the session of the 17 & 18 Yict. c. 91, no other person shall be appointed to be assessor for the district or division of such officer for the duties to which the Taxes Management Act, 1880, relates, provided that where a person other than the officer of Inland Revenue of a district or division is assessor for or within such district or division at the time of the passing of this Act, he shall be as capable of being re-appointed assessor as if this Act had not been passed. The Taxes Management Act, 1880 43 & 44 Viet. . c. 19, s. 43. 43. (1.) In any parish where assessors are not appointed in j n certain pursuance of this Act, or being appointed do not take on them- cases surveyor selves the office at or before the time limited, or where the assessors for any former year on whom the duty of assessors devolves do not take on themselves the office of assessor at or before the time limited, the surveyor of the district may execute the duty of assessor for such parish until assessors are appointed, and take on themselves the said office. (2.) The surveyors acting in the metropolis as defined by the Yaluation (Metropolis) Act, 1869, shall be the assessors for any duties of income tax which may be at any time granted and payable under Schedules (A.) and (B.) of the Income Tax Act, 1853, upon any property in the said metropolis, and shall also be the assessors for the duties on inhabited houses in the said metropolis ; and nothing in this Act shall empower the General Commissioners to appoint assessors in the metropolis as so defined for the duties 26 CEEATION OF OFFICIALS. 43 & 44 Viet. c. 19, s. 25. 43 & 44 Viet. c. 19, s. 44. Exemption. 43 & 44 Viet. c. 19, s. 25. 43 & 44 Viet. c. 19, s. 45. Declaration of office. 43 & 44 Viet. c. 19, s. 25. 43 & 44 Viet, c. 19, s. 46. For neglect to attend ; or refusal. Neglect of duty. under Schedules (A.) and (B.) of the Income Tax Act or for the inhabited house duties. This section does not apply to Ireland : Taxes Management Act, 1880, s. 25. 44. No person inhabiting any city, borough, or town cor- porate shall be compelled to be an assessor for a place out of the limits of such city, borough, or town. This section does not apply to Ireland: Taxes Management Act, 1880, s. 25. 45. Every person appointed an assessor shall, on his appoint- ment, and before he acts or takes upon himself such office, make and subscribe the following declaration, viz. : " I A. B. do solemnly declare that I will diligently execute the office of an assessor to which I am appointed by authority of the Taxes Management Act, 1880, and that in the assess- ment which I am required to make by any Tax Act granting to her Majesty any duties to be assessed under the regulations of the said Act, I will faithfully and honestly act without favour or affection, according to the best of my skill and knowledge." This section does not apply to Ireland : Taxes Management Act, 1880, s. 25. Penalties on Assessors. 46. (1.) If a person to whom a precept as aforesaid is directed by the General Commissioners (a) Wilfully neglects or refuses to appear before them according to the tenour and effect of such precept ; or (b) Having appeared, refuses to submit to be appointed assessor of the said duties, or any of them ; or (c) Neglects or refuses to make and subscribe the prescribed declaration of office, he shall for every such offence incur a penalty of ten pounds. (2.) If a person appointed by the General Commissioners an assessor (i.) Wilfully neglects or refuses to perform his duty in the due and speedy execution of this Act and the Tax Acts : (ii.) Wilfully neglects or refuses to charge and assess himself and all other persons chargeable with the duties, or to make his assessment in accordance with the law : (iii.) Acts in the office of assessor before taking the prescribed declaration of office, he shall for every such offence incur a penalty of twenty pounds. APPOINTMENT OF ASSESSORS. 27 (3.) If a person appointed assessor by the justices or magis- Where ap- (a) "Wilfully neglects or refuses to take on himself the office : (b) Wilfully neglects or refuses to perform his duty in the due and speedy execution of such office : (c) Wilfully neglects or refuses to charge and assess himself and all other persons chargeable with the duties, or to make his assessment in accordance with the law : (d) Neglects or refuses to make and subscribe the prescribed declaration of office, he shall for every such offence incur a penalty of fifty pounds. This section does not apply to Ireland : Taxes Management Act, 1880, 43 & 44 Viet. s. 25. c. 19, s. 25. Remuneration of Assessors. The Income Tax Act, 1842 5 & 6 Viet 183. And be it enacted, that the several assessors and collectors c- 35j s - 183> shall have three-pence in the pound for what money of the several to assessors, duties by this Act granted the several collectors shall pay to the electors, proper officer for receipt, to be divided in each separate collection other persons. between the said assessors and collectors in equal proportion ; . . . Provided always, that no such compensation shall be made to any assessor or collector, in respect of any sum detained or stopped under the authority of this Act, or paid into the Bank of England, or in respect of any sums paid by the respective parties into the said bank, nor to any receiver, nor to any of the persons or corpo- rations intrusted with the payment of annuities, dividends, and shares paid out of any public revenue of the United Kingdom, or elsewhere, as aforesaid, other than such sum as shall be directed to be paid to such collectors, receivers, corporations, or persons afore- said by the warrant of the Treasury for their pains and care in executing this Act. These allowances are now abolished. See below. The Taxes Management Act, 1880 43 & 44 Viet. 47. The several assessors shall have remuneration as appearing c - 19 > 8 - 47 - in the First Schedule. This section does not apply to reland : Taxes Management Act, 1880, s. 25. 43 & 44 Viet. This remuneration is now abolished. (Sect. 47 is now repealed by the ' ' s ' Statute Law Revision Act, 1894.) The Customs and Inland Eevenue Act, 1885 48 & 49 Viet. 25. Where the allowance to which an assessor or collector of p rov ision as income tax and inhabited house duties is entitled by virtue of the to allowances Taxes Management Act, 1880, together with the allowance to and collectors. 28 CREATION OF OFFICIALS. 54 & 55 Viet. c. 13, s. 1. Abolition of poundage to clerks to Com- missioners and assessors. 54 & 55 Viet, c. 13, s. 3. Allowance to assessors. 54 & 55 Viet, c. 13, s. 5. Amendment of 43 & 44 Viet. c. 19. which he is entitled by virtue of the Land Tax Acts, if he be also assessor or collector of land tax, would exceed a sum which in the opinion of the Commissioners for the general purposes of the income tax and inhabited house duties for the division in which the assessor and collector acts, represents more than a fair remuneration for his trouble, the said Commissioners shall have power to fix the amount of such remuneration, and such amount shall be accepted by the assessor or collector in full satisfaction and discharge of his right to allowance under the Taxes Manage- ment Act, 1880, or the Land Tax Acts. And in no case shall the aggregate amount to be received by an assessor or collector, either by way of allowances under the said Act or Acts, or by way of remuneration fixed by the Commissioners, exceed the sum of one thousand pounds, exclusive of necessary office expenses. The Taxes (Begulation of Eemuneration) Act, 1891 1. The allowances and remuneration which a clerk to Commis- sioners of income tax and inhabited house duties and an assessor are entitled to receive by virtue of the Taxes Management Act, 1880, are hereby abolished as respects the year commencing on the sixth day of April, one thousand eight hundred and ninety-one, and any subsequent year. 3. The assessor of income tax and inhabited house duties for any area of assessment shall, in lieu of the allowance which he would have received if this Act had not been passed, receive (a) In respect of assessments of the duties under Schedules (D.) and (E.) of the Income Tax Acts, the same amount as the amount of the allowance to the assessor for the year which commenced on the sixth day of April, 1890, and also (b) In any year in which he acts as assessor of the duties under Schedules (A.) and (B.) of the Income Tax Acts and of inhabited house duties, the same amount as the amount of the allowance to the assessor appointed for the year which commenced on the sixth day of April, 1888, in respect of the assessments for those duties : Provided that in the event of a change in any area of assessment the Commissioners of income tax and inhabited house duties for the division or district shall have power to adjust and apportion the amounts receivable under this section as they shall think fit. 5. The Taxes Management Act, 1880, shall be read, as respects the year commencing on the sixth day of April, 1891, and any subsequent year .... as if the amount to be received by the APPOINTMENT OF COLLECTORS. 29 assessor .... under this Act were substituted for the allowances specified in clause two of the First Schedule to that Act. The Taxes (Regulation of Remuneration) Acts, 1891 and 1892 54 & 55 Viet. 6. Nothing in this Act contained shall have any operation or 55 &56 Viet, effect in the case of an assessor or collector appointed to act in a c ' 2o> 8 " L division or district where the Commissioners of income tax and affect 48 & 49 inhabited house duties have fixed, or shall hereafter fix the Vl n*' c ' 81> 8. iO amount of the remuneration of such assessor or collector under section twenty-five of the Customs and Inland Eevenue Act, 1885. As to the remuneration of an assessor employed in the collection of income tax in a public department, see ante, p. 11. 7. Appointment of Collectors. The Taxes Management Act, 1880 43 & 44 Viet. c. 19, s. 71. PAET V. APPOINTMENT OF COLLECTORS [ENGLAND]. 71. This part (a) shall not extend to Ireland or except where Extent of expressly mentioned to Scotland. (a) Sections 7281. Grouping of Parishes. 72 (a). (1.) The Land Tax Commissioners acting for a division 43 & 44 Viet, may, with the assent of the Board, group parishes together in such ' ' ' division for the purposes of collection ; and parishes so grouped groups, shall for such purposes, but for such purposes only, be deemed and taken to be one parish. (2.) Where parishes have been so grouped and the grouping proves to be inconvenient, the Land Tax Commissioners may, with the assent of the Board, dissolve the grouping either as regards all or some or one of the parishes so grouped. (a) As to Scotland and Ireland, see sect. 71. Nomination. 73 (a). (1.) The Land Tax Commissioners and General Com- 43 & 44 Viet, missioners shall, in the month of April in each year, nominate one ; ' . . . Nomination or more able and sufficient person or persons, being resident within of collectors, each parish or group, to the office of collector of taxes for every such parish or group within the division for which such Commis- sioners act. (2.) In the event of there being no able or sufficient person willing to take the office of collector resident within the parish or 30 CREATION OF OFFICIALS. Office not compulsory. Penalty in default of notice. group, the respective Commissioners may nominate an able and sufficient person resident within a neighbouring parish or group. (3.) It shall not be compulsory on any person to accept the office of collector, and no person shall be liable to any penalty for neglecting or refusing to take upon himself the said office, provided he within fourteen days after the notification to him of his appoint- ment either personally or by registered letter addressed to the clerk to the said respective Commissioners signifies his refusal to accept the office. (4.) In the event of a person so nominated not giving notice in the above manner within the prescribed time, and on his failing when required by the respective Commissioners to attend a meet- ing for the purpose of receiving his appointment and warrant as collector, he shall incur a penalty of twenty pounds. (5.) On the expiration of the time above limited for declining the office the said respective Commissioners shall appoint such person or persons as they think fit, who has or have been nomi- nated and has or have not declined the office in the prescribed manner, to be collector or collectors for the parish or group for which he or they have been nominated. (6.) The fact of the nomination or appointment of a person to be collector shall be notified to him personally, or by a registered letter sent through the general post. (7.) In any case in which a person nominated as collector for a parish or group declines in manner aforesaid the office, the respective Commissioners may nominate some other able and sufficient person to the office, proceeding in the manner herein- before directed with regard to any such or any subsequent nomi- nations. (8.) If the collector for any parish shall not have been ap- pointed on or before the thirty-first day of May in any year, the power of appointing a collector for such parish for that and for every subsequent year shall absolutely vest in the Board, and the Board shall appoint a collector for such parish. (9.) In the event of the death of a collector for any parish or group in the course of any year, or before the collector's accounts for such parish for such year shall have been closed, the Board or the Land Tax Commissioners and General Commissioners respec- tively, by whom such collector was for such year appointed, may appoint to the vacant office such person or persons as they may think fit and who may not decline the office in manner aforesaid. (10.) If a vacancy so occurring by the death of a collector be not filled within forty days from the date of death by the Land Tax Commissioners and General Commissioners where the appoint- APPOINTMENT OF COLLECTORS. 31 ment to such vacancy has to be made by them, the power of filling such vacancy for such year shall vest in the Board, (a) As to Scotland and Ireland, see sect. 71. Security to the Crown. 74 (a). (1.) The Board may whenever they think fit 43 & 44 Viet. (a) Give notice to the Land Tax Commissioners and Greneral B oai 4 8 m l ' Commissioners that they require any or all of the persons require nominated or appointed collectors in or for any parish or * group or division specified in such notice, to give security to the satisfaction of the Board for the due collecting, accounting for, and paying over of the moneys collected or to be collected by such persons respectively, and for the due performance of their duties as such collectors : (b) Cause the like notice to be given to any person who has been appointed collector. (2.) After such notice to the Commissioners it shall not be law- ful for them to appoint any person to be collector in or for any such parish or group or division, unless he shall previously have given security to the satisfaction of the Board. (3.) In case a person who has been appointed collector, and to whom such notice as aforesaid shall be given, fails to give security within the time limited by the notice for that purpose, his nomi- nation, and appointment, and authority as collector shall cease at the end of that time. (a) As to Scotland and Ireland, see sect. 71, supra. Appointment ly Board. 75 (a). (1.) If after a notice as aforesaid given by the Board 43 & 44 Viet, there is neglect or delay in the appointment of collectors who ^ d g f ^ ult ' previously have given security to the Crown, or a failure on the of security part of a person nominated or appointed collector to give such B^a^l may*' security, the Board may appoint a collector or collectors of the appoint, land tax and the duties in or for the parish or group or division in or with respect to which such neglect, delay, or failure has occurred. (2.) A person appointed by the Board collector for a parish or group shall have, use, and exercise, and is hereby invested with the like powers and authorities as by this Act and the laws in force a collector appointed by the Land Tax Commissioners and Greneral Commissioners respectively could or might use or exercise or is invested with. (3.) The appointment by the Board of a collector shall be by 32 CREATION OF OFFICIALS. 43 & 44 Viet. c. 19, s. 76. Security. Conditions of bond. warrant under their hands, and a warrant of the Board directed to a person appointed by them to be collector shall have the like force and effect and confer the like power and authority as a warrant of the said respective Commissioners directed to a person appointed by them to be collector. (a) As to Scotland and Ireland, see sect. 71, supra. 76 (a). (1.) The security to be given in pursuance of this Act to the satisfaction of the Board shall be either by bond to the Crown, to be entered into by the collector, with sureties, to be approved by the Board, or as the Board determine, and in such sum as the Board require. (2.) The condition of every such bond shall be that the said collectors shall (a) duly demand the land tax, the duties, and moneys of the persons on whom the same are assessed, or from whom the same are payable ; and (b) in case of nonpayment thereof enforce the powers of this Act and the several Acts in that behalf against those who make default ; and (c) account for and pay over all such moneys as shall come to their hands as or for any land tax or the duties to the proper officer appointed by the Board for the receipt thereof; and (d) such further and other terms and provisions as the Board may deem fit and proper, (a) As to Scotland and Ireland, see sect. 71, supra. Security to the Commissioners. 43 & 44 Viet. 77 (a) . (1.) The Land Tax Commissioners and General Commis- c. 19, s. 77. s i onerg ma y require collectors on their appointment to give security sioners, to their satisfaction. S^ma^re' (^') ^J ^ wo or more inhabitants of a parish or group being quire security, respectively charged to the land tax or the duties in the assessment for the year current, may by notice in writing to the respective Commissioners require that the person whom they propose to appoint collector for such parish or group shall give security to the satisfaction of the Commissioners, such notice to be served person- ally on or by registered letter addressed to their clerk, and after receipt of such notice it shall not be lawful for the Commissioners to appoint a person who has not given such security. (3.) The security to be given to the Commissioners may be by a joint and several bond, with two sureties at the least, to and in the names of any two or more of such Commissioners, and the penal APPOINTMENT OF COLLECTORS. 33 sum in any such bond shall, if so required, be equal to the whole land tax duties and moneys assessed in the parish or group, and to be collected by the person whom it is proposed to appoint collector for such parish or group, and from whom security is required. (a) As to Scotland and Ireland, see sect. 71, supra. Exemption from Stamp Duty. 78 (a) . No bond or other security given under this Act by a col- 43 & 44 Viet, lector or other person in respect of the collection, accounting for, Bonds * or remitting of the land tax or the duties shall be liable to stamp from stamp duty. (a) As to Scotland and Ireland, see sect. 71, supra. Liability of Parishes. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 174. 174. And be it enacted, that in England the parish or place in Parish to be which any assessment shall have been made of the duties granted * Rectors by this Act under any of the schedules marked respectively (A.), in England. (B.), or (D.) shall be answerable for the amount of the duties which shall have been so charged in such parish or place, and for the said duties being duly demanded of the respective persons charged therewith, according to the regulations contained in the Taxes Management Act, 1880, by the collector appointed for such parish or place, and also for such collector duly paying the sums by him received to the proper officer for receipt of the said duties according to such regulations ; and any of the arrears of the said Arrears to be duties by this Act granted, caused by or arising from any neglect, default, or failure of any collector for which any parish or place shall be answerable as aforesaid, shall be assessed within or upon such parish or place as soon after such default shall be discovered as conveniently can be done, and shall be charged on the amount of the assessment which shall be made for the same duties in the year commencing from the fifth day of April preceding the time of making such re-assessment, by duly apportioning the amount of such arrear amongst the several persons assessed in that year in the assessment of the same duties on which such arrear shall have accrued, according to the amount of each person's assessment therein, as nearly as the case will admit, and by the like rules, methods, and directions by which the original assessment was made, to be raised and levied in such manner as any assessment may be by virtue of this Act raised and levied under the regula- tions of the said Act respectively. R. D 34 CREATION OF OFFICIALS. 43 & 44 Viet. c. 19, s. 79. Parish not liable for default where board take security. In other cases parish liable. Arrears to be re-assessed. The Taxes Management Act, 1880 79 (a). (1.) No parish shall be answerable for the acts, neglects, or defaults of a collector appointed by the Board, or who gives security to the Crown, nor shall a parish be liable to be re- assessed for an arrear or deficiency of the land tax or the duties arising from any default or failure of such collector. (2.) Where the collector of a parish is not appointed by the Board or does not give security to the Crown the parish shall be answerable for the amount of the land tax and the duties, and for the same being duly 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 revenue. (3.) Every arrear of the land tax and the duties arising from the default or by the failure of a collector for which a parish is answer- able, shall be re-assessed within or upon such parish as soon after such default shall be discovered as conveniently can be done, and shall be charged on the amount of the assessment which shall be made for the same tax or duties in the year commencing from the fifth day of April preceding the time of making such re-assessment, by duly apportioning the amount of such arrear amongst the several persons assessed in that year to the same tax or duties respectively on which such arrear shall have accrued, according to each person's assessment thereof, as nearly as the case will admit, and by the like rules, methods, and directions by which the original assessment was made of the same tax or duties to be raised and levied in such manner as any assessment may by this Act, the Tax Acts, or Land Tax Acts be raised and levied. (a) As to Scotland and Ireland, see sect. 71, supra. 43 & 44 Viet. c. 19, s. 80. Poundage to collectors. Remuneration of Collectors. Poundage. 80 (a) . The several collectors in England shall have remunera- tion as appearing in the First Schedule. (a) As to Scotland and Ireland, see sect. 71, supra. The remuneration is now altered. See below. Section 80 is now repealed by the Statute Law Revision Act, 1894. The Customs and Inland Eevenue Act, 1885 25. Where the allowance to which an assessor or collector of 48 & 49 Viet. c. 51, s. 25. Provision as to allowances income tax and inhabited house duties is entitled by virtue of the and collectors. Taxes Management Act, 1880, together with the allowance to which he is entitled by virtue of the Land Tax Acts, if he be also APPOINTMENT OF COLLECTORS. 35 assessor or collector of land tax, would exceed a sum which in the opinion of the Commissioners for the general purposes of the income tax and inhabited house duties for the division in which the assessor and collector acts, represents more than a fair remuneration for his trouble, the said Commissioners shall have power to fix the amount of such remuneration, and such amount shall be accepted by the assessor or collector in full satisfaction and discharge of his right to allowance under the Taxes Management Act, 1880, or the Land Tax Acts. And in no case shall the aggregate amount to be received by an assessor or collector, either by way of allowances under the said Act or Acts, or by way of remuneration fixed by the Commissioners, exceed the sum of one thousand pounds, exclusive of necessary office expenses. The Taxes (Regulation of Eemuneration) Act, 1891 54 & 55 Viet. 4. The collector of income tax and inhabited house duties for .' ' ' ' , Allowance to any area of collection shall, in lieu of the allowance or allowances collectors, which he would or might have received if this Act had not been passed, receive for his services such remuneration, not being less than the amount of the allowance or allowances to the collector for the year which commenced on the sixth day of April, 1890, as the Commissioners of Inland Revenue, with the approval of the Treasury, may direct, and the payment of such remuneration shall be made in such manner and under such regulations as the said Commissioners may prescribe. Provided that, in the event of a change in any area of collection, the Commissioners of income tax and inhabited house duties for the division or district shall have power to adjust and apportion the amounts receivable under this section as they shall think fit. 5. The Taxes Management Act, 1880, shall be read, as respects 54 & 55 Viet, the year commencing on the sixth day of April, 1891, and any c ' 13) *' ' subsequent year, as if the amount to be received by the collector O f 43 & 44 under this Act were substituted for the allowances specified in ^ lct - c - l9 - clause three of the same schedule. The Taxes (Eegulation of Eemuneration) Acts, 1891 and 1892 54 & 55 Viet. 6. Nothing in this Act contained shall have any operation or 55 &'oe Viet effect in the case of an assessor or collector appointed to act in a c - 2o 8 - L division or district where the Commissioners of income tax and inhabited house duties have fixed or shall hereafter fix the amount of the remuneration of such assessor or collector under section twenty -five of the Customs and Inland Revenue Act, 1885. As to the remuneration of a collector employed in the collection of income tax in a public department, see ante, p. 11. CREATION OF OFFICIALS. 43 & 44 Viet. c. ID, s. 81. Treasury to appoint. Allowances. Security. No liability to re-assessinent. Return to parliament. Interpreta- tion. Savings. 5 & 6 Viet. c. 35, s. 37. Officers for receipt of land tax and assessed taxes, and the inspectors Appointment of Collectors (Scotland}. The Taxes Management Act, 1880 81. (1.) The Treasury shall appoint the collectors of the land tax and of the duties in and for Scotland. (2.) The Treasury may appoint distributors of stamps in Scot- land, or any of them, or other persons to be collectors or other officers for collecting and receiving the land tax and the duties in Scotland and for such parts of Scotland as the Treasury may think fit. (3.) Such salaries and allowances as the Treasury think fit shall be granted to such distributors or other persons who shall hold their respective offices during the will and pleasure of the Treasury or the Board. (4.) Such distributors or other persons shall, before they act in the execution of their respective offices, give security to the satis- faction of the Board. (5.) No county or burgh in Scotland shall be liable for any deficiency in the collection of the land tax or the duties occasioned by the default of any collector appointed as aforesaid. (6.) If a person other than a distributor of stamps in Scotland is appointed to be collector or other officer as aforesaid, a return showing the name of such person, with his salary -and allowances, shall be laid by the Treasury before Parliament within twenty-one days after the commencement of the session of Parliament which shall next follow every such appointment. (7.) In this section the term " distributor of stamps " includes " sub-distributor of stamps." (8.) With respect to any local taxes or assessments nothing in this section shall affect any right of the Commissioners of Supply to appoint collectors of such taxes or assessments, and when in any Act in regard thereto anything is required to be done by or any power is granted to the collectors of land tax, such thing may be done and such power may be exercised by the collectors of the said local taxes or assessments appointed by the Commissioners of Supply. 8. Appointment and Remuneration of Surveyors and Inspectors. The Income Tax Act, 1842 37. And be it enacted, that the officers for receipt of the land tax and assessed taxes appointed or to be appointed by the Treasury, or by the Commissioners of Inland Revenue, and the inspectors and surveyors appointed or to be appointed in like APPOINTMENT AND REMUNERATION OF SURVEYORS, ETC. 37 manner for the duties of assessed taxes, shall be respectively and surveyors officers for receipt- and inspectors and surveyors of the duties ta^ss, to art granted by this Act ; and the said Commissioners for general m the execu- i -, i- i tionof this purposes, and the said additional Commissioners acting in the Act; and to execution of this Act, and the said assessors and collectors, to be appointed as herein mentioned, and the said officers for receipt, and under the inspectors and surveyors respectively, shall be and they are hereby tj^es. respectively empowered and required to do all things necessary for putting this Act in execution, with relation to the said duties hereby granted, in the like and in as full and ample a manner as any Commissioners, assessors, collectors, officers for receipt, surveyors, or inspectors are authorized to put in execution the said Acts relating to the said duties of assessed taxes, or any matter or thing therein contained, as well with respect to all acts, matters, and things to be done by, under, or before the said additional Commissioners, or by, under, or before the Commissioners for general purposes in their respective districts or departments, as by, under, and before the said Commissioners for special purposes. Surveyors. The Taxes Management Act, 1880 * 3 *j 17. The Treasury may from time to time constitute and appoint Treasury officers for the survey and inspection of the duties and for doing all things belonging to the office of surveyor, according to the survey and powers vested in them by this Act, the Tax Acts, or the Land Tax Acts, and may appoint allowances and salaries for the sur- veyors, and other officers employed as aforesaid, and also pay such and may pay t ' i -i i ji L- ru* A i. incidental incidental expenses as necessarily attend the execution 01 mis Act charges. and of the said Acts. 18. If a surveyor wilfully makes a false and vexatious charge 43 & 44 Viet. of the duties, or wilfully delivers or causes to be delivered to the y exa ' tious " general Commissioners a false and vaxatious certificate of charge charges. of the duties, or a false and vexatious certificate of objection to any supplementary 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, such surveyor shall for every such offence incur a penalty of one hundred pounds, and on conviction be discharged from his office. 9. Oaths to be taken by Officials. Tax Act, 1842 e it enacted, that every person appoint* sioner either for general or special purposes, or an additional sionersand The Income Tax Act, 1842 5 & 6 Vic t j . /-, c. 3o, s. 60. 38. And be it enacted, that every person appointed a Commis- 38 CREATION OF OFFICIALS. others to take Commissioner, or an assessor or collector, or a clerk or clerk's Schedule F. assistant to the said respective Commissioners, and every inspector, surveyor, and officer for receipt, shall, before he shall begin to act in the execution of this Act, so far as relates to the duties con- tained in Schedule (I).), take the oath prescribed by this Act, and contained in the Schedule marked (F.) (a) applicable to such officers respectively ; which oath any one of the persons appointed a Com- missioner, either for general or special purposes as aforesaid, or an additional Commissioner, is hereby authorized to administer, (except that every such oath so to be administered to any Commissioner for general or special purposes as aforesaid, or to an additional Commissioner, shall be administered by a Commissioner for such general or special purposes, and not otherwise,) and which oath so taken shall be subscribed by the party taking the same ; and if any person shall act as a Commissioner in relation to the duties in Schedule (D.), except in administering the oath herein mentioned, or shall act as a clerk or clerk's assistant, or an assessor, collector, inspector, surveyor, or officer for receipt, in relation to the duties contained in the said Schedule (D.), before he shall have taken the oath herein required to be taken by such officer respectively, he shall forfeit the sum of one hundred pounds. (a) See p. 419. 39 PART II. PROCEDURE^). 1. Preliminary. The Income Tax Act, 1842 3. The said duties hereby granted arising in England (b), Scotland, c - 35 > s - 3 - and Ireland shall be assessed, raised, levied, and collected under the regulations of the Taxes Management Act, 1880; and all the assessed and powers, authorities, methods, rules, directions, penalties, clauses, theRegula- matters, and things now in force, contained in or enacted by the T^es f * he said Act, or any other Acts relating to the duties of assessed taxes Management shall severally and respectively be and become in full force and c ' effect with respect to the duties hereby granted, and shall be severally and respectively duly observed, applied, practised, and put in execution throughout the respective parts of the United Kingdom, for raising, levying, collecting, receiving, accounting for, and securing of the said duties hereby granted, and for auditing the accounts thereof, and otherwise relating thereto, so far as the same shall not be superseded by and shall be consistent with the express provisions of this Act, as fully and effectually to all intents and purposes as if the same powers, authorities, methods, rules, directions, penalties, clauses, matters, and things were particularly repeated and re-enacted in the body of this Act with reference to the said duties hereby granted, and respectively applied to such parts of the United Kingdom as aforesaid ; and all and every the regulations of such Acts (except as aforesaid) shall be applied, con- strued, deemed, and taken to refer to this Act, and to the duties hereby granted, in like manner as if the same had been enacted therein. Under this section as it originally stood the duties were to be assessed, niised, levied, and collected under the regulations of certain previous Acts of Parliament. (See Appendix for the original section.) By the Taxes Management Act, 1880 43 & 44 Viet. 7. (1.) In the several enactments described in the fourth gj^itution Schedule to this Act, a reference to this Act shall be deemed to be of the Taxes Management () This includes only procedure of general application; procedure for par- Act > 1880 > ticular schedules directed by the Income Tax Act, 1842, will be found under those schedules. (Z>) England includes Wales and Berwdck-upon-Tweed, see sect. 192, post, ' p. 298. PROCEDURE. for the Acts referred to in the section as it originally stood. The Income Tax Act, 1842, and the Taxes Management Act, 1880, to be read together ; when incon- sistent the latter to prevail. substituted .for a reference to any one or more of the enactments described in the third Schedule to this Act, or any enactment amending the same. Now the previous Acts of Parliament above referred to are described in the third Schedule, and the Income Tax Act, 1842, is described in the fourth Schedule. Hence sect. 3 of the Income Tax Act, 1842, has to be amended as above. It will be observed that sect. 3 enacts that the Acts therein referred to shall only apply when they are consistent with the Income Tax Act, 1842. Presumably this enactment is now obsolete and does not apply to the Taxes Management Act, but we have left it in the section as it is not expressly repealed. It is, of course, not acted on. The Taxes Management Act often supersedes and alters the Income Tax Act, 1842, and it has never been questioned that these alterations are operative. In future, the two Acts will be read together as far as possible, and when inconsistent the Taxes Management Act will be considered as the prevailing Act, (See also sect. 9 of the Taxes Management Act, post, p. 299.) 43 & 44 Viet. c. 19, s. 5(1). Interpretation and construc- tion of ex- pressions. Definitions. The Taxes Management Act, 1880 5. (1.) In this Act " Additional Commissioners " means the Additional Commis- sioners of the Property and Income Tax, or any two of them appointed under the provisions of the Income Tax Act, 1842 : " Assessor " means the person or persons appointed to be assessor or assessors respectively of income tax and inhabited house duties for any parish in conformity with the rules and directions of this Act or the Tax Acts, and includes the surveyor of taxes acting as assessor when required so to act: " Board " means the Commissioners of Inland Revenue for the time being, or any two of them : " Clerk " means the clerk to the General Commissioners or to the Land Tax Commissioners respectively appointed in accordance with the directions of this Act : " Collector " means the person or persons appointed to be col- lector or collectors respectively of the land tax, the income tax, and the inhabited house duties in conformity with this Act for a parish or group, or union, electoral district, or county or part of a county : " Collector of Inland Eevenue " means a person appointed by the Board to be a collector and officer for the collection and receipt of the several revenues and duties of excise stamps and taxes, or as his deputy : "Division" means and includes any hundred, rape, lathe, PRELIMINARY. 41 stewartry, or district, or any place of separate jurisdiction under the Land Tax Acts : " Greneral Commissioners " means the Commissioners for the general purposes of the income tax and inhabited house duties, or any two or more of them acting in or for any division under and in the execution of this Act or the Tax Acts: " Group " means any parishes united or grouped for the pur- poses of the collection of the duties and the land tax : " High Court " means her Majesty's High Court of Justice : " Land Tax Acts " means and includes any Act, or part of any Act, relating in any way to the assessment or redemption of the land tax : " Land Tax Commissioners " means the persons appointed under authority of Parliament for executing the Acts granting a land tax, or any two or more of them : " Parish " means and includes any town, ward, township, tithing, parish, place, or precinct for which a separate assessment of the duties or the land tax may be made, or for which any assessor or collector may be lawfully appointed for the purpose of assessing or collecting the duties or the land tax: " Part " means part of this Act : " Prescribed " means prescribed or provided by this Act or the Tax Acts, or by the Board where the Board have power to prescribe : " Return " includes any list, statement, declaration, account, schedule, or estimate in writing by whomsoever made or from whomsoever required in conformity with the directions of this Act or the Tax Acts : " Special Commissioners " means the Commissioners for the special purposes of the Income Tax Acts appointed by the Treasury under the provisions of the Income Tax Act, 1842: " Surveyor " means an inspector of taxes or surveyor of taxes appointed by the Treasury or Board for the purposes of this Act, the Tax Acts, and Land Tax Acts, and acting under the authority of the Board : " Tax Acts " means and includes 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 or to the inhabited house duties : " The duties," except where expressly limited, means and includes the duties on inhabited houses and the duties of income tax or any of them, assessed or to be assessed under this Act or under the Tax Acts : 42 PROCEDURE. (a) " The Income Tax Act, 1842," means the Act of the session of the fifth and sixth years of the reign of her present Majesty, chapter thirty-five, intituled " An Act for granting to her Majesty the duties on profits arising from property, pro- fessions, trades, and offices, until the sixth day of April one thousand eight hundred and forty-five " : (a) " The Income Tax Act, 1853," means the Act of the session of the sixteenth and seventeenth years of the reign of her present Majesty, chapter thirty-four, intituled " An Act for granting to her Majesty duties on profits arising from property, professions, trades, and offices " : (a) " Treasury " means the Commissioners of her Majesty's Treasury. (a) The three last definitions have now been repealed by the Statute Law Eevision Act, 1894. 43 & 44 Viet. 13. The collectors of inland revenue, surveyors, and all other c. 19, s. 13. officers or persons who shall be employed in the execution of this obey direc- Act, or the Tax Acts, shall observe and follow the orders, instruc- Board f the tions ' and directions of the Board. 5 & 6 Viet. c. 35, s. 22. The General Commis- sioners are to execute all matters with respect to the duties under all the sche- dules, except such as are directed to be executed by the Special or Additional Commis- sioners. The Income Tax Act, 1842 22. And be it enacted, that the Commissioners for general purposes shall execute this Act in all matters and things relating to the duties in Schedules (A.) and (B.) of this Act, except such allowances in respect thereof as are directed to be made in Number YL of Schedule (A.) by other Commissioners for special purposes as hereinafter mentioned, and also all matters and things relating to the duties in Schedule (D.) of this Act, except in cases where such matters and things are herein directed to be done by the said Commissioners for special purposes, or by the additional Commis- sioners, or persons acting as such ; and the said Commissioners for general purposes shall also execute this Act in all matters and things relating to the duties in Schedule (E.) not executed by the Commissioners authorized to be appointed for those duties : provided always, that nothing herein contained shall be construed to preclude any person chosen a Commissioner for general purposes from acting as such by reason of his acting or having acted as an additional Commissioner, except only in the hearing and deter- mining of Appeals against or relating to such particular assessments wherein he shall have made an assessment as such additional Commissioner. The Lord Functions of the General Commissioners. President in " These general Commissioners are charged with quasi- judicial functions, 1887, Smiles and have to determine whether any assessment is well laid on when it is PRELIMINARY. 43 objected to by the party assessed, and accordingly the statute says that v - Northern whatever may be the determination of the Commissioners, whether it be Investment favourable to the one party or the other, an appeal lies. The Commissioners Gmnpan^ of have no discretion ; they have simply to determine the question in dispute r/g ^ a K *i between the parties. That is their only function. What they had to deter- g /-. mine here was whether this company, which derives a large revenue from 4 fcn Series 734 foreign and colonial investments, and which receives that revenue in this 24Sch.R.53o' country, is liable to assessment under the fourth case of Schedule (D)." 2TaxCas. 16o! The Lord President, in Smiles v. Northern Investment Company of New Zealand. 18. And be it enacted, that whenever a new appointment of 5&6Vict. Commissioners shall take place they shall execute this Act as well ^ e ^{ S ' a with respect to the duties which shall not but which ought to have pointed Com- T T . p i ,-, p missioners been assessed in any former year, and with respect to arrears 01 may assess duties assessed in any former year under this Act, as to the assess- * nd Iev 7 for iormGr vcfirs. ments to be made in such year in which they shall be appointed, and shall have the like powers to assess, levy, and collect such duties and arrears as they have to assess, levy, and collect the duties assessed by them ; for all which acts such appointment shall be a sufficient authority, subject to the regulations of this Act, Meetings. The Taxes Management Act, 1880, Part III. (a) 26. (1.) The Land Tax Commissioners, General Commissioners, 43 & 44 Viet, and Additional Commissioners respectively shall, for the execution *' ' s> of all or any such things as are by them required to be done at a s i on ers to meeting by this Act, the Tax Acts, or the Land Tax Acts, meet ' together from time to time within the times prescribed by this Act or the said Acts at the most usual place of meeting within their respective divisions. (2.) They may meet and do any act in execution of the said may meet ^ . . .,-, . -, , i -L within an ad - Acts as Commissioners within any city, town, or place, being a j i n i ng pi ace county of itself, or otherwise having exclusive jurisdiction and ^ situated within, surrounded by, or adjoining to their respective divisions ; and all things so done by them within such city, town, or place, as Commissioners acting for such division, shall be as valid and effectual in law as if the same had been done within such division. (a) Part HE., sects. 2647, do not extend to Ireland. The Taxes Manage- 43 & 44 Viet, ment Act, 1880, s. 25. The Eevenue Act, 1883 4G & 47 Vict - c. 55, s. 12. 12. In addition to the power given to the Land Tax Commis- Extension of sioners, General Commissioners, and Additional Commissioners by 43 & 44 Vlcfc - 44 PROCEDURE. c. 19, s. 26, as to places of meeting of Commis- sioners. sub-section two of section twenty- six of the Taxes Management Act, 1880, to meet and act within such city, town, or place as therein mentioned, the said Commissioners respectively may, with the consent of the Board of Inland Revenue, meet for the purpose of acting as such Commissioners at any place outside the boundary of the division for which they act, and all things done by them, as Commissioners acting for such division at that place, shall be as valid and effectual in law as if the same had been done at a place of meeting within the division. 43 & 44 Viet. c. 19, s. 29. The execution of Acts by the Commis- sioners shall be valid, though not within the prescribed times. Commissioners. The Taxes Management Act, 1880, Part HE. (a) 29. Should the Commissioners fail to hold any meeting or to appoint a clerk, assessor, or other officer, or to do any other thing in the execution of this Act or of the Tax or Land Tax Acts within the time prescribed, they shall, as soon as may be after the time at which such meeting should have been held and such power should have been executed, meet and execute the same and cause the same to be executed, and all such meetings and appointments (excepting in any case in which the appointment of collector by reason of neglect or omission or otherwise became absolutely vested in the Board), and the performance of any such other thing as aforesaid at any other time than the prescribed time shall, notwithstanding such failure, be valid and effectual. 43 & 44 Viet. c. 19, s. 25. () Part III., sects. 26 47, do not apply to Ireland. ment Act, 1880, s. 25. The Taxes Manage- 30. If in any case the assessments and duplicates of the duties for any parish are not signed and allowed in due time, to the pre- judice of the Revenue, for want of a sufficient number of General Commissioners acting or attending where and when such assess- ments or duplicates ought to be allowed, any two of the General Commissioners acting within the same county shall sign and allow the assessments or duplicates wanting for the parish. 43 & 44 Viet. c. 19, s. 30. On failure of the General Commis- sioners, those in the same county may sign and allow the assessments. 43 & 44 Viet. 31. All warrants and precepts of the General Commissioners c ' ' 8 ' ' shall be executed by the respective persons to whom the same are warrants. directed, in any part of the same county, for any division of which the Commissioners are appointed. 43 & 44 Viet. 32. Any one or more of the Land Tax Commissioners and ' '. .', General Commissioners may respectively administer all oaths or tion of oaths, affirmations required or allowed to be taken by this Act or by the PRELIMINARY. 45 Land Tax Acts or Tax Acts before such Commissioners by any officer or person in any matter touching the execution of this Act or the said Acts. 33. All assessments, duplicates of assessments, minute books, and 43 & 44 Viet, other public books and papers relating to the land tax or the duties rj^ e ^ ^ f in the custody or possession of any clerk, assessor, or collector, or assessment of the legal representatives of any person who has died or shall die ^y of P the during the holding of any such office, or after his removal from the Gen eral Com- missioners, same, or of his agent or attorney, or of any other person, are hereby declared to be respectively the property of the Land Tax Commis- sioners and Greneral Commissioners acting in the respective divisions for the time being and in succession, and shall be placed with and remain in the custody and possession of them or of their respective clerks for the time being, or of such other person as the respective Commissioners for the time being from time to time at their meetings direct. 34. (1.) Every person now or at any time hereafter having in 43 & 44- Viet, his custody or possession any books or papers relating to the land Any person tax or the duties shall, within one month next after notice in havm g P/P*? relating to the writing by the Board (a true copy thereof being given to or left at Income Tax his usual place of abode), deliver up the same to such person as the no t ic ' e ^ om Board by such notice shall appoint, whose receipt for the same the Board, d.6liv shall be a good and sufficient discharge to the person delivering up ; the same ; and (2.) If any such person fails to deliver the same according to the notice, he shall for every such offence incur a penalty of fifty pounds. 35. If a Commissioner acting in the execution of the Tax Acts 43 & 44 Viet. o 19 s 35 or the Land Tax Acts interested, in his own right, or in the right c ' ommis . of any other person as his agent, in any controversy or appeal sioners con- arising under those Acts or this Act takes part in the determina- Bave no vo i ce tion of such controversy or appeal and fails to withdraw himself ^ r c s g s tro ~ from the meeting of Commissioners at which the same is heard and penalty for so determined, he shall incur a penalty of fifty pounds. The Income Tax Act, 1842 5 & 6 Vi 9J '" c. 3o, s. 191. 191. Wherever any order, consent, authority, or direction of the Whatnum- Treasury is prescribed or required by this Act, every such order, mi r ss one r" consent, authority, and direction may be signified under the hand competent to J ' , execute any of one of their secretaries or assistant secretaries ; and wherever O f the powe any of the powers and authorities given by this Act are required or directed to be put in execution, or any assessment, warrant, 46 PROCEDURE. 47 & 48 Viet. c. 62, s. 6. The poor law parishes in England are to be parishes for the pur- poses of the Income Tax. In the case of a parish within the jurisdiction of two separate bodies of Commis- sioners, the Board shall determine which body shall have the jurisdiction. The Board may divide a parish into districts, which are to be treated as separate parishes. order, precept, notice, certificate, contract of composition, or other document is by this Act or any Act herein recited or referred to is required or directed to be made, signed, or issued by the Commis- sioners for general purposes, or the additional Commissioners, or the Commissioners for special purposes, or the Commissioners for Inland Revenue, or any other Commissioners acting in the execu- tion of this Act, every such power and authority shall and may lawfully be put in execution, and every such assessment, warrant, order, precept, notice, certificate, contract, or other document shall and may lawfully be made, signed, and issued respectively by any two or more of the said respective Commissioners ; provided that where any act, matter, or thing is directed or authorized to be done or performed by or before one of such respective Commissioners, such act, matter, or thing may lawfully be done or performed by or before such one Commissioner, anything herein contained not- withstanding. Parishes. The Eevenue Act, 1884 6 (1.) The parishes or places for the time being existing for the purposes of poor law administration in England, elsewhere than in the Metropolis, as defined by the Valuation (Metropolis) Act, 1869, shall, after the 5th day of April, 1885, and in the said metro- polis elsewhere than in the city of London shall, after the 5th day of April, 1886, be the parishes and places for which the assessments of the duties of income tax and of the duties on inhabited houses shall be made, and for which assessors and collectors shall be appointed for the purposes of assessing and collecting the said duties. (2.) In case any parish or place shall be partly in the jurisdic- tion of one body of general Commissioners and partly in the juris- diction of another body, or other bodies, of general Commissioners, the Board of Inland Revenue shall, by order in writing, determine which of the two or several bodies of general Commissioners shall have the jurisdiction, and the whole of the parish or place shall be within such jurisdiction accordingly. (3.) If the Board of Inland Eevenue shall at any time be of opinion that any parish or place is so large that for the sake of convenience it ought to be divided into districts for which separate assessors and collectors should be appointed, the Board may, with the sanction of the Commissioners of her Majesty's Treasury, certify in writing to the general Commissioners in whose jurisdiction the parish or place is, that the same shall be divided into the districts specified in the certificate at the time therein mentioned, and at PRELIMINAEY. 47 and after that time each of such districts shall be treated as a parish or place for which a separate assessment of the said duties is to be made, and assessors and collectors are to be appointed. (4.) Any such division may be at any time altered or annulled by the Board, with the sanction of the Commissioners of the Treasury, upon a certificate to that effect sent to the said general Commissioners. (5.) The union or grouping of parishes or places existing in The union or conformity with law for the purposes of taxes or the collection 8 J2K thereof shall, subject to the powers for the dissolution of such continue in union or grouping, continue in force so far as the same can so ( continue consistently with the provisions of this section, and the powers in relation to the union or grouping of parishes contained in the Taxes Management Act, 1880, shall remain in full force and effect so far as the same are capable of being exercised consis- tently with such provisions. The Customs and Inland Eevenue Act, 1890 53 & 54 yi c t. 27 c. 8, s. 27. (a) Section 6 of the Eevenue Act, 1884, shall be read as if the Inner Temple, Middle Temple, Lincoln's Inn, Gray's Inn, and Inns (a) of Chancery thereunto respectively belonging, had been excluded from its operation. (b) Sub-section (2) of the section shall not apply to the parish of Lambeth, in the county of London, but that parish shall, for the purposes of the duties of income tax .... and the collection thereof, be divided into the two parts for which separate jurisdictions existed on the 5th day of April, 1886, and each of those parts shall for these pur- poses be deemed to be a parish or place, and shall be within the jurisdiction of the general Commissioners who had on that day jurisdiction therein. (a) Serjeants' Inn is subject to the jurisdiction of the Commissioners acting 41 & 42 Viet, for the City of London. See the Customs and Inland Eevenue Act, 1878, c. 15, s. 16. s. 16. Poor Law Parishes. The Taxes Management Act, 1880 43 & 44 Viet. c. 19, s. 38. 38. (1.) Where in England, under the authority of Parliament, New pa^es any part of a parish or place has been formed into a new parish or and parishes . ... . i_ amalgamated place for the purposes of poor law administration, or any parish or for poor law place, or part of a parish or place, has been amalgamated with or ^^j^ 7 ' included within the boundaries of another parish or place for the the Board, he said purposes, the Board may, if they think fit, by order in writing, ^ T income direct that such new parish or place, or such parish or place with Tax purposes. 48 PROCEDURE. 46 & 47 Viet. c. 55, s. 13. Extended to cases not included in s. 38 of the Taxes Man- agement Act. 43 & 44 Viet. c. 19, s. 36. Parishes may be transferred by the Land Tax Commis- sioners ; subject to the approval of the Treasury. which or within the boundaries of which any parish or place, or part of a parish or place, has been amalgamated or included, shall be a parish for which a separate assessment of the duties shall be made, and for which assessors and collectors may be appointed for the purpose of assessing and collecting the said duties. (2.) In case any parish or place or part of a parish or place in the jurisdiction of one body of General Commissioners is amal- gamated with or included within the boundaries of a parish or place in the jurisdiction of another body of Greneral Commissioners, such order shall have the effect of transferring the jurisdiction to such last-named body. The Kevenue Act, 1883 13. The power vested in the Board of Inland Revenue by sec- tion 38 of the Taxes Management Act, 1880, may be exercised in any case in England where any new parish or place has been or may be formed for the purposes of poor law administration, or any amalgamation in relation to parishes or parts of parishes has been or may be effected for such purposes. In any case of amalgama- tion where the transfer of jurisdiction is not provided for by sub- section (2) of the said section 38, amalgamated parishes or parts of parishes shall be within the jurisdiction of such body of general Commissioners as shall be determined by the Board and specified in the order in writing containing the direction of the Board as to the amalgamation in conformity with sub-section one of the said section. Transfer of Parishes, The Taxes Management Act, 1880, Part III. 36. (1.) In England the Land Tax Commissioners may, at a general meeting for any county, if and as they see fit (subject as herein provided), transfer the jurisdiction of any parish in such county from the division to which the same may then belong, together with the quota of land tax payable by it at the time of such transfer, to any adjoining or other division of the same county, or to any new division, which new division the Commis- sioners are hereby empowered to create in any such county. (2.) Every such alteration of divisions shall be certified in writing under the hands of the majority of the Commissioners present at such general meeting to the Board, and shall be subject to and dependent on the approval of the Treasury. (3.) If the Treasury approves of such alteration, such approval, together with the quotas to be assessed and levied on the parishes so transferred, shall be certified to the Commissioners of the respective divisions by the Board. PEELIMTNAEY. 49 (4.) Thereupon, and from the time fixed by the Board, the Land Tax Commissioners and Greneral Commissioners acting in and for the division extended or created in manner aforesaid shall have full jurisdiction and control in, over, and throughout every parish so transferred, and shall and may execute all the powers and pro- visions of the Tax Acts, Land Tax Acts, and this Act in and throughout the same. (5.) Nothing in this section shall authorize any alteration of the limits or jurisdiction of any of the cities, boroughs, cinque ports, towns, and places respectively in Great Britain for which separate and distinct quotas of land tax are provided by and enumerated in the Land Tax Acts. Union of Parishes. 37. (1.) For the more convenient execution of the Tax Acts and 43 & 44 Viet. Land Tax Acts in England the Land Tax Commissioners for any ' division, at any meeting of such Commissioners convened for that Tax Commis- .. . , , ... i sioners, with purpose, may unite any two or more parishes, and certity such the approval union to the Board, for the approval of the Treasury. of tlie Trea - sury, may (2.) If the Treasury approves of such union, such approval shall unite be certified by the Board to the Commissioners. (3.) Thereupon, and from the time fixed by the Board, such united parishes shall, for all the purposes of the land tax and the duties, be considered as one parish. (4.) Nothing in this section shall authorize any alteration of the quota of land tax now chargeable by law on any parish. (5.) Where parishes have been so united and the union proves if incon- to be inconvenient, the Treasury, on receipt of a resolution of the ^o^may 6 Land Tax Commissioners acting for the division in which the be dissolved. parishes are situate, passed at a meeting convened for the purpose, may, if they think fit, dissolve the union either as regards all or some or one of the parishes so united. By 48 Geo. 3, c. 141 48 Geo. 3, c. 141. 12. Provided always, and be it further enacted, that the several Certain places parishes and places, or parts of parishes or places, set down in the ^gg^ first column of the following schedule, and which have been according . . .... . , to annexed. heretofore charged to the said respective duties or either or mem, 8C hedule. in the respective divisions mentioned in the second column of the said schedule, and set opposite thereto respectively, shall, from and after the passing of this Act, be charged to the said respective duties in the divisions ; and shall be subject to the jurisdiction of the Commissioners, and persons acting under them, and to the R. E 50 PKOCEDURE. inspectors and surveyors of the division mentioned in the third column of the said schedule, and set opposite thereto respectively. SCHEDULE referred to by the above Clause. Description of Parishes or Places. Heretofore charged in. Hereafter to be charged in. Part of the parishes of Wokington, situate in the counties of Berks and Wilts. Part of the parish and town of Morpeth, in the county of Northumberland. Part of the parish of Gilling- ham, in the county of Kent, called The Grange, parcel of the liberty of Hastings, in the county of Sussex. Bushton, part of the parish of Cleeve Pyhard, in the county of Wilts. Little Hinton, in the county of Wilts. Wroughton, in the county of Wilts. Hundred of Ames- bury, Wiltshire. Castleward, North- umberland. Town and port of Hastings, county of Sussex, and liberty thereof. Hundred of Elated and Everley, Wilt- shire. The same. The same. Hundred of Sonning, Berkshire. Morpeth Ward, North- umberland. Rochester Division, part of the lathe of Ford, county of Kent. Hundred of Kings- bridge, Wiltshire. The same. The same. 5 & 6 Viet. c. 37, s. 3. Detached parishes and places de- scribed in Schedule (A.) transferred to the jurisdic- tion of Com- missioners of Land and Assessed Taxes for the counties in or near to which they are locally situate. Power given to Commis- sioners of In- land Revenue to transfer the jurisdiction An Act (a) to amend the Laws relating to the Land and Assessed Taxes. 3. (b) The several parishes and places, and parts of parishes and places, described in the schedule marked (A) to this Act annexed, shall in all matters and things relating to the assessing, charging, raising, and levying of the land tax, and the duties of assessed taxes, and also the duties on profits arising from property, pro- fessions, trades, and offices, be under and subject to the jurisdiction and authority of the Commissioners appointed or to be appointed for putting in execution the Acts relating to the said land tax, and to the said duties respectively, in and for the several counties, ridings or shires which are respectively mentioned in the fourth column of the said schedule, in conjunction with the names or descriptions of such detached parishes or places, or parts thereof respectively ; and in all other similar cases for which no special provision is hereby made, it shall be lawful for the Commissioners of Inland Eevenue to order and direct that in all such matters and things as aforesaid any such detached parish or place, or part of a PRELIMINARY. 51 parish or place, as aforesaid, shall be under and subject to the over similar jurisdiction and authority of the Commissioners appointed or to be appointed for putting in execution the said Acts in and for such places in county, riding, or shire adjoining or near to such detached parish provlded'fof. or place, or part thereof as the said Commissioners of Inland Revenue shall name in that behalf. (a) The alterations are made in accordance with, the Statute Law Revision 51 & 52 Viet. (No. 2) Act, 1888. c. 57. (6) The alteration is made in accordance with the Statute Law Eevision 53 & 54 viot (No. 2) Act, 1890. c. 51 4. (a) The Commissioners under whose jurisdiction or authority 5 & 6 Viet. any such detached parish or place, or part thereof, as aforesaid, is or 1 may be placed by or in pursuance of this Act, shall have full sioners to power, and they are hereby authorized to execute and put in force ^ c tion J such the several Acts aforesaid, and the several powers and provisions parishes are thereof for the assessing, charging, levying, and enforcing payment have full of the land tax, and the several duties aforesaid, and otherwise relating thereto, in and throughout any such parish or place, or the Acts re- part of a parish or place as aforesaid, in as full and ample a Land Tax, manner as the said Commissioners are or may be authorized to Assessed ni i i i 3>XGSj tinCL execute the said Acts, or any of them, within the county, riding, Property Tax. or shire for which they have been or may be appointed ; anything in any former Act contained, or any usage or practice, to the contrary notwithstanding. (a) The alterations are made in accordance with the Statute Law Eevision 51 & 52 Viet. (No. 2) Act, 1888. c - 57 - 5. Provided always (a), that it shall be lawful for the Commis- c 37> 8 // sioners of Inland Revenue to order and direct that any such Commis- detached parish or place, or part of a parish or place, as aforesaid, land R evenue shall be added to any adjoining or other division or divisions, or be to direct ... ,. . . ,T -i parishes to formed into one or more new division or divisions, as the said be added to last-mentioned Commissioners shall think fit. new divisions. (a) The alterations are made in accordance with the Statute Law Eevision 51 & 52 Viet. (No. 2) Act, 1888. c- 57. [SCHEDULE. E2 52 PROCEDURE. 5 & 6 Viet. c. 37, Sched. SCHEDULE (A) to which this Act refers. Description of Detached Parishes or Places, or Parts of Parishes or Places. Counties to -which they belong. Counties in which they are locally situate. Counties, the Commissioners for which are to have Jurisdiction over such De- tached Parishes, Places or Parts. Part of Shilton parish. ....... Berkshire . . . Oxfordshire , . . Oxfordshire. Eye, commonly called Sonning Eye, and Dunsden, hamlets in Sonning parish. Caversfield parish Ditto .... Buckingham- Ditto Ditto Ditto. Ditto. Part of Maker parish, in the shire. Devonshire . . Devonshire. ty thing of Vaultersholme. Dorsetshire . . Devonshire Ditto. Dallwood township Ditto .... Ditto Ditto. The district of Norhamshire . . The district of Islandshire, in- Durham .... Ditto .... Northumberland. Ditto Northumber- land. Ditto. cluding the Fame Island and Monkhouse. The parish of Bedlington or Ditto .... Ditto Ditto. Bedlingtonshire. Minety parish Gloucester- Wiltshire Wiltshire. shire. Ditto .... Oxfordshire .... Oxfordshire. Farloe Chapelry , Herefordshire . Shropshire Shropshire. Rochf ord parish Ditto .... Worcestershire . . Worcester- Litton and Cascob township . . Part of Coleshill hamlet Ditto .... Hertfordshire. Radnorshire .... Buckiii gham shire. shire. Radnorshire. Buckingham- Part of Everton parish Huntingdon- Between Bedford- shire. Bedfordshire. shire. Monmouth- shire and Cam- bridgeshire. Herefordshire . . Herefordshire . Boycot township shire. Oxfordshire . . Buckinghamshire Buckingham- Lillin - ston Lovell parish , Ditto .... Ditto shire. Ditto. Part of Hales Owen parish .... Holwell parish, including Buckshaw tything. North Ambersham and South Shropshire . . Somersetshire. Hampshire . . Bounded by Wor- cestershire and Staffordshire. Dorsetshire .... Worcester- shire. Dorsetshire. Sussex. Ambersham ty things, in the parish of Steep. Broom parish Staffer dsh ire . Worcestershire , . Worcester- Clent parish Ditto .... Ditto shire. Ditto. Tutnal and Cobley hamlet .... Warwickshire. Ditto Ditto. Stretton-upon-Foss parish, 11- mington parish, Compton Scorpion hamlet, Whitchurch parish, Ditchford hamlet. Part of Wokingham parish .... Ditto .... Wiltshire .... Between parts of Worcestershire and Gloucester- shire. Worcester- shire. Berkshire. Hinton tything in Hurst parish Ditto .... Ditto Ditto. Didnam tything in Shinfield Ditto .... Ditto Ditto. parish. Swallow field parish Ditto Ditto Ditto. Kingswood parish Ditto . . . Gloucestershire . . Gloucester- Ditto . Ditto shire. Ditto. ASSESSMENT. 53 Description of Detached Parishes or Places, or Parts of Parishes or Places. Counties to which they belong. Counties in which they are locally situate. Counties, the Commissioners for which are to have Jurisdiction over such De- tached Parishes Places or Parts. ^Worcester- shire. Ditto . cestershire and Oxfordshire. shire. "Dittn Ditto TVarwickshire Edwin Loach parish Ditto .... Herefordshire WALES. Denbighshire. Between Shrop- Brecknock- shire and Mont- gomeryshire. Brecknockshire or shire. shire. Radnorshire. shire. Parochial Books. The Taxes Management Act, 1880 43 & 44 Viet. c 19 s 39 39. The Land Tax and General Commissioners, surveyors, and p ow erto assessors, or any person authorized by them, or any of them, shall inspect parish have liberty from time to time and at all seasonable times to inspect and to take copies or extracts from any book kept by any parish officer or other person of or concerning the rates made for the relief of the poor, or any other public taxes, rates, or assess- ments, or any contributions under the management of the kirk sessions in any place within the limits for which they shall be appointed ; and if any person in whose custody or power any of the said books shall be fails to permit the said inspection, or the copies or extracts to be made as aforesaid, or to attend the said Commissioners with such books when required so to do, he shall for every such offence incur a penalty of ten pounds. This section does not apply to Ireland, see p. 44. This concludes our preliminary regulations as to procedure generally, and we shall now proceed to the procedure to assessment. 2. Assessment. Notices, Lists, Statements, 8fc. The Income Tax Act, 1842 46. And be it enacted, that for the ordering, raising, and levying the said duties the respective Commissioners for General Purposes at the first meeting to be held under this Act, or at a meeting to be appointed for that purpose, shall direct their precepts to such persons as shall have been appointed assessors for the execution of 5 & 6 Viet. c. 35, s. 46. The General Commis- sioners are to summon the assessors ; they are to administer to 54 PROCEDURE. them the oath this Act, or in case no such appointment shall have been made, rGGTiirGd l>y the Act, and then to the assessors for the land tax or the duties of assessed to issue taxes in their respective districts, requiring them to appear before rants of ap- the said Commissioners at such time and place as they shall mskuctions! 1 a PP m t ; and on the appearance of such assessors the said Commis- sioners shall administer to them the oath required by this Act (a) to be taken by them, and issue to them their warrants of appoint- ment as assessors in the execution of this Act, signed by such Com- missioners, together with such instructions duly filled up as shall The assessors he necessary for carrying this Act into execution ; and the said shall serve the , -I-IT ,1 , i notices, &c., assessors shall duly serve and deliver, in the respective parishes or places for which they may be appointed, as well the notices herein- after particularly directed to be served by them, as also all other notices and precepts, by whomsoever signed, which are or may be directed or required to be given by or in pursuance of this Act ; and the said assessors shall duly verify (4) the service of all such notices and precepts. a) Sect. 38 and Sched. P., pp. 37 and 419. b) See sect. 58, p. 61. 5 & 6 Viet. 47. And be it enacted, that the assessors to be appointed to ' ' 8 ' ' execute this Act shall, within the time and in the manner directed Ine assessors shall fix gene- by the precept of the Commissioners for General Purposes, cause clurcV doors 1 g enera l notices to be affixed on or near to the door of the church &c., requiring or chapel and market house or cross (if any) of the city, town, who are re- parish, or place for which such assessors act ; and if such city, dTb^tv t0 town, parish, or place shall not have a church or chapel, or market Act to make house or cross, then on the church or chapel nearest to such city, KverTists & ~ town, parish, or place, requiring all persons who are by this Act &c. within the required to make out and deliver any list, declaration, or state- by the precept ment (a) to make out and deliver to the respective assessors or of the General Commissioners, or to their clerk, at their respective offices to be Commission- ... . ers, which described in such notice, and as therein directed, all such lists, ceed twenty- declarations and statements accordingly, within such time as shall one days. he limited by such precept, and which shall not in any case be later than twenty-one days from the date of such precept ; and such general notices shall, when the same shall be affixed as afore- said, be deemed sufficient notice to all persons resident in such city, town, parish, or place, and the affixing of the same in manner aforesaid shall be deemed good service of such notice; and the said respective assessors shall cause the said notices to be from time to time replaced, if necessary, for the space of ten days, before the time required for the delivery of such lists, declarations, and state- ments as aforesaid ; and every person wilfully tearing, defacing, ASSESSMENT. 55 or obliterating any such notice so affixed shall forfeit any sum not exceeding twenty pounds. (a) See, particularly, sect. 52 and Sched. (GK) for the subject-matter of statements, &c., pp. 57 and 421. 48. Provided always, and be it enacted, that the said assessors 6 & 6 Viet. shall, within the time directed by the precept of the said Commis- c ' 35) 8 ' 48 ' ,. , , ,, ;1 . , The assessors sioners, give notice to every person chargeable to the said duties shall give in respect of any property or profits situate or arising within the n tice to limits of the said places where such assessors shall act, or leave chargeable such notice at his dwelling-house or place of residence, or on the ^operty^r premises to be charged by such assessment within such limits, re- P rofits within . . ' \ ' their district quiring every such person to prepare and deliver, in manner directed to prepare by this Act, all such lists, declarations, and statements (a) as they are respectively required to do by this Act, within such time as &c ; as re- shall be limited by such precept ; and if any person residing this Act. 7 If within any parish or place at the time such general notice as f^I*^ 8011 aforesaid shall be given, or to whom such notice shall be personally the Commis- given, or at whose dwelling-house or place of residence the same shall be left, or if any person occupying any property or engaged in order to in any concern within such limits, on whom such notice shall be penalty, and served in manner aforesaid, or for whom such notice shall be left ? haU . assess mm in man- on the premises to be charged as aforesaid, after notice thereof, ner herein shall refuse or neglect to make out such lists, declarations, or state- ments as may be applicable to such person, and as the case may require, and deliver the same in manner directed by this Act, within the time limited in such notice, then such Commissioners shall forthwith issue a summons under their hands to such person making default as aforesaid, in order that the penalty (b) for such refusal or neglect may be duly levied ; and the said Commissioners shall moreover proceed to assess or cause to be assessed every person making such default in the manner herein directed. (a) See, particularly, sect. 52 and Sched. (G.) for the subject-matter of statements, &c., pp. 57 and 421. (5) See sect. 55, p. 59. 49. And be it enacted, that every such list, declaration, or 5&6Vict. statement (a) of the profits to be charged as aforesaid shall be delivered to the assessor of the same parish or place, except statements of . , , , profits shall statements containing the amount of profits chargeable under be delivered to Schedule (D.) of this Act, in such cases where the Commissioners ^ e a p s t se s s t s a te 8 .' acting for such parish or place shall have caused to be inserted in ments under the notice that an office is opened for the receipt of statements of w c here t J profits, and a proper person appointed to receive the same, and Commis - , , , . p sioners have the time and place of attendance, in which cases the delivery 01 appointed a 56 PROCEDURE. proper person sucn statements to be charged under the said Schedule (D.) shall same. he made at such office to the person there appointed to receive the same : Provided always, that in cases where the parties to be charged under the said Schedule (D.) shall give notice of their desire (b) to be assessed for the said duties by the Commissioners for Special Purposes, such statements of profits chargeable under the said Schedule (D.) shall be delivered, together with such notice, to such assessor as aforesaid, to be by him transmitted to the inspector or surveyor of the district. (a) See, particularly, sect. 52 and Sched. (Gr.) for tlie subject-matter of statements, &c., pp. 57 and 421. (/>) See sect. 131, p. 261. 6 & 6 Viet. 50. And be it enacted, that every person, when required so to S; l ' do by any notice given in pursuance of this Act, shall, within the required to do period to be mentioned in such notice, prepare and deliver to the under 'this 06 assessor f the parish or place where such person shall reside a list Act shall in writing, containing to the best of his belief the proper name of assessor a list every lodger or inmate resident in his dwelling-house, and of other of lodgers or persons chiefly employed in his service, whether resident in such inmates of his , ... . dwelling- dwelling-house or not, and the place of residence of such of them his as are n0 ^ res ident in such dwelling-house, and also of any such service. lodger or inmate who shall have any ordinary place of residence elsewhere at which he is entitled, under the regulations of this Act, to be assessed, who shall be desirous of being so assessed at such place of ordinary residence ; which lists shall be signed by the respective parties delivering the same, and shall severally be made out in such form as shall be directed under the authority of this Act : Provided always, that no person required by this Act to deliver a list of lodgers, inmates, or other persons aforesaid shall be liable to the penalties (a) hereinafter mentioned, or either of them, for any omission of the name or residence of any person in his service or employ, and not resident in his dwelling-house, if it shall appear to the Commissioners for executing this Act, on inquiry before them, that such person is entitled to be exempted from the payment of all and every the duties hereby granted. (a) See sect. 55, p. 59. 5&6Vict. 51. And be it enacted, that every person who shall be in the p ' s ' ' receipt of any money or value, or the profits or gains arising from ing for others any of the sources mentioned in this Act, of or belonging to any s^ementTof other person, in whatever character the same shall be received, for profits for which such other person is chargeable under the regulations of this gethe'r with Act, or would be so chargeable if he were resident in the United within the like period prepare and deliver, in ASSESSMENT. 57 manner before directed, a list in writing, in such form as this Act the person is requires, signed by him, containing a true and correct statement of all such money, value, profits, or gains, and the name and place of woman, or an abode of every person to whom the same shall belong, together lunatic, or with a declaration whether such person is of full age, or a married msane P erson - woman living with her husband (a), or a married woman for whose payment of the duty hereby charged on her the husband is not accountable by this Act, or resident in the United Kingdom, or an infant, idiot, lunatic, or insane person, in order that such person, according to a statement, to be delivered as herein mentioned, may be charged, either in the name of the person delivering such list, if the same shall be so chargeable, or in the name of the person to whom such property shall belong, if of full age, and resident in the United Kingdom, and the same be so chargeable by this Act ; and every person acting in such character jointly with any other person shall deliver a list of the names and places of abode of every person joined with him at the time of delivering such list, and to the same person to whom such list shall be delivered. (a) See sect. 45, p. 291. 52. And be it enacted, that every person chargeable under this 5 & 6 Viet. Act shall, when required so to do, whether by any general or " particular notice given in pursuance of this Act, within the period chargeable to be mentioned in such notice as aforesaid, prepare and deliver to Act sliall the person appointed to receive the same, and to whom the same deliver state- . . . , ments of the ought to be delivered, a true and correct statement in writing in such annual value form as this Act requires (a), and signed by the person delivering ^^and" the same, containing the annual value of all lands and tenements profits charge- , , i'L- v. able, exclusive in his occupation, whether the same be situate in one or more parish of the pro fit8 or parishes, and the amount of the profits or gains arising to such and gains 1.1 j -L- ansing from person from all and every the sources chargeable under this Act, annual pay- according to the respective schedules thereof, which amount shall be "^persons estimated for the period and according to the respective rules con- for which tained in the respective schedules of this Act ; to which statement shall be added a declaration, that the same is estimated on all the able - sources contained in the said several schedules, describing the same, after setting against or deducting from such profits or gains such sums, and no other, as are allowed by this Act ; and every such statement shall be made exclusive of the profits and gains accrued or accruing from interest of money, or other annual payment arising out of the property of any other person, for which such other person ought to be charged by virtue of this Act. (a) See Schedule (G.) for the subject-matter of the statements, &c., p. 421. The last passage in this section is of the greatest importance. There is no AB to whether 58 PROCEDURE. a sum of money can be twice taxed. Lord Esher, ALB,., in 1889. Clerical, Medical and General Life Assurance Society v. Carter, L. R. 22 Q. B. Div. 450 ; 58 L. J. N. S. 224. 5 & 6 Viet, c. 35, s. 63. Trustees and agents of persons in- capacitated or not resident in the United Kingdom to be charged. Where there are two or more trustees or agents one return only shall be required. direct enactment in the Income Tax Acts that a sum shall not be twice taxed. Now the Acts impose the tax on very many different kinds of pro- perty and profits, and it may happen that a property or profit taxed under one head may also form a portion of a property or profit taxable under a head quite separate and distinct from the former. Thus "interest of money" is a subject-matter of taxation, and "profits and gains of a business" are another subject-matter. Now the same sum of money maybe both "interest of money " and " profits and gains of a business." Can it be twice taxed ? Although there is no direct decision on the point, Lord Esher, M. R., expressed an opinion in Clerical, Medical, and General Life Assurance Society v. Carter, that it could not, and he considered that sect. 52 ought to be so construed as to prevent such a hardship. " Assuming the plain meaning of the words to be what I have said, then, if hardship should arise as suggested, if the result should be, as was contended, that a sum of money such as this, which has been made a separate matter of assessment as interest, may also be brought into account in arriving at the profits and gains of a business, and so taxed again, we cannot help such hardship. I do not mean to say that I think that contention to be correct. The Solicitor-General, on behalf of the Crown, strongly argued that that was not the effect of sect. 52, and that the supposed hardship could not arise. So far as my opinion on the subject may avail, I must say that I accede to that view, and I think that the 52nd section ought to be so construed as to prevent the suggested hard- ship, and that interest of money ought not first to be taxed as a separate subject-matter of taxation, and then brought again into account in arriving at the profits and gains of a business and so taxed again." 53. And be it enacted, that every person who shall act in any character as aforesaid for any other person, who by reason of any such incapacity as aforesaid, or by reason of his not being resident in the United Kingdom, cannot be personally charged by virtue of this Act, shall also, within the like period, deliver to the person appointed to receive the same under this Act, and to whom the same ought to be delivered, and in the same district in which the person delivering such list ought to be charged on his own account, a true and correct statement in writing, signed by him, and to be made in such form as this Act requires, of the amount of the profits and gains to be charged on him on account of such other person, estimated during the period and according to the rules contained in the said respective schedules, together with such declaration of the manner of estimating the same as aforesaid : Provided always, that where two or more such persons shall be liable to be charged for the same person, one return only shall be required, and such return shall be made by them jointly, or by one or more of them on behalf of himself or themselves and the rest of the persons so liable, and it shall be lawful for them to give notice in writing to the Commissioners acting in each district where they shall be called upon for such statement, in what parish or place, or parishes or places, they are respectively chargeable by this Act on their own account, and in which of the said parishes or places they are desirous of being so charged on the behalf of such other person for whom they so act in any of the characters before mentioned, and they shall be assessed accordingly by one assessment in such ASSESSMENT. 59 parish or place, provided any one of such persons shall be liable to be charged on his own account in such parish or place ; and if more than one assessment shall be made on such persons, or any of them, on the same account, relief shall be granted from such double assessment by like applications to the Commissioners as are allowed in other cases by this Act. 54. And be it enacted, that every such officer before described 5 & 6 Viet. of any corporation, fraternity, fellowship, company, or society shall officers of ' also within the like period, prepare and deliver in like form and corporations manner a true and correct statement of the profits and gains to be statements of charged on such corporation, fraternity, fellowship, company, or profits and society, computed according to the directions of this Act, together charged, with such declaration of the manner of estimating the same as theTnnual n aforesaid ; and such estimate shall be made on the amount of the profits before annual profits and gains of such corporation, fraternity, fellowship, m^. company, or society before any dividend (a) shall have been made thereof to any other persons, corporations, or companies having any share, right, or title in or to such profits or gains ; and all such other persons, and corporations or companies, shall allow out of such dividends a proportionate deduction in respect of the duty so charged : Provided always, that nothing herein-before contained shall be construed to require in such statement the inclusion of salaries, wages, or profits of any officer of such corporation, fraternity, fellowship, company, or society, otherwise chargeable under this Act. (a) This applies not only to sums divisible amongst shareholders of a Meaning of company, but also to sums divisible amongst its customers. " Cotton, L. J., the word says, indeed, that ' the word dividend clearly in my opinion, means what is dividend. to be divided between those who claim it not by their contract with the Lord Black- company but by their position as shareholders.' I have great respect for the burn in 1885. judgment of Cotton, L. J., but he gives no reason for this construction of the Lat v. London enactment, and I can see none. I feel bound to say that I do not agree Assurance with it ..... The Master of the Bolls seems to think that in estimating the fg?? profits of a business you must always, as he words it, ' consider the share- ag ^ . P^ holders and the customers in antithesis ' as I understand this figurative L "j Q ' B ^ expression, he seems to think that whatever is by the bargain to be given to the customer must be an expense preliminary to the earning of profit, and cannot be itself a part of the profit. I rather think it was from (I cannot but think hastily) assenting to this position, that Cotton, L. J., put the con- struction from which I have dissented on 5 & 6 Viet. c. 35, s. 54." Lord Blackburn in Last v. London Assurance Corporation. 55. And be it enacted, that if any person who ought by this 5 &_6 Viet Act to deliver any list, declaration, or statement as aforesaid shall P ' ena ' lty on * refuse or neglect so to do within the time limited in such notice, or to shall under any pretence wilfully delay the delivery thereof, and if d e fiver in information thereof shall be given, and the proceedings thereupon J^^te. shall be had, before the Commissioners acting in the execution of If on infor- 60 PROCEDURE. dut treble mation before this Act, every such person shall forfeit any sum not exceeding eioners, 20/. twenty pounds, and treble the duty at which such person ought to be charged by virtue of this Act, such penalty to be recovered as any penalty contained in this Act is by law recoverable, and the increased duty to be added to the assessment, but, nevertheless, subject to such stay of prosecution or other proceedings by a sub- sequent delivery of such list, declaration, or statement in the case following ; (that is to say,) if any trustee, agent, or receiver, or other person hereby required to deliver such list, declaration, or statement on behalf of any other person, shall deliver an imperfect list, declaration, or statement, declaring himself unable to give a more perfect list, declaration, or statement, with the reasons for such inability, and the said Commissioners shall be satisfied there- with, the said trustee, agent, or receiver, or other person as afore- said, shall not be liable to such penalty in case the Commissioners shall grant further time for the delivery thereof ; and such trustee, agent, receiver, or other person shall, within the time so granted, deliver a list, declaration, or schedule, as perfect as the nature of the case will enable him to prepare and deliver ; and every person w ^ s ^ a ^ be prosecuted for any such offence by action or informa- tion in any of her Majesty's Courts, and who shall not have been assessed in treble the duty as aforesaid, shall forfeit the sum of fifty pounds. if on infor- 16 & 17 Viet. Penait for inducing jturns of the value of Th e Income Tax Act, 1853. **' ^ an y P erson shall knowingly and wilfully aid, abet, or assist, or incite or induce, any other person to make or deliver any is^&Q or fraudulent account, statement, or declaration of or con- cerning any profits or gains chargeable under this Act, or of the yearly rent or value of any lands, tenements, or hereditaments, or of any matters or things affecting such rent or value, such person so offending shall for every such offence forfeit the sum of fifty pounds. 6 & 6 Viet. The Income Tax Act, 1842 c. 35, s. 56. Persons to ^6. Provided always, and be it enacted, that no person to or on whom notices w hom the assessor shall not have delivered or served a particular delivered not notice as aforesaid shall be liable to the penalties before mentioned, or either of them, for not delivering such statement as before required, if it shall appear to the Commissioners for executing this Act, on inquiry before them, that such person is entitled to be exempted from the payment of all and every the duties hereby granted. exempt. ASSESSMENT. 61 57. And be it enacted, that the assessor shall make out an 5 & 6 Viet. alphabetical list, and deliver the same to the inspector or surveyor c- 35) 8 - 57 '- of the district, containing the names of all persons to or on whom ma keTut a such notices have been delivered or served in pursuance of this Act, list of the and the names of all persons having property or profits chargeable under this Act, within the limits of such assessor, distinguishing the persons who have duly made their returns, and the persons who have omitted to make such returns, and the persons who have given notice to be assessed by the Commissioners for Special Purposes, and also the persons who shall have been returned as lodgers or inmates within such limits, or as chargeable within but having a residence out of such limits ; and if such assessor shall have neglected to give notice to any person to whom the same ought to be delivered, the inspector or surveyor may at any time Inspector or afterwards cause such notice to be delivered to or served on such 8urvevor ma 7 SGFYG notice person, and may also from time to time cause the like notice to be n persons delivered to or served on any person coming to reside in any parish or place after the expiration of such notices. 58. And be it enacted, that the assessor for every parish or 5 & 6 Viet. place shall personally appear before the said Commissioners at such c ' 35> 8 ' 58 ' meeting as the said assessor shall be appointed to attend, and verify the shall then and there make oath before the said Commissioners that the several notices required to be delivered to householders and tne affixing occupiers, and also to lodgers and inmates, by this Act, have been notices ; duly served in the manner required by this Act, to the best of his knowledge, and that general notices to the effect mentioned in this Act have been duly affixed, in the manner hereby required, on such proper places within the city, town, or place for which such assessor shall act, as by this Act is required, and that the list delivered by him to the inspector or surveyor contains the name of every person to or on whom such notices ought to be delivered or served, according to the directions of this Act, within the knowledge of such assessor ; and every assessor who shall neglect to appear penalty for before such Commissioners, or refuse to make such oath, or who shall have omitted or neglected to return to such inspector or surveyor the name of any person whose name ought to be included in any such list as by this Act is required, shall forfeit any sum not exceeding twenty pounds. 59. And be it enacted, that the clerks to the said respective 5 & 6 Viet. Commissioners shall with all convenient speed abstract the returns ^ bs ^ t to ' of statements delivered to such Commissioners by the assessors, or be made by at their office by the respective parties, into books to be provided re ^ U r n e s r of for that purpose, and according: to such forms as shall be trans- statements delivered to 62 PROCEDURE. the Commis- sioners. Inspectors may have access to and take copies from books containing such ab- stracts. 43 Geo. 3, c. 161, s. 60. Power to assessors to view houses. 45 & 46 Viet. c. 72, s. 7. mitted to them from the chief office of Inland Revenue, such abstracts to contain the names of the persons making such returns, and the several amounts of profits returned by them respectively, to be laid before and delivered to the said Commissioners ; and all such returns shall be numbered and filed in the office of the said Commissioners, and carefully kept so long as the accounts of the said duties for such district, or any parts thereof, shall remain unpaid to her Majesty ; to all which books any inspector or surveyor who shall have taken the oath herein prescribed before the Commissioners acting for the same districts respectively shall have free access at all seasonable times, and shall take such copies thereof, or of such parts thereof, or extracts from the same, as he shall deem necessary in order to the due execution of this Act. The House Tax Act, 1 SOS- GO. And be it further enacted, that the several assessors, in- spectors, and surveyors, so as aforesaid appointed or to be appointed, and every of them, shall nave full power, at reasonable times, taking to his or their assistance in all cases when the same shall be neces- sary, a constable, head-borough, tything-man, or other officer of the respective parishes or places within that part of Great Britain aforesaid, who are hereby required to assist such officers accordingly, to view and examine each dwelling-house, in order to ascertain the annual rent at which the same dwelling-house ought to be charged ; and shall also have liberty to make like view, examination, and inspection twice in the year during the continuance of this Act. This section was repealed by the Taxes Management Act, 1880, bxit revived by the Revenue, Friendly Societies, and National Debt Act, 1882, s. 7. 43 & 44 Viet. c. 19, s. 53. Parish in two counties. Place of Assessment. The Taxes Management Act, 1880 53. (lyj Where a parish is in two or more counties or divisions the duties--; to be charged in or for such parish shall be assessed by the Commissioners acting for that part of the parish where the church is situate, and the whole parish shall be deemed for the purposes of this Act and the Tax Acts to be situate in the county Houses in two or division wherein such church is situate ; and also where any dwelling-house or any other premises occupied therewith is situate in two or more parishes the whole duties to be charged thereon shall be assessed, raised, levied, collected, and paid in one of the parishes only as the surveyor deems most expedient, to be notified by him to the Commissioners acting for either of the parishes, and the party charged shall be relieved from any second assessment made thereon, or any part thereof, as in other cases of double assessments. parishes. ASSESSMENT. 63 (2.) If a doubt arises as to the district or parish in which a In case of person ought to be assessed to the duties, and where a person has Board to" been assessed, or shall be liable to be assessed, to the duties in two &rect where or more districts or parishes, the 'Board may order that he shall be assessed to the duties in such district or parish as appears to them to be proper, and he shall be assessed accordingly. The Customs and Inland Revenue Act, 1881 44 & 25. Sub-section one of section fifty-three of the Taxes Manage- c ' 12> 6 ' 25- ment Act, 1880, shall not apply to Scotland. The Taxes Management Act, 1880 43 & 44 54. (1.) If a doubt arises as to the parish in which any lands c ' 19) 8- 54> are situate, or if such lands are extra-parochial, the Board may, arise aTto by order in writing, direct that such lands shall, for the purpose pi f? s ^ , to , . . , . . which lands of the assessing, charging, collecting, and levying the duties, and belong Board for all other purposes of the Tax Acts, be annexed to and deemed * to be within such neighbouring parish, and within such division as the Board may deem the most convenient. (2.) After such order the duties shall be assessed, charged, raised, collected, and levied upon the occupiers of and inhabitants on such lands, by and under the authority of the General Commissioners for the division, and by the surveyor, assessors, and collectors for the parish to which such lands have been so annexed, and all regula- tions contained in this Act or in the Tax Acts for the making of any assessment, charge, or surcharge to the duties, and for the hearing of appeals against the same, shall, as regards such lands, have application. (3.) The Board may revoke any such order and substitute any other order in lieu thereof from time to time as often as it shall appear to them to be expedient so to do. The Income Tax Act, 1842 5 & 6 Viet. 177. And be it enacted, that if any person shall come into any ' ' 8 ' parish or place wherein such person shall not have been before come to reside charged to the said duties contained in any of the said schedules | for the same year, the assessor or collector, or any inspector or have not , . . , . . . , . i been before surveyor, shall give or leave notice in writing to or tor such person charged the to make out and deliver, within fourteen days next ensuing the assessor* .... . ,. Ti ve them day of giving such notice, a declaration in writing, signed by him notice to de- with his own proper name, which shall specify the name of the parish or place and county wherein such person shall have been charged, or assessed as aforesaid for such year, and also to produce the certi- statement for ficate of such assessment, or in default thereof to deliver a state- the purpose of being ment for the purpose of being assessed in such parish or place ; assessed. and if any such person as aforesaid shall neglect or refuse to Penalty on 64 PROCEDURE. persons neglecting to deliver such statement. Persons removing out of a parish or place, without first discharg- ing the assess- ment, or not leaving suffi- cient goods to satisfy the arrear, subject to penalty. Arrears to be levied by distress in the district where the party resides ; and if not so levied or collected, to be recovered as a debt to her Majesty. make out and sign and deliver such declaration or statement as aforesaid, within the time before mentioned, or shall make any false or untrue return therein in any particular thereof, he shall forfeit a sum not exceeding twenty pounds ; and when in any case it shall not appear in the assessment of any parish or place for that year that any person residing or being therein shall have been assessed to the said duties in the same parish or place, then and in such case it shall be lawful for the respective Commissioners acting for the said district and they are hereby required to proceed in manner before directed to assess such person to the said several duties, in like manner in every respect as if such person had been resident in such parish or place at the time of the publication of notices as directed by this Act, unless such person shall prove to their satisfaction that he hath been duly charged in some other parish or place, and hath paid or satisfied the duties so charged ; and if any person, before or after notice given to return a state- ment as aforesaid, shall remove out of such parish or place without returning such statement, or before an assessment shall be made on him, with intent to evade an assessment, or if any person being assessed to the said duties shall remove out of the parish or place where he shall have been assessed to the said duties without first paying or discharging all the said duties charged upon him which shall then be due and payable (a), or without leaving in such parish or place sufficient goods and chattels whereon the said duties in arrear may be raised and levied, and the same shall remain in arrear and unpaid for the space of twenty days after the time appointed by this Act for payment thereof, every such person shall forfeit (over and above the said duties so left unpaid as aforesaid) the sum of twenty pounds ; and in every such case, and also in every case where any person shall reside in any other parish or place than that in which the assessment or charge shall be made on him in pursuance of this Act, and the same shall be in arrear and unsatisfied in the whole or in part, it shall be lawful for the Com- missioners of the district in which such assessment or charge shall have been made to certify to the Commissioners of the district within which such person shall reside the amount of the assessment or charge made upon such person, and remaining in arrear and unpaid as aforesaid, and such last-mentioned Commissioners shall thereupon cause the whole of the duty so remaining in arrear and unpaid as aforesaid to be raised and levied, by and under their warrant, together with the costs and charges attending the same ; provided that if no such certificate and warrant as aforesaid shall be made and issued, or the whole of such arrear of duty, and costs (a) See also p. 94. ASSESSMENT. 65 and charges, as aforesaid, shall not be levied or collected in manner aforesaid, the same shall be recoverable as a debt to her Majesty, together with full costs of suit, and all charges and expenses attending the same. 178. And be it enacted, that if any person who ought to be 5 & 6 Viet, charged as directed by this Act shall, by fraudulently changing or c- 35> 8- 178 ' having changed his place of residence, or by fraudulently convert- persons J ing or having converted his property, or any part thereof, or by fraudulently fraudulently releasing, assigning, or conveying, or having fraudu- their resT- lently released, assigned, or conveyed, the same, or any part converting thereof, or by making and delivering any such statement or sche- property, or dule as aforesaid which shall be false or fraudulent, or having any false state- property chargeable as aforesaid, shall fraudulently convert or ^flf*' f r shall have fraudulently converted the same, or any part thereof, by other fraud, altering or having altered any security with relation to such pro- perty, or by fraudulently rendering or having rendered the same, or any part thereof, temporarily unproductive, in order that such person may not be charged for the same or any part thereof, or by any falsehood, wilful neglect, fraud, covin, art, or contrivance whatsoever, used or practised, shall not be charged and assessed according to the true intent and meaning of this Act, every such person shall, on proof thereof before the said respective Commis- sioners for Greneral Purposes acting for the district wherein such persons shall be chargeable, be charged and assessed treble the amount of the charge which ought to have been made on such person if no such charge shall have been made ; and if any such charge shall have been made which shall be less than the charge which ought to have been made on such person, then such person shall be assessed and charged, over and above such former charge, treble the amount of the difference between the sum with which such person shall have been charged and the sum with which he ought to have been charged, to be added to such assessment, and applied as in other cases as aforesaid. Year of Assessment. The Income Tax Act, 1842 5 &^6 Viet. 176. And be it enacted, that every assessment to be made under ^ m ^ m ^ this Act within the year appointed for making the same shall be to be for one deemed to be for the current year, and shall be in force for such yea year ; and every assessment made after the expiration of any year in which the same ought to have been made shall be deemed to be for the whole of the year current when the assessment ought to R. F PROCEDURE. have been made, and such year shall commence for every assess- ment during the continuance of this Act from the fifth day of April in such year. 43 & 44 Viet. e. 19, s. 48. From the to^the foil" 1 - ing 5th of April. The Taxes Management Act, 1880 48. Every assessment shall be made for the year commencing tiding on the days as herein specified : (3.) As regards income tax In Great Britain and Ireland from the sixth day of April to the following fifth day of April inclusive. 43 & 44 Viet. c. 19, s. 49. Delivery of assessments. 5 & 6 Viet. c. 35, s. 74. 43 & 44 Viet. c. 19, s. 50. Estimates in default of returns. ^Assessors' Certificates. 49. (1.) On or before the day appointed by the General Com- missioners for that purpose, every assessor shall deliver to such Commissioners (a) His certificates of assessments under Schedules A., B., and E. of the Income Tax Acts and of inhabited house duties ; and (b) All returns relative to the duties made to him before the above appointed day. (2.) All returns made by the parties to be charged after that appointed day shall be delivered to the Commissioners. As to the delivery of assessments and returns under Schedules A. and B., see the Income Tax Act, 1842, sect. 74, post, p. 167. 50. (1.) In case the assessor does not receive a return from a person liable to be charged to the duties, he shall to the best of his information and judgment (a) Make an assessment on every such person of the charge which ought to be imposed on him under Schedules A., B., and E. of the Income Tax Acts, and under the Acts relating to the duties on inhabited houses ; and (b) Estimate the amount at which every such person ought to be charged in respect of the duties under Schedule D. of the Income Tax Acts, returning to the Commissioners the name and residence of every such person and any other particular the Commissioners may require. (2.) On the delivery to the General Commissioners by the assessor of any certificate of assessment and of estimate, and their acceptance thereof, they shall forthwith deliver the same to tho surveyor for examination. ASSESSMENT. Examination and Amendment of Assessments. The Income Tax Act, 1842 5 & 6 Viet. 161. And be it enacted, that the general inspectors and surveyors j' ' s ' appointed or to be appointed shall be and they are hereby em- and surveyors powered respectively to inspect and examine all and every the t^ returns 06 returns made by any person under the directions of this Act, andassess- and in case any of them shall be dissatisfied either with the returns liberty to so made, or the estimate of the assessor thereon, or shall discover any error or omission in such estimate, or that any deduction hath surcharges. been allowed not authorized by this Act, they shall charge the same, according to the best of their judgment, in the full amount at which the same ought to be charged ; and the said inspectors and surveyors shall also be at liberty respectively to inspect and examine all and every the assessments of the said duties, or any of them, made under the authority of the respective Commissioners before mentioned, as well before as after the Commissioners shall have signed and allowed the said assessments, and before such allowance to correct and amend such assessments, if they shall respectively think fit; and every person in whose custody such returns are is hereby required, upon the request of any such. inspector or surveyor as aforesaid, to deliver the same into his custody for the purposes of this Act, taking his receipt for the same, and every person in whose custody any such assessments shall be is also hereby required, upon the request of such inspector or surveyor as aforesaid, to produce the same, and such inspector or surveyor is hereby authorized to take charge of the same until he shall have taken such copies of or extracts from the same as may be necessary for his better information; and every person wilfully obstructing such inspector or surveyor in the due perform- ance of his duty as aforesaid shall forfeit the sum of fifty pounds ; and if any such inspector or surveyor shall find or discover, upon his survey or examination, or otherwise, that any person, corpora- tion, company, or society who ought to be charged with the said duties or any of them, shall have been omitted to be charged therewith, or shall have been under-rated in the assessment, or that any person, or the officer of any corporation, company, or society, liable to the said duties or any of them, being required so to do, hath neglected or refused to make a return according to the directions of this Act, or that the assessors have neglected to require a return in any case where a return ought to have been required from any person, corporation, company, or society according to the intent of this Act, so that such person, corporation, company, or society shall not have been fully charged to the said duties, then PROCEDURE. 43 & 44 Viet. c. 19, s. 61. Surveyors to examine assessments and returns. 43 & 44 Viet. c. 19, s. 52. Surveyors may amend assessments. and in every such case the said surveyor or inspector shall certify the same in writing under his hand, together with an account of every default, and the full amount of the duty which ought to be paid by way of surcharge, to the said respective Commissioners for putting in execution this Act in relation to the duties on which such surcharge shall be made, in the manner and under and subject to the rules and regulations prescribed and contained in the Taxes Management Act, 1880. Most of the enactments in sect. 161 are re-enacted in sects. 51 and 52 of the Taxes Management Act, 1880, infra. The Taxes Management Act, 1880 Examination of Assessments. 51. (1.) The surveyor may inspect and examine any return, and also every first assessment of the duties, made for any parish for any year, as well before as after the respective Commissioners sign and allow such first assessments. (2.) Every person in whose custody any return may be shall on the request of the surveyor deliver the same into his custody, taking his receipt for the same ; and every person in whose custody any such assessment shall be shall on the request of the surveyor pro- duce the same, and the surveyor is hereby authorized to take charge of such assessment until he has taken such copies or extracts as may be necessary. Amendment of Assessments. 52. If the surveyor discovers that any properties or profits chargeable to the duties have been omitted from such first assess- ments, or that any person so chargeable has not made a full and proper or any return, or has not been charged to the said duties, or has been undercharged in the said first assessments, or has obtained and been allowed from and in such first assessments any allowance, deduction, abatement, or exemption not authorized by the Tax Acts, then (1.) As regards inhabited house duties and the duties chargeable under Schedules A., B., and E. of the Income Tax Acts (a) Before the first assessment has been signed and allowed, the surveyor shall correct and amend such assessment, and charge the person liable to the full amount and at the full rate of duty at which he ought to be charged. (b) After the first assessment has been signed and allowed, but within four months (a) after the expiration of the year to which such assessment relates, the surveyor shall certify the particulars of any such insufficient return, default, ASSESSMENT, 9 omission, undercharge, or unauthorized deduction to the General Commissioners, who shall thereupon rectify the same by signing and allowing an additional first assess- ment to be made in accordance with the particulars set forth in such certificate, subject to appeal and other pro- ceedings as authorized in the case of the first assessment. (2.) (ft} As regards the duties chargeable under Schedule D. of the Income Tax Acts, the Additional Commissioners shall at any time after the said first assessments have been signed and allowed, but within four months after the expiration of the year to which such first assessments relate, 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 to appeal. (a) As to the power of inspectors and surveyors to examine assessments 5 & 6 Viet, under Schedule D., see the Income Tax Act, 1842, sect. 115, p. 252. For an c. 35, s. 115. example of a charge not made within four months, and therefore too late, 1886, Mau- see Maughan (Surveyor of Taxes) v. Edinburgh and District Water Trust. ghan (Surveyor of Taxes) v. Edinburgh and Errors. District Water Trust, 13 Sco. 55. No assessment, nor any charge made upon any assessment, Sea. < Cas. 4til &6n6S| shall be impeached or affected 1046. (a) By reason of any mistake therein, or in either of them, 43 & 44 Viet. ,. x -r ,1 i ,' C. 19, 8. 55. (i.) In the Christian name or names, or surname ot any Errors of party liable to any of the duties ; description, (ii.) In the description of any profits or property ; (iii.) In the amount of the duty charged : (b) By any variance between the notice and the certificate of charge or assessment ; provided that in cases of charge the notice thereof be duly served on the person intended to be charged, and such notice and certi- ficate do severally contain in substance and effect the several par- ticulars on which the charge is made ; and every such charge shall be heard and determined on its merits by the General Commis- sioners. Allowance of Assessments. 56. (1.) After the surveyor has examined the assessments de- 43 & 44 Viet, livered by the assessors, the General Commissioners shall take them ^^nce of into consideration ; and in case the surveyor has not objected assessments, to the assessments and the Commissioners are satisfied that they have been made truly and without fraud, and so as to charge the properties and persons contained therein with the full duty which ought to be charged, the Commissioners shall sign and allow such assessments. 70 PROCEDURE. 5 & 6 Viet. c. 35, s. 110. 43 & 44 Viet, c. 19, s. 63. Charges may be made in cases of omissions. Notice to per- sons charged. Proof of notice. Time limit. (2.) In case the surveyor objects to any assessment and applies for a revision thereof, suggesting in writing to the General Com- missioners any error, mistake, omission, or fraud in making the same, they shall, according to the best of their judgment, rectify such assessment so that the proper duty may be fully charged according to the intent and meaning of the Tax Acts. As to the procedure under Schedule D., see the Income Tax Act, 1842, sect. 110, &c., post, p. 250. Omissions from First Assessments. 63. (1.) Where the surveyor discovers that a person liable to any of the duties has not been assessed in respect thereof in any first or additional first assessment, he may, at any time within the year following the year for which such person ought to have been charged, charge the person liable to the amount which ought to have been charged within the year of assessment, to the best of his judgment, and certify the particulars of such omission and charge to the General Commissioners, who, upon delivery of any such cer- tificate, and upon oath being first made either by the surveyor or other credible witness of the due service of a notice of charge on the person so charged, shall sign and allow the said certificate as hereinafter prescribed, but subject to appeal. (2.) The surveyor shall give to every person so charged notice of such charge, and the particulars thereof. (3.) The certificate of the surveyor with oath of service of the notice of charge shall be deemed sufficient proof of the contents thereof, unless the contrary be shown on the production of such notice to the General Commissioners by the party charged ; and no proof of the contents of any such notice shall be required by the said Commissioners to be given to them either by a copy thereof or otherwise previous to their signing or allowing the said certificates, nor upon appeal therefrom, nor other proof in any matter relating to the same, except the oath of the person who shall have made service of such notices, and which shall be in the form and to the effect following ; that is to say, " I, A.B. do swear that a notice was duly served upon each person mentioned in the above certificate containing the par- ticulars as set forth therein respectively on the day or days mentioned in the said certificate." (4.) If any person wilfully and corruptly makes a false statement in any such oath of service he shall be guilty of misdemeanor, and shall be liable to imprisonment for six months with or without a fine not exceeding fifty pounds. (5.) No charge upon any assessment of duties shall be allowed ASSESSMENT. 71 or signed unless the certificate thereof shall be delivered to the General Commissioners within the year following the year of such assessment. (6.) The delivery of any such certificate of charge by any Delivery, surveyor to their clerk in default of a meeting of the said Commissioners shall be deemed a sufficient delivery. (7.) In default of a meeting of the Commissioners before the time limited for the hearing of appeals from the charges of the surveyor, or if the said surveyor shall not have had notice of a meeting of the Commissioners, they shall, at their first meeting to be held thereafter, sign and allow the said certificates, and after- wards hear and determine all appeals therefrom. Amended Return. 64. (1.) A person to whom such notice of charge has been 43 & 44 Viet, given may, within ten days from date of such notice, whether he ^ GTS ^ shall have made a return before or not, surcharged (a) Deliver to the surveyor a true and perfect return containing fended all particulars required by the Tax Acts ; or return. (b) Give notice in writing to the surveyor that he doth abide by the return before made by him. (2.) To such return or notice shall be annexed a declaration, Declaration, signed by the person to whom such notice of charge has been given, in his own name and handwriting or sign, and also signed and attested by one credible witness at the least. Every such declara- tion shall allege (a) The grounds and cause of his neglect to make a return ; (b) The grounds and cause of each omission made or mentioned in the notice of charge to have been made in such former return ; or (c) The grounds and cause of each claim of exemption, allow- ance, or deduction made in the former return ; and (d) That the return or amended return to which the said declaration is annexed is a true and perfect return of all particulars required of the declarant by the Tax Acts, to the best of his judgment and belief ; and (e) That such neglect, omission, or claim was [not made with intent to defraud the Revenue. (3.) The surveyor may object to such return or amended return Objections or declaration thereto annexed, and shall in such case serve notice of objection on the party charged, and certify such return or amended return and declaration annexed thereto, with the cause of his objection, to the General Commissioners, who shall thereupon PROCEDURE. Satisfaction therewith. 43 & 44 Viet. c. 19, s. 65. Time limit. 43 & 44 Viet, c. 19, s. 66. False declaration. Indictment. cause the assessment to be made according to such last-mentioned certificate of objection, from which charge no abatement shall be made except on the appeal of the party so charged. (4.) If the surveyor is satisfied with such return or amended return and declaration annexed thereto, he may certify his satisfac- tion therewith to the General Commissioners, who shall thereupon cause the party charged to be assessed on the amount of such return in single duty. 65. (1.) Every person charged in pursuance of this Act by the certificate of any surveyor shall have the period of ten days after service of the notice of charge to deliver his amended return to the surveyor, and no certificate of charge shall be signed or allowed by the General Commissioners nor any appeal heard from such charge before the expiration of such period. (2.) If the person so charged shall, before the expiration of the said period, deliver a return and declaration which the surveyor objects to, such return and declaration shall be a sufficient notice of appeal from such charge to the Commissioners. (3.) If the person so charged shall not, before the expiration of the said period, deliver a return or declaration, the Commissioners may, on his or his agent's appearance before them, and the delivery to them of a return and declaration as is herein required on the day appointed for hearing appeals from the charges of the surveyor, hear and determine the matter of such charge, although the person charged shall not have given any previous notice of his intention to appeal. (4.) In default of the appearance of the party charged or of his agent before the Commissioners on the day of appeal, or in default of the production of a return or declaration as aforesaid, the certi- ficate of charge shall be confirmed by the Commissioners. 66. (1.) If a person in any such declaration wilfully and frau- dulently declares anything which is false, he shall be guilty of misdemeanor, and shal] be liable to imprisonment for not exceeding six months, and be fined in a sum not exceeding treble the amount of duty for which he has been charged, as the Court before whom such trial shall be had shall order. (2.) The indictment for such misdemeanor shall be laid in the county where the declaration was exhibited to the General Commissioners. APPEALS. 73 3. Appeals. The Taxes Management Act, 1880 43 & 44 Viet. c. 19, s. 57. Appeals, 57. (1.) So soon as any assessment of the duties for a parish Notice of shall be signed and allowed, notice of appeal meetings shall he J given as prescribed by the Income Tax Act, 1842 (a), and the clerk given. shall inform the surveyor thereof. (2.) Eelates to the inhabited house duties. (3.) A person aggrieved by an assessment upon him included Persons in any first or additional first assessment shall, on giving ten days notice of objection in writing to the surveyor within the time limited for hearing appeals, be entitled to appeal to the General Commissioners against such assessment within twenty-one days after the date of the notice of such assessment to the party charged therewith. (4.) No assessment delivered to the General Commissioners shall Assessments be altered by them, or any of them, before the time for hearing altered before and determining appeals, and then only in cases of charges appealed appeals, against, and according to the determination of the said Commis- cases autho- sioners upon their hearing the matter of appeal particularly relating thereto upon a general appeal day duly appointed, except in such cases only where such Commissioners are specially authorized to alter or rectify any such assessment ; and if the clerk or any other person alters or causes or procures or suffers to be altered any assessment after the same has been allowed by the Commissioners except as aforesaid, or in cases of appeal, and by order of the said Commissioners, made after appeal as aforesaid, such clerk or other person shall incur a penalty of fifty pounds. (5.) The General Commissioners shall cause notice of the day of appeal to be given to the appellants, and shall meet together from time to time, with or without adjournment, until all appeals shall have been determined. (6.) The said Commissioners shall not, upon the hearing of any Proof of such appeal, make an abatement or reduction in the charge made over( upon any person by assessment or surcharge by any assessor or surveyor, but the charge or surcharge shall stand good and remain part of the annual assessment, unless it shall, upon the hearing of such appeal, appear to the Commissioners then present, or the major part of them, by examination of the appellant, upon oath or affirmation, or by other lawful evidence to be produced by him, that such person is overcharged in or by such assessment or surcharge. 74 PROCEDURE. Surveyor may- attend and produce evidence. Persons not fully assessed may be charged. No barrister, &c. to plead. Determina- tion final, except where cases are re- quired for the High Court. 5 & 6 Viet. c. 35, ss. 80 and 118 et seq. 43 & 44 Viet. c. 19, s. 58. Charges not to be made in certain cases. (7.) At every and any appeal the surveyor and assessor may then and there attend, and (a) Give his reasons in support of the assessment or surcharge appealed against : (b) Produce any lawful evidence in support of such assessment or surcharge : (c) Have full power and liberty to be present during all the time of hearing such appeals and of the Commissioners determining the same. (8.) If on an appeal it appears to the said Commissioners that a person assessed or surcharged ought to be charged to an amount beyond the amount contained in such assessment or surcharge, the Commissioners shall charge such person to the amount of the sum omitted. (9.) No barrister, solicitor, attorney, or any person practising the law shall be allowed to plead before the said Commissioners on such appeal for the appellant or officers either viva voce or by writing. (10.) Appeals once determined by the General Commissioners, or by the major part of them present on the day appointed for the hearing of appeals, shall be final ; and neither the determination of the Commissioners nor the assessment then and there made thereupon shall be altered at any subsequent meeting, or at any other time or place, except by order of the High Court when a case has been required as provided by this Act. (a) See under Schedules A. and B., the Income Tax Act, 1842, sect. 80, and under Schedule D., p. 80, and sects. 118 et sea., post, p. 253. As to the procedure under Schedule D., see the Income Tax Act, 1842, sects. 118 et seq., post, p. 253. 58. The determination of the General Commissioners after appeal on an objection made by the surveyor to an assessment on any person to the duties, or to any estimate on which any assess- ment is made for any year, shall preclude the surveyor from afterwards making a further charge for the same year on the same person in respect of the same matter, property, or profits included in the assessment or estimate before objected to and determined as aforesaid. 16 & 17 Viet, c. 34, s. 55. Persons who have re- moved before appealing may be allowed to appeal to the Commis- The Income Tax Act, 1853 55. Where any person assessed or charged to any of the duties under this Act shall have removed from the district within which the assessment or charge upon him was made without having appealed against such assessment or charge in such district, it shall be lawful for the Commissioners of Inland Revenue, if they shall APPEALS. 75 think fit, on the application of such person to authorize and sioners of the empower the Commissioners of the district to which such person S? h ct t y shall have removed as aforesaid to hear and determine his appeal have removed, against such assessment or charge, and in every such case the said last-mentioned Commissioners shall have full power and authority and they are hereby required to hear and determine such appeal accordingly, and any sum or sums from which such person may not he relieved on such appeal shall be recovered and levied in the same manner as if such appeal had been heard and determined by the Commissioners of the district in which such assessment or charge was made. Appeals against Surcharges. The Taxes Management Act, 1880 43 & 44 Viet. 67. (1.) Appeals against surcharges shall be heard and deter- c ' mined according to the directions prescribed in respect of appeals against against the first assessments of the same duties. surcharges. (2.) If a person surcharged is prevented by absence or sickness, or other sufficient cause, to be proved before the General Com- missioners on the oath or solemn affirmation of the said person or otherwise, from appealing within twenty-one days after the date of the notice of charge, or from attending in person within such time, the Commissioners may postpone the hearing of the appeal for such time as may to them appear necessary. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 162. 162. And be it enacted, that upon every surcharge allowed upon Surcharges, appeal by the said Commissioners, upon the certificate of the to^^rebi inspector or surveyor, as directed by this Act, in cases where no duty, in cer- such declaration shall have been delivered as in the said Taxes Management Act, 1880, is required, or the Commissioners shall be dissatisfied with the same, the assessment shall be made in treble the rate of duty prescribed in the said respective schedules of this Act on the amount of the duty surcharged : Provided always, Upon appeal that if upon appeal such declaration as aforesaid shall have been * ^^ f t e delivered, and if the said Commissioners shall be satisfied there- treble duty with, and shall be of opinion that there was any reasonable cause remitted, of controversy on the part of the appellant on the subject-matter of appeal, and that the party hath not been guilty of any wilful default, neglect, or omission, nor wilfully done a ay act with intention to defraud the revenue, it shall be lawful for the said Commissioners who shall have determined the said appeal, although they shall confirm or allow the surcharge, or a part thereof only, at 76 PROCEDURE. Payment of overplus. Increase of duty, &c. by surcharge to bs certified to Commis- sioners of Inland Re venue, who shall have autho- rity to reward inspector or surveyor. 43 & 44 Viet. c. 19, s. 68. Treble duty. 43 & 44 Viet, c. 19, s. 59. Commis- sioners may be required the same time to remit and strike off the whole or any part of the said treble duty ; and the overplus of the sum so charged above the said rate or duty, and which shall not be so remitted or struck off as aforesaid, shall be paid to the officer for receipt, to the use of her Majesty ; which increase of duty, made by occasion of such surcharge, together with the overplus aforesaid above the said rate of duty, and all other increase of duty occasioned by the surcharge or information of any inspector or surveyor under this Act, the Commissioners for executing this Act who shall have confirmed such surcharge or made such increase shall at the same meeting certify under their hands to the Commissioners of Inland Revenue, who shall have authority, under and subject to such rules and regu- lations as shall have been made by the Treasury in that behalf, to direct the said officer for receipt to pay to the said inspector or surveyor, out of the increased duty and overplus aforesaid, such sum of money as shall appear to the said Commissioners of Inland Revenue to be an adequate reward for the labour and diligence of the said inspector or surveyor. The Taxes Management Act, 1880 68. (1.) On every surcharge allowed by the General Commis- sioners on appeal in whole or in part the assessment shall be made on the amount of the surcharge allowed in treble the rate of duty prescribed in the Tax Acts. (2.) But the General Commissioners may remit in whole or in part such treble duty and charge in single duty only, where they are of opinion (a) That the assessment might have been amended by the sur- veyor by means of the original return of the person charged : (b) That the alleged default, neglect, omission, or claim of exemption, allowance, or deduction was not wilfully made with intent to defraud the revenue : (c) That the person charged was prevented from making an amended return in due time by absence or 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. 4. Gases for the Opinion of the High Court, The Taxes Management Act, 1880 Cases for Opinion of High Court. 59. (1.) Immediately upon the determination of any appeal under the Income Tax Acts by the General Commissioners, or by CASES FOR THE OPINION OF THE HIGH COURT. 77 the Special Commissioners, or any appeal under the Acts relating to state a case to the inhabited house duties by the General Commissioners, the appellant or the surveyor may, if dissatisfied with the determina- tion as being erroneous in point of law, declare his dissatisfaction to the Commissioners who heard the appeal, and having so done may, within twenty-one days after the determination, require the Commissioners, by notice in writing addressed to their clerk, to state and sign a case for the opinion of the High Court thereon. The case shall set forth the facts and the determination, and the party requiring the same shall transmit the case, when so stated and signed, to the High Court within seven days after receiving the same, and shall previously to or at the same time give notice in writing of the fact of the case having been stated on his appli- cation, together with a copy of the case to the other party, being the surveyor, or the appellant, as the case may be. (2.) In relation to cases to be so stated, and the hearing thereof, the following provisions shall have effect : (a) The party requiring the case shall, before he shall be entitled to have the case stated, pay to the clerk to the Commis- sioners a fee of twenty shillings for and in respect of the case: (b) The High Court shall hear and determine the question or questions of law arising on a case transmitted under this Act, and shall thereupon reverse, affirm, or amend the determination in respect of which the case has been stated, or remit the matter to the Commissioners with the opinion of the High Court thereon, or may make such other order in relation to the matter, and may make such order as to costs as to the High Court may seem fit : (c) The High Court shall have power, if they think fit, to cause the case to be sent back for amendment, and thereupon the same shall be amended accordingly, and judgment shall be delivered after it shall have been amended : (d) The authority and jurisdiction hereby vested in the High Court shall and may (subject to any rules and orders in relation thereto) be exercised by a judge of the High Court sitting in chambers, and as well in vacation as in term time : (e) (a}. The High Court may from time to time, and as often as they shall see occasion, make and alter rules and orders to regulate the practice and proceedings in reference to cases stated under this Act. (3.) An appeal shall lie from the decision of the High Court or of any judge thereof, upon any case stated under the above 78 PROCEDURE. 45 & 46 Viet. c. 72, s. 7. 44 & 45 Viet. c. 59, Sche- dule. 1894, Roths- child and Sons v. Commis- sioners of In- land Revenue, 10T.L.R.328. Sowers v. Harding, [1891] 1Q.B. 566 ; 60 L. J. Q. B. 474. The Scottish Union and National Insurance Co. v. Commis- sioners of In- land Revenue, 26 Sco. L. R. 489. provisions to her Majesty's Court of Appeal, and from thence to the House of Lords, and from the decision of the Court of Session, as the Court of Exchequer in Scotland, upon any case so stated to the House of Lords. (4.) The fact that a case so stated is pending before the High Court shall not in any way interfere with the payment of the income tax or inhabited house duty according to the assessment of the Commissioners by whom the case was stated, but the income tax or inhabited house duty shall be paid according to such assess- ment, as if the case had not been required to be stated, and in the event of the amount of assessment being altered by the order or judgment of the High Court the difference in amount, if too much has been paid, shall be repaid with such interest (if any) as the High Court may allow, and if too little, shall be deemed to be arrears (except so far as any penalty is incurred on account of arrears), and shall be paid and recovered accordingly. (a) Sub-sect, (e) is repealed as regards England and Ireland by the Revenue, Friendly Societies, and National Debt Act, 1882, s. 7 : see also as regards England 44 & 45 Yict. c. 59, Sched. Eight of Reply. ~\ It should be observed that the Crown has a right of reply. For an instance where the right was claimed and allowed, see Rothschild and Sons v. Commissioners of Inland Revenue. 5 & 6 Viet. c. 35, s. 171. Commis- sioners to grant relief from double assessments. Costs.'] The Court in granting costs will consider the circumstances of the case ; but there is no rule that costs will not be granted to the Crown as against a respondent who appears to support a decision of the Commissioners in his favour : Sowers v. Harding. Costs of preparation of Case.] In the case of The Scottish Union and National Insurance Co. and others v. Commissioners of Inland Revenue, which was presented under the Taxes Management Act, the auditor, in taxing the account of the plaintiffs, disallowed all charges for the preparation and adjustment of the case before it appeared in the rolls of Court. An objection to the auditor's report upon this ground repelled. The Lord President : ' ' We know nothing about Inland Revenue cases till they come into Court, and it is understood that such cases are prepared by the' Commissioners, and that there is nothing left for the Court save to hear parties. The expenses in the ordinary case would be the expenses of the proceedings before the Court, not expenses incurred in arguing with the Commissioners, who are the proper persons to determine what the case should be." 5. Miscellaneous. The Income Tax Act, 1842 Relief from Double Assessments. 171. And be it enacted, that whenever any person shall have been assessed to any of the duties granted by this Act, whether charged on him on his own account, or in any of the characters hereinbefore described on the behalf of any other person and shall MISCELLANEOUS. 79 by any errror or mistake be again assessed for the same cause, and on the same account, and for the same year, it shall be lawful for him to apply to the Commissioners for General Purposes acting for the division or place for which he shall have been so assessed by error or mistake as aforesaid, for the purpose of being relieved from such double assessment, and the said Commissioners, on due proof thereof to their satisfaction, shall cause such assessment, or such, part thereof as shall be a double charge as aforesaid, to be vacated, and which proof may be either by a certificate of the assessment made on the party, under the hands of the Commissioners by whom he shall have been rightly assessed according to the directions of this Act for the matter or cause in question, certifying that such matter or cause is included in an assessment made by them on the same party, on the same account, and for the same year, or by other lawful evidence given of those facts on the oath of any credible witness ; and whenever it shall be proved to the satisfaction of the Commissioners of Inland Eevenue that any such double assessment as aforesaid hath been made, and hath not been vacated, and that payment hath been made of both assessments, it shall be lawful for the said Commissioners of Inland Revenue to order and direct the Receiver-General of Inland Revenue, or any officer for receipt, to repay to the party the sum so erroneously and doubly assessed upon him, and paid as aforesaid. 43 & 44 Viet, c. 19, B. 60. 60. Whenever it appears to the satisfaction of the Board that a Relief to per- person has been assessed more than once to the duties for the same charged! 7 cause and for the same year, they shall direct the whole or such part of such one or more of the assessments as appears to be an overcharge to be vacated, and thereupon the same shall be by such order vacated accordingly. Books of Assessments. 61. (1.) Whenever and so soon as the General Commissioners 43 & 44 Viet, and Land Tax Commissioners shall have signed and allowed any 19 > 8 - 61 - , . , . / j p Books of assessment to the duties or the land tax, and the time limited tor assessment, hearing any appeals therefrom shall have elapsed, the clerk shall number the pages in such book of assessment, and duly cast up and total the sums in each page. (2.) The clerk shall forthwith and before the next ensuing receipt Account of transmit to the collector of inland revenue an account on a form prescribed by the Board, showing the total sums to be paid by and for each parish, together with the names and addresses of the collectors appointed to receive the same. 80 PEOCEDURE. 43 & 44 Viet, c. 19, s. 62. Surveyor to certify changes, and Commis- sioners to apportion and adjust the assessment. 43 & 44 Viet, c. 19, s. 69. Supple- mentary assessments. 43 & 44 Viet, c. 19, s. 70. Duplicates showing Changes. 62. (1.) If a person assessed under Schedule D. of the Income Tax Acts ceases within the year of assessment to carry on the concern in respect of which the assessment is made, and is suc- ceeded therein by another person, the surveyor shall, within four months from the fifth day of April next after such change, certify to the Greneral Commissioners for the district in which the assess- ment is made the particulars thereof, and the Christian and surname and place of residence of the person assessed, and of the successor to the concern, and the date of the change in the carrying on of the concern, if the same be known to the surveyor. (2.) On receipt of such certificate the Commissioners shall cause notice to be given to the respective parties of a meeting of Commis- sioners for considering the same ; and the Commissioners shall, on the examination of the respective parties, if in attendance or on other satisfactory proof of the facts, adjust the assessment by charging the successor with a fair proportion thereof from the period of his succeeding to the concern and relieving the person originally assessed from a like amount. (3.) The determination of the Commissioners on any such certi- ficate shall be final, and the assessment so adjusted shall be recoverable from the respective parties in like manner as an original assessment ; and if either of the parties has paid in respect of an assessment so certified more than the proportion which appears by the determination of the Commissioners to be chargeable on him, the amount so overpaid shall, when recovered from the party liable, be paid to the person by whom the over- payment was made. Supplementary Assessments. 69. A certificate of surcharge shall be sufficient authority to the G-eneral Commissioners to cause supplementary assessments of the duties to be made from time to time. The supplementary assess- ments shall include all surcharges according to the certificates of surcharge amended in cases requiring amendment according to the determination of the Commissioners, and all treble duties or parts thereof assessed over and above the rates of duty prescribed in the Tax Acts and all penalties imposed by the Commissioners within the year of assessment for offences against the Tax Acts or this Act. Charge Duplicates. 70. (1.) The respective Land Tax and General Commissioners shall yearly cause two duplicates of the charge by every assessment to be made out on the prescribed form by their clerk. CLAIMS OP EXEMPTION. 81 (2.) One of such duplicates shall be delivered to the proper amount of collector of inland revenue, and the other transmitted to the J^mad!? Board, within the times hereinafter limited. out - (3.) The said duplicate shall be made as regards land tax for the same parishes and divisions for which distinct duplicates are directed to be made out or may be made out under the Land Tax Acts, and as regards the duties for such parishes for which a separate assessment of the duties may be made. (4.) The said duplicates shall contain Contents. (a) The names and surnames of the several assessors and collec- tors for every parish and division ; and (b) The full amount of the sums given in charge to each collec- tor, throughout the whole year, without any discharge, diminution, or defalcation on any pretence whatever. (5.) The said duplicates shall be made out, delivered, and trans- mitted on or before the thirty-first day of March in each year, or if the assessments shall not then have been made within one month at farthest after all appeals against such assessments shall have been heard and determined. (6.) If the clerk neglects or refuses to make out and deliver such Penalty, duplicates within the time and in manner hereinbefore directed, or wilfully makes any false entry in or omits any sum from such duplicates, he shall incur a penalty of one hundred pounds, and on conviction be discharged from his office. 6. Claims of Exemption. The Income Tax Act, 1842 5 & 6 Viet. ... , c. 35, s. 164. 164. And be it enacted, that every person claiming to be Modeof entitled to such exemption as last aforesaid, shall, within the time claiming to be limited as hereinbefore directed for delivering in the lists, an a O f pro . declarations, and statements required by this Act (or within such further time as the said Commissioners shall for special cause assigned allow) , deliver or cause to be delivered to the assessor of the parish or place where such claimant shall reside a notice of his claim for such exemption, together with a declaration and state- ment, signed by such claimant, and in such form as may be pro- vided under the authority of this Act, declaring and setting forth therein all the particular sources from whence the income of such claimant shall arise, and the particular amount arising from each source, and also every sum of annual interest or other annual pay- ment reserved or charged thereon, whereby the income shall or may be diminished, and also every sum which such claimant may have charged or may be entitled to charge against any other person R. G PROCEDUEE. If inspector or surveyor object to the claim the same to be determined by the Com- missioners for General Purposes. for or on account of the duty made payable by this Act, or which he may have deducted or retained, or may be entitled to deduct or retain, under the authority of this Act, from or out of any payment to which he may be or become liable ; which declaration and state- ment every inspector or surveyor shall be at liberty to peruse and examine, and to take copies of or extracts from, under the like powers as in other cases ; and in every case where such claim for exemption shall be made in manner aforesaid the assessor shall transmit such notice, declaration, and statement to the said Com- missioners ; and if the inspector or surveyor shall not object to such declaration within forty days after such transmission, or within such further time as the Commissioners, on just cause, shall allow to him to make such objection, it shall be lawful for the said Commissioners to allow such claim of exemption, and to discharge the assessment made upon any property or profits of such person, either in his own name or in the name of his lessee or tenant, within the district of the said Commissioners ; and if it shall appear that any property or profits of such person is or are assessed or liable to be assessed in any other district, the said Commissioners shall certify to the Commissioners of Inland Revenue, in such form as shall be provided under the authority of this Act, the allowance of such exemption ; and the said last- mentioned Commissioners shall direct the assessment made upon any property or profits of such claimant, either in his own name or in the name of his lessee or tenant, in any other district, to be discharged, and the same shall be discharged accordingly : Provided always, that in case the inspector or surveyor shall object to any such claim as aforesaid in writing, suggesting to the said additional Commissioners that he hath reason to believe that the income of such claimant, or any other particular required by this Act to be declared or set forth in such declaration and statement as aforesaid, is not truly or fully declared or set forth therein in any specified particular, then and in such case the merits of such claim for exemption shall be heard and determined upon appeal before the Commissioners for General Purposes, under and subject to such rules, regulations, and penalties as other appeals under this Act are directed to be heard and determined, and if such claim shall be allowed on appeal as aforesaid the said Commissioners for General Purposes shall grant and issue all necessary certificates consequent thereon. 165. Provided always, and be it enacted, that if it shall be proved to the satisfaction of the Commissioners for General Pur- 5 & 6 Viet. c. 35, s. 165. On proof that persons poses that any person whose claim for exemption has been allowed CLAIMS OF EXEMPTION. 83 in manner aforesaid has been charged to and has paid any of the entitled to duties hereby granted, byway of deduction from any rent, annuity, f em tion j . , i _ * v f HaL'VQ DGGH interest, or other annual payment to which he may be entitled, and charged from which a deduction is authorized to be made by this Act, or deduction that such person has been assessed and has paid such duties in froman y L f ! T i i annuity, espect o any annuity, dividend, pension, or stipend payable to dividend, him out of the public revenue of the United Kingdom, then and in cTm'nS' such case it shall be lawful for the said Commissioners for General sioners to Purposes to certify what shall have been so proved before them to StifeUe the Commissioners for Special Purposes at the chief office of th F? f ' . TIJT 'TII-II which shall Inland .Revenue in England, by a certificate, in such form as authorize the shall be provided under the authority of this Act, specifying and reS-T describing the amount and the particular nature of the payment re P a 7 the out of which and the name and place of abode of the person by suc^duties. whom such deduction as aforesaid shall have been made, and speci- fying also the amount and description of the annuity, dividend, pension, or stipend in respect of which such claimant has been assessed, and the duties whereon he has paid ; and thereupon the said last-mentioned Commissioners shall issue to such claimant an order for the repayment to him of the amount of the duties certified to have been paid as aforesaid, and such order shall be directed to the Receiver General of Inland Revenue, or to an officer for receipt or collector of the duties granted by this Act, or to a distributor or sub-distributor of stamps, and shall authorize and require the repayment of the said duties in like manner as is hereinbefore provided with respect to the allowances to be granted under No. Y. of Schedule (A.) of this Act. 166. And be it enacted, that if any person shall be guilty of any 5 & 6 Viet. fraud or contrivance in makiner any such claim, or in obtaining: ' ' 8 ' . 1-0 -11,1 Penalty for any such exemption or any such certificate as aforesaid, or shall making fraudulently conceal or untruly declare any income or amount of income, or any sum which he may have charged or been entitled exemption. under the authority of this Act to charge against any other person, or which he may have deducted or retained, or have been or be entitled as aforesaid to deduct or retain, from or out of any pay- ment to which such person claiming exemption as aforesaid may be or become liable, or if any such person shall fraudulently make a second claim for the same cause, every such person so offending in any of the cases aforesaid shall forfeit the sum of twenty pounds, and treble the duty chargeable in respect of all the sources of his income, and as if such claim had not been allowed; and if any person shall knowingly and wilfully aid, abet, or assist any such person in committing any such fraud as aforesaid, the G2 PEOCEDUKE. 5 & 6 Viet. c. 35, s. 167. Income aris- ing from lands, how to be esti- mated with reference to claims for exemption. person so aiding, abetting, or assisting shall forfeit the sum of fifty pounds. 167. And be it enacted, that the annual value of lands, tene- ments, hereditaments, or heritages belonging to or in the occupa- tion of any person claiming the said exemption shall be estimated, for the purpose of ascertaining his title to such exemption, according to the rules and directions contained in the said several Schedules (A.) and (B.) respectively ; and that the income arising from the occupation by such claimant of lands, tenements, hereditaments, or heritages chargeable under the said Schedule (B.) shall be deemed for the purpose aforesaid to be equal in England to one-half and in Scotland (a) to one-third of the full annual value thereof, estimated according to the said rules and directions; and where such claimant shall be the proprietor as well as the occupier of any such lands, tenements, hereditaments, or heritages, the amount deemed by this Act as aforesaid to be the income arising from the occupation of such lands, tenements, hereditaments, or heritages shall be added to the amount of the full annual value thereof, and the aggregate amount shall be deemed for the purpose aforesaid to be the income of such claimant arising from the lands, tenements, hereditaments, or heritages of which he shall be the proprietor and occupier as aforesaid; and the income arising from any lease of. or composition for tithes shall be deemed, for the purpose aforesaid, to be equal to one-fourth of the full annual value of such tithes, estimated in manner aforesaid. (a) Also in Ireland : see 16 & 17 Viet. c. 34, s. 28, post, p. 295. 168. And be it enacted, that coparceners, joint tenants, or t enan t s j n common of the profits of any property whatever, and any 5 & 6 Viet. c. 35, s. 168. &c. may seve- joint tenants or tenants of lands or tenements in partnership, being abatement * n ^ e ac ^ ua ^ an( ^ j om t occupation thereof in partnership, and en- titled to the profits thereof in shares, and personally labouring therein, or managing the same, and any partners carrying on trade or exercising any profession together, and entitled to the profits thereof in shares, and personally acting therein, may severally claim such exemption according to their respective shares and interests in the manner before directed; and such claims, being duly proved to the satisfaction of the Commissioners to whom the same are made, may be proceeded upon as in the cases of several Exceptions, interests : Provided always, that the profits so arising shall not in any case be charged separately to the duty in respect of the occupa- tion of lands, where lands shall be let or underlet, without relin- quishing the possession by the lessor, or where the lessee or tenant COLLECTION. 85 shall not be exclusively in the possession and occupation of the land so let. As to joint incomes of husband and wife, see Married Women, post, p. 291. 169. Provided always, and be it enacted, that every such claim 5 & 6 Viet. for exemption shall be made to the Commissioners of the district 1' . '' !" ^ where the claimant shall reside, whether such claimant shall be made where personally charged in such district or not, except where the whole resides* to income of the claimant shall arise from an office or employment of the case of profit the duties whereon are cognizable before the Commissioners s ions, and of a department of office, or from a pension or stipend, in all which cases the claim may be made to and allowed by the Commissioners Commis- of such department wherein the said duties are cognizable under department. 6 the regulations of this Act ; and if such claimant shall be out of Persons out of the United Kingdom, an affidavit, stating the several matters required by this Act, taken before any person having authority to affidavit. administer an oath in the place where such claimant shall reside in any matter relating to any part of the public revenue of the United Kingdom, may be received by the respective Commissioners for executing this Act in relation to the assessment on which such claim shall be founded. 170. And be it enacted, that any such claim for exemption 5 & 6 Viet. may be made by any guardian, trustee, attorney, agent, or factor, cia^ may ' on account of others, in any case where satisfactory proof shall be be made by made that the party claiming such exemption is unable to attend trustees on in person, or such claim may be made by the several persons acting in any of the characters hereinbefore described, in such manner as they may act for others, for the purpose of being assessed on their account in the first instance as hereinbefore directed. By an Act for granting to her Majesty duties on profits arising from pro- 23 Viet. c. 14, perty, professions, trades, and offices 10. No claim for repayment of duty under this Act, or any former Act relating to the income tax, shall be allowed, unless it shall be made within three years after the end of the year of assess- ment to which the claim shall relate. 7. Collection, The Income Tax Act, 1842 5 * - 6 C. oO, 8. 172. And be it enacted, that the respective Commissioners Commis- executing this Act in relation to any of the duties hereby granted [JJ shall, within one calendar month after the first day of hearing cates of 86 PROCEDURE. assessments to collectors, with warrants to collect the same. Jervis, C. J., in 1850, Kepp v. Wiggett, 10 C. B. 51. Maule, J., S. C. 43 & 44 Viet, c. 19, s. 82. Duties, when due. Duties assessed after 1st of January. 43 & 44 Viet. c. 19, s. 83. Clerk to appeals, all appeals then made being first determined, issue out and deliver to the respective collectors duplicates of the assessments of the aforesaid duties charged at the respective rates mentioned in the respective Schedules of this Act, together with their warrants, as directed by the Taxes Management Act, 1880, for the speedy and effectual levying and collecting of the said duties assessed under this Act, as the same shall become payable, distinguishing the amount charged under each of the said schedules: Provided always, that all such duties as shall be assessed or charged under any of the provisions of this Act, if not paid, levied, or collected according to the directions herein mentioned, shall be recoverable as a debt to the Queen's Majesty, with full costs of suit, and all charges and expenses attending the same ; and when so recovered the said duties shall be paid to the proper officer for receipt, in aid of the parish or place answerable for the same. ' ' The assessments and warrant cannot be given out for collection, until the appeals are disposed of." Jervis, C. J., in Kepp v. Wiggett. " The Act does not, I think, intend that there shall be any collection, until the time for appealing has expired : it would probably be inconvenient if it were given before." Maule, J., 8. C. Part of this section is re-enacted in the Taxes Management Act, 1880, section 83, infra. The Taxes Management Act, 1880 Time for Payment. 82. (1.) In England the land tax and the duties, except only such duties of income tax as are payable by way of deduction, or are assessable in respect of railways, and in Ireland the income tax (with the like exceptions as in England) in every assessment for every year shall be payable on or before the first day of January in such year. (2.) In Scotland the land tax and duties, except only such duties of income tax as are payable by way of deduction, in every assess- ment for every year shall be payable on or before the first day of January in such year. (3.) The land tax and duties included in any assessment what- ever for any year, signed and allowed as by this Act directed on or after the first day of January in any such year, shall be deemed to be due and payable on the day next after the day on which such assessment may be signed and allowed by the Land Tax Commis- sioners or General Commissioners respectively. Colkctors 1 Duplicates. 83. (1.) When and so soon as any assessments of the land tax and duties or any of them, shall have been signed and allowed by COLLECTION. 87 the Land Tax Commissioners and General Commissioners respec- prepare tively, and the time for hearing appeals against such assessments ^P 110 ** 68 - shall have expired, the said respective Commissioners shall forth- with sign and seal respectively one duplicate of every land tax assessment and two duplicates of every assessment of the duties, which duplicate shall be duly prepared by the clerk to the said respective Commissioners on the prescribed forms. (2.) The respective Commissioners shall deliver the duplicate of Delivery to the land tax assessment, and one of the said duplicates of the surveyors.*" 1 assessment of the duties, together with warrants for collecting the same in the prescribed form to the collector of the parish for which the assessments are made, and the other of the said duplicates of the assessment of the duties they shall deliver to the surveyor for the district. The assessments shall be kept by the clerk for the use of the said Commissioners respectively. (3.) A collector who has been required to give security under this Act, shall not have delivered to him his duplicates and warrants until he has given such security. See note to the Income Tax Act, 1842, sect. 172, supra. Additional First Assessments. 84. (1.) Any assessments not made, or against which any 43 & 44 Viet, appeal shall be depending, when the first assessments are signed ' ' s ' ' and allowed, shall, on the making or determining of the same, determined to from time to time be added to such first assessments, and to the firsttssess- respective duplicates thereof, by being included in a separate form ments. of assessment and duplicate, and the duties therein which ought to have been previously collected and paid shall be collected, levied, and paid by the collector. (2.) Any person having in his custody or possession any such duplicate, and refusing to deliver over the same to the collector appointed in conformity with this Act, on demand made by him for the same, shall incur a penalty of one hundred pounds. Demand. 85. (1.) Every collector shall, when the land tax and the duties 43 & 44 Viet. become due and payable, make demand of the several sums con- ' 19> s> 85- Tjm in i '-' " ec tors tained in the duplicates given him by the Land I ax and (reneral to demand Commissioners in charge to collect from the persons charged there- duties ; with, or at the places of their last abode, or on the premises charged with the assessment or duties, as the case may require. (2.) The collectors of house duty and income tax under Schedules 88 PROCEDUEE. to give receipts. (A.) and (B.) shall, in the demand note delivered previous to pay- ment, distinctly describe the property and specify the amount of the assessment and the rate at which the duty or tax is charged upon such assessment. (3.) On payment of the land tax and the duties the collector shall give acquittances under his hand on the prescribed form (without charge for such acquittances) unto the persons who pay the same. 44 & 45 Viet, c. 12, s. 23. Particulars to be stated in collectors' receipts. 5 & 6 Viet. c. 35, s. 185. Recovery of penalties and duties. 43 & 44 Viet, c. 19, s. 86. Collectors, on payment of duty being refused, to distrain. The Customs and Inland Eevenue Act, 1881 23. Where any collector of the duties on inhabited houses and of income tax under Schedules (A.) and (B.) has not, in a demand note delivered previous to payment, distinctly described the pro- perty assessed, and specified the amount of the assessment, and the rate at which the duties are charged, the description of the property, the amount of the assessment, and the rate of charge shall be specified in the receipt. Recovery. The Income Tax Act, 1842 185. And be it enacted, that all pecuniary penalties imposed by this Act shall and may be sued for, recovered, and applied in such manner and form as is directed in the Taxes Management Act, 1880, the regulations whereof are hereby made applicable to the duties granted and the penalties imposed by this Act ; and that in any action, suit, or proceeding, by or on the behalf of her Majesty, for the recovery of any such duties or penalties respectively granted or imposed by this Act, such duties and penalties respectively shall be recoverable with full costs of suit, and all charges and expenses attending the same : Provided always, that wherever by this Act any increased rate of duty is imposed 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 assessment may be collected and levied. The Taxes Management Act, 1880 86. (1.) If a person refuses to pay the sum charged upon him by virtue of the Land Tax Acts, the Tax Acts, or this Act, on demand made by the collector, according to the assessments and warrants to him delivered by the Land Tax and General Commis- sioners, such collector may, and he is thereunto authorized and required, for nonpayment thereof, to distrain upon the messuages, COLLECTION. 8 lands, tenements, and premises charged with such sum of money, or to distrain the person so charged by his goods and chattels, and all such other goods and chattels as the collector is herehy autho- rized to distrain, without any further authority from the said respective Commissioners for that purpose than the warrant to such collector delivered on his appointment. (2.) For the purpose of so levying a distress, a collector may, May, under upon warrant under the hands and seals of the said respective trw Commissioners, obtained for that purpose, break open in the day- houses, time any house or premises, calling to his assistance any constable or other peace officer for the parish, group, or division where any refusal, neglect, or resistance shall be made. And it shall be the duty of all constables or other peace officers, when so required, to aid and assist the collector in the execution of such warrant and in levying the distress in the house or premises. (3.) A levy or warrant to break open shall be executed by or Levy. under the direction and in the presence of the collector. (4.) Every distress levied by a collector shall be kept for the space of five days at the costs and charges of the person so refusing to pay. (5.) If the said person does not pay the respective sums of money so due within the said five days, then the said distress shall be appraised by two or more of the inhabitants where the said distress is taken, or other sufficient persons, and there be sold by public auction by the said collector or his deputy, for payment of the said money ; the overplus coming by the said distress (if any there be), after deducting the said money and also the costs and charges of taking, keeping, and selling the said distress, which costs and charges the said officer is hereby authorized to retain, shall be restored to the owner thereof. (6.) The provisions in regard to warrants of distress contained Powers of in an Act passed in the thirty-third year of his late Majesty King c 55^7 George the third, intituled " An Act to authorize justices to * weA in . recovery of impose fines upon constables, overseers, and other peace and parish arrears! officers for neglect of duty, master of apprentices for ill usage of such their apprentices, and also to make provision for the execu- tion of warrants of distress granted by magistrates," shall apply to levies and distraints made by collectors for recovery of the duties or land tax. The right to distrain is not taken away by the Companies Act, 1862, because 1878, Be the Crown is not specially mentioned ; and so where a company is being Henley (M* wound up under the provisions of the Companies Act, 1862, the Crown has a L - 9 o> right to payment in full of a debt due from the company for income tax 469 - before the commencement of the winding-up, in priority to the other creditors. Me Henley & Co. 90 PROCEDUEE. 43 & 44 Viet, c. 19, s. 87. Collectors advancing duties may levy the sum paid. 43 & 44 Viet. c. 19, s. 88. No goods to be taken, except at the suit of land- lord, for rent, unless party pay arrears. 43 & 44 Viet, c. 19, s. 89. Commis- sioners may commit defaulter. 87. If a collector advances and pays over to the collector of inland revenue any sum of money for or on account of the land tax or the duties assessed on any other person, whether at his request or not, such collector may, in default of repayment to him at any time within the space of six months after such payment, levy the land tax or the duties by the like ways and methods as such collector might have levied the same before such payment thereof to such collector of inland revenue, and as if the same had not been paid or satisfied. 88. (1.) No goods or chattels whatever belonging to any person at the time any of the duties or the land tax became in arrear shall be liable to be taken by virtue of any execution or other process, warrant, or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the land- lord for rent, unless the party at whose suit the said execution or seizure shall be sued or made, or to whom such -assignment shall be made, shall, before the sale or removal of such goods or chattels pay or cause to be paid to the collector all arrears of the said duties or land tax which shall be due at the time of seizing such goods or chattels, or which shall be payable for the year in which such seizure shall be made, provided such duties and land tax shall not be claimed for more than one year. (2.) In case the duties and land tax shall be claimed for more than one year, then the said party at whose instance such seizure shall have been made, paying the said collector the aforesaid duties and land tax due for one whole year, may proceed in his seizure as he might have done if no duties and land tax had been so claimed ; but in case of refusal to pay the said duties and land tax the said collector is hereby authorized and required to distrain such goods and chattels, notwithstanding such seizure or assignment, and to proceed to the sale thereof according to this Act, in order to obtain payment of the whole of the said duties and land tax so assessed, together with the reasonable costs and charges attending such distress and sale ; and every such collector so doing shall be indemnified by virtue of this Act. 89. If any person shall refuse or neglect to pay any sum charged upon him by virtue of the Tax Acts or this Act within ten clear days after demand as aforesaid, and no sufficient distress can or may be found whereby the same may be levied, the Greneral Com- missioners may by warrant under their hands and seals commit such person to prison, there to be kept without bail until payment shall be made of that sum or security given for payment thereof, together with such further sum as the said Commissioners shall COLLECTION. 91 adjudge to be reasonable for the costs and expenses of apprehend- ing and conveying to prison such person ; and every such person shall be detained and kept in prison according to the tenor and effect of such warrant. Certificates of Removal. 90. (1.) Whenever duties are charged upon and unpaid by a 43 & 44 Viet. person who shall have removed from the parish in which the assess- /j ' ?' ment to such duties is made, the General Commissioners for such sioners to parish shall sign and transmit by the intervention of the Board a certificate thereof to the General Commissioners acting within the removal - parish where the person making such default of payment shall have removed to or happen, to reside in or be, which last Commissioners shall raise and levy the said duties charged upon the person removed as aforesaid, and cause them to be paid over to the col- lector of inland revenue ; and where any such person shall have removed to another parish within the jurisdiction of the Commis- sioners by whom the assessment was made they may, by certificate, direct and authorize the collector for such last-mentioned parish to raise and levy the duties charged upon and unpaid by such person. (2.) Whenever any person charged with the duties in any part of Great Britain or Ireland removes to any other part of Great Britain or Ireland without paying and discharging the duties charged upon him, the General Commissioners, or Special Commissioners acting as General Commissioners for the parish in which the assessment of such duties in default was made, shall sign and transmit by the intervention of the Board a certificate thereof to the Commis- sioners acting for the parish in the other part of Great Britain or Ireland to which such person making such default of payment shall have removed or happen to reside at, which last-named Com- missioners shall raise and levy the said duties charged upon the person removed as aforesaid, and cause the moneys so raised and levied to be paid over to the Exchequer. (3.) Where no sufficient distress can be found within the dis- trict of the said Commissioners for the parish to which any such defaulter may have removed, they are hereby authorized and required, by warrant under their hands and seals, to commit the person so making default of payment to prison, there to be kept without bail until payment shall be made of the said duties, or security be given for payment thereof, and of all reasonable costs and expenses, including costs for apprehending such person and conveying him to prison. 92 PROCEDURE. 47 & 48 Viet. c. 62, s. 7. 43 & 44 Viet, c. 19, s. 91. Release of prisoners. The Eevenue Act, 1884 7. The Taxes Management Act, 1880, shall be amended as follows : (1.) The word " parish " in section ninety means in Scotland county or burgh, and with respect to the duties contained in the certificate mentioned in such section, the same shall in Scotland be recovered under the provisions contained in section ninety-seven. Prisoners. The Taxes Management Act, 1880 91. By the direction of the Treasury or Board the General Commissioners shall issue their warrant to the gaoler or keeper of the prison in which any such person may be detained under their warrant as aforesaid for the liberation of such prisoner, and upon the receipt of such first-mentioned warrant such gaoler or keeper shall forthwith release and discharge out of custody such prisoner if for no other cause than as set forth in the warrant of commitment he shall be detained. Parents and Executors. The Income Tax Act, 1842 173. And be it enacted, that where any person chargeable with the duties hereby made payable as aforesaid shall be under the age of twenty-one years, or where any person so chargeable shall die, in every such case the parents, guardians, or tutors of such infant, upon default of payment by him, and the executors and administrators of the persons so dying, shall be and are hereby made liable to and charged with the payments which the said infant ought to have made, or the person so dying was chargeable with ; and if such parents, guardians, or tutors, or such executors or administrators, shall neglect or refuse to pay as aforesaid, it shall be lawful to proceed against them in like manner as against any other person making default of payment of the said duties ; and all parents, guardians, or tutors making payment as aforesaid shall be allowed every sum paid for such infants in their accounts, and all executors and administrators shall be allowed to deduct all such payments out of the assets of the person so dying. This section is re-enacted in the Taxes Management Act, 1880, s. 92, infra. 43 & 44 Viet. The Taxes Management Act, 1880 c. 19 s. 92. I iabilit f ^' Where a person chargeable with the duties is under the age parents, of twenty-one years, or where a person so chargeable shall die, in fndexecutors. 8ucn case * ne parents and guardians of such infant on default of 5 & 6 Viet, c. 35, s. 173. Parents and guardians liable for infants, and executors for persons dying. COLLECTION. 98 payment by such infant, and the executors and administrators of the person so dying, shall be liable to and charged with the payments which the said infant ought to have made and the person so dying was chargeable with ; and if such parents or guardians, or such executors or administrators, neglect or refuse to pay as aforesaid, it shall be lawful to proceed against them in like manner as against any other person making default of payment of the duties ; and all parents and guardians making payment as afore- said shall be allowed all sums paid for such infants in their accounts ; and all executors and administrators shall be allowed to deduct all such payments out of the assets and effects of the person so dying. See also pp. 288 and 292. Number or Letter Assessments. 93. "Whenever the duties on any assessment made under a 43 & 44 Viet, number or letter in pursuance of the provisions of the Income Tax c ; 19 ' B- 93 ; . . Assessments Act, 1842 (a), become due and in arrear, the General Commissioners under number shall cause the said assessments to be added to the duplicates in ^^a* the hands of the respective collectors to whom the collection of the duties assessed on persons by names shall have been intrusted to be collected by the same ways and methods and under the like powers and provisions as such last-mentioned duties are directed to be collected. (a) See section 137, post, p. 267. Special Assessments. 94. An extract from any assessment made by the Special Com- 43 & 44 Viet, missioners, certified under the hand of their clerk, in such form as 1 ' 8 '. . ' 3 _ . Notification the Board may prescribe, shall be a sufficient authority to the of special proper collector of inland revenue to whom such extract may be to^flec^ore transmitted to receive, bring to account, and give discharges for the of inland * r6V6nu6. duties of income tax included in such extract, and paid to him. Savings. 95. Eailway companies in England and Ireland shall pay 43 & 44 Viet, the duties of income tax, under Schedule D., by four quarterly 19 ' 8> 9o ; . T , , Saving as to payments ; namely, on or before the twentieth day 01 June for the English and first quarterly instalment, and on or before the twentieth days of September, December, and March in each year for the second, third, and fourth quarterly instalments respectively. Recovery in Ireland. 96. In the application of this Part to the collection, levy, and 43 & 44 Viet, recovery of the duties assessed under Schedules (A.) and (B.) of the g avin ^ ag ' Income Tax Acts in Ireland, nothing shall alter the effect of or to Ireland. 94 PROCEDURE. supersede section seventeen of the Income Tax Act, 1853 ; and any power which in England would be exercised in the recovery of the duties by a collector for a parish or group may, in Ireland, be exercised by a collector for an union or other collecting district. 43 & 44 Viet, c. 19, s. 97. Recovery of duty refused in Scotland. Recovery in Scotland. 97. In Scotland the following provisions shall have effect : (I.) Upon certificate made to them by the collector for the division, district, or county, that any of the duties or land tax are due and not paid, the General Commissioners or Land Tax Com- missioners respectively or sheriff depute or substitute for the county shall issue a warrant for the said collector recovering the said duties or the land tax by poinding or distraining the goods and effects of any person entered in such his certificate as being a defaulter. (2.) Such warrant shall be executed by the constables or sheriff's officers of the county. (3.) The goods and effects so poinded or distrained shall be detained and kept on the ground or at the house where the same were poinded or distrained, or in such other place, of which the owner shall have notice, near to the said ground or house, as the officer or constable so poinding and distraining the same shall think proper, for the space of five days, during which time the said goods and effects shall remain in the custody of the said officer or con- stable liable to the payment of the whole duty in arrear, and to the costs to be paid to the officer or constable who poinded the same, as hereinafter directed, unless the owner from whom the same were poinded and distrained shall redeem the same within the said space of five days by payment of the said duties and land tax in arrear and costs to the officer or constable, to be settled in the same manner as if the said goods and effects had been sold as herein- after directed. (4.) The goods and effects so poinded or distrained shall, after the expiration of the said five days, be valued and appraised by any two persons to be appointed by the officer or constable (which two persons shall be obliged to value the same, under the penalty of forty shillings sterling for each neglect or refusal), and shall be sold and disposed of, at a sum not less than the value, by the officer or constable who does poind the same. (5.) The value shall be applied in the first place to the satisfac- tion and payment of the duties or land tax owing by the person whose goods are so poinded, and in the second place to the payment for the trouble of the officer or constable so poinding, at the rate of COLLECTION. 95 two shillings per pound of the duties for which the goods shall be so poinded and distrained unless the owner from whom the same were poinded or distrained shall redeem the same by payment of the appraised value, within the space of five days after the valua- tion, to the officer who poinded the same. (6.) In case any surplus remains of the price or value after payment of the said duties, and after payment of what is allowed to be retained by the officer or constable in manner herein directed, such surplus shall be returned to the owner from whom the goods were poinded or distrained. (7.) In case no purchaser appears at the said sale, then the said goods and effects so poinded and distrained shall be consigned and lodged in the hands of the sheriff depute of the county, or his sub- stitute, and if not redeemed by the owner within the space of five days after the consignment in the Jiands of the said sheriff depute or substitute, the same shall be rouped, sold, and disposed of, by order of the sheriff, in such manner and at such time and place' as he shall appoint, he always being liable to the payment of the duties to the said collector, and to payment to the officer or constable who shall have poinded and distrained the same, for their trouble and expense as before stated, and to the fees due to the officer or constable, and shall be in the third place entitled to one shilling per pound of the value of the goods so disposed of, for his own pains and trouble, after preference and allowance of the said duties, and of what is appointed to be paid to the officer or con- stable for their trouble. (8.) There also shall be allowed to the officer or constable so poinding and distraining the expense of preserving the said goods and effects, and of maintaining the cattle, if there should happen to be any among the goods and effects so poinded and distrained, from the time of poinding and distraining the same, during the period allowed to the owner to redeem them, and also the expense of the sale ; and in like manner the expense shall be allowed to the sheriff for preserving and maintaining the goods or cattle poinded and distrained, during the period that the owner is allowed to redeem after consignment in his hands, and until the sale thereof, and also the expense of the sale ; and where no goods or effects sufficient for payment of the said duties can be found to be so poinded and distrained, and the person liable neglects or refuses to pay the same, in every such case the Commissioners, or the sheriff depute or substitute, is hereby authorized, by warrant, to commit such person to prison, there to be kept without bail until payment shall be made or security for payment be given. (9.) Every auctioneer, or seller by commission, selling by auction 96 PROCEDURE. in Scotland any goods or effects whatsoever by any mode of sale at auction, shall, at least three days before he begins any sale by way of auction, deliver or cause to be delivered to the collector of the said duties respectively within whose district such sale is intended to be, a notice in writing, signed by such auctioneer or seller by auction, specifying therein the particular day when such sale is to begin, and the name and surname of the person, with his place of residence, whose goods and effects are to be sold. (10.) If any such auctioneer or seller by auction shall sell any such goods and effects by way of auction, without delivering the notice hereinbefore required to be delivered, every such auctioneer, or person selling by auction, offending therein shall for such offence incur a penalty of fifty pounds. 47 & 48 Viet, c. 62, s. 7 (2). The Eevenue Act, 1884 7. (2.) No moveable goods and effects belonging to any person in Scotland at the time any of the duties or land tax became in arrear or were payable shall be liable to be taken by virtue of any poinding, sequestration, or diligence whatever, or by any assignation, unless the person proceeding to take the said goods and effects shall pay the duties or land tax so in arrear or payable, provided such duties or land tax shall not be claimed for more than one year ; and in case the duties or land tax shall be claimed for more than one year, then the party proceeding to take the said goods and effects after paying the duties and land tax for one whole year may proceed as he might have done if no duties and land tax had been so claimed. But if the said party refuses to pay the duties and land tax for one year, the duties and land tax so claimed shall be recovered by poinding, distraining, and selling the said moveable goods and effects notwithstanding under warrant obtained in con- formity with the provisions contained in section ninety- seven. 43 & 44 Viet. c. 19, s. 98. In Scotland or Ireland payment may be made in stamps. The Taxes Management Act, 1880 Payment in Postage Stamps. 98. The Treasury may authorize collectors to receive and may make regulations for the receipt of postage stamps for payment of land tax and the duties, or any of them, payable in Scotland or Ireland ; such postage stamps shall be delivered over to the Post- master General or his officers, and the amount or value thereof paid out of the revenue of the post office to the inland revenue, and accounted for as moneys arising from the said land tax and duties. RECEIPT AND ACCOUNT. 97 Payment by Post Office Orders. 99. (1.) A person liable to the payment of land tax or the 43 & 44 Viet, duties in Scotland having received the accustomed notice thereof, T ^ ' !i 9 ' . , 'In Scotland may, within twenty-one days after receiving such notice, produce taxes may be the same at any money order office of the General Post Office in Scotland, and pay to the postmaster there the sum payable according to such notice, and thereupon the said postmaster shall deliver to him a post office order payable at the General Post Office in London to the Receiver General of Inland Eevenue for the said sum, less the commission for such order, which order such person shall forthwith transmit to the collector at the office for receipt in a prepaid letter, specifying the particulars of the payment in such form as shall be prescribed and provided by the Board for that purpose. (2.) Upon the receipt of the said order and letter, with the par- ticulars and the form aforesaid, the collector shall credit the person named in the said letter with the amount specified in the said order, and with the said commission, in like manner as if the same had been paid to the collector in cash. (3.) The provisions of this section shall, if the Treasury direct, be made applicable to and have operation in any parish in England in and for which the collector is appointed by the Board. 8, Receipt and Account. The Taxes Management Act, 1880 43 & 44 Viet. c. 19, s. 100. Receipts. 100. (1.) The Board may appoint in each year days of receipt Appointment for each county, division, parish, or group, and may adjourn such receipts from time to time. (2.) At such receipt so appointed every collector for each county, division, parish, or group shall account for the full amount of duties, land tax, and moneys given him in charge to collect. (3.) The Board may require a collector to remit weekly or oftener to the Exchequer in anticipation of the receipt the amount of his collection, and may prescribe regulations as regards remittances and the mode thereof, which all collectors shall obey. 101. The collector shall pay over or account for the land tax, 43 & 44 Viet. duties, and moneys given him in charge to collect to the collector c ' jj^^g to ' of inland revenue or the proper officer for receipt on the day to be account after appointed for the receipt of the land tax and the duties next after j a n U a ry i a the first day of January in every year. ever y y^- R. H PROCEDURE. 43 & 44 Viet, c. 19, s. 102. Unlawful receipt of public moneys. 43 & 44 Viet. c. 19, s. 103. Proceedings at receipts. 43 & 44 Viet. c. 19, s. 104. Collectors of inland revenue may administer oath and put questions. 102. If a person not duly appointed for that purpose or autho- rized by the Board in that behalf knowingly or wilfully takes or receives from a collector any sum of money arising from the duties or the land tax collected or received by such collector, the person so taking or receiving such sum of money shall forfeit double the amount of the sum so taken or received, such forfeiture to be re- covered in the High Court. 103. On the appointed day of receipt, every collector for the division, district, group, or parish for which such receipt is held shall attend such receipt, and (a) Pay over to the collector of inland revenue or otherwise, as and if so required to do by the Board, all moneys received by him, and then in his hands and unaccounted for as collector, for which payments such collector shall receive receipts or discharges : (b) Deliver then, or to the Land Tax Commissioners and General Commissioners of the division respectively within three days afterwards, schedules of arrears in the prescribed form, with affidavits subscribed to be made on his oath or affirmation, and by him signed, setting forth the Christian and surname of each defaulter in his parish or group from whom he has demanded hut has not then received payment of the land tax, duties, or moneys given him in charge to collect, and the respective sums then in arrear from each such defaulter : (c) Bring with him and produce to the collector of inland revenue or surveyor, whenever by either of them required, his duplicate of assessment, showing the respective sums by him collected and received duly written off in the said duplicates : (d) Answer any lawful question demanded of him by the col- lector of inland revenue or surveyor touching the duties, moneys, or taxes given him in charge to collect. 104. At the times appointed for the delivery of schedules of arrears every collector of inland revenue may (a) Administer an oath to every collector (or being a person by law allowed to declare or affirm instead of swearing, a solemn affirmation) that he has fully paid all the sums by him collected or received of or for the land tax or the duties, and has fully accounted for all sums not collected or received in the schedule then delivered, and every collector shall true answer make to all such questions as shall be demanded of him : RECEIPT AND ACCOUNT. 99 (b) Examine each collector on any matter touching the sums collected and the sums in arrear, and the substance of the answer or answers which any collector shall give on such examination shall in his presence be reduced into writing, and read to him, with liberty to alter and amend the same in any particular ; and every such collector shall write or sign his assent to the same in his own handwriting or sign, and in his usual manner of writing or signing the same. Schedules of Arrears, 105. (1.) Every schedule of arrears shall remain with the 43 & 44 Viet. General Commissioners for forty days, during which period the x^e schedul collector shall give notice of such schedule to the defaulters named of arrears to therein in such manner as the Commissioners direct. process" 10 (2.) A defaulter within the like period may pay his arrears to the collector, and the Commissioners shall discharge the arrears so paid from the schedule. (3.) The Commissioners may issue fresh warrants to collect any of the arrears within the said forty days, and during that period use any lawful methods for the recovery of the said arrears, or direct the arrears to be levied by the collector under his former warrant. (4.) Such fresh warrants may be directed to the collector or to any other person whom the Commissioners shall think proper, with authority to levy by distress and sale in the manner directed by the Tax Acts or this Act the sums in arrear, together with all costs and expenses attending the said process and the execution thereof ; and the sums so levied, after deducting the said costs and expenses, shall be paid to the collector of inland revenue, or other- wise as the Board may appoint, and shall be discharged from the schedule. (5.) The person to whom such warrant is directed shall in the execution thereof act in obedience to the directions of the Commis- sioners. (6.) On the expiration of the period of forty days a schedule of arrears may be certified to the High Court by and under the hands of the collector of inland revenue or of the General Com- missioners. 106. The schedules of arrears when so certified shall be trans- 43 & 44 Viet, mitted to the Board, who may before forwarding the same to the ^^ may ' High Court direct the collector to use any method allowed by law retain . ., . . , , -, schedules. lor the recovery of any arrear therein included. 100 PROCEDURE. 43 & 44 Viet. c. 19, s. 107. Failure to deliver such schedule. Levy of issues. 43 & 44 Viet, c. 19, s. 108. Collectors to make a return upon oath of persons from whom the duties cannot be collected. Schedules of discharge. 107. (1.) In default of the schedules of arrears being delivered by a collector at the receipt, or within the space of three days after- wards as aforesaid, the collector of inland revenue to whom the payments of the said duties shall not have been made at the times appointed for the receipt, may certify to the High Court the amount of the duties remaining unpaid to the best of his know- ledge and belief, and the particular parish and the division where such failure has happened, together with the name of the collector of the said parish. (2.) Such certificate of a default of a collector for non-delivery of a schedule of arrears shall be a sufficient authority to a judge of the High Court to cause immediate process to be issued out of the office of the Queen's Remembrancer against the collector. (3.) Upon which writ the sheriff or other officer to whom the said process shall be directed shall levy issues after the rate of one shilling for every twenty shillings of the sums so unpaid or unaccounted for by the said certificate, and shall pay the moneys so levied, after deducting the costs, charges and expenses to be settled and allowed by the Board, to the proper officer of inland revenue; and the said sheriff shall make immediate return of the said process to the High Court according to the due course thereof. (4.) The Board, after payment of the duties in arrear so certified, may cause such issues to be remitted in whole or in part, after de- ducting thereout the costs and charges attending such process and levy, to be settled and allowed by them. Schedules of Deficiencies. 108. (1.) Every collector shall make a due return, fairly written on the prescribed form under his hand, to the General Commis- sioners, containing (a) The names, surnames, and places of abode of every person within his collection from whom he has not been able to collect or receive the duties for any of the causes men- tioned in the section next following ; (b) The particular reason for returning each defaulter ; and (c) The particulars of the sum or sums charged upon every such person in default. (2.) The Commissioners, after the examination of every collector on oath or affirmation, shall (i.) Ascertain the sums which, according to the Tax Acts, have been or may be discharged from any assessment for a cause specially allowed by such Acts, and make out their schedules of discharges containing such sums : RECEIPT AND ACCOUNT. 101 (ii.) Make out their schedules of defaulters containing Schedules of (a) The sums with which each defaulter ought to be e ault ' charged, and the particulars thereof ; and (b) The sums which have not been collected by occasion of the collector's neglect, and for which he shall be held liable, and which ought to be re-assessed on the parish. (3.) The said Commissioners shall cause the said several particulars to be inserted by their clerk in schedules of discharge and default on the forms prescribed, and shall affix their hands and seals to such schedules. (4.) The said Commissioners shall transmit their said schedules to the Board, which schedules shall be deposited at the head office of the Board. 109. No collector shall insert in any schedule of deficiencies 43 & 44 Viet. . c 19 s 109 the name of a person to be returned into the High Court as not having paid the duties, unless such collector shall make oath, or returned in make and subscribe a solemn affirmation (which said oath or affirma- tion shall be indorsed and certified on the said schedule), to the effect following ; namely, (a) That the sum for which such person is so returned in default is due and wholly unpaid either to such collector or to any other person for such collector, to the best of his knowledge and belief : (b) That such person became bankrupt before the day on which the duties became payable, and had not goods and chattels sufficient whereon to levy such duties within the parish or limits for which such collector has been appointed at any time since such duties became payable; or (c) That such person removed from the parish or limits for which such collector has been appointed before the day on which such duties became payable without leaving therein sufficient goods and chattels whereon such duties then payable could be levied ; and (d) That there were not nor are any goods and chattels of any person liable to the payment of such duties in arrear or any part thereof whereby the same or any part thereof might be levied. Re-delivery of Books by Collectors. 110. Every collector shall, on clearing his accounts for any of 43 &: 44 Viet the duties or the land tax, deliver to the Board or Commissioners Book's to be" 102 PROCEDURE. delivered up by collector. by whom he was appointed all duplicates of the assessment for the year and tax to which such accounts relate, together with the books of receipts and counterfoils furnished for his use. 43 & 44 Viet. ' Proceedings for Arrears. 111. (1.) Any duties contained, charged, or assessed in or by assessmen ^ thereof made under the Tax Acts or this Act, may be sued for in be sued for and recovered, with full costs of suit, and all charges ' attending the same, from the person charged therewith in the High Court as a debt due to the Crown, or by any other ways or means whereby any debt of record, or otherwise due to the Crown, can or may at any time be sued or prosecuted for or recovered, as well as by the summary means specially provided by this Act, or the Tax Acts, for levying the said duties. (2.) A schedule of arrears delivered on oath or affirmation by a collector and certified to the High Court as prescribed, and a schedule of defaulters made or purporting to be made in pursuance of this Act, and certified under the hands of the Board to the High Court, shall be 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 such defaulter. (3.) The production of a schedule of arrears or defaulters made or purporting to be made in pursuance of this Act, and purporting to contain the name of a defaulter, shall be sufficient evidence of the sum mentioned in such schedule having been duly charged and assessed upon such defaulter, and of the same being due and owing, and in arrear and unpaid to the Crown. 43 & 44 Viet. c. 19, s. 112. Parish to be set in super for duties unaccounted for, and re- turn made to High Court. Insupers. 112. (1.) In case there is a failure (a) To assess or charge the duties or land tax in any parish : (b) To return the duplicates of the assessments of the duties or land tax made for any parish : (c) To raise or pay the several sums charged upon any person for the duties or land tax in any parish : the Board may at any time after such failure set insuper all sums so appearing in arrear, and may return such failure to the High Court by certificate thereof delivered to the Queen's Remembrancer. (2.) Such return shall specify (i.) The parish and division and county where such failure has happened ; EECEIPT AND ACCOUNT. 103 (ii.) The cause of such failure, so far as the same be known to the Board ; (iii.) The names of any two or more of the Land Tax Commis- sioners and General Commissioners for the division in which such failure has happened ; (iv.) The names of the assessors and collectors and the several persons belonging to such parish charged with the duties, and who shall have made failure in the payment thereof in case an assessment shall have been made. (3.) Such Commissioners, assessors, and collectors, and any person charged with the duties or the land tax shall be respectively liable to process for such failure according to the exigency of the case. (4.) Every parish so returned insuper for a sum not accounted for to the collector of inland revenue and contained in the duplicate of assessment to him delivered shall be liable to be re-assessed in respect of such sums so returned insuper, excepting in such cases as parishes are by special enactment relieved from liability to re-assessment. (5.) The Queen's Eemembrancer shall cause such certificate to be enrolled in his office. Such enrolment shall be a record in his office as valid and effectual to authorize the issuing of process against the county, division, parish, and person. (6.) Such process shall be forthwith, and from time to time as there shall be occasion, issued out of the High Court on the applica- tion of the Board, against such of the said Commissioners, officers, or persons who shall have made such failure. Recovery of Re-assessments. 113. The authorities, powers, and provisions contained in this 43 & 44 Viet. Act, or in the Tax Acts, or in the Land Tax Acts relating to the ^^ *^ recovery of the duties and land tax, either under the warrant of the duties re- respective Land Tax Commissioners and General Commissioners J^ecovereY directed to the collectors in their respective districts, or by process as duties are recovered. from the High Court, shall be applied, enforced, and put in execu- tion for the levying and enforcing the payment of any sum assessed or re-assessed by the said Commissioners for duties or costs, either under the authority of this Act, or of any other of the said Acts. Receipts exempted from Stamp Duty. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 179. 179. And be it enacted, that no receipt, certificate of payment, Receipts and affidavit, appraisement, or valuation, made or given in pursuance ^ g d e - and for the purposes of this Act, shall be liable to any stamp duty, empted from * * stamp duty. 104 PEOCEDUEE. 43 & 44 Viet, c. 19, s. 15. Forms in second sche- dule. The forms used to be those pre- scribed by the Board. Books of receipts. Material of schedules, duplicates, &c. Proceedings not void for want of form or mistake. 43 & 44 Viet. c. 19, s. 16. Delivery of forms. Service of notices. 9. Forms, The Taxes Management Act, 1880 15. (1.) The forms in the Second Schedule to this Act, or forms to the like effect, varied as circumstances require, may he used, and shall be sufficient in law. (2.) Every assessment, duplicate, charge, bond, warrant, notice of assessment or of demand, or other document required to be used in the assessing, charging, levying, and collecting of the duties and the land tax shall be made out, drawn, and prepared according to the several forms as prescribed and supplied or approved by the Board from time to time, and shall be valid and effectual without stating the case or the facts or evidence in any more particular manner than is required in and by such forms. (3.) The Board shall provide books of printed forms of receipts with counterfoils for the use of the collectors, and may from time to time prescribe regulations for the inspection and filling up and use of such books and counterfoils, to which regulations every collector shall conform. (4.) Any schedule, duplicate, or other document required to be on parchment by any Tax Act or Land Tax Act may, if the Board so direct, be on paper or other material as may be by such order prescribed, and then shall be as valid and effectual for all purposes as if it had been on parchment. (5.) No assessment, charge, warrant, or other proceeding which shall be made or shall purport to be made by virtue or in pursuance or in execution of this Act, or the Tax Acts, or Land Tax Acts, shall be quashed or deemed to be void or voidable for want of form, or be impeached or affected by reason of any mistake, defect, or omission therein, provided the person or property charged or intended to be charged or affected by any such proceeding be designated therein to common intent and understanding, and such proceeding be in substance and effect in conformity with or according to the intent and meaning of the said Acts. 16. Under this Act (a) All notices and forms may be in writing or print, or partly in writing and print : (b) All notices relating to the duties or the land tax that are required to be affixed on any place, or to be delivered to or otherwise served on any person, may be delivered by the surveyors of the districts in which such notices are required to the respective assessors for the purpose of serving or affixing the same : (c) The delivery of such last-mentioned notices by a surveyor ACTIONS AGAINST COMMISSIONERS AND OFFICERS. 105 shall be as effectual as if the same had been delivered by the General Commissioners of the division or by the Land Tax Commissioners : (d) Every assessor or collector is hereby required to observe such directions as may from time to time be given to him by the surveyor in all matters touching the time and manner of fixing or delivering or otherwise serving such last-mentioned notices, and the persons on whom the same are to be served, such directions having been previously seen and allowed by the said respective Commissioners : (e) All notices or forms required or allowed to be served on any person may be either delivered to such person or left at the usual or last known place of abode of such person : (f) A notice to a person to be given by a surveyor may be served and sent by post by a prepaid registered letter, and in proving such service or sending it shall be sufficient to prove that the letter containing the order, notice, or document was properly addressed, registered, prepaid, and posted : (g) A notice to be given by the Board may, by their order, be signed by one of their secretaries or assistant secre- / taries, and any such notice purporting to be so signed by order of the Board shall be as valid and effectual as if signed under the hands of the Board : (h) All notices to be given or delivered to or served on the Land Tax Commissioners, the General Commissioners, or the Additional Commissioners may be given or delivered to or served on their clerk, and such delivery to or service on their clerk shall be a good, valid, and effectual delivery to or service on the said respective Commissioners to all intents and purposes. 10. Actions against Commissioners and Officers. 19. No commissioner, sheriff, sheriff depute or substitute, clerk, 43 & 44 Viet, surveyor, assessor, or collector who shall act or be employed in the j^^ ^ execution of this Act, the Tax Acts, or Land Tax Acts shall be penalties, liable for or by reason of such execution to any penalty other than such as by this Act or the said Acts may be inflicted. 20. (7.) Every such action or suit which shall be brought against 43 & 44 Viet, any collector shaU be defended by the respective Land Tax Com- missioners or General Commissioners for the division or parish where such collector shall have been appointed by them or act under their warrant or directions. PROCEDURE. Costs to be (8.) The costs and charges attending the same, as also any other assessmentf action or suit to be brought by or against the said Commissioners or any collector by them appointed for anything done in pursuance of this Act or the Tax Acts, or Land Tax Acts, shall be defrayed by an assessment made in a just proportion 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 shall have arisen, or for which such collector shall have been appointed. 56 & 57 Viet. The earlier part of this section is repealed by the Public Authorities Pro- c. 61, s. 2. tection Act, 1893. Every such action refers to an action for anything done in pursuance of this Act. By the repealing Act, among other restrictions, the action must be commenced within six months. 43 & 44 Viet, c. 19, s. 21. Penalties, how recover- able. Mode of proceeding before Com- missioners. 11. Penalties. 21. (1.) All such penalties asunder this section are recoverable in the High Court shall be sued for by information in the name of the Attorney-General for England, in Scotland in the name of the Lord Advocate, and in Ireland in the name of the Attorney- General for Ireland, and may be recovered with full costs of suit. (3.) All penalties exceeding twenty pounds imposed by virtue of this Act, the Tax Acts, or Land Tax Acts, excepting such as are directed to be added to the assessments, shall be recoverable in the High Court. (4.) In default of prosecution within the space of twelve months from the time of any penalty being incurred under the provisions of this Act, or of the said Acts, no penalty or forfeiture shall afterwards be recoverable in any other manner. (5.) Subject to the above restriction as to time, all pecuniary penalties not exceeding twenty pounds imposed by virtue of this Act, or of the said Acts, and also such of the said penalties exceed- ing twenty pounds as are directed to be added to the assessment of the land tax or the duties, shall be recoverable before the Land Tax Commissioners and General Commissioners respectively, and in Scotland either before the said Commissioners or before the sheriff depute or substitute for the county, division, or parish where the offence is committed. (6.) The said respective Commissioners and sheriff depute or substitute shall 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 accused to appear before them at such time and place as they shall fix ; and they shall examine into the matter of fact, and hear and determine the same in a summary way, and on proof made thereof, either EXECUTION OF WARRANTS PERJURY AND FORGERY. 107 by voluntary confession of the party accused, or by the oath or solemn affirmation of one or more credible witness or witnesses, or otherwise as the case may require, shall give judgment for the penalty, or for such part thereof as the said Commissioners, sheriff depute or substitute, shall think proper to mitigate the same to, Power to and shall assess the penalty on the party by way of supplementary nutl S ate - assessment, which penalty so adjudged shall be levied in like manner as the duties ; and the said adjudication of the Commis- Adjudication sioners, sheriff depute or substitute, shall be final and conclusive 1- to all intents and purposes, without appeal ; and the proceedings and decree of the Commissioners, sheriff depute or substitute, shall not be removeable by any process whatever into any court of law or equity. (7.) All the moneys arising from fines, penalties, issues, and All penalties forfeitures, or shares thereof, recovered, levied, or received under in^Revenue. this Act, the Tax Acts, or the Land Tax Acts, shall be paid, by the person receiving or recovering the same, to the collector of inland revenue without delay, or within ten days after he receives from the Board an order for the payment thereof to such collector. 12, Execution of Warrants. 22. All constables and other peace officers are hereby required to 43 & 44 Viet. aid in the execution of this Act, and to obey and execute such c ona t a bies precepts and warrants as shall be to them directed in that behalf by and peace the respective Commissioners under the authority of this Act. assist. Obstruction. 23. If any person wilfully obstructs a surveyor, assessor, or col- 43 * 44 v ;j ct - ill/* _c.iyj8it5 lector in the execution of his office or duties, he shall for every such p ers0 n8 offence incur a penalty of fifty pounds. offices to g forfeit 5 Act, 1853, the following duties of income tax; (that is to say), for every twenty shillings of the annual value or amount of pro- perty, profits, and gains chargeable under Schedules (A.), (C.), (D.), or (E.) of the said Act the duty of eightpence : And for every twenty shillings of the annual value of the occu- pation of lands, tenements, hereditaments, and heritages charge- able under Schedule (B.) of the said Act In England, Scotland, and Ireland respectively, the duty of threepence. The Income Tax Act, 1853 2. For the purpose of classifying and distinguishing the several 16 & 17 Viet. c. 34, s. 2. Duties pay- able in respect properties, profits, and gains for and in respect of which the said described in duties are by this Act granted, and for the purposes of the pro- Bchedules. visions for assessing, raising, levying, and collecting such duties respectively, the said duties shall be deemed to be granted and made payable yearly for and in respect of the several properties, profits, and gains respectively described or comprised in the several Schedules contained in this Act, and marked respectively (A.), (B.), (C.), (D.), and (E.), and to be charged under such respective schedules ; (that is to say) : SCHEDULE (A.). For and in respect of the property in all lands, tenements, hereditaments, and heritages in the United Kingdom, and to be charged for every twenty shillings of the annual value thereof : GRANT OF THE DUTIES OF INCOME TAX. SCHEDULE (B.). For and in respect of the occupation of all such lands, tene- ments, hereditaments, and heritages as aforesaid, and to be charged for every twenty shillings of the annual value thereof : SCHEDULE (C.). 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, and to be charged for every twenty shillings of the annual amount thereof : SCHEDULE (D.). 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 whatever, 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 respectively carried on in the United Kingdom or elsewhere, and to be charged for every twenty shillings of the annual amount of such profits and gains : 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, and to be charged for every twenty shillings of the annual amount of such profits and gains : And for and in respect of all interest of money, annuities, and other annual profits and gains not charged by virtue of any of the other schedules contained in this Act, and to be charged for every twenty shillings of the annual amount thereof : SCHEDULE (E.). 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 annuities charged to the duties under the said Schedule (C.), and to be charged for every twenty shillings of the annual amount thereof. The Finance Act, 1894 57 & 53 Viet. 33. (2.) All such provisions contained in any Act relating to ' income tax as were in force on the fifth day of April one thousand 118 THE SCHEDULES. 16 & 17 Viet. c. 34, s. 3. Duties on fractional parts. 16 & 17 Viet, c. 34, s. 4. Duties to be under the management of the Com- missiouers of Inland Revenue. eight hundred and ninety-four, shall have full force and effect with respect to the duties of income tax herehy granted so far as the same are consistent with this Act. The Income Tax Act, 1853 3. Upon every fractional part of twenty shillings of the annual value or amount of the property, profits, and gains aforesaid, the like proportion of duty at the respective rates aforesaid shall be charged; provided that no duty shall be charged of a lower denomination than one penny. 4. The duties by this Act granted shall be under the direction and management of the Commissioners of Inland Revenue for the time being, who are hereby empowered to employ all such officers or other persons, and to do all such other acts and things as may be deemed necessary or expedient for the raising, collecting, receiving, and accounting for the said duties, and for putting this Act into execution in and throughout the United Kingdom, in the like and in as full and ample a manner as they are authorised to do with relation to any other duties under their care and manage- ment. As to the raising, collecting, receiving, and accounting for the duties, see Procedure, and various heads thereunder. 16 & 17 Viet. 5. The said duties hereby granted shall be assessed, raised, levied, Duti' S 't be an( ^ co ^ ec ^ e< ^ under the regulations and provisions of the Act passed assessed and in the session of Parliament held in the fifth and sixth years of ^ er Majesty, chapter thirty-five, and of the several Acts therein mentioned or referred to, and also of any Act or Acts subsequently passed explaining, altering, amending, or continuing the said first- mentioned Act; and for this purpose all the said several Acts shall be revived, and shall be deemed to have been and to be continued in force from the fifth day of April one thousand eight hundred and fifty-three ; and all such of the said regulations and provisions as have been enacted by the said Acts, or any of them, with reference to Great Britain or England, shall (so far as the same are or may be applicable consistently with the express provisions of this Act) be and the same are hereby extended to Ireland ; and all powers, authorities, rules, regulations, directions, penalties, clauses, matters, and things contained in or enacted by the said several Acts before recited or referred to, or any of them, shall, notwithstanding that the same may have expired, severally and respectively be and become in full force and effect with respect to the duties hereby granted, and shall in all cases not expressly provided for by this Act, and so far as the same are not superseded raised under the provisions of recited Acts. GKANT OF THE DUTIES OF INCOME TAX. 119 "by and are consistent with the express provisions of this Act, severally and respectively be duly observed, applied, practised, and put in execution throughout the respective parts of the United Kingdom, for raising, levying, collecting, receiving, accounting for, and securing the said duties hereby granted, and for auditing the accounts thereof, and otherwise relating thereto, as fully and effectually to all intents and purposes as if the same powers, authorities, rules, regulations, directions, penalties, clauses, matters, and things were particularly repeated and re-enacted in the body of this Act with reference to the said duties hereby granted, and respectively applied to the several parts of the United Kingdom as aforesaid ; and wherever in the said Acts, or any of them, the term " England " is used or mentioned, the same, in relation to the duties granted by this Act, shall be deemed to extend to and to mean also Ireland ; and in like manner the term " Great Britain " shall be read as and deemed and construed to mean the United Kingdom; and where in the provisions of the said Acts her Majesty's Court of Exchequer at Westminster, or any of her Majesty's Courts of Eecord at Westminster, is or are mentioned or referred to, such provisions shall, with reference to the duties under this Act to be assessed in Ireland be construed and take effect as if her Majesty's Court of Exchequer at Dublin, or her Majesty's Superior Courts of Eecord at Dublin, were mentioned or referred to instead of the said respective Courts at Westminster, and the said Act of the fifth and sixth years of her Majesty, chapter thirty five, and the Acts explaining, altering, amending, and continuing the same, and this Act, shall be construed and read together as one Act. The Finance Act, 1894 57 & 58 Viet. c. 30, s. 38. 38. (1.) Where, in the case of any dividends, interest, or other Provisions annual profits or gains due or payable half yearly or quarterly in as to duty .V ; i -i P on dividends, the course of the said year which commenced on the sixth day of & c ., paid April one thousand eight hundred and ninety-four, any half yearly p " s j^ *f e or quarterly payments shall have been made prior to the passing of this Act. this Act, the duty of income tax hereby granted, or so much by relation to such duty as shall not have been charged thereon or deducted therefrom, shall be charged under Schedule (D.) in respect of such payments as profits or gains not charged by virtue of any other schedule in conformity with the provision contained in the sixth case of Schedule (D.), in section one hundred of the Income 5 & 6 Viet. Tax Act, 1842, and the agents entrusted with the payment of the dividends, interest, or other annual profits or gains, shall furnish a list containing the names and addresses of the persons to whom 120 THE SCHEDULES. 53 & 54 Viet, c. 8, s. 30. Provisions of income tax to apply to duties to be granted for succeeding 1 year. payments have been made, and the amount of such payments, to the Commissioners of Inland Revenue upon a requisition in that behalf. (2.) Where any person liable to pay any rent, interest, annuity, or other annual payment in the course of the said year shall, on making any such payment prior to the passing of this Act, have not made any deduction or have made an insufficient deduction in respect of the duty of income tax hereby granted he shall be authorised to make the deduction or make up the deficiency on the occasion of the next payment in addition to any other deduction which he may by law be authorised to make. (3.) The charge or deduction of the duty of income tax at a rate not exceeding the rate hereby granted in the case of any payment made in the course of the said year prior to the passing of this Act shall be deemed to have been a legal charge or deduction. As the income tax was raised a penny in 1894, it was necessary to provide for the collection of the tax on dividends, &c., on which the lower rate had been paid before the Act was passed. The Customs and Inland Eevenue Act, 1890 30. In order to ensure the collection in due time of any duties of income tax which may be granted for any year commencing on the sixth day of April, all such provisions contained in any Act relating to income tax as were in force on the preceding day shall have full force and effect with respect to the duties of income tax which may be so granted in the same manner as if the said duties had been actually granted by Act of Parliament, and the said provisions had been applied thereto by the Act. 16 & 17 Viet. c. 31, s. 2. SCHEDULE (A.) Heritage. 5 & 6 Viet. c. 35, s. 60. Duties in Schedule (A.) to be charged under the following rules. The Income Tax Act, 1853 Schedule (A.)- For and in respect of the property in all lands, tenements, here- ditaments, and heritages in the United Kingdom, and to be charged for every twenty shillings of the annual value thereof. " Heritage " is a technical Scotch word : Fry, L.J., in 1888, ft. v. Commis- sioners of Income Tax, L. E. 22 Q. B. Div. 296. The Income Tax Act, 1842 60. And be it enacted, that the duties hereby granted and contained in the said schedule marked (A.) shall be assessed and charged under the following rules, which rules shall be deemed and construed to be a part of this Act, and to refer to the said duties, as if the same had been inserted under a special enactment. SCHEDULE (A.), No. I. 121 We shall now give the rules for assessing and charging the duties under Schedule (A.), and at the same time -we shall discuss the subject-matter of the Schedule. It will be observed that the duties are charged on the annual value. The rules will explain how the annual value is to be determined. In determining the annual value for any particular year, the Income Tax Act for that year sometimes allows us to use the annual value arriyed at for the preceding year, e.g., The Finance Act, 1894 57 & 58 Viet. 37. (1.) The sum charged as the annual value of any property c - 30 > 8 - elsewhere than in the metropolis as denned by the Valuation of income (Metropolis) Act, 1869, in the assessment of income tax thereon for the year which commenced on the sixth day of April, one (A.) and (B.) thousand eight hundred and ninety-three, shall be taken as the 1894.95^** annual value of such property for the assessment and charge thereon of the duties of income tax hereby granted under Schedules (A.) and (B.). (3.) The inspectors or surveyors of taxes shall be the assessors of the said duties of income tax under Schedules (A.) and (B.). Scheme of Rules /., //. and III. Scheme of rules. No. I. For Lands, Tenements, and Hereditaments capable of actual occupa- NO. j. tion, except those in Nos. II. and III. II. For Tithes, Manors, Royalties, Fines, and Profits arising from No. II. Lands, Tenements, and Hereditaments not in actual occupation. III. For Quarries, Mines, Ironworks, Gasworks, (Taterivorks, Canals, No. III. Railways, &c. SCHEDULE (A.) No. I. The Income Tax Act, 1842 5 & 6 Viet. No. I. General Rule for estimating Lands, Tenements, Heredita- No. I. " mcnts, or Heritages mentioned in Schedule {-A.}. The annual value of lands, tenements, hereditaments, or heritages Annual value charged under Schedule (A.) shall be understood to be the rent by the year at which the same are let at rackrent, if the r^ 6 . except amount of such rent shall have been fixed by agreement stated. commencing within the period of seven years preceding the fifth day of April next before the time of making the assess- ment, but if the same are not so let at rackrent, then at the rackrent at which the same are worth to be let by the year ; which rule shall be construed to extend to all lands, tene- ments, and hereditaments, or heritages, capable of actual occu- pation, of whatever nature, and for whatever purpose occupied or enjoyed, and of whatever value, except the properties mentioned in No. II. and No. III. of this Schedule. The assessment is reduced by one-eighth part in the case of lands inclusive of the farm house and other buildings, and in the case of houses and buildings other than a farm house or building included with lands in assessment there is an allowance for repairs. See the Finance Act, 1894, sect. 35, post, p. 145. 122 THE SCHEDULES. Rent by the year. Edmonds v. Eastwood. " Rent by the Year," what is. 1858. Edmonds v. Eastwood, 2 H. & N. 811 ; 27 L. J. Ex. 209. Lease of a brickfield for a term of fourteen years, paying to the lessor the yearly rent of 111. 10s. for surface rent, also paying to the lessor for royalty or brick-rent, the yearly sum of 100?., and also paying in respect of every thousand bricks over and above the first million, which should be made on the premises in any one year, an additional royalty or brick-rent of 2s. : Held, that both royalties or brick-rents were chargeable with income tax, and that it was payable in the first instance by the lessee, who was entitled to deduct it from the amount due to the lessor, that the royalty or brick-rent of 100?. was rent by the y ear within No. I., and that the result was the same whether the royalty or brick-rent of 2s. per thousand was rent by the year within No. I., or came under No. III., Clause 3, the Court inclining to the former view. Taylor v. Evans. 1856. Taylor v. Evans, 1 H. & N. 101 ; 25 L. J. Ex. 269. By indenture the plaintiff, in consideration of 1,380?., to be paid by instal- ments, sold the defendant a coal mine for a term of fifty years. The defen- dant covenanted to pay the plaintiff 150?. on the execution of the indenture, and 150?. per year after that time ; but if a certain amount of coal should bo worked in any year the defendant was to pay a larger sum in proportion to the coal worked, until the whole sum of 1,380?. should be paid. No coal wag worked by the defendant, who claimed to deduct income tax from an instal- ment : Held, that the deduction could not be made as the instalment was not " rent " within sect. 60 of the Income Tax Act, 1845. Campbell v. Inland Revenue. 1879. Campbell v. Inland Revenue, 7 Scotch Sess. Cas., 4th Series 82 ; 17 Sc. L. E. 23 ; 1 Tax Cas. 234. In a lease of an hotel_ the landlord agreed to deliver to the tenant as his property certain coaches, horses, &c., and the tenant agreed to pay a rent of 1,000?. yearly for the said hotel and stables, the lease being for nine years : Held, that on the face of the lease what was called rent was only partly rent and partly an annual payment in consideration of property conveyed to the tenant, that the Commissioners must inquire how much of the 1,000?. a year was, according to a fair valuation, payable in respect of heritable and assessable subjects, and how much for the other things the tenant obtained under his agreement. Eackrent. ' ' Rackrent." Eackrent is a rent of the full annual value of the tenement, or near it. 2 Blac. Com. 42. Scotland. Under certain circumstances Commis- sioners bound by valuation- roll. Menzies v. Solicitor of Inland Revenue. Scotland. In certain circumstances the Commissioners of Inland Revenue are bound by the valuation-roll under the Lands Valuation Act, 1854, and Amendment Act, 1857, 17 & IS Viet. c. 91, and 20 & 21 Viet. c. 58. 1878. Menzies v. Solicitor of Inland Revenue, 5 Scotch Sess. Cas. 4th Series 531 ; 15 Sc. L. E. 285 ; 1 Tax Cas. 148. The provisions in the Lands Valuation (Scotland) Act, 1854, are applicable to purposes of local taxation only, and have not repealed or altered the rule laid down in the Income Tax Act, 1842. But in counties and burghs where by the Valuation of Lands (Scotland) Act Amendment Act, 1857, the officer of inland revenue has been appointed assessor for the valuation-roll, the Commissioners of Inland Eevenue are bound by the valuation-roll in making their assessments. SCHEDULE (A.), NO. II. 123 SCHEDULE (A.), No. II. The Income Tax Act, 1842 5 & 6 Viet. x c. 35, s. 60. JNo. II. Rules for estimating the Lands, Tenements, Hereditaments, No Ir or Heritages, herein mentioned which are not to be charged according to the preceding General Rule. The annual value of all the properties hereinafter described shall Manner of be understood to be the full amount for one year, or the certafn"?- average amount for one year, of the profits received there- perties, &c. from within the respective times herein limited : First. Of all tithes, if taken in kind, on an average of the Tithes in three preceding years : Second. Of all dues and money payments in right of the church Ecclesiastical or by endowment, or in lieu of tithes (not being tithes arising ues ' from lands), and of all teinds in Scotland, on the like average: Third. Of all tithes arising from lands, if compounded for, and Tithes com- of all rents and other money payments in lieu of tithes aris- pou ing from lands (except rentcharges confirmed under the Act passed for the commutation of tithes), on the amount of such composition, rent, or payment for one year preceding : The said duty in each case to be charged on the person entitled to such tithes or payments, or his lessee or tenant, agent or factor, except in the cases mentioned in the fourth rule of No. IY. of Schedule (A.) : Fourth. Of manors and other royalties, including all dues and Manors, other services, or other casual profits, (not being rents or other annual payments reserved or charged,) on an average of the seven preceding years, to be charged on the lord of such manor or royalty, or person renting the same : Fifth. Of all fines received in consideration of any demise of Fines, lands or tenements (not being parcel of a manor or royalty demisable by the custom thereof) on the amount so received within the year preceding by or on account of the party ; pro- vided that in case the party chargeable shall prove, to the satisfaction of the Commissioners for General Purposes in 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 under this Act, for the year in which the assessment shall be made, it shall be lawful for the said Com- missioners to discharge the amount so applied from the profits liable to assessment under this rule : Sixth. Of all other profits arising from lands, tenements, here- Other profits f 1 A ditaments, or heritages not in the actual possession or occupa- ' tion of the party to be charged, and not before enumerated, on 124 THE SCHEDULES. PEOFITS. Manors and royalties. Judgment of Pollock, B., in 1890, Duke of Norfolk v. Lnmarque, L. B,. 24 Q. B. D. 490; 59 L.J.Q.B. 119. MANGES : DEDUCTIONS. Duke of Norfolk v. Lamarque. ROYALTY. Edmonds v. Eastwood. Lord Mostyn v. London (Surveyor of Taxes). 1873, A.-G. v. Scott, 28 L. T. N. S. 302. 5 & 6 Viet. c. 35, s. 60. No. III. Manner of charging certain other properties. Quarries. a fair and just average of such number of years as the said Commissioners shall, on the statement of the party to be charged, judge proper, (except such profits as may be liable to deduction in pursuance of the ninth or tenth rule in Number IV. hereinafter mentioned,) to be charged on the Receivers of such profits, or the persons entitled thereto. " of the Profits received therefrom." " ' Profits ' does not mean profits in the sense of net profits in a mercantile business, but the average amount for one year of the interest or property that the person has in those rights which are taxed. Then in No. IV. of Eule 2, dealing with manors and other royalties, the words are, ' on an average of the seven preceding years, to be charged on the lord of such manor, or royalty, or person renting the same.' It seems to me to be clear, therefore, that this is to be treated exactly as if it were a rent issuing out of property which belonged to the lord in fee simple" : Pollock, B., in Duke of Norfolk v. Lamarque. Manors. Deductions . 1890. Duke of Norfolk v. Lamarque, L. E. 24 Q. B. D. 485; 59 L. J. Q, B. 119. No deductions can be made in respect of expenses incurred by the lord of the manor in collecting manorial dues, at any rate where it does not appear that such expenses must necessarily be incurred before the dues can be obtained. Royalty. 1858. Edmonds v. Eastwood, 2 H. & N. 811 ; 27 L. J. Ex. 209. Lease of a brickfield. Surface rent 17?. 10s. Eoyalty or brick-rent 100Z. and an additional royalty or brick-rent of 2s. per thousand over and above the first million made : Held, neither of the royalties are within No. II. Eule 4, but the 100Z. is rent within No. I. and the 2s. per thousand is within No. I. or No. TIT. Eule 3. " The royalties within No. II. Eule 4, are royalties properly so called " : Martin, B. Fines on renewal of Lease. 1894. Lord Mostyn v. London (Surveyor of Taxes], 11 T. L. E. 68. A sum of money received for fines which, by the terms of a will, must be applied as capital, if temporarily left on deposit at a bank is not ' ' applied as productive capital " within the 5th Eule of No. II. As to " renewing fines " belonging to a corporation, see Att.-Oen. v. Scott, post, p. 223. SCHEDULE (A.), No. III. The Income Tax Act, 1842 JVb. ///. Rules for estimating the Lands, Tenements, Heredita- ments, or Heritages hereinafter mentioned which are not to be charged according to the preceding General Rule. The annual value of all the properties hereinafter described shall be understood to be the full amount for one year, or the average amount for one year, of the profits received therefrom within the respective times herein limited : First. Of quarries of stone, slate, limestone, or chalk, on the amount of profits in the preceding year : SCHEDULE (A.), NO. III. 125 Second. Of mines of coal, tin, lead, copper, mundic, iron, and other mines, on an average of the five preceding years subject to the provisions concerning mines contained in this Act : Third. Of ironworks, gasworks, salt springs or works, alum Iroaworks, mines or works, waterworks, streams of water, canals, inland navigations, docks, drains, and levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries, and other concerns of the like nature, from or arising out of any lands, tenements, hereditaments, or heritages, on the profits of the year preceding : The duty in each of the last three rules to be charged on Duty in last the person, corporation, company, or society of persons, whether how" be* corporate or not corporate, carrying on the concern, or on their charged. respective agents, treasurers, or other officers having the direc- tion or management thereof, or being in receipt of the profits thereof, on the amount of the produce or value thereof, and before paying, rendering, or distributing the produce or the value, either between the different persons or members of the corporation, company, or society engaged in the concern, or to the owner of the soil or property, or to any creditor or other person whatever having a claim on or out of the said profits ; and all such persons, corporations, companies, and societies respectively shall allow out of such produce or value a propor- tionate deduction of the duty so charged, and the said charge shall be made on the said profits exclusively of any lands used or occupied in or about the concern : The computation of duty arising in respect of any such mine Duty on carried on by a company of adventurers shall be made and stated "jointly in one sum : provided that if any adventurer tne company U H J 1 V "U V J jointly, but shall declare his proportion or share in such concern, in order any adven- to a separate assessment, it shall be lawful to charge such adventurer separately, and nothing herein contained shall be be charged construed to restrain any adventurer so separately assessed from deducting or setting against his profits acquired in one sefc off his J(S VI 4. ' A ' \A *A loss in one or more or such concerns his loss sustained in any other 01 the concern said concerns, over and above the profits thereof, provided that ^j^f^ 58 such loss shall not exceed the proportion of such adventurer another. which shall have been duly proved by the company in their computation of duty, and shall have been allowed by the respective Commissioners, and in every such case one assess- ment only shall be made on the balance of such profit and loss of the adventurer so separating his account in the parish or place where such adventurer shall be chargeable to the greatest amount, and the amount of each person's share so proved and 126 THE SCHEDULES. allowed shall be deducted from the general assessment of the company or companies to which such adventurer shall belong, and the respective Commissioners shall cause the assessments on the said companies to be rectified as the case may require ; and the certificate of the Commissioners making such separate assessment shall be an authority to the Commissioners acting in another district to cause the assessments on the respective companies to which such assessment shall belong to be recti- fied ; and in case such loss shall arise in a different district than where such separate assessment shall be to be made, the certificate of the Commissioners acting for such other district of the amount of such loss, and the proportion of such adven- turer therein, shall be proof of the deduction to be made by the Commissioners making such assessment. 23 & 24 Viet. An Act for granting to her Majesty duties on profits arising from property, c. 14, s. 5. professions, trades, and offices Commis- 5. No assessment shall be made under this Act by the Commis- SpecialPur- sioners for General Purposes in respect of the annual value or poses to assess profits and gains arising from any railway, but in lieu thereof, every such assessment shall be made by the Commissioners for Special Purposes (a), and the said last-mentioned Commissioners shall notify the assessment to the secretary or other officer of the company upon which the same shall be made, and 'the amount of such assessment shall be paid, collected, and levied in like manner as any other assessment made by the said Commissioners for Special Purposes. 38 & 39 Viet. (a) The part omitted is repealed by the Statute Law Revision Act, 1875. c. 66. 29 & 30 Viet. By an Act to grant, alter, and repeal certain Duties of Customs and c. 36, s. 8. Inland Revenue, and for other purposes relating thereto described in ^' ^ e several and respective concerns described in No. III. of No. III. of Schedule (A.) of the said Act passed in the fifth and sixth years of of 5&6Vict. ner Majesty's reign, chapter thirty-five, shall be charged and c. 35, to be assessed to the duties hereby granted in the manner in the said assessed under J Schedule (D.) -No. III. mentioned, according to the rules prescribed by Act he Said Schedule (D.) of the said Act, so far as such rules are consistent railways to w ith the said No. III. : Provided that the annual value or profits be assessed an( j g ams arising from any railway shall be charged and assessed sioners for by the Commissioners for Special Purposes. Special Purposes. /~i , , Contents. Difference between the concerns mentioned in Nos. I. and IE. 227 OT Quarry or Mine. Jones v. 1879 - Jones v - Cwmorthen Slate Co., L. R. 5 Ex. Div. 93; 48 L. J. Q. B. 486. Cwmorthen Slate was obtained from the side of a hill by underground workings carried Slate Co. SCHEDULE (A.), No. III. 127 on through levels. It was held that the works were to be assessed as a quarry under Bule 1 of No. III., and not as a mine under Eule 2 of No. III. Cotton, L.J., said : " The distinction is not between the modes of working Judgment of but between the materials raised, and I think it was intended to include even Cotton, L. J. underground workings for slate in the first Eule." Foreign Gasworks. Foreign 1877. The Imperial Continental Gas Association v. Nicholson, 37 Law Times. 717 ; 1 Tax Cases, 138. n IT.! j- i_j i-r-i- , Continental liasworks here does not include foreign gasworks. Foreign gasworks Qas Associa- haying a place of business in this country are assessable under Schedule (D.). tion v. Nicholson. 1871. A.-G. v. Black, L. E. 6 Ex. 308 ; 40 L. J. Ex. 194. By Act of Parliament the Corporation of Brighton have power to levy a Slack. duty on every chaldron of coals landed on the beach or brought into the town. Held, that this was either in the nature of a toll within No. III. or within the sweeping clause in Schedule (D.). " other concerns of a like nature, from or arising out of any lands." 1889. Edixboro* Southern Cemetery Co. v. Surveyor of Taxes, 17 Scot. Sess. Edmboro* Gas., 4th Series, 154 ; 27 Sc. L. E. 71 ; 2 Tax Cas. 516. Southern A cemetery company under its contract of co-partnery had power to sell ^ em f ter y and dispose to any persons of the use of pieces of ground in the cemetery for Ji. j^^ burial purposes in perpetuity : Held, that the company were assessable under Schedule (A.), No. III. Eule 3 being included in the above words. ' ' At first sight the notion that a cemetery company is a concern of the like Judgment of nature with any of the others is a little startling, but the essential point of Lord Shand. similarity is this, that all of these different concerns are companies which, having purchased or acquired land, remain in the occupation of that land themselves, and are using it for the purpose of some trade or business whereby they acquire profits " : Lord Shand. Brickfield. Brickfield. 1858. Edmonds v. Eastwood, 2 H. & N. 811 ; 27 L. J. N. S. 209. Edmonds v Lease of a brickfield for a term of fourteen years, paying to the lessor the Eastwood. yearly rent of 17?. 10s. for surface rent, also paying to the lessor for royalty or brick-rent, the yearly sum of 100Z., and also paying in respect of every thousand bricks over and above the first million, which should be made on the premises in any one year, an additional royalty or brick-rent of Is. : Held, that the result was the same whether the royalty or brick-rent of 2s. per thousand was "rent by the year," within No. I., or came under No. ILL, Clause 3, but the Court inclined to the former view. ' ' My opinion is, that the case of a brickfield was not intended to be included Judgment of within No. III. With the public notoriety that property of that description Pollock, C.B. exists to a great extent, especially in the neighbourhood of London, it seems almost impossible, if it was intended to include it, that it should not have been inserted by name in the same category as coal mines or salt works " : Pollock, C.B. Profits. PROFITS. It will be observed that the annual value depends on the profits. To produce profits there must be trading. "In order to bring this case within the operation of the Income Tax Act, Explanation it is necessary that there shall be this trading in its strict true sense. There by Palles, B., must be at leasttwo parties one supplying water, and the other to whom it ^ 1887, should be supplied and who should pay for it. If these two parties are Corporation identical, in my opinion there can be no trading. No man, in my opinion, jC^r" 1 T' can trade with himself ; he cannot, in my opinion, make, in what is its true T c -p < T W> 497- sense or meaning, taxable profit by dealing with himself " : Palles, B., in 2 '^^ ^^ Corporation of Dublin v. McAdam. 337^ 128 THE SCHEDULES. PEOFITS. CASES. Glasgow Water Com- missioners v. Inland Revenue, Glasgow Water Com- missioners v. Miller. Allan v. Hamilton Waterworks Commissioners. Glasgow Gas Commissioners v. Inland Revenue. Distinction between this case and Glasgow Water Com- missioners v. Inland Revenue. 1875. Glasgow Water Commissioners v. Inland Revenue, 2 Scotch Sess. Gas., 4th Series, 708 ; 12 Sc. L. E. 466 ; 1 Tax Gas. 28. The Glasgow Water Commissioners were empowered by a local Act to borrow money and to acquire certain waterworks and to bring in an additional supply of water. They were also empowered (1) to levy a compulsory rate. on all dwelling houses within the municipal boundaries ; (2) to fix a rate for persons who chose to take water beyond the boundaries ; and (3) to sell water to manufacturers and others. The Act required the Commissioners to levy a rate sufficient along with the other income to defray the annual interest on debt, annual expenses, and a sum of not less than one per cent, on the money borrowed, to form a sinking fund for the redemption of the debt. The Act directed that any surplus in one year should be applied to reduce the rate within the compulsory area in the following year. Held, that in the absence of any evidence that the Commissioners were making profit by selling water beyond the compulsory boundaries, the Cor- poration, being merely the instrument of the ratepayers, could not be said to be trading in any commodity, and that the surplus, after paying expenses, was not assessable as profits under the Income Tax Acts. But in 1886. Glasgow Water Commissioners v. Miller, 13 Scotch Sess. Cas., 4th Series, 489; 23 Sc. L. K. 285; 2 Tax Cas. 131, it was held, that in so far as the Commissioners sell water to manufacturers, or in return for the non-compulsory rate, they are in every sense trading in water, and their surplus revenue thence derived is profit liable to assessment. 1887. Allan v. Hamilton Waterworks Commissioners, 14 Scotch Sess. Gas., 4th Series, 485 ; 24 Sc. L. E. 360 ; 2 Tax Cas. 194. The Hamilton Waterworks Commissioners, by local Act, were empowered (1) to charge a "domestic water rate" on all premises within the town which were supplied with water ; (2) to levy a " public water-rate " upon all pre- mises within the town, whether supplied with water or not'; and (3) to sell water for other than domestic uses at such rates as should be agreed upon. The barracks, which were within the burgh, did not pay the domestic rate, but paid for water supplied to them according to measurement at the tariff rate. Held (following Glasgow Water Commissioners v. Miller], that the payment thus derived was profit and liable to assessment. Diss. Lord Shand, who held that the barracks were entitled to be supplied at the domestic rate, and that the fact of the other method of supply and payment having been adopted in lieu thereof did not alter the character of the payment so as to make it liable to assessment as profit. 1876. Glasgow Gas Commissioners v. Inland Revenue, 3 Scotch Sess. Cas., 4th Series, 857; 13 Sc. L. E. 556; 1 Tax Cas. 122. The Glasgow Corporation Gas Act, 1869, authorized the corporation to acquire certain gasworks, and to manufacture and sell gas to the inhabitants. The Act provided that the surplus revenue, after payment of annuities and interest of debt, should be applied to a sinking fund to reduce the debt, and to the general purposes of the corporation. Held, that the corporation was liable to be assessed for income tax upon such surplus revenue. The case was distinguished from Glasgow Water Commissioners v. Inland Revenue on two grounds : 1. It was compulsory to pay for the water whether used or not, it was not compulsory to pay for the gas if none was used. 2. In administering the funds in the case of the water-rate the ultimate result led to a diminution of the rate. No such result followed in the case of the gas company. The relation between the corporation and the rate- payers in regard to the gas was thus the relation between a company or corporation selling and individuals purchasing. It will be observed that in this case importance is attached to the way in which the fund was to be administered, and stress is laid on the fact that in Glasgow Water Commissioners v. Inland Revenue the surplus was to be applied in reduction of the water-rate. This distinction is not now good law and the SCHEDULE (A.), NO. III. 129 sole difference between the two cases is that in the water case there was no PEonra. trading, while in the gas case there was. CASES. The Application of the Funds to Public Purposes will not free them 1871, A.-G. from the Income Tax. v. Black, T "R fi "F*Y " The true principle is that adopted in Mersey Docks and Harbour Board v. 3 { '40 L "j Cameron, that if the fund is in its nature subject to taxation, it remains so EX '194 subject, notwithstanding its proceeds are to be applied to public purposes, and the proceeds which are to be so applied are what remain after discharg- 1887, Soicrey ing the burden to which it is subject." Lord Blackburn in A.-G. v. Black. ^ Km 9 s . "If once you get a taxable profit or taxable revenue or taxable sum of r ynn ,. ortn ff / * _o ;i i i_ J. J.-L i i- i- t n i -, ,, Commissioners. money, it is perfectly immaterial what the destination ot that sum may be : 2 Tax Cas Smith, J.,in Sowrey v. King's Lynn Mooring Commissioners. 206 1883. Mersey Docks v. Lucas, L. E. 8 App. Cas. 891 ; 53 L. J. Q,. B. 4. Mersey Docks A corporation was constituted for the management of the Mersey Dock v - ^ Mas - estate by an Act which provided that the moneys to be received by them from their dock dues and other sources of revenue should be applied in payment of expenses, interest upon debts, construction of works, and management of the estate ; and that the surplus should be applied to a sinking fund for the extinguishment of the principal of the debts; and that after such extinguish- ment the rates should be reduced ; and that except as aforesaid the moneys should not be applied for any other purpose whatsoever, and that nothing should affect their liability to parochial or local rates : Held, that under the Income Tax Acts the corporation was liable to income tax in respect of the surplus, though applicable to the above-named purposes only. 1884. Paddingtqn Burial Board v. Commissioners of Inland Revenue, L. E. Paddington 13 Q. B. D. 9 ; 53 L. J. Q. B. 224. Burial Board A burial board was constituted under 15 & 16 Viet. c. 85, and in pursuance v : Commis - of the Act a burial ground was provided with money charged upon the poor- /""^f J? , "" rate of the parish, and the surplus over expenditure of the income derived from the fees charged by the board was regularly applied in aid of the poor-rate : Held, that the board were liable to be assessed to the income tax in respect of such surplus, inasmuch as the provision requiring it to be applied in aid of the poor-rate did not prevent it from being a "profit " within 5 & 6 Viet. c. 35, s. 60. 1887. Corporation of Dublin v. M'Adam, 20 L. E. IT. 497 ; 2 Tax Cas. 387. Corporation By the Dublin Corporation Waterworks Act, 1861, the corporation were empowered to construct waterworks for the supply of water to the borough of Dubbin and certain extra-municipal districts, and -were authorized to borrow money for the purposes of the Act on the rates leviable under it, and empowered to levy certain rates on the owners and occupiers of property within the borough. They were also authorized to contract with owners or occupiers of property in the extra-municipal districts for the supply of water for domestic use and to charge rate or rent for such supply, to be called a " contract water-rate." By the Dublin Waterworks Act, 1870, it was provided that the income derived from the extra-municipal districts should form, with the city rates, a consolidated fund, available for the payment of principal and interest of loans, and applicable to all the purposes of the Act : Held, that the excess of receipts over expenditure in respect of extra- municipal districts was liable to income tax. 1887. Sowrey v. King's Lynn Mooring Commissioners, 2 Tax Cas. 206. Sowrey v. Tolls raised and applied under Act of Parliament. The Corporation of ^ ng \ s Ly* n King's Lynn contributed 60,000?. towards the making of a cut from the Mooring Corn- Wash to "King's Lynn, and to enable the corporation to repay the money w borrowed for the purpose, the Harbour Mooring Commissioners were em- powered Ly Act of Parliament to levy dues for the use of the corporation on all ships u^ing the cut : Held, that the dues were liable to income tax. R. K 130 THE SCHEDJLES. Portobetto Town Council v. Sulley (Surveyor of Taxes). 1890. Portobello Town Council v. Sulley Surveyor of Taxes), 2 Tax Gas. 647 ; 27 So. L. i. 683. A burgh council are required by Ac of Parliament to provide a burial ground. The receipts therefrom excfed the working expenses; but the council have to repay by instalments ;he capital borrowed to acquire and construct the cemetery, and to pay inteijst on the undischarged capital debt : Held, that income tax is chargeableon the profits after deducting only the working expenses. Effect of 29 & 30 Viet. c. 36, s. 8. Knoivles v. M'Adam. Coltness Iron Co. v. Black. Judgment of Earl Cairns. Judgment of Lord Blackburn. 1875, Addie V. Solicitor of Inland Revenue, 2 Scotch Sess. Cas. 4th Series, 431 ; 12 Sc. L. R. 284 ; 1 Tax. Cas. 1. Dillon v. Corporation of Saverford- west, L. R. (1891) 1 Q. B. 575; 60 L. J. Q. B. 477 : Charles, J. The Effect o/29^ 30 Viet. c. 36, s. 8. There has been considerable dif lC ulty in deciding what is the effect of this section. In 1877, Knowles v. M'Adam, L. E. 3 Ex. D. 23, it was held that the effect was to transfer the c,ncern from Schedule (A.) to Schedule (D.), save in so far as there might be any thing in Schedule (D.) inconsistent with No. III. The facts of this case^ere as follows: A colliery company bought freehold and leasehold coal mhes, and raised some of the coal and sold it. At the end of the first year's waking, the mines, by reason of the coal gotten during the year, were worth lo,424Z. less than the price for which they were bought. The company being assessed to the income tax claimed to deduct the 10,424?. as exhausted capital. This deduction was allowed under Schedule (D.). This case was overruled in J881 by Coltness Iron Co. y. Black, L. E. 6 App. Cas. 315 ; 51 L. J. Q,. B. 626, in which it was decided that a tenant of minerals, though he may be under a constant vanishing expense in sinking new pits as the old ones bec> me exhausted, is not entitled, in computing the profits for assessment of inc ome tax, to deduct from the gross profits a sum estimated as representing -he amount of capital expended in making bores and sinking pits which ha> e been exhausted by the year's workings. Earl Cairns said : " I do not ;hink this question is affected by 29 Viet. c. 36. That Act provides that miaes shall be charged and assessed according to the rules prescribed by Schedule (D.) of the principal Act, so far as such rules are consistent with No. In. o f Schedule (A.). But the thing to be assessed remains the same." Ara Lord Blackburn said, at p. 337 : " In Knowles v. M'Adam Chief Baron F e lly says : < It' is quite clear that sect. 8 of 29 Viet. c. 36 transfers the present case ' (that of a coal mine) ' from Schedule (A.) to Schedule (D.),' and the judgments of the Barons in that case seem to me to depend a good deal o^ this, as it seems to me, erroneous assumption. I think that the duties ar e to be assessed according to the rules in Schedule (D.), and consequently all tl ie anxiously- devised provisions for keeping the returns under Schedule (D.) secret and confidential to be found from sect. 100 to sect. 131, are made in future to apply to returns for the concerns described in No._ III. of ScheduJg (A.), and any rule expressed as to the mode of com- puting the balance jf the profits and gains during the period of three years given in Schedule ( r>.) which is not inconsistent with No. III. may perhaps be made in future f /o apply to the mode of computing the annual profits of properties chargea~ 3 i e under No. III. And I see that in Addie v. Solicitor of Inland Revenue re]i ance s pl ace d 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. m ade ' for any sum employed, or intended to be employed as capital.' But ; I a o no t think reliance can be placed on this. If, from the nature of the co: nceriis n NO. III., an allowance ought to be made for capital, then this rule s^ ou i(j ^e rejected as inconsistent with No. III. If no allowance should be mad& the rule is not required." It might be^thought from this dictum of Lord Blackburn that none of the rules with re^ ar( j to allowances and deductions in Schedule (D.) are applic- able to coneys j n Schedule (A.), No. III. This would not, however, be consistent wi^h the case of Dillon v. Corporation of Haverfordwest, which was a gasworks ^ C ase, and in which reliance was placed by Charles, J., on the farst rule ajjpijga^e to the first and second cases of Schedule (D.), which declares thi^t no deduction shall be made for any disbursements or expenses not being ^ wholly an d exclusively laid out for the purposes of the trade or concern. j n or d er to reconcile this with the dictum of Lord Blackburn, we SCHEDULE (A.), NO. III. 131 must interpret Lord Blackburn as saying that the particular rule preventing deductions for sums employed as capital in Schedule (D.) is not applicable to concerns in Schedule (A.), No. III. ; but this does not prevent other rules in Schedule (D.) with regard to deductions from being applicable to those concerns. We therefore deduce the following rules : Rules (1.) If, from the nature of the concerns in Schedule (A.), No. ILL, the rules deduced, in Schedule (D.) are inapplicable they must not be applied, although they are not directly inconsistent with Schedule (A.), No. III. (2.) Apart from this, if not inconsistent with Schedule (A.), No. III., the said rules in Schedule (D.) are applicable to concerns in Schedule (A.), No. III. Thus, (1.) The rule preventing deductions for sums employed as capital in Schedule (D.) is not applicable to concerns in Schedule (A.), No. III. (2.) The rule preventing deductions for any expenses not being wholly laid put for the purposes of the trade or concern in Schedule (D.) is applicable to concerns in Schedule (A)., No. III. The following is an example of the application of the rules in Schedule (D.) to a concern in Schedule (A.), No. III. : Schedule (D.) contains a rule (rule 4 applying to cases 1 and 2), which Example, provides that in a case of change of partners, where, since the change, the profits and gains have fallen short from some specific cause, the period on which the profits and gains are averaged for assessment is altered. In Ryliope Coal Co. v. Foyer, this rule was applied to the case of a coal 1881, Ryhope mine, the result being that the exception to the rule in Schedule (D.) was C a l @- v - held applicable to a concern to which the rules of Schedule (D.) are applied Foyer, L-R- by 29 Viet, c. 36. J Q- B - I> - The proper period in No. III. is five years, that in Schedule (D.) is three years. Lindley, J., held that the period of five years must be read into Lindley, J. Schedule (D.) instead of three years, but that the exception to the three year rule in Schedule (D.) was equally good as an exception to the five year rule so read in. Miller v. Farie is to the same effect as Ryhope Coal Co. v. Foyer, with this 1878, Miller important difference, that in Miller v. Farie it was. laid down that in the v. Farie, 6 assessment of income tax on the profits of mines, they are to be estimated Scotch Ses. upon an average of three years, according to Schedule (D.), and not on an Gas. 4th average of five years, as prescribed in Schedule (A.), No. III. Series, 270 ; The Lord President there said : "It appears to me impossible to read that j? Q ^ c< ^* as meaning that we are to proceed according to the rules prescribed by 189> Schedule (D.) so far as such rules are consistent with the rules in No. III. Judgment of of Schedule (A.), because they are not consistent. They are quite different, and the Lord the meaning of the legislature must therefore be that the duty is to be laid on ^ resident, in the manner prescribed by No. III. of Schedule (A.), but that the rules for ascertaining the annual value are to be taken from Schedule (D.), and it is so I construe this statute of the 29 Viet. c. 36." This part of the decision in Miller v. Farie is directly opposed to the Miller v. judgment of Lindley, J., in Ryhope Coal Co. v. Foyer, and seems also incon- Farie incon- sistent with the judgment of Lord Blackburn in Coltness Iron Co. v. Black, sistent with It is also inconsistent with the judgment of Charles, J., in Dillon v. Corpora- previous tion of Haverfordwest, in which he says that the three years' interval in cases. Schedule (D.) is not substituted for the one year's interval in Schedule (A.), No. III. applicable to gasworks. It must, therefore, be considered as bad law. Allowances and Deductions under Schedule (-4.), No. III. Allowances We have already discussed the difficulty in discovering from the decided * nd deduc- cases how far the rules in Schedule (D.) are applicable for the purpose of l ' informing us what deductions may bo allowed for the concerns in Sche- dule (A.), No. III., which, by 29 & 30 Viet. c. 36, s. 8, are to be charged and assessed to the duties according to the rules prescribed by Schedule (D.) so far as such rules are consistent with No. III. We shall now give a summary of the cases. K2 132 THE SCHEDULES. Hall v. King's Lynn Moorings Commissioners. Repayment of money expended in renewal of works. le v. Solicitor of Inland Revenue. Capital expended in sinking new pits. 1876, Forder v. Handy side, L. R. 1 Ex. D. 233; 45 L. J. Q. B. 809. Colt ness Iron Co. v. Black. 41 & 42 Viet. c. 15, s. 12. Wear and tear of machinery and plant. Repayment of Money expended in Renewal of Works. 1875. Hall v. King's Lynn Harbour Moorings Commissioners, 1 Tax Cae. 23. A deduction allowed for revenue applied under Act of Parliament for re- payment of money expended in the renewal of works. This case seems inconsistent with the principle of the later cases and must be considered of doubtful authority. See 1881, Coltness Iron Co. v. Black, L. B., 6 App. Gas. 315. Capital expended in sinking Fits. 1875. Addie v. Solicitor of Inland Revenue, 2 Scotch Sess. Cas. 4th Series 431 ; 12 So. L. B., 284, 1 Tax Cas. 1. In computing profits a tenant of minerals is not entitled to make deduc- tions from the gross receipts of sums necessary to replace capital expended in sinking pits or lost by depreciation of buildings and machinery, because these are simply expenditure of capital. The decision in this case, so far as the capital expended in sinking pits and lost by depreciation of buildings is concerned, is in its result in accordance with the later cases ; but as to the reasons given in the judgment of the Lord Presi- dent we have already quoted the opinion of Lord Blackburn in Coltness Iron Co. v. Black, supra, p. 130. As to depreciation of machinery, it is, with Forder v. Handy side, reversed by 41 & 42 Viet. c. 15, s. 12, infra. 1881. Coltness Iron Co. v. Black, L. B. 6 App. Cas. 315; 51 L. J. Q. B. 626. A tenant of minerals, though he may be under a constant vanishing expense in sinking new pits as the old ones become exhausted, is not entitled, in computing the profits for assessment of income tax, to deduct from the gross profits a sum estimated as representing the amount of capital expended in making bores and sinking pits, which have been exhausted by the year's working. (But if the sinking of the pit be working expenditure, a deduction may be allowed. See (1894) Morant (Surveyor of Taxes] v. Wheal Grenville Mining Co., 11 T. L. B. 67.) Wear and Tear of Machinery and Plant. The Customs and Inland Bevenue Act, 1878. 12. Notwithstanding any provision to the contrary contained in any Act relating to the income tax, the Commissioners for General and Special Purposes shall, in assessing the profits or gains of any trade, manufacture, adventure, or concern in the nature of trade, chargeable under Schedule (D.) , or the profits of any concern charge- able by reference to the rules of that schedule, allow such deduc- tion as they may think just and reasonable as representing the diminished value by reason of wear and tear during the year of any machinery or plant used for the purposes of the concern, and belonging to the person or company by whom the concern is carried on ; and for the purpose of this provision, where machinery or plant is let to the person or company by whom the concern is carried on upon such terms that the person or company is bound to maintain the machinery or plant, and deliver over the same in good condition at the end of the term of the lease, such machinery or plant shall be deemed to belong to such person or company. And when any machinery or plant is let upon such terms that the burden of maintaining and restoring the same falls upon the lessor, he shall be entitled on claim made to the Commissioners for General or Special Purposes, in the manner prescribed by sect. 61 of 5 & 6 Yict. c. 35 (a), to have repaid to him such a portion of the sum SCHEDULE (A.), No. III. 133 which may have been assessed and charged in respect of the machinery or plant, and deducted by the lessee on payment of the rent, as shall represent the income tax upon such an amount as the said Commissioners may think just and reasonable, as representing the diminished value by reason of wear and tear of such machinery or plant during the year : Provided that no such claim shall be allowed unless it shall be made within twelve calendar months after the expiration of the year of assessment. (a) See p. 148. As to the interpretation placed on the section, see Sche- dule (D.), post, p. 207. Depreciation of Capital. 1878. Miller v. Farie, 6 Scotch Sess. Gas. 4th Series, 271 ; 16 Sc. L. E. 189. Miller v. Under Schedule (D.), of the Income Tax Act, 1842, in estimating the full Farie - amount of the balance of the profits and gains of a colliery which was Depreciation worked by the proprietor : held, that no allowance was to be made for ^ capital, depreciation of capital by the mine being worked out. 1889. Edinburgh Southern Cemetery Co. v. Surveyor of Taxes, 17 Scotch Sess. Edinburgh Cas. 4th Series, 154; 27 Sc. L. E. 71 ; 2 Tax Gas. 516. Southern A cemetery company under its contract of copartnery had power to sell ^ em f er y (j - and dispose to any person of the use of pieces of ground in the cemetery for ^ ^^ ot burial purposes in perpetuity : Held, that the proceeds of such sales of the right of sepulture during the year were assessable for income tax without deduction of any part thereof in respect of its being a realization or conversion of capital. Sum set aside to restore Plant and Apparatus. Clayton v. 1888. Clayton v. Newcastle-under-Lyme Corporation, 2 Tax Cas. 41 1. wfor^m A corporation purchasing gasworks in a defective structural condition is Corporation. not entitled to deduct sums set aside annually to be expended in future years gum get aside on restoring the plant and apparatus. to restore plant and VariOUS. apparatus. 1884. The Sroughton Coal Co. v. Kirkpatrick, L. E. 14 Q. B. D. 491 ; 54 Broughton L. J. Q. B. 268. Coal Go. v. A lessor received on account of his share of the profits of the concern not E ir W<*tricK. less than a fixed annual sum ; so that when his share of the royalties did not amount to the fixed sum he received that sum ; but when his share of the royalties exceeded the fixed sum he received that sum only until the lessees had been reimbursed the excess paid to the lessor when his share of the royalties did not amount to the fixed sum. In the year 1881 1882 the lessor's share of the royalties exceeded the fixed sum by 1,477Z., but the lessees retained this sum to reimburse themselves for excess previously paid : Held, that the lessees were not entitled to deduct the 1,4777. from their gross profits, and in estimating their profit for the year in question they (having made no profits for the previous five years) were not entitled to deduct the fixed sum paid by them during the previous five years. 1885. Highland Railway Co. v. Income Tax Commissioners, 13 Scotch Sess. Highland Cas. 4th Series, 199 ; 23 Sc. L. E. 116 ; 2 Tax Cas. 151. Railway Co. v. Deduction claimed in respect of a loss upon the working and depreciation in the value of certain steamers which had ceased to form part of the railway company's undertaking in the year of assessment. The steamer traffic had been introduced by the company and carried on under statutory powers, which were still in force, but for the year of assessment part of that traffic had been taken over and carried on by a private trader under an agreement with the company, while the rest had been given up altogether : Held, that steamer traffic was still part of the undertaking of the company, and that the deduction should be allowed. " If a portion of the company's business becomes unprofitable, and is dropped 134 THE SCHEDULES. Dillon v. Corporation of Haverford* west. either permanently or for a time, the effect of that is not to make the under- taking of the company something different from what it was. They may remove that traffic if they think fit ; they may discontinue it if they do not find it paying; but the undertaking of the company, the business of the company, remains exactly what it was :" The Lord President. 1891. Dillon v. Corporation of Haverfordivest, L. E. (1891), 1 Q,. B. 575 ; 60 'L. J. Q. B. 477. By a local Act the duty was imposed upon the respondent corporation of lighting a town with gas, and the Act further provided that it should be lawful for the respondents, after lighting the town, to supply private cus- tomers with gas. The respondents, from the supply of gas to private customers, earned profits, on which they were assessed to income tax. They claimed to deduct from these profits the expenses incurred in lighting the town, as being money wholly and exclusively laid out or expended for the purposes of a trade, within the meaning of 5 & 6 Yict. c. 35, s. 100, Sched. (D.) r. 1, of the rules applying to the first and second cases : Held, that the lighting of the town and the supply of gas to private customers were separate and distinct operations : that no trade was carried on until the respondents, after having lighted the town, began to supply gas to private customers, and therefore the expenses incurred in lighting the town were not money laid out or expended for the purposes of a trade, and the deduction could not be allowed. 5 & 6 Viet. c. 35, s. 60. To be charged in the parish. Except canals, rail- ways, &c., which are to be charged where the general accounts are made up. Duties may be deducted from interest payable to creditors. Manors ex- tending into different parishes, and fines, where to be charged. SCHEDULE (A.), No. IV. The Income Tax Act, 1842 .ZVb. IV. Rules and Regulations respecting the said Duties. First. All properties chargeable to the duties in Schedule (A.) shall he charged in- the parish or place where the same are situate, and not elsewhere, except as herein excepted (a) : Provided (b) that the profits arising from canals, inland navigations, streams of water, drains, or levels, or from any railways or other roads or ways of a public nature, and belonging to or vested in any company of proprietors or trustees, whether corporate or not corporate, may be stated in one account, and charged in the city, town, or place at or nearest to the place where the general accounts of such con- cern shall have been usually made up ; and it shall be lawful for the said proprietors or trustees, having paid the duties so chargeable, either to deduct a just proportion thereof from the interest payable to the creditors of the said properties, or any of them, or to pay such interest in full, without making any such deduction : and it shall be lawful for the said creditors to receive such interest in full, and they shall not be liable thereupon to the penalty hereinafter contained : Provided also, that the profits arising from any manor or royalty (c) which shall extend into different parishes may be assessed in one account in the parish where the court for such manor or royalty shall have been usually held : Provided also, that the profits arising from all fines received by the same person, body politic or corporate, or company, may be SCHEDULE (A.), No. IV. 135 assessed in one account, where the person to be charged under the regulations of this Act shall reside : (a) As to " place of assessment," see the Taxes Management Act, 1880, 43 & 44 Viet. S. 53, supra, p. 62. c. 19, s. 53. (6) This proviso is now inoperative. Canals, railways, &c., are assessed according to the rules in Schedule (D.) See 29 & 30 Yict. c. 36, supra, p. 126. 29 & 30 Viet. (c) " Royalty " as to meaning of word, see supra, p. 124. c. 36. Second. All lands occupied by the same person shall be brought Lands in the into every account thereof required to be delivered by such person under this Act, whether the same shall be occupied by charged ac- such person as owner or tenant, or as tenant under distinct the parishes. owners, or shall be situate in the same or in different parishes or districts, but the charge thereon shall be in each parish or district in proportion to the value of the property situate therein, of which proportions the occupier shall be required to Proportions in deliver an account in each parish wherein any part of such and belonging lands is situate, and a separate estimate shall be given of lands to distinct .LI. L- \. i 3- L- j owners, to in the same occupation belonging to distinct owners ; and it be stated. any occupier of lands situate in different parishes or places shall wilfully omit to deliver an account of the lands so occupied in each parish or place, although such occupier may not reside in one or more of such parishes or places, he shall be charged for the lands so omitted at treble the rate con- tained in this Act, over and above th$ penalty herein imposed: Provided always, that lands held under the same demise, or Lands in in the occupation of the same person as owner, although ^^f*^ situate in different parishes, but wholly in the same district he charged of Commissioners, may be charged in either parish, at the w herethe discretion of the said Commissioners, if they shall be satisfied proportions . . cannot be that the proportion in each parish, either in respect of quantity, ascertained. rent, or value of the said lands, cannot be ascertained ; and if the said lands extend into different districts of Commissioners, then the assessment shall be made in that district where the occupier of such lands doth reside : Third. For any dwelling-house in the occupation of a tenant Houses which, with the buildings or offices belonging thereto and the charged on land occupied therewith, shall be under the annual value of landlords. ten pounds, and for all lands and tenements let to any tenant for a less period than one year, the assessment thereupon shall be made on the landlord, but so as not to impeach the remedy of recovery of the duty from the occupier, in default of pay- ment by the landlord : Fourth. For any compositions, rents, or other payments in lieu Tithes may of tithes, the assessment thereupon may, if the Commissioners O Q occupiers think fit, be made on the respective occupiers of the lands from which such tithes arise, or on the respective persons liable to 136 THE SCHEDULES. 16 & 17 Viet. c. 34. The duties in respect of tithe com- mutation rentcharges may be as- sessed on the owners ; and the annual value is to be ascertained under the general rule in No. I. Judgment of Fry, L.J., in 1888, Stevens v. l&hop, L. R. 20 Q. B. Div. 448; 57 L. J. Q. B. 283. the payment of such compositions, rents, or other payments ; and the said Commissioners may direct notices to be delivered to such persons respectively, for the purpose of obtaining returns of the value of such compositions, rents, and payments, subject to the like penalties and under the regulations of this Act for returns of the annual value of lands : Tithe Commutation Rentcharges may also be assessed on the Owner. The Income Tax Act, 1853 32. In assessing and charging the duties under Schedule (A.) of this Act in respect of lands, tenements, or hereditaments, subject to any rentcharge under the Act for the Commutation of Tithes in England or any other rentcharge in lieu of tithes it shall be lawful for the Commissioners acting in the execution of this Act if they shall think fit, on a due return of such rentcharge being made by the owner thereof in order to an assessment upon him, to charge and assess such owner in the assessment for the said parish with the duty under Schedule (A.) of this Act in respect of such rentcharge, deducting therefrom the amount of the parochial rates, taxes, and assessments charged upon or in respect of such rentcharge in the preceding year ; and in the case of such assess- ment being made upon the owner of the said rentcharge, the amount of such rentcharge shall be allowed as a deduction in the assessment of the lands, tenements, and hereditaments on which the same is charged under the said Act for the Commutation of Tithes. For an explanation of the law with respect to tithe rentcharges, see The Introduction. It will be seen that, although sect. 32 of the Act of 1853 provides that the duties in respect of tithe commutation rentcharge may be assessed on the owner, it does not provide in what manner the annual value is to be deter- mined. It has been decided that the annual value must be ascertained under the general rule in No. I. " I am of opinion that under the statute of 1842 tithe rentcharge was not an hereditament charged under Eule No. I. of Schedule (A. ) as a separate hereditament, but that it was assessed as part of the annual value of the lands, and was (under No. IV. rule 4) assessable either on the occupier of the land or on the person liable to pay the rentcharge, i. e., to speak popu- larly, either the farmer or the landlord : that it could not be assessed on the rector or vicar, and that it was assessed on the gross amount of the rent- charge. " This was altered by the statute of 1853 to this extent, that the Commis- sioners were authorized to assess the rentcharge on the rector or vicar under Schedule (A.): and by sect. 5 the earlier statute of 1842 was made applicable to the income tax under the later Act. For the first time, then, the rent- charge is treated as a separate and independent hereditament chargeable as such under Schedule (A.) on the occupant or quasi-occupant of the here- ditament, i. e., on the rector or vicar: and, if it is to be so chargeable, it appears to me that the annual value can be ascertained only in the way pointed out by the general rule No. I., i. e., by treating the annual value as equal to the annual rent when the property is let at a rack-rent, and, if not, then at the rack-rent at which the same is worth to let by the year." Fry, L, J., in Stevens v. Bishop. SCHEDULE (A.), No. IV. 137 Deductions. Deductions. 1888. Stevens v. Bishop, L. E. 20 Q. B. Div. 442. Steren* v. ' ' In the case of duties in respect of tithe commutation rentcharges of which M *' the annual value is determined by No. I., in determining the annual value, the amount necessarily and properly expended in the collection of the tithe rentcharge may be deducted. " The reason for this is, that determining the annual value would involve Pollock, B., putting up those tithes to auction, or offering them for sale by private con- in 1890, Duke tract, and in contemplating what the tenant would give for them the expense of Norfolk v. of collection may have to be considered" : Pollock, B., in Duke of Norfolk v. " 119. The Income Tax Act, 1842 5 & 6 Viet. Fifth. If any mine, enumerated in the fifth rule, No. III., NO. IV. of this Schedule, has, from some unavoidable cause, been Mines failing, decreased and is decreasing in the annual value thereof, so charged. that the average of five years will not give a fair and just estimate of the annual value thereof, it shall be lawful, after due proof before the Commissioners for General Purposes in the district where such mine shall be situate, to compute such annual value on the actual amount of such profits and gains in the preceding year ending as aforesaid, subject to such abatement on account of diminution of duty within the current year as is herein provided in other cases ; and if any If failed, the such mine shall, from some unavoidable cause, have wholly ^y 8 ^ en failed, it shall be lawful for the said Commissioners, on due discharged. proof thereof, wholly to discharge any assessment made thereon : Provided always, that whenever any such mine shall be Mines to be GxUWBCl situate or the produce thereof shall be manufactured in any -where situate place other than where the produce thereof shall be sold, the or P^ 1 " 106 profits arising therefrom shall be assessed and charged in the tured. parish and district where the said mine is situate, or where the produce thereof is manufactured and not elsewhere : Sixth. If in estimating the value of any of the properties Duties in enumerated in No. II. or No. III. of this Schedule, as before ^ be^stf- 8 mentioned, it shall appear that the account required by the mated ac- ., , j. v J it, ^ cording to said rules cannot be made out by reason ot the possession or profits ac- interest of the party to be charged thereon having commenced within the time for which the account is directed to be made ment of out, the profits of one year shall be estimated in proportion p to the profits received within the time elapsed since the commencement of such possession or interest : No. IV. Clause 6 does not apply in the case of a change from a partnership 1881, Ryhope to a limited company where the individuals are the same, the proportionate c al Co. v. interests are the same and the whole property is the same, because the 7 Q**'T> T* account can be made out just as well after as before the change : see the . g g judgment of Grove, J., in fit/hope Coal Co. v. foyer. 138 THE SCHEDULES. Houses of Foreign Ministers charged on landlord. Official houses charged on the occupiers. Lord Black- burn, in 1883, Coomber v. Justices of Berks, L. R. 9 Ap. Cas. 66 ; 52 L. J. Q. B. 81. Occupiers to recover from landlord, according to the rate, by deducting the duty out of the rent. Seventh. The duty to be charged under this Schedule, in respect of any house or tenement occupied by any accredited minister from any foreign prince or state shall be charged and paid by the landlord or person immediately entitled to the rent of the said house or tenement : Eighth. The duty to be charged in respect of any house, tenement, or apartment belonging to her Majesty, in the occupation of any officer of her Majesty, in right of his office or otherwise, (except apartments in her Majesty's royal palaces,) shall be charged on and paid by the occupier of such house, tenement, or apartment, upon the annual value thereof : The Crown by virtue of its prerogative is exempt from income tax : see p. 283. The explanation of the above rule is given by Lord Blackburn as follows : " As the tax is imposed on the salary of such officers (i.e., officers of her Majesty), it was most reasonable to provide that, where the salary was partly paid by a rent-free house, the officer should pay the tax on that house, but I cannot think that affords any ground for saying that the legislature intended to impose the tax on Crown property generally, so as to take away the exemption that would otherwise be implied." Comber v. Justices of Berks. Ninth. The occupier of any lands, tenements, hereditaments, or heritages, being tenant of the same, and paying the said duties, shall deduct so much thereof in respect . A of the rent payable to the landlord for the time being (all sums allowed by the Commissioners being first deducted) as a rate of seven- pence for every twenty shillings thereof would by a just proportion amount unto, which deduction shall be made out of the first payment thereafter to be made on account of rent ; and the receivers of her Majesty, and all landlords, both mediate and immediate, their respective heirs, executors, administrators, and assigns, according to their respective interests, and their respective receivers or agents, shall allow such deduction upon receipt of the residue of the rent, under the penalty herein contained ; and the tenant paying the said assessment shall be acquitted and discharged of so much money as if the same had actually been paid unto the person to or for whom his rent shall have been due and payable ; and the occupier of lands charged on the amount of any composition, rent, or payment for tithes arising therefrom, and paying the said duties, shall be entitled to make the like deduction from such composition, rent, or payment, on paying the same. 16 & 17 Viet. By the Income Tax Act, 1853 Deducti n ^' -^ verv P erson wn shall be liable to the payment of any of duty on rent, or 'any yearly interest of money, or any annuity or other SCHEDULE (A.), NO. IV. 139 annual payment, either as a charge on any property or as a ^payment of personal deht or ohligation by virtue of any contract, whether the & c- ' same shall he received or payable half-yearly or at any shorter or more distant periods, shall be entitled and is hereby authorized, on making such payment, to deduct and retain thereout the amount of the rate of duty which at the time when such payment becomes due shall be payable, for every twenty shillings of such payment ; and the person liable to such payment shall be acquitted and dis- charged of so much money as such deduction shall amount unto, as if the amount thereof had actually been paid unto the person to whom such payment shall have been due and payable ; and the person to whom such payment as aforesaid is to be made shall allow such deduction upon the receipt of the residue of such money, under pain of forfeiting the sum of fifty pounds for any refusal so to do : Provided always, that no tenant or occupier of any property chargeable under Schedule (A.) of this Act shall be entitled to deduct or retain out of the rent thereof any greater sum than the amount of the duty which shall have been assessed and charged upon or in respect of such property, and actually paid by such tenant or occupier. By the Eevenue (No. 1) Act, 1864 27 & 28 Viet. 15. And whereas under and by virtue of the fortieth section of j ncom g tex ' the Act passed in the sixteenth and seventeenth years of her may be de- Majesty's reign, chapter thirty-four, persons liable to the payment r ^ c t) & c r t of rent, yearly interest, or any annuity or other annual payment the ra1 f or therein mentioned, are entitled and authorized on making such able during payment to deduct and retain thereout the amount of the rate of income tax which shall be payable at the time when such payment rent, &c., was i T accruing 1 . becomes due. Be it enacted, that the persons liable to and making any such payment as aforesaid shall be entitled and are hereby authorized to deduct and retain thereout the amount of the rate or a pro- portionate amount of the several rates of income tax which were chargeable by law upon or in respect of such rent, interest, annuity, or other annual payment, or the source thereof, during the period through which the same was accruing due, anything in the said recited Act to the contrary notwithstanding. So far as sect. 40 of the Income Tax Act, 1853, and sect. 15 of 27 Viet. c. 18, Deduction are concerned, we shall at present only consider how they apply in the case of duty on of rent, which alone of their contents comes under Schedule (A.). payment of rent. Rent. Rent= The term " rent" in sect. 40 has been said by Lord Esher, M.E., to mean Annual rent. " annual rent." Judgment of " ' Every person who shall be liable to the payment of any rent.' If that Lord Esher, stood alone, that might be rent for less than a year, but it is followed by ' or 1889, any yearly interest of money or any annuity or other annual payment.' Goslings and Sharpe v. Blake, I.. R. 23 Q. B. Div. 327; 58 L. J. Q. B. 446. 1809, Pocock v. Etistace, 2 Camp. 181 ; 1813, Baker v. Davis, 3 Camp. 473, Lord Ellen- borough. Swatman v. Ambler. The tenant may deduct, although the landlord is exempted. TincMer v. Prentice. The tenant may plead payment of tax. Baker v. Franklin v. Carter. Philips v. Beer. Proof of payment. Gabell v. Shevell. In the absence of a special agreement, the tenant must deduct the tax from the next pay- ment of rent. THE SCHEDULES. Dealing -with, this according to ordinary English idiomatic language, I think that the word ' other ' obliges us to say that an annual payment is an instance of the same kind as those that have gone before, so that what have gone before are in the nature of annual payments ; but besides these there are other annual payments which may be brought in. If that is so, ' any rent' becomes ' any annual rent.' " Goslings and Sharpe v. Slake. There seems no reason why the rent in the ninth rule should be confined to annual rent. Therefore cases may arise to which the ninth rule is applic- able ; but the other two sections are inapplicable. It seems, however, that this point is of little importance. Before the Act of 1853 was passed, it was held that the tax must have been actually paid by the tenant before he could deduct it from the rent. Thus the proviso at the end of sect. 40, which is the principal difference^between that section and the ninth rule, did not make any alteration in the law. There seems no other important difference. The following cases show that before the Act of 1853, the tax must have been actually paid by the tenant before he could deduct it from the rent. In Pocock v. Eustace, Lord Ellenborough said: "It is only on the production of a certificate of the tax being paid, that the landlord is bound to make the allowance ; " and in Baker v. Davis, he said : " It is only after payment that the deduction can be claimed." The Tenant may deduct the Tax although the Landlord is exempt. 1854. Swatman v. Ambler, 24 L. J. Ex. 184. A tenant has a right to deduct from his rent the amount of property tax assessed upon and paid by him in respect of his landlord, although the land- lord is not, in fact, liable to be assessed, and has before the payment claimed exemption, and that exemption has been subsequently allowed. In Actions the Tenant may plead payment of the Tax. 1812. Tinckler v. Prentice, 4 Taunt. 549. In an action for rent, the tenant may plead, as to part, that he has paid landlord's property tax to that amount, in respect of the rent due to the plaintiff claimed by the declaration, after he has in fact paid the tax. This was decided on 46 Geo. 3, c. 65. 1813. Baker v. Davis, 3 Camp. 473. In an action for use and occupation, where the tenant has paid the property tax before action brought, he has a right to deduct it at the trial. 1845. Franklin v. Carter, 1 C. B. 750; 14 L. J. C. P. 241. Landlord's property tax paid by the tenant under the Act may be set off or deducted in an action brought by the landlord for the recovery of rent. How the Payment is proved. 1815. Philips v. Beer, 4 Camp. 266. In an action for rent, to entitle the tenant to deduct the property tax, it is sufficient to prove the payments by calling the collector, without producing the assessment. 1813. Gabell v. Shevell, 5 Taunt. 81. The assessment, not the collector's receipt, is the criterion how much the tenant may deduct. If the Tenant omits to deduct the Income Tax from the next payment of Rent he cannot afterwards recover it. We are here assuming that there is no agreement in the lease with regard to the deduction of the tax. If a tenant agrees to pay his landlord a certain rent, less property tax, the power of the tenant to deduct the tax will depend on the terms of the agreement, provided his powers are not less than those given by the Act. If, however, there is no agreement between the landlord and the tenant as to the deduction of the tax, the latter must rely entirely on the Income Tax Acts for his power to deduct the tax. If the tenant fails to deduct the tax when permitted to do so by the Income Tax SCHEDULE (A.), NO, IV. Acts, lie cannot deduct it from the rent at any other time, and he cannot recover it back from the landlord because the Income Tax Acts give him no power to do so. It -will be seen that sect. 40 of the Act of 1853 does not state that the deduction must be made from the next payment of rent, but as Schedule (A.), No. IV., r. 9 is not repealed, it must be read with sect. 40 of the Act of 1853, and therefore this obligation on the tenant still exists. 1817. Denby v. Moore, I Barn. & Aid. 123. Denbyv. An occupier of lands having for twelve years paid the tax and the full rent ^ oore - as it became due to the landlord without claiming any deduction on account of the tax so paid : Held he could not recover from the landlord any part of the tax so paid. This was decided on 46 Geo. 3, c. 65, Sch. (A.), No. IV. 9, which is to the same effect as the present Act. See also 1819, Andrew v. Hancock, 1 Bro. & Andrew v. Bing. 37. Hancock. 1846. Gumming v. Bedborough, 15 M. & W. 438. Gumming v. Where a tenant pays property tax assessed on the premises, and omits to Bedborough. deduct it in his next payment of rent, he cannot afterwards recover the amount as money paid to the use of the landlord. This is the headnote to dimming v. Bedborough, but it is too express. The case might have been decided on other grounds, and was so, by Pollock, C. B., who abstained from giving any opinion, whether money paid, or money had and received, would lie to recover back the amount of the tax, if not deducted out of the next rent. Parke, B., however, said, " I am of opinion that the tenant, after he has paid the property tax, and omitted to deduct from the next rent, cannot sue the landlord for the amount." And Platt, B., said that neither money paid, nor money had and received, would lie to recover back the amount of the tax. Sect. 158 of the Income Tax Act, 1842, seems to have some bearing on 5 & 6 Viet. this point; it is as follows : c. 35, s. 158. Provided always, and be it enacted, that such of the said duties granted by this Act which may be detained or stopped and de- ducted out of the sums, in respect whereof they shall be charged or deducted, shall be respectively detained at such times in each year as the said sums shall be payable to the person entitled thereto. See also the analogous cases on deduction of income tax from interest, &c., post, p. 242. (The Revenue (No. 1) Act, 1864, seems only to affectthe rate of income tax which may be deducted, though a contrary opinion is expressed in "Wood-fall's Landlord and Tenant, 15th ed., p. 597.) But if the Landlord distrain for Rent and does not allow for the Tax, if the land- the Tenant can recover in respect of the Property Tax in an lord distrain action for money had and received. recover *" 1813. Graham v. Tate, 1 Maule & S. 609. Graham v. Where the tenant of premises, under a lease, and at a rent payable half Tate. yearly, agreed to pay all taxes, except the landlord's property tax, which the landlord agreed to allow, but afterwards distrained for half a year's rent, and sold to the whole amount, without allowing for the property tax which he knew the tenant had paid to the collector : Held that the tenant might recover, in respect of the property tax, in an action for money had and received against the landlord. But the Tenant must not delay in bringing his claim. But the 1820. Sprayg v. Hammond, 2 Bro. & Bing. 59. In 1814, a distress was made on a tenant for the whole of the rent due Svraqq v from him, and a deduction for land tax was refused, the lease being silent Hammond. 142 THE SCHEDULES. The tenants' assignee stands in his Clennell v. Read. Charge of occupation. 16 & 17 Viet. c. 36, s. 35. Tenants of lands who are called upon to pay arrears due from former occupiers may deduct the amount from their rent. 6 & 6 Viet, c. 35, s. 60, No. IV. Landlords as to the land tax ; the tenant, having protested against his liability, paid, during five succeeding years, the land tax, without renewing in any sort the objection of his non-liability to pay. Held, that in 1820 he could not recover, in an action for money paid to the defendant's use, any of the sums so paid for land tax. (This is a land tax case, but the principle is the same.) The Tenant's Assignee stands in the Shoes of the Tenant. 1816. Clennell v. Bead, 7 Taunt. 50. Where the assignee of a term gave up at Michaelmas to a second assignee the occupation of a house, and afterwards paid three quarters of a year's landlord's property tax due at Michaelmas, and handed over the receipt to the succeeding occupier, it was held that the succeeding occupier, paying two quarters of a year's rent accruing at the following Christmas, might tender in part of his rent the receipt for property tax given to the former occupier, and might plead it as a payment made by himself. See also as to " Charge of Occupation," No. IX., r. 3, applying to Sche- dules (A.) and (B.), post, p. 156. As to the power of commissioners to settle differences between landlord and tenant and other persons respecting deductions to be made on account of duties, see the Income Tax Act, 1842, sect. 160, post, p. 296. By the Income Tax Act, 1853 35. Where any occupier for the time being of any lands, tene- ments, or hereditaments, being tenant thereof, shall be called upon and required to pay, and shall have paid, any sum or sums assessed upon or in respect of such lands, tenements, or hereditaments under the said Schedule (A.) of this Act, and which said sum or sums, or any portion thereof, ought, under the rules for charging the duties under the said schedule, to have been paid or to be paid by any former tenant or occupier of the same lands, tenements, or heredita- ments, or his executors or administrators, it shall be lawful for the said occupier for the time being to deduct and retain, from and out of any subsequent payment of rent to his landlord, the said sum or sums of money, or any portion thereof, which ought to have been or to be paid by such former tenant or occupier, or his executors or administrators as aforesaid : Provided that nothing in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, or in this Act contained shall extend to authorize the levying upon any such occupier for the time being any arrear of duty assessed under Schedule (A.) or Schedule (B.) of this Act which ought to have been levied upon and ultimately paid and borne by any former occupier of the same lands, tenements or hereditaments; and provided also, that nothing herein contained shall be deemed or construed to alter, prejudice, or affect any remedy given by the said rules for the recovering and levying of any such sum or sums, or any portion thereof, from or upon such former tenant or occupier, or his executors or administrators. The Income Tax Act, 1842 Tenth. Where any such lands, tenements, or hereditaments, are SCHEDULE (A.), No. IV. 143 subject or liable to the payment of any rent-charge, whether may recover under the Act passed for the commutation of tithes, or other- having in- 8 wise, or any annuity, fee-farm rent, rent service, quit rent, feu j^F 68 * at the duty, teind duty, stipends to licensed curates, or other rent or annual payment thereupon reserved or charged, the landlord, owner, or proprietor by whom any deduction shall have been allowed as aforesaid, and the owner or proprietor being also occupier and charged to the said duties, shall deduct and retain out of every such rentcharge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, stipend, or other rent or annual payment aforesaid, so much of the said duties or payments on account of the same, (the just proportion of the sums allowed by the Commissioners in the cases authorized by this Act being first deducted,) as a like rate of sevenpence for every twenty shillings on such rentcharge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, or stipend, or other rent or annual payment aforesaid, respectively, shall by a just proportion amount unto ; and the receivers of her Majesty, and all persons who shall be any ways entitled unto such rents, duties, stipends, or annual payments, their receivers, deputies, or agents, are hereby required to allow such deduc- tion, upon the receipt of the residue of such moneys as shall be due and payable for such rents, duties, or annual payments, without any fee or charge for such allowance, and under the penalty herein contained ; and the landlord, owner, proprietor, and occupier respectively, being charged as aforesaid, or having allowed such deduction, shall be acquitted and discharged of so much money as if the same had actually been paid unto such person to whom such rentcharge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, stipend, or other rent or annual payment aforesaid, shall have been due and payable : Fee-farm Rent. One issuing out of an estate in fee, of at least one-fourth of the value of the lands, at the time of its reservation. . Rent Sen-ice. So called because it has some corporeal service incident to it, as, at the least, fealty. Quit Rent. The fixed rents of freeholders, and ancient copyholders of a manor, which cannot be departed from. Feu Duty. In Scotland where the vassal in place of military service makes a return in money which is called feu duty. 1889. Macgregor v. Inland Revenue, 16 Sc. Sess. Cas. 4th Series, 438 ; 26 Sc. Macgregor L. E. 334 ; 2 Tax Cas. 435. T; Inland Revenue. A singular successor paid to the superior for his entry a casualty of a year's rent of the lands, without deduction of income tax. The Crown, after receiving payment from the superior of income tax on the casualty, assessed the vassal for income tax on the rent. The vassal objected to the assessment, on the grounds (1) that the superior had received the whole rent for the year, 144 THE SCHEDULES. Mortgagees in possession liable. Owner dying, how the duty is to be paid. Houses divided into distinct properties. and (2) that a casualty was of the same nature as a feu duty, for which deduction was allowed. The Court sustained the assessment. Eleventh. Where any mortgagee or creditor in any heritable bond or wadset shall be in the possession of the lands, tene- ments, hereditaments, or heritages mortgaged or secured, such mortgagee or creditor shall be chargeable as occupier when in the actual occupation of the same, and when not in the actual occupation of the same shall be liable to such deduction as any other landlord would be ; and upon the settlement of accounts between such mortgagee or other creditor as aforesaid, and the mortgagor or debtor, the duty payable in respect of the amount of the interest payable upon such mortgage or other debt as aforesaid shall be taken and allowed as so much money received by such mortgagee or other creditor as aforesaid on account of such interest : Twelfth. Where any lands, tenements, hereditaments, or heri- tages shall be occupied by the owner at the time the assessment shall be made, who shall die before payment of the duty, the heirs, executors, administrators or assigns, or other person who on such death may become entitled to the rents and profits thereof, shall be liable to the payment of all arrears of the said duty due at the time of such death, and to all subsequent instalments for that year, according to their respective interests, without any new assessment : Thirteenth. Where any house shall be divided into distinct pro- perties, and occupied by distinct owners or their respective tenants, such properties shall be charged distinct on the respective occupiers. 16 & 17 Viet. By the Income Tax Act, 1853 Houses let ' 36. Any house or building let in different apartments or tene- in several ments and occupied by two or more persons severally shall never- be charged on theless be charged to the duty under this Act as one entire house landlords. or tenement, and the assessment thereof shall be made on the land- lord ; but in default of payment by him the duty so charged and assessed may be levied on the occupier or occupiers respectively, and being paid by them or one of them shall be deducted and allowed out of the next or any subsequent payment on account of rent. 6 & 6 Viet. c. 35, s. 60, No. IV. Deductions not to be allowed, unless autho- The Income Tax Act, 1842 Fourteenth. No deduction from the estimate or assessment on any lands, tenements, hereditaments, or heritages shall be allowed in any case not authorized by this Act, nor unless an SCHEDULE (A.) No. IV. 145 account in writing signed by the occupier thereof, or by the rlzed by the party claiming such deduction, stating the nature and amount account thereof, shall have been delivered to the assessor within the ^ ere f de- time and pursuant to the notice delivered by such assessor; assessor. and if any such deduction shall be made or allowed contrary to this Act, or without such account in writing as aforesaid, it shall be lawful for the surveyor or inspector to surcharge the assessment, and to charge therein a sum equal to the amount of duty by which the assessment shall have been diminished on occasion of such deduction, which surcharge shall not be annulled or vacated under any pretence whatever, but shall stand part of the assessment. The Finance Act, 1894 57 & 58 Viet. 35. In respect of the income tax hereby imposed under Relief iii Schedule (A.), where the tax is charged upon annual value esti- Aspect of mated otherwise than by relation to profits, the following pro- tax under visions shall have effect : f&t vLt A (a) In the case of an assessment on lands inclusive of the c. 35. farmhouse and other buildings (if any), the amount of the assessment shall, for the purposes of collection, be reduced by a sum equal to one-eighth part thereof ; and (b) In the case of an assessment upon any house or building (except a farmhouse or building included with lands in assessment), the amount of the assessment shall, for the purposes of collection, be reduced (i.) Where the owner is occupier or assessable as land- lord, or where a tenant is occupier and the landlord undertook to bear the cost of repairs, by a sum equal to one-sixth part of that amount ; and (ii.) Where a tenant is occupier and undertook to bear the cost of repairs, by such a sum not exceeding one-sixth part of that amount, as may be neces- sary to reduce it to the amount of rent payable by him. (o) As between the owner and a mortgagee of his property, or any person having a charge thereon or entitled to any ground-rent, rentcharge, annuity, or other annual sum payable thereout, the owner's right of deduction under the Income Tax Acts in respect of income tax shall be in no wise prejudiced or affected by the relief afforded by this section, (d) Where the amount of the assessment in the case of lands R. L 146 THE SCHEDULES. 5 & 6 Viet, c. 35, s. 60. Deductions. Tenths, &c. Procurations, &c. Repairs of chancels. 16 & 17 Viet. c. 34, s. 34. As to deduc- tions for the repairs of collegiate churches and chapels, chancels, &c. 5 & 6 Viet. c. 35, s. 60. Parochial rates on rent -charge for tithes. (inclusive of the farmhouse and other buildings) is more than one- eighth, and in the case of any house or building (except a farmhouse or building included with lands in assessment) is more than one-sixth, below the rent, after deducting from such rent any outgoing which should by law be deducted in making the assessment, this section shall not apply. SCHEDULE (A.), No. Y. The Income Tax Act, 1842 No. 5. Particular Deductions and Allowances in respect of the Duties under Schedule (A.}. First. For the amount of the tenths and first fruits, duties, and fees on presentations paid by any ecclesiastical person within the year preceding that in which the assessment shall be made : Second. For procurations and synodals paid by ecclesiastical persons on an average of seven years preceding that in which the assessment shall be made : Third. For repairs of collegiate churches and chapels, and chancels of churches or of any college or hall in any of the universities of the United Kingdom, by any ecclesiastical or collegiate body, rector, vicar, or other person bound to repair the same, on an average of twenty-one years preceding as aforesaid, or as nearly thereto as can be produced. The Income Tax Act, 1853 34. Provided also, that the deduction allowed under Sche- dule (A.), No. Y., of the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, for the repairs of collegiate churches and chapels and chancels of churches, or of any college or hall in any of the universities, by any ecclesiastical or collegiate body, rector, vicar, or other person bound to repair the same, shall, in respect of the duties under Schedule (A.) of this Act, be the amount of the sum so expended in the year preceding that in which the assessment is made, instead of an average of twenty-one years, as in the said Schedule (A.), No. Y., is mentioned. The Income Tax Act, 1842 Fourth. For the parochial rates, taxes, and assessments charged upon or in respect of any rentcharge confirmed under the Act passed for the commutation of tithes, on the amount paid in the year in which the assessment shall be made : SCHEDULE (A.) No. V. 147 Fifth. For the amount of the land tax charged on lands, tene- Land tax. ments, hereditaments, or heritages under the said Act passed in the thirty-eighth year of the reign of King Greorge the third, where the charge thereon shall not have been redeemed : Sixth. For the amount charged on lands, tenements, heredita- Drainage, &c. ments, or heritages by a public rate or assessment in respect of draining, fencing, or embanking the same : In all which cases there shall be allowed (unless such pay- Rate of ments or any part thereof, shall be made by a tenant,) such sum of money as a like rate of sevenpence for every twenty shillings of the sums paid would by a just proportion amount unto; and the sum so allowed shall be deducted from the assessment to be made on the property charged with such payments, except in the cases hereinafter otherwise provided for ; (that is to say,) Provided always, that the allowances to be granted in pur- Allowances to suance of the first, second, or third case may be granted to the bodies, &c., ecclesiastical or collegiate body, rector, vicar, or other person aforesaid liable to the charges therein mentioned, in one sum, either by deducting the same from the assessment upon him (if any), or by certificate ; provided that no abatement or deduction shall be made from any assessment for the allow- ances granted in pursuance of any of the cases mentioned in this Rule in respect of any such charges or payments as afore- said, payable out of any rentcharge confirmed under the Act passed for the commutation of tithes, but such allowances shall be granted by certificate in the manner hereinafter directed. The Income Tax Act, 1853 16 & *? Vict - c. 34, s. 37. 37. In charging the duty under Schedule (A.) of this Act in Deduction to respect of lands, an allowance and deduction shall be made for ^nder^dfe- the amount expended by the landlord or owner thereof on an duie (A.) for , * , . , , , . the expenses average of the twenty- one preceding years in the making or O f making repairing of sea walls or other embankments necessary for the g^^uTjmf preservation or protection of such lands against the encroachment embank - or overflowing of the sea or any tidal river, although the sums m expended may not have been charged on such lands by any public rate or assessment. 1888. Hesketh v. Bray, L. E. 21 Q. B. D. 444 ; 57 L. J. Q. B. 633. Hesketh v. Prior to 1880 the appellant was owner of salt marshes adjoining a tidal -"ray. river, and liable to be flooded at every tide. In 1880 he expended a large sum in making an embankment so that the tidal water was excluded, and the marshes became valuable enclosed land yielding a large income. Held, that such sum was not expended within the meaning of sect. 37 t 148 THE SCHEDULES. 16 & 17 Viet. o. 34, s. 38. Duties on tolls called customs levied in burghs in Scotland and expended for public pur- poses to be repaid. 5 & 6 Viet. c. 35, s. 61. Mode of proceeding in order to the payment of certain allowances granted under No. V., Schedule (A.) because that section did not apply to sums expended in order to increase the capital value of the land to the owner by altering its condition, and therefore that the appellant was not entitled to any deduction from income tax in respect thereof. The Income Tax Act, 1853 38. Where in any burgh in Scotland tolls commonly known by the name of customs are levied under the authority of any Act of Parliament or charter, and are applied and expended in such burgh in or towards defraying the expenses of paving, lighting, or cleansing the same, or of the police thereof, or in or towards dis- charging any other similar public burdens, the duty which may have been assessed and paid under this Act upon or in respect of such tolls shall, so far as regards so much of the said tolls as shall have been so expended as aforesaid, on due proof of all the neces- sary facts to the satisfaction of the Commissioners for Special Purposes, be allowed and repaid under an order of the said Com- missioners, in like manner as in other cases where duties are allowed and repaid under the provisions in that behalf contained in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five. The Income Tax Act, 1842 61. And be it enacted, that the person entitled to any of the allowances mentioned in the next preceding Rule, which are directed or authorized to be made by certificate, and which shall not have been made by deduction or abatement from the assess- ment, shall claim such allowance at any time after the expiration of the year of assessment, before the Commissioners for General Purposes of the district in which the property charged with the payments and charges mentioned in the said Rule shall be situate ; and the said Commissioners, upon due proof before them that the claimant is entitled to such allowance, shall certify the par- ticulars and amount thereof to the Commissioners for Special Purposes at the Head Office of Inland Revenue in England, and thereupon the said last-mentioned Commissioners shall grant an order for the payment of such allowance, directed to the Receiver- General of Inland Revenue, or to an officer for receipt or collector of the duties granted by this Act, or to a distributor or sub- distributor of stamps, as may be most convenient for the party entitled to such allowance, and such receiver-general or officer as aforesaid is hereby required, on production and delivery to him of such order, to pay the amount of such allowance to the party entitled thereto out of any money in the hands of such receiver- general or officer arising from any duties placed under the manage- SCHEDULE (A.) A/0. VI. 149 merit of the Commissioners of Inland Revenue, taking the receipt of the party entitled to such allowance for the same, by indorsement on such order. The Income Tax Act, 1853 16 & 17 Viet. c 34 s 42 42. And whereas under certain Acts of Parliament advances of Deduction of public money to promote the improvement of lands have been duty to be made by way of loan, and in Ireland under an Act passed in the payment^ tenth year of her Majesty, chapter ten, and any Acts amending rent-charges the same, and under an Act passed in the fifth and sixth years of Drainage her Majesty, chapter eighty-nine, for river drainage, and any Acts ActsT" amending the same, and the repayment thereof has been secured by a rentcharge upon such lands to be paid for a term limited by the said Acts respectively, and by which the principal sums advanced will eventually be repaid with interest thereon, and it is just that provision should be made for deducting and allowing the duty charged by this Act in proportion to such interest on the payment of such rentcharge : It shall be lawful for any person paying any such rentcharge from time to time to deduct and retain thereout in respect of the duty chargeable under this Act one third part of the sum which the rate of such duty computed on such rentcharge will amount to and no more, and the collectors and receivers of such rentcharges are hereby required to allow such deduction upon receipt of the residue of such rentcharge then due. SCHEDULE (A.), No. VI. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 61. No. VI. Allowances to be made in respect of the said Duties in Schedule (A.). For the duties charged on any college or hall in any of the Allowances universities of the United Kingdom, in respect of the public anVhaUsIn buildings and offices belonging to such college or hall, and universities; not occupied by any individual member thereof, or by any person paying rent for the same, and for the repairs of the public buildings and offices of such college or hall, and the gardens, walks, and grounds for recreation repaired and maintained by the funds of such college or hall : Or on any hospital, public school, or almshouse, in respect of hospitals, the public buildings, offices, and premises belonging to such schools, hospital, public school, or almshouse, and not occupied by any almshouses. individual officer or the master thereof, whose whole income, however arising, estimated according to the rules and direc- tions of this Act, shall amount to or exceed one hundred and 150 THE SCHEDULES. Rents of lands belonging to hospitals, public schools, and almshouses, or vested in trustees for charitable purposes. 52 & 53 Viet. c. 42, s. 12. Allowance of income tax Schedule (A.) to friendly societies. fifty pounds per annum, or by any person paying rent for the Earne, and for the repairs of such hospital, public school, or almshouse, and offices belonging thereto, and of the gardens, walks, and grounds for the sustenance or recreation of the hospitallers, scholars, and almsmen, repaired and maintained by the funds of such hospital, school, or almshouse, or on any building the property of any literary or scientific institution, used solely for the purposes of such institution, and in which no payment is made or demanded for any instruction there afforded, by lectures or otherwise; provided also, that the said building be not occupied by any officer of such institution, nor by any person paying rent for the same : The said allowances to be granted by the Commissioners for General Purposes in their respective districts : Or on the rents and profits of lands, tenements, hereditaments, or heritages belonging to any hospital, public school, or aims- house, or vested in trustees for charitable purposes, so far as the same are applied to charitable purposes : The said last-mentioned allowances to be granted on proof before the Commissioners for Special Purposes of the due application of the said rents and profits to charitable purposes only, and in so far as the same shall be applied to charitable purposes only : The said last-mentioned allowances to be claimed and proved by any steward, agent, or factor acting for such school, hospital, or almshouse, or other trust for charitable purposes, or by any trustee of the same, by affidavit to be taken before any Commissioner for executing this Act in the district where such person shall reside, stating the amount of the duties chargeable, and the application thereof, and to be carried into effect by the Commissioners for Special Purposes, and accord- ing to the powers vested in such Commissioners, without vacating, altering, or impeaching the assessments on or in respect of such properties ; which assessments shall be in force and levied notwithstanding such allowances. By the Kevemie Act, 1889 12. Any friendly society which is legally established under any Act of Parliament relating to friendly societies, and which does not assure or grant to any individual any sum or annuity to an amount which would debar that society from the benefit of the exemption granted to friendly societies by the Act of the session held in the 5 & 6 Yict. c. 35, in respect of the stocks, dividends, and interest chargeable under Schedule (C.) of the said Act shall, SCHEDULE (A.) No. VI. 151 in addition to any exemption from income tax which the society may by law enjoy, be entitled to the like allowances in respect of any charge under Schedule (A.) to be made on the lands, tenements, hereditaments, or heritages belonging to the society as are granted to colleges and other properties mentioned in No. VI. of that Schedule in sect. 61 of the said Act. The sum must not exceed 200?. nor the annuity 301, : see Schedule (0.). The Trade Union (Provident Funds) Act, 1893 56 Viet. c. 14, 1. A trade union duly registered under the Trade Union Acts, p ro via e nt 1871 and 1876, shall be entitled to exemption from income tax funds of trade chargeable under Schedules (A.), (0.), and (D.) of any Acts for exempt from granting duties of income tax in respect of the interest and divi- ^ comQ tax - dends of the trade union applicable and applied solely for the purpose of provident benefits. Provided always, that the exemption shall not extend to any trade union by the rules of which the amount assured to any member, or person nominated by or claiming under him, shall exceed the total sum of two hundred pounds, or the amount of any annuity granted to any member, or person nominated by him, shall exceed the sum of thirty pounds per annum. 2. The exemption shall be claimed and allowed in the same 56 Viet. c. 14, manner as is prescribed by law in the case of income applicable !' 2> r J A v -A vi Mode of and applied to charitable purposes. claiming exemption. 3. In this Act the expression " provident benefits " means and 55 vict. c. 14, includes any payment made to a member during sickness or in- s - 3 - capacity from personal injury, or while out of work ; or to an aged O f provident 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 the wife of a member, or as a provision for the children of the deceased member, where the payment in respect whereof exemption is claimed is a payment expressly authorized by the registered rules of the trade union claiming the exemption. "Hospital, public school, or almshouse," meaning of. "I agree entirely with the observations of Denman, J., in the Court Meaning of below, where he says, ' the intention seems to have been to exempt not hospital, pub- merely institutions which were purely charitable, but institutions ejusdem lie school, or generis with the colleges and halls which form the first class of property almshouse. exempted. There can be no doubt that the colleges and halls of the uni- Judgment of yersities are not institutions wholly supported by charity. I think it is Fry, L.J., clear that the legislature did not intend the exemption to be in favour only in 188 7, Slake of schools wholly supported by charity. The enactment seems to have been v - Mayor, $c. drawn with a mixed intention, viz., to exempt charitable institutions, and to y 2JJ f exempt certain institutions partly depending on charity, perhaps in view of 19 QJJ fjiv' the beneficial character of the objects of those institutions' " : Fry, L. J., gl 56 L J ' in Blake v. Mayor, &c. of City of London. Q 5 424'. 152 THE SCHEDULES. Judgment of Huddlestone and Charles, JJ., in 1888, Needham v. Sowers, L. R. 21 Q. B. D. 442. " The Act must be restricted to hospitals supported wholly or in part by charity, and it does not apply to a hospital which is self-supporting, and which, indeed, has a large annual surplus derived from the payments made by patients. . . . We do not think the fact that in its origin the institu- tion was founded by voluntary charitable donations is sufficient to constitute it an institution partly maintained by charity. It was started by charity, but is maintained wholly out of payments made by those who use it" : Huddlestone, B., and Charles, J., in Needham y. Sowers. CASES. Slake v. Mayor, $c. of the City of London. Needham v. Sowers. Cawse v. Committee of Nottingham Lunatic Hospital. Distinction between the above case and Needham v. Sowers. Judgment of Charles, J. Inland Revenue v. Royal College of Surgeons, Edinburgh. The following are the cases in order of date : 1887. Slake v. Mayor and Citizens of the City of London, L. E. 18 Q. B. D. 437 ; L. E. 19 Q. B. D. 79; 56 L. J. Q. B. 424. The application of Eule 6 is not limited to public schools maintained wholly by charity, but the rule applies to a public school maintained partly by charitable endowments and partly by fees charged for instruction. 1888. Needham v. Sowers, L. E. 21 Q. B. D. 436. An institution for the reception of insane persons was founded by charit- able donations, but unendowed. It was vested in trustees and managed gratuitously by a committee, and supported wholly out of payments made by the patients, of whom some paid more, some less, than the cost of their maintenance, and a few were maintained gratuitously. After paying ex- penses there was an annual surplus of profits which was expended in enlarging and improving the institution. Held, that the institution being wholly self-supporting was not exempt as a "hospital" within the meaning of either 5 & 6 Viet. c. 35, s. 61, r. 6, which must be restricted to hospitals maintained wholly or in part by charity. 1891. Cawse v. the Committee of the Nottingham Lunatic Hospital, L. E. (1891) 1 Q. B. 585; 60 L. J. Q. B. 485. An institution for the reception of insane persons was founded by charit- able contributions ; it was partly and substantially supported by funds derived from charitable sources, having an endowment fund, and a small portion of its income being derived from subscriptions. It was vested in trustees and managed gratuitously by a committee. During the year previous to that for which the assessment was made, the income derived from the payments made by patients and from the sale of produce on a farm belonging to the institution, without taking into account the income arising from the endowment fund and the annual subscriptions, exceeded the total expenditure. Held, that the institution was not wholly self-supporting merely because the income derived from the payments of patients and the sale of produce had in a particular year exceeded the expenditure, but was a hospital main- tained in part by charity, and was therefore exempt from landlord's property tax as being a hospital within the meaning of 5 & 6 Viet. c. 35, s. 61, r. 6. ' ' The question is, what is the character of the institution itself ? And the character of this institution differs from the character of the institution which was under consideration in the case of Needham v. Sowers in this respect, that whereas in Needham v. Bowers the institution was maintained wholly out of the payments by patients, and had no charitable endowment what- ever, in this case there is a substantial charitable endowment which amounts to many hundreds a year." Charles, J. Literary or Scientific Institution. 1892. Inland Revenue v. Royal College of Surgeons of Edinburgh, 19 Scot. Sess. Cas. 4th Series, 751 ; 29 Sc. L. E, 620. The hall, library, and museum of the Eoyal College of Surgeons of Edin- burgh is not exempt on the ground of the college being a literary or scientific institution because the main objects of the institution are professional. SCHEPULE (A.) No. VI. 153 1892. Andrews (Surveyor of Taxes) v. Mayor, &c. of Bristol, 67 L. T. 618 ; Andrews 61 L. J, Q. B. 715. (Surveyor of Free libraries, established by corporations or commissioners under the " xes v - Free Libraries Acts, 1855 and 1866 (18 & 19 Viet. c. 70, and 29 & 30 Viet. ofr?stS' c. 1 14), are not within the class of institutions entitled to exemption from duty under Schedule (A."), sect. 61, Eule 6. Kents and Profits of Lands, &c. 1893. Purveyor of Taxes v. General Trustees of Free Church of Scotland, Surveyor of 20 Scot. Sess. Cas., 4th Series, 759 ; 30 Sc. L. E. 660. Taxes v. The general trustees of the Free Church of Scotland having been assessed for income tax on the annual value of their Assembly Hall under the general 4* % s f , rule of Schedule (A.), claimed exemption in respect of this branch of Eule 6 -fo~ t r--i of sect. 61, Schedule fA.). It appeared that the Assembly Hall was used for church purposes, and was unlet and yielded no rents or profits. Held, that the part of Eule 6 founded on had no application to the case, as the Assembly Hall yielded no rents or profits. " Charitable Purposes "Meaning of. Charitable These words have a technical meaning as well as their ordinary meaning, purposes. and in interpreting the statute there has been considerable doubt which Ordinary and meaning should be employed. The technical meaning arose in the Court of technical Chancery, which gave to the words "charitable purposes" the meaning meaning. attached thereto in the Statute of Charitable Uses, 43 Eliz. c. 4, which meaning is much wider than the ordinary meaning. The Act of 43 Eliz. c. 4 does not extend to Scotland and Ireland, but the technical meaning attached to the words "charitable purposes" has been noticed in these countries, more particularly in the latter, though to what extent is a question of argument. The question arose in the case of Commissioners for Special Purposes of Income Tax v. Pemsel, as to whether the wide technical meaning should be applied in construing the Income Tax Act, 1842, and the House of Lords decided in the affirmative. The Commissioner s for Special Purposes of the Income Taxv. Pemsel, L. E. (1891) The Commis- A. C. 531 ; 61 L. J. Q. B. 265. tionertfor Lands in England were conveyed by deed in 1813 to trustees upon trust, J'^et'of the' after payment of costs and outgoings, to apply two-fourths of the rents and j ncome fax profits for the general purposes of maintaining, supporting and advancing y p emse i, the missionary establishments among heathen nations of the Protestant Episcopal Church, commonly known as the Moravian Church. Held, that the words " charitable purposes " in the Act were not restricted to the meaning of relief from poverty, but must be construed according to the legal and technical meaning given to those words by English law and by legislation applicable to Scotland and Ireland as well as England, and that the allowance ought to be granted. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 62. 62. And be it enacted, that where any allowance mentioned in Special Corn- Number YI. of the said Schedule (A.) shall be granted by the ^ l r s t j oners Commissioners for Special Purposes, under the authority of this allowances Act, they shall give a certificate thereof, together with an order ^^erNo VI for payment of the same, directed to the Receiver- General of Schedule (A.), Inland Eevenue, or to an officer for receipt or collector of the payment duties granted by this Act, or to a distributor or sub-distributor of thereof > stamps in the manner herein provided with respect to allowances to be granted under Number Y. of the said Schedule, and such allowance shall in like manner be paid to the party entitled thereto. THE SCHEDULES. 5 & 6 Viet. The' Income Tax Act, 1842 c. 35, s. 63. Duties in 63. And be it enacted, that the duties hereby granted, contained Schedule (B.) j n the Schedule marked (B.), shall be assessed and charged under and .Rules . . deemed part the following rules, which rules shall be deemed and construed to be a part of this Act, and to refer to the said last-mentioned duties as if the same had been inserted under a special enactment. of the Act. 16 & 17 Viet, c. 34. 57 & 58 Viet. c. 30, s. 37. 50 & 51 Viet, c. 15, s. 18. Farmers may elect to be 5 & 6 Viet. c. 35, s. 63. To be charged in addition to Schedule (A.) Schedule (B.). The Income Tax Act, 1853 For and in respect of the occupation of all such lands, tenements and hereditaments, and heritages as aforesaid, and to be charged for every twenty shillings of the annual value thereof. " Heritage" is a technical Scotch word. Fry, L.J., in 1888, R. v. Com- missioners of Income Tax, L. E. 22 Q. B. Div. 296. We shall now give the rules for assessing and charging the duties under Schedule (B.). It will be observed, as in Schedule (A.), that the duties are charged on the annual value. The rules will explain how the annual value is to be determined. In determining the annual value for any particular year, the Income Tax Act for that year sometimes allows us to use the annual value arrived at for the preceding year ; e.g., The Finance Act, 1894, s. 37. See ante, p. 121. The Customs and Inland Eevenue Act, 1887 18. It shall be lawful for any person occupying lands for the purposes of husbandry only to elect to be assessed to the duties of income tax chargeable 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 and 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 section. The Income Tax Act, 1842 No. YII. Rules for assessing and charging the Properties under Schedule (B.}. The duties last before mentioned shall be charged in addition to the duties to be charged under Schedule (A.) on all the pro- perties in this Act directed to be charged to the said duties, SCHEDULE (B.) No. VII. 155 according to the general rule in Number I. Schedule (A.) on the same before mentioned, on the full amount of the annual value SSpffor' thereof estimated as by this Act is directed (except a dwell- dweliing- . ... . nouses dis- mg-house, and the domestic offices thereunto belonging, and tinct from which dwelling-house and offices shall not be occupied, by fo^bundhLs virtue of one and the same demise, with a farm of lands for occupied for the purpose of farming such lands, or with a farm of tithes for professions. the purpose of farming the same ; and except warehouses or On f/jf htl1 other buildings occupied for the purpose of carrying on a ducted from trade or profession) ; provided that in all cases where lands free^nds^n" are subject to a rentcharge in lieu of tithes, under the Act England. passed for the commutation of tithes, and in all other cases where lands in England are not subject to tithes, or to any modus or composition real in lieu thereof, there shall be deducted out of the duties contained in this Schedule a sum not exceeding one eighth part thereof ; and in all cases where such lands are subject to a modus or composition real, and not subject to any tithes, there shall be deducted out of such duties so much thereof as, together with the like rate on such modus or composition real, shall not exceed one eighth part of such duties as aforesaid ; and in all cases where such lands are subject to a modus or composition real in lieu of certain specific tithes, and also are subject to certain other specific tithes, or where such lands are free of 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 this Schedule, 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, as in cases of tithe-free lands : Provided also, Lessees and that any person being lessee and occupier of tithes or teinds taken in kind, or being: the occupier of the lands from twopence for Gvcrv whence such tithes or teinds shall arise, and compounding for twenty the same, shall be charged in respect of the occupation at the 8hmin 8 - rate of twopence for every twenty shillings of the annual value thereof, estimated as aforesaid : Provided also, that the several properties hereinafter described in Number VIII. shall be assessed and charged in manner therein mentioned. 1876. Middletonv. Lord Advocate, 3 Scotch Sess. Gas., 4th Series, 599; 13 Middletomr. Sc. L. E. 378 ; 1 Tax Cas. 109. Lord Advocate. The lessee of a deer forest is liable to be assessed under Schedule (B.) in respect of occupying, to the extent of the rent actually paid, and not merely to the extent of the rent which the land would yield if let for pastoral or agricultural purposes. 156 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 63. Nurseries, market gardens, and hop grounds. 16 & 17 Viet. c. 34, s. 39. under Sche- dule (B.) as other lands. The Income Tax Act, 1842 No. VIII. Rules for estimating the Properties hereinafter next mentioned under Schedule (J?.). The profits arising from lands occupied as nurseries or gardens for the sale of the produce, and lands occupied for the growth of hops, shall be estimated according to the rules contained in Schedule (D.), and the duty shall be charged at the rate con- tained in the said Schedule ; and when the said duty shall have been so ascertained, the same shall be charged under Schedule (B.) as profits arising from the occupation of lands, except where the lands so occupied for the growth of hops shall be part of a farm held under one demise, or by the same person as owner, and shall not exceed one tenth part of such farm, in which case the duty thereon under this Schedule shall be charged together in one sum as for a farm by the said general rule in Schedule (A.) mentioned. The Income Tax Act, 1853 39. Provided also, that notwithstanding anything in the said to be charged Act of the fifth and sixth years of her Majesty, chapter thirty-five, contained, all lands occupied for the growth of hops shall be charged to the duties under Schedule (B.) of this Act according to the general rules contained in Schedule (B.) of the said first- mentioned Act, and not by estimating the profits of such lands according to the rules contained in Schedule (D.) of the said Act. 5 & 6 Viet, c. 35, s. 63. To be paid by the occupier. Who shall be deemed occupiers. Assessments to be leYied on the occupier. How paid on SCHEDULES (A.) AND (B.), No. IX. The Income Tax Act, 1842 No. IX. Rules for charging the said Duties under Schedules (A.) and (.}. First. The said duties, except where other provisions are made as aforesaid for estimating particular properties, shall be estimated according to the general rule contained in Sche- dule (A.), and shall be charged on and paid by the occupier for the time being, his executors, administrators, and assigns : Second. Every person having the use of any lands or tenements shall be taken and considered, for the purposes of this Act, as the occupier of such lands or tenements : Third. The said several duties shall on each assessment thereof be levied on the occupier for the time being without any new assessment, notwithstanding any change in the occupation thereof : Provided that every tenant on quitting the occupa- SCHEDULES (A.) AND (B.) No. X. 157 tion shall be liable for the arrears at the time of so quitting, change of and for such further portion of time as shall then have elapsed, to be settled and levied by the respective Commissioners, and repaid to the occupier by whom the same shall have been paid ; and the executors or administrators of any tenant who shall die before the payment of such assessment shall be liable in like manner as the testator or intestate would have been if living : Provided also, that every tenant quitting before the time of making the assessment shall be liable for such portion of the year as shall have elapsed at the time of his so quitting, to be adjusted and settled by the respective Commissioners. SCHEDULES (A.) AND (B.). No. X. The Income Tax Act, 1842 5 & 6 Viet. No. X. Rules for estimating the Annual Value of Properties before described in Schedules (A.) and (B.) or either of them. First. Where any landlord shall be subject to any covenant or Tenant's agreement to pay or satisfy, out of the rent reserved on any ^^s paid lands or tenements, any parochial rates, taxes, or assessments by landlord which by law are a charge on the occupier, or any compo- ducted from sition for tithes ; or where any rector, vicar, or other person the renfc - entitled to any rent or other annual payment to be made in lieu of tithes, (except a rentcharge confirmed under the Act passed for the commutation of tithes,) or any composition for tithes, shall pay or satisfy out of the amount thereof any such parochial rates, taxes, or assessments charged on such tithes, rent, composition, or other annual payment aforesaid, then and in every such case the annual value shall be estimated for the purposes of this Act exclusive of such rates, taxes, or assessments, and of such composition for tithes, to be computed on the amount thereof bond fide paid by such landlord or other person aforesaid in and for the year preceding the year of assessment ; or where the owner shall be also occupier of such lands or tenements, and shall have paid any parochial rates, taxes, or assessments charged on the same, or any com- position for tithes thereon, then the said annual value shall be also estimated exclusive of such rates, taxes, and assessments and composition for tithes, to be computed in like manner as aforesaid. An Act to grant relief in assessing the income tax on lands in Scotland in 19 & 20 Viet, respect of certain public burdens charged thereon. c. 80, s. 1. 1. Where it shall be made to appear to the satisfaction of the Relief from Commissioners of Inland Revenue that the landlord of lands in * 158 THE SCHEDULES. Scotland in Scotland is by law charged with any public rates, taxes, or assess- mfbnfbur- ments which in England are by law a charge on the occupiers of dens not paid lands, or that such landlord is by law charged with any public ^England. 8 rates or taxes or other public burdens the like whereof are not chargeable on lands in England, the said Commissioners shall cause such relief to be given to the said landlords in Scotland as shall be just and reasonable in regard to the charge of the income tax on them in respect of an annual value exceeding by the amount of such rates, taxes, assessments, and public burdens, the charge of the said tax on landlords in England, and such relief shall be given either by abatement from the assessment, or by repayment of the tax, and under such rules, regulations, and directions, as the said Commissioners shall think fit to make or give in that behalf. 5 & 6 Viet. c. 35, s. 63, No. X. Landlord's rates and taxes paid by tenant to be added to the rent. Amount of rent depend- ing 1 on price of corn or grain, how to be ascer- tained. Rent de- pending on produce. The Income Tax Act, 1842 Second. Where any tenant of lands or tenements shall be subject to any covenant or agreement to pay or satisfy any aids, taxes, rates, or assessments by law chargeable on or payable by the landlord, the amount thereof which shall have been bond fide paid by such tenant in and for the year preceding the year of assessment shall, in making the estimate for the purpose of charging the duty in respect of occupation, be added to the rent reserved, in case the same shall have been let within the period of seven preceding years, and if not so let, the estimate shall be made according to the general rule in Schedule (A.) with the like addition thereto of the amount of such payment : Third. Where the amount of rent of lands or tenements reserved in money shall depend in the whole or in part on the price of corn or grain, the estimate for the purpose of charging the duties in Schedule (A.) shall be made on the amount payable according to the average prices or fiars fixed in the year preceding the year appointed for payment of the duty and in the same manner by which such rents have usually been ascertained, between the landlords and tenants ; but where the whole or a part of the rent shall be reserved in corn or grain, then the said estimate shall be made on the like average price or fiar computed on the quantity of corn or grain delivered or to be delivered in the year appointed for payment of the duty; or where such computation cannot be made, the estimate afore- said may be made on the annual value of such lands estimated according to the said general rule : Fourth. Where the amount of rent reserved on lands or tene- ments shall depend on the actual produce thereof, either in SCHEDULES (A.) AND (B.) No. XI. 159 respect of the price or quantity of such produce, the estimate for the purpose of charging the duties in Schedule (A.) 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 prices fixed and according to the quantity produced in that year, by the same rules and in the same manner by which such rents have usually been ascertained between the proprietors and their lessees or tenants, and where the prices or fiars shall vary in the two" years of assessment, or the amount of produce shall vary in those years, the assess- ment shall, on appeal or surcharge be rectified accordingly : Fifth. Every estimate of such property in Scotland shall be In Scotland made without reference to the cess or tax roll or valued rents heretofore used in Scotland, or any stent thereon, and shall be according to made according to the general rule contained in Schedule (A.) rule. to the best of the belief and judgment of the commissioners, assessors and others employed in charging the said several duties. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 64. 64. And be it enacted, that upon every account of the annual Assessment value of the several properties aforesaid, to be charged under ^ n 1 e i n ^ nt a s nd Schedules (A.) and (B.) delivered in manner before directed to on what the assessor, he shall make an assessment of the said property on the amount of the sum ascertained by such account, if he shall be satisfied with such amount ; but if he shall not be satisfied there- with, or if no such account shall have been returned, or if the occupier or other person aforesaid shall not be resident within the limits of the district of such assessor, and no such return shall have been made, then the said assessor shall estimate, to the best of his judgment, the annual value of the said property of which no sufficient account shall have been delivered, and make an assessment of the same accordingly; and in doing so it shall Where the be lawful for such assessor in every case relating to lands or cannot be U tenements to be estimated according to the said general rule otherwise by the annual value thereof, where such annual value cannot be otherwise ascertained, and he is hereby required in every such case, to make such assessment according to the following rules : (videlicet,} No. XI. First. Where the last rate made for the relief of the poor in To he made any parish or place shall be made throughout by a pound rate gumslf^ated. on the annual value, as the same would be estimated according to **SJP < 5 oa full value. 160 THE SCHEDULES. To be in- creased to full value if made on proportionate sums. If in different proportions, the rate for lands to be the guide throughout. Where the proportions of the rate are not known. to Schedule (A.), the assessment thereon to be made under this Act shall be made on the same sums respectively as in such rate : Second. Where the said rate shall be made throughout by such pound rate on any proportionate part of the annual value as aforesaid, the proportion thereof shall be observed as in the said rate, but the assessment thereon to be made under this Act shall be made at the same sums respectively as they would have been estimated at if the said rate had been made on the full amount of such annual value : Third. Where properties of different kinds shall be rated in the said rate according to different proportions of the value thereof as aforesaid, or shall be rated therein at different rates of such value, but nevertheless the properties of the same kind shall be rated in a due proportion to each other, both as to the value and rate of charge, in every such case the rule of rating lands, both as to the value and the rate of charge, shall, in making the assessment under this Act, be observed throughout, as well with respect to such lands as to the other properties therein rated, so far as relates to such rates as shall be made either on the full value of the properties or on any propor- tionate part thereof : Fourth. In all cases not falling within the three preceding rules, but nevertheless where the properties shall appear to the assessor to be rated in the said rate in the same proportion to each other, though the proportion of such rate to the value of the property rated be not known, and the assessor is able to ascertain the rack-rent of all or any of the properties which shall have been so let within the period of seven years pre- ceding within the limits of the parish or place where the said assessors shall act, he shall make an estimate of such pro- perties on the amount of such rents respectively, and the amount contained in the estimates so made shall form the basis on which the estimates of other properties, of which the rack-rent shall not have been so ascertained, shall be made, and he shall make his estimate of all other property in a sum bearing the same proportion, as near as the same can be computed, to the amount of such first estimates, as the sums at which all such other properties of which the rent has been so ascertained are valued at in such rate bear to the sum charged in the said rate on the said properties first estimated ; and he shall apportion the sum so estimated on such other properties in the same proportion, as near as the same can be computed, as they are respectively rated at in such rate, and SCHEDULES (A.) AND (B.) Procedure. 161 shall make his assessment under this Act accordingly ; and in cases where the same rule of proportion shall not have been observed in rating different kinds of property, then the assessor shall make an estimate as above directed upon each of such kinds of property for the purpose of forming a basis on which the estimates of other properties of the same kind may be made. 65. Provided always, and be it enacted, that where any dwelling- 5 & 6 Viet. house or tenement, together with the offices, gardens, and lands *7 ' 8 ' ' occupied therewith, or any lands separately occupied, shall be allowed to under the annual value of ten pounds, and the assessor shall be able to estimate the said value, either by the rules before men- houses, & c . tioned, or from his own knowledge, or otherwise, it shall be lawful -without a for him to estimate such property accordingly, to the best of his return - judgment, and to make an assessment thereon, without requiring a return of the annual value as aforesaid, unless the surveyor or inspector shall object to such estimate, and shall require a notice for that purpose to be delivered; and if any assessor, not having given such notice, shall neglect to estimate the true annual value of the said properties, and to assess the same according to this Act, he shall forfeit any sum not exceeding ten pounds. 66. And be it enacted, that in case any tenant at rack-rent shall 5 & 6 Viet. produce to the assessor the lease or agreement in writing under c .' ' s ' r Assessors which he immediately holds any premises to be charged as afore- may make said according to the general rule, the production of which lease or agreement every such assessor is hereby authorized to demand tends on the ,, , ,, i . j , production of whenever the same shall appear to him necessary ; and in case it the lease by shall appear by such lease or agreement that the same premises shall have been let within the period of seven preceding years, and the reserved no other consideration in money than the rent reserved shall be r( contained in such lease or agreement, it shall be lawful for such assessor to make his assessment according to such rent, anything before contained to the contrary notwithstanding ; but such assess- if such lease ment shall not be binding, in case it shall appear to the Commis- sioners that the said lease or agreement doth not express the full rent. consideration, whether in money or value, for the demise or the rent bond fide paid for the same, or that the rent reserved is less than the rack-rent on occasion of repairs or improvements done or to be done by the lessee or assigns, or is made in any other respect with intent to conceal the annual value of such premises, or to diminish the estimate to be made thereon, or hath been assigned to such tenant, or any former tenant, for any consideration in money or R. M 162 THE SCHEDULES. value paid or agreed to be paid : Provided always, that regard shall be had to the cases before mentioned, where the amount of the reserved rent shall be increased by reason of any covenant or agreement by the landlord to discharge the tenant's taxes, rates, assessments, or duties before mentioned, or where the same shall be decreased by reason of any covenant or agreement by the tenant to discharge the landlord's taxes, rates, or assessments, or on occasion of any expenses incurred or to be incurred by the lessee or assigns, whether mentioned or not mentioned in such lease or agreement, and to the deductions to be made on account Rules to be of any aid or public rate or assessment before described : Provided assessing^nd a ^ so ? that upon every demise for years of lands made or to be at reserved made in consideration of a rent reserved, and also in consideration improvement, of certain improvements to be made in the lands demised at the proper cost and charge of the lessee or tenant, if it shall be proved to the satisfaction of the Commissioners for General Purposes acting for the division where such lands are situate that the rent reserved hath been settled on the estimate of the medium annual value of the said lands, computed on an average for the whole term granted in expectation of the progressive improvement of the said farm at the cost and charge of the said lessee or tenant, and the said annual rent is fixed and made payable to the same amount in each year on the said average, whereby the said rent so estimated and made payable did or doth exceed the just annual value of the said lands as the same were or are worth to be let at rack-rent at the commencement of the term granted by the said demise, then and in such case the estimate of the annual value of the said lands, and the assessment thereupon, shall be made and computed according to the following rules; (that is to say,) in regard that the rent reserved hath been settled on a fair average of the annual value of the said lands, computed on the whole of the term so granted, the said Commissioners, on due proof of the cir- cumstances before mentioned, shall cause the said duty payable in respect of the property in the said lands to be computed and charged on the amount of the rent so reserved and made payable as aforesaid, for each year of assessment, without variation, during the said term, subject nevertheless to such deductions as by this Act are allowed ; and the said Commissioners shall also cause the said duty payable in respect of the occupation of the said lands to be computed and charged on the full and just value of the said lands to be ascertained at the times and in manner hereinafter mentioned ; (that is to say,) on all such demises made before the passing of this Act, the annual value of the said lands shall be the rack-rent at which the same are worth to be let by the year, to be SCHEDULES (A.) AND (B.) Procedure 163 ascertained at the commencement of the first year of assessment after the passing of this Act, by a valuation to be made thereof under the powers and according to the directions herein contained, and to the satisfaction of the said Commissioners, which valuation shall be in force for the term limited for the continuance of this Act, if the said demise shall not sooner expire ; and the amount ascertained by such valuation shall be deemed to be the rack-rent at which the said lands are worth to be let for the said term, if the said demise shall not sooner expire, and the assessment thereupon shall in each year of the said term be made on the said valuation ; and on all such demises to be made after the passing of this Act the annual value of the said lands shall be the rack-rent at which the same are worth to be let by the year, to be ascertained at the commencement of the said demise, by a like valuation to be made thereof in manner aforesaid. When there is no contract to repair, a yearly tenant is bound to keep the premises wind and watertight, and a tenant for years is liable for permissive waste (see Woodfall's Landlord and Tenant, loth ed. p. 646) ; and therefore when there is a contract to do repairs in a lease, but otherwise the rent is the full consideration for the lease, the rack-rent for a yearly tenant is the rent reserved plus the difference between the cost of repairing the premises according to the contract and the cost of keeping them wind and watertight ; and the rack-rent for a tenant for years is the rent reserved plus the difference between the cost of repairing the premises according to the contract and the cost incurred in preventing permissive waste. We must, however, remember that when there is a contract to repair we are driven back to the general rule in Schedule (A.), No. I. to find the annual value. The annual value is by the general rule the rack-rent at which the same are worth to be let by the year. Thus, the annual value is not the rack-rent on a term of years as above obtained, but the rack-rent at which the premises can be let for a year as they stand. There is now an allowance for repairs under Schedule (A. ) in the case of houses and buildings except a farmhouse or building included with lands. See the Finance Act, 1894, sect. 35, ante, page 145. 67. And be it enacted, that in case any tenant at rack-rent under 5 &6 Viet, any parol demise from year to year, within the period mentioned T ena ' ntg at ' in the said general rule, or any tenant who, by reason of any rack-rent mortgage or other contract, shall not have the custody or posses- demise^ or'not sion of or the power over any lease or agreement in writing under able * P ro ~ .... cure leases, which he holds the premises demised within the said period, and to deliver an who shall give reasonable proof to the Commissioners why he is unable to produce the same, shall deliver to the assessor an account in writing signed by such tenant of the actual amount of the annual rent reserved on such demise, such account so delivered shall be deemed a compliance with this Act, in all cases where he may be called upon under the authority of this Act to produce such lease or agreement ; and it shall be lawful for such assessor to make his assessment according to such rent, anything before contained to the contrary notwithstanding ; but such assessment shall not be bind- ing in case it shall appear to the said Commissioners that the said M2 164 THE SCHEDULES. Lands held under a tenancy from year to year, or at will, to be rated by value, unless the rent be fixed on a de- mise within seven years. 5 & 6 Viet, c. 35, s. 68. Penalty on tenants de- livering false accounts of the value of the premises, or concealing the true value thereof. 5 & 6 Viet. c. 35, s. 69. Tenants in Scotland to produce their leases on notice : account doth not express the full consideration for such demise, or the rent bond fide paid for the same, or that the rent reserved is less than the rack-rent on occasion of any payments as aforesaid made or to be made by such tenant, or is made in any other respect with intent to conceal the annual value of the premises held under such demise, or to diminish the assessment to be made thereon : Provided always, that lands held for a longer period than seven years by any tenant under a demise from year to year, or at will, shall be estimated and assessed at the annual value thereof, unless the tenant shall show and prove to the satisfaction of the said Com- missioners that the same lands are held under a demise which com- menced by agreement made and a rent fixed within the period of seven years, on the determination of the former demise thereof, by due notice within the said period. 68. And be it enacted, that every person who shall wilfully deliver any such account as aforesaid which shall be false, or who shall wilfully refuse, neglect, or omit to produce any lease or agree- ment with intent to conceal the annual value of the premises therein comprised, or to diminish the estimate to be made thereon, shall forfeit the sum of twenty pounds, and shall be liable to be charged in treble the duty hereby directed to be charged as afore- said, computed on the annual value of the premises held under such demise estimated according to this Act; and the inspector and surveyor are hereby respectively required to surcharge the same, and the Commissioners are required to make an assessment accordingly. 69. And be it enacted, that every tenant of lands, tenements, or heritages in Scotland shall, within ten days after the assessor shall have left at his usual place of abode, or at any dwelling house or other place on the premises to be charged with the assessment, a note in writing requiring the same, produce to such assessor the tack or lease or other agreement or articles in writing under which such tenant holds such lands or tenements, or where the same shall not be in the power, custody, or possession of such tenant, or there shall be no such tack, lease, or agreement or articles, then he shall leave with such assessor, or at his dwelling house, within the time before mentioned, a note in writing of the actual rent annually reserved and payable, and of any other valuable consideration given or to be given to the landlord of such lands and tenements as a further consideration for such tenancy, under the penalty of treble the duty hereby chargeable thereon, in case of any wilful neglect to comply with such notice ; and it shall be lawful for such assessor to make his assessment on the production of such lease or SCHEDULES (A.) AND (B.) Procedure. 165 agreement or articles, according to the rent therein reserved and made payable ; and in case of non-production of such lease or agreement or articles in writing, then upon the rent reserved or made payable, according to the account thereof delivered as afore- said, if he shall be satisfied that the said lands, tenements, or heritages have been bond fide let at the reserved rent notified to him as aforesaid, without other valuable consideration ; but in case such assessor shall not be satisfied with the notification given to him, or in case no such notification shall be given, then such assessor shall make the assessment as directed in the foregoing rules : Provided always, that if the farm occupied by such tenant or leave shall be distant more than ten miles from the dwelling house of a such assessor it shall be competent to such tenant to lodge his lease peace, or or note in writing of the rent with the nearest justice of the peace, in a certain or with the clergyman of the parish where the farm is situated ; case- and the said justice of the peace or clergyman respectively shall be obliged to show the said lease or note of the rent to the said assessor when required. 70. And be it enacted, that the said several duties shall be 5 & 6 Viet. assessed on all lands, tenements and hereditaments, whether occu- c- 3>5) 8- 70- pied at the time of assessment or not ; and so far as respects the ties to be duties chargeable under Schedule (A.), in case any lands charged Aether to the said duties shall be unoccupied, and no distress can be found occupied on the same at the time such duties shall be payable, it shall be lawful for the collector of the parish or place where the said lands are situate for the time being, at any time after, to enter upon the said lands when there shall be any distress thereupon to be found, and the distress to seize and sell, under the like powers as he might have distrained on the same lands if in the occupation of such person at the time the duties became due : Provided always, that Assessments the said duties, or either of them, shall not be levied on any house e discharged which shall be or become unoccupied for such year, or portion of for the period the year, as the same shall be unoccupied, but the assessment occupied. 1111 thereupon for such year, or portion of the year, as aforesaid, shall, upon appeal, be discharged or diminished by the Commissioners, on due proof of the time during which such house remained unoccupied. 71. And be it enacted, that where by any assessment the duties 5 & 6 Viet. shall be charged on tithes or teinds, and the same shall not be ^j. 3 ?' V 1 ' paid within the respective times limited by this Act, it shall be levying the lawful for the collector and officer respectively to distrain upon gorged on such tithes or teinds, or any other goods or chattels of the owner of tithes. such tithes or teinds, wherever the same can be found, and to seize, 166 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 72. Mode of levying the duties on compositions for tithes, or on manors or royalties, markets, fairs, tolls, fisheries, &c. take, and sell so much thereof as shall be sufficient for levying the said assessment, under and subject to the like powers granted by the said Acts relating to the duties of assessed taxes in other cases. 72. And be it enacted, that when any assessment shall be charged on any composition for tithes or teinds, or any rent or payment in lieu thereof, the occupier of the lands and premises charged with such composition, rent, or payment shall be answer- able for the duties so charged, and may deduct the same out of the next payment on account thereof ; and where any assessment shall be charged on the profits of manors or royalties, or of markets or fairs, or on tolls, fisheries, or any other annual or casual profits not distrainable, the owner or occupier, or receiver of the profits thereof, shall be answerable for the duties charged thereon, and may retain and deduct the same out of such profits ; and in every such case the collector shall distrain upon such persons respectively by any of the ways and means prescribed by the said Acts relating to the duties of assessed taxes. 5 & 6 Viet. c. 35, s. 73. Contracts between landlords and tenants or other per- sons not to be binding contrary to this Act. 73. Provided always, and be it enacted, that no contract, covenant, or agreement between landlord and tenant, or any other persons, touching the payment of taxes and assessments to be charged on their respective premises, shall be deemed or construed to extend to the duties charged thereon under this Act nor to be binding contrary to the intent and meaning of this Act ; but that all such duties shall be charged upon and paid by the respective occupiers, subject to such deductions and repayments as are by this Act authorized and allowed ; and all such deductions and repay- ments shall be made and allowed accordingly, notwithstanding such contracts, covenants, or agreements. A.-G. v. Shield. Valid agreement. Willes, J., in 1862, Colbron v. Tr avers, 12 C. B. N. S. 181 ; 31 L. J, C. P. 257. 1858. Att.-Gen. v. Shield, 3 H. & N. 834 ; 28 L. J. Ex. 49. By a marriage settlement certain lands were conveyed subject to "an annuity or clear yearly sum of 100/., freed and clear, and without any deduction or abatement whatsoever in respect of any taxes or impositions then already or which should thereafter be taxed, charged, assessed or im- posed upon the said premises, or upon the said annuity by authority of Parliament or otherwise howsoever." Held, that the parties paying the annuity were entitled to deduct income tax under 5 & 6 Viet. c. 35, ss. 73, 103. The section does not make an agreement void which provides for a reduc- tion of rent if the income tax be abolished and an increase of rent if the tax be again imposed. ' ' Every landlord is entitled to get as much rent as he can for his house ; and, if he does not stipulate that his tenant shall be charged with the pay- ment of a tax which the law intended to impose upon the landlord, but merely provides for an increase of his rent as such in the event of a certain tax coming upon him, he is doing something for which the Act of Parliament has not provided." Willes, J., in Colbron v. Travers. SCHEDULES (A.) AND (B.) Procedure. 167 1862. Colbron v. Trovers, 12 C. B. N. S. 181 ; 31 L. J. 0. P. 257. Colbron v. A., in 1807 (when 46 Greo. 3, c. 65 was in force), leased premises to B. at a Tfavers - rent of 340Z. , with, a proviso that the rent should be reduced to 330/. in the event of the income tax becoming repealed, annihilated or suspended at any time during the continuance of the demise ; such reduced rent to continue to be paid only so long as the income tax should remain repealed and not payable. Held, that the rent, which had so become reduced on the expiration of the old income tax, was restored to the original amount on the passing of the new Act, 5 & 6 Viet. c. 35, and there was nothing in sect. 73 to render the covenant illegal. 74. And be it enacted, that the respective assessors shall make 5 & 6 Viet. their assessments on all lands, tenements, and hereditaments, or Assessors to heritages, within the limits of those places for which they are to make their act, and shall set down therein the full and just annual value of and deliver' all such lands and premises estimated in each particular case tj 16111 ^ 11 tne returns according to the directions of this Act, together with the names to the Com- and surnames of the occupiers and proprietors thereof, and shall n deliver the same, together with all returns which shall have been made to them, as well of such annual value as of any deduction claimed to be made therefrom, to the said Commissioners for General Purposes, such returns being first progressively numbered; and whenever the said assessors shall not be able to make their Assessors to assessments according to the provisions of this Act, or shall be Commis 3 - obstructed therein, it shall be lawful for them to make application sioners and to the said Commissioners, or to any inspector or surveyor, who instructions. shall severally instruct such assessor in making his assessments, and assist him in the execution of this Act, according to the powers and authorities hereby vested in them respectively. As to the delivery of assessments and returns to the General Commissioners, see the Taxes Management Act, 1880, sect. 49, p. 66. 43 & 44 Viet. c. 19, s. 49. 75. And be it enacted, that the assessors to be appointed for the 5 & 6 Viet. said duties in England shall, at the time of bringing in their ' assessments if required so to do by any surveyor or inspector of on bringing the said duties, or by the respective Commissioners, give notice to assessments, the overseers of the poor of the parish or place where they shall act, to produce or cause to be produced to the said Commissioners notice to the book or books, or a true copy thereof, in which shall have been ^ entered the rates made for the relief of the poor of such parish or produce the place, and also a true copy of the last rate made for the relief of the poor in such parish or place, and such overseers shall without fail produce such book or books to the said Commissioners, or deliver the same to the said inspector or surveyor, for their use, and the said assessors shall declare in writing, signed by them, whether the said rates are made on the full value of the properties therein, 168 THE SCHEDULES. Commis- sioners may examine as- sessors and overseers touching the making of the assessments. Inspector or surveyor may rectify assessments if not duly made. 43 & 44 Viet. C. 19, 88. 51, 52. -5 & 6 Viet, c. 35, s. 76. Commis- sioners and officers may inspect pub- lic rate books, and take copies or extracts. Penalty for refusal to permit such inspection. or on any and what proportionate part thereof, to the best of their knowledge and belief ; and the said Commissioners shall, in case the said surveyor or inspector shall allege and show to the satisfac- tion of the said Commissioners that the said assessments or any of them have not been made according to the directions of this Act, examine the said assessors, and also the overseers of the poor for the same parish or place, or any of them, being duly summoned for that purpose, on their oaths, touching the proportions between the said rates and the value of the properties charged therein, and whether the properties or any and which of them, have been valued therein at the amount or at any and what proportion of the annual value thereof respectively, and what ought to be the just proportion between the rates on the different properties therein charged, if the amount of the values thereof, and the same proportion between the rates, had been observed throughout the rate, and also what property shall have been omitted to be rated, and which of the properties in the parish or place shall be entitled to be assessed on the profits or on an average of the profits according to this Act ; and the said inspector or surveyor shall carefully examine the assessments made by the same assessors with the last rate made for the relief of the poor, in order that he may the better ascertain whether the said assessments have been made on all the properties situate in each parish, and according to the directions prescribed by this Act, and from the result of the said inquiries may rectify the same in any particulars which in his judgment may be requisite before the Commissioners allow and sign such assessment as herein directed ; and in so doing may pursue, if he think fit, the Rules in Number XI. of this Act before mentioned, relating to the said rates for relief of the poor. As to the examination and amendment of assessments by the surveyor, see the Taxes Management Act, 1880, sects. 51 and 52, p. 68. 76. And be it enacted, that the several Commissioners, inspectors, surveyors, and assessors acting respectively in the execution of this Act, or any person authorized by them respectively, shall have liberty, from time to time and at all seasonable times, to inspect and take copies of or extracts from any book kept by any parish officer or other person of or concerning the rates made for the relief of the poor, or any other public taxes, rates, or assessments, in any place within the limits for which they shall be appointed, without the payment of any fee whatever ; and if any person in whose custody or power any of the said books shall be shall refuse or neglect to permit the said inspection, or the copies or extracts to be made as aforesaid, or to attend the said Commissioners with any SCHEDULES (A.) AND (B.) Procedure. 169 such book when required so to do in pursuance of this Act, such person so offending shall forfeit any sum not exceeding twenty pounds nor less than five pounds. As to the power to inspect parish books, see the Taxes Management Act, 43 & 44 Viet. 1880, sect. 39, p. 53. c. 19, a. 39. 77. And be it enacted, that it shall be lawful for the assessors in 5 & 6 Viet, each parish or place in Scotland, and they are hereby required, to c ' 3o> 8 ' jT" take to their assistance the schoolmaster in such parish or place, Scotland to for the purpose of making such assessments of the lands and other ^ e a &ehoof by premises within their respective limits ; and at the time of bringing masters, and in their assessments they shall make oath of the truth of the same, amined con- and that such assessments are made according to the best of their cemm g tteir skill and judgment, and shall submit to be examined on oath before the said Commissioners in all matters and things concerning the said assessments which the said Commissioners shall require for their information. 78. And be it enacted, that in cases where the occupier or other 5 & 6 Viet, person chargeable shall, upon due notice under this Act, omit to c ' 35> 8 ' 78 ' produce an account in writing as aforesaid of the amount of the and other annual value of the property in his occupation, estimated according ^ e ^^ n( j to the General Eule in Schedule (A.), or such other Rules in the survey lands said Schedule as are applicable to such property, or shall have the Commis- delivered an account with which the Commissioners shall be dis- si 006 - satisfied, the several assessors, inspectors, and surveyors, having first obtained an order in that behalf, signed by the said Commis- sioners, and taking to their assistance such person or persons of skill as shall be named in such order, shall, after two days notice to the occupier, have full power, at all seasonable times in the daytime, to view and examine any lands or other property chargeable, in order to make a survey thereof, or otherwise to ascertain the annual value at which the same ought to be charged by virtue of this Act, and for so doing shall have liberty to enter upon any lands or grounds, whether inclosed or not, and to value the same, and to measure and survey the same if they cannot other- wise ascertain the annual value thereof. 79. And be it enacted, that within a reasonable time after the 5 & 6 Viet, respective surveyors and inspectors shall have had the examination c ' ' ?' of the assessments delivered by the assessors, the Commissioners sioners to shall proceed to take the same into consideration, and in case the a assess- surveyor or inspector shall not have objected thereto, and the said ments not objected to Commissioners shall be satisfied that the said assessments have been an d ma de to made truly and without fraud, and so as to charge the several their satis- 170 THE SCHEDULES. On objec- tion taken, the Commis- sioners may- rectify as- sessments. 43 & 44 Viet. o. 19, s. 56. 5 & 6 Viet, c. 35, s. 80. Amount of assessments and day of appeal to be notified. 43 & 44 Viet. c. 19, s. 57. 5 & 6 Viet. c. 35, s. 81. The value of lands may be ascertained by actual valuation by order of the Commis- By whom the costs of such valuation are to be paid. properties contained therein with the full duty which ought to "be charged upon them respectively, the said Commissioners shall allow and sign such assessments : Provided always, that in case the surveyor or inspector shall object to any such assessment, and shall apply for a revision thereof, suggesting in writing to the Commis- sioners any error, mistake or fraud in making the same, it shall be lawful for the said Commissioners, according to the best of their judgment, to rectify such assessment, so that the duty may be fully charged according to the intent and meaning of this Act. This section is repeated in the Taxes Management Act, 1880, s. 56 : see p. 69. 80. And be it enacted, that so soon as the assessments for any parish or place under Schedules (A.) and (B.) shall be allowed and signed as aforesaid the Commissioners shall cause notice thereof and of the day for hearing appeals therefrom to be given in such manner as they shall judge expedient, which notice may be given either by delivering a copy of such assessment to the assessor of such parish or place, for the inspection of the parties charged thereby, together with 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 party charged the amount of his assessment, together with a note of the day -of appeal, and such notices shall be made and given at least fourteen days before the day of appeal so fixed. This section is confirmed by the Taxes Management Act, 1880, s. 57 : see p. 73. 81. And be it enacted, that if upon appeal any dispute shall arise touching the annual value of any lands, tenements, heredita- ments, or heritages, and the Commissioners shall deem it necessary that a valuation thereof should be taken and made by any person of skill, it shall be lawful for them to direct the appellant to cause such valuation to be made by any person to be named by the said Commissioners, the costs and charges whereof shall abide the final determination of the said Commissioners, and it shall be lawful for them to make an assessment according to such valuation, and to require the same to be verified on the oath of the person making the same ; but in case the appellant shall not proceed with effect to cause such valuation to be made as aforesaid, the said Commis- sioners shall make an assessment according to the best of their judgment : Provided always, that it shall be competent to the said Commissioners, in every such case where the valuation so made shall exceed the value put upon the same lands, tenements, here- ditaments, or heritages by the appellant, to direct the costs and SCHEDULES (A.) AND (B.) Procedure. 171 charges attending the same to be paid by him ; but if they shall be of opinion that such costs and charges have not been incurred through any default of the said appellant, they shall direct the same to be paid by the collector of the parish or place, who, on the certificate of the Commissioners present at the time of the deter- mination, shall pay the same, and the sum so paid shall be allowed to such collector in his accounts with the proper officer for receipt, on delivering to him such certificate, together with the receipt and voucher for such payment. The Income Tax Act, 1853 16 & 17 Viet. c. 34, s. 47. 47. Whereas by the eighty-first section of the said Act of the Appellants fifth and sixth years of her Majesty, chapter thirty-five, if upon ComS^ appeal any dispute shall arise touching the annual value of any sioners to lands, tenements, or hereditaments, the Commissioners are autho- valuer to" rized, if they deem it necessary, to direct that a valuation thereof yalue knds. shall be taken and made by a person of skill to be named by the said Commissioners : It shall be lawful for the appellant, as well as the said Commissioners, upon any such appeal, to require that such valuation as aforesaid shall be made, and the said Commissioners, on being required so to do by the appellant, as well as in cases where they may deem it necessary, shall name a person of skill to make such valuation ; and upon such valuation being verified on the oath of the person making the same the assessment shall be made according thereto. The Income Tax Act, 1842 5 & 6 Viet. 82. Provided always, and be it enacted, that if on appeal the In ca ' se of "" occupier of any premises held under a demise at rack-rent shall appeal, oc- produce and show to the Commissioners the lease, tack, or agree- i n g i ea se, or, ment in writing, or shall prove by any lawful evidence to be pro- duced on his part, in case there shall be no such lease, tack, or annual rent, agreement in writing, the annual amount of the rent at which such B i oner8 m a v premises are let, it shall be lawful for the said Commissioners, in reduce the case such rent hath been fixed by agreement commencing within the period of seven years mentioned in the said general rule, and they shall be satisfied that such lease, tack, or agreement doth express the full consideration for the demise under which such occupier shall hold the same, or that the rent bond fide paid by such occupier for the same hath been duly shown to them in evidence, and that such demise is made wholly in consideration of such reserved rent, without any intention to conceal or diminish the annual value of such premises, or other fraudulent intention whatever, to abate and deduct from such assessment so much as in 172 THE SCHEDULES. their judgment will reduce the rate to a just rate on such rent : Where lands Provided always, that if it shall appear to the said Commissioners that any lands, tenements, hereditaments, or heritages, shall have been assessed at an annual value less than the actual rent at which the same shall be let, or (if not let) at less than the rent at which the same might be let, it shall be lawful for the said Commis- sioners to enlarge and increase such assessment to such sum as a like rate on such rent would amount unto, as well with respect to the rate on the property as the rate on the occupation of such lands, tenements, hereditaments, or heritages. at less than the value, the assessment may be rectified. 23 & 24 Viet, c. 14, s. 7. Power for persons assessed for mines or quarries to appeal to the Special Com- missioners. An Act for granting to her Majesty duties on profits arising from property, professions, trades, and offices. 7. It shall be lawful for any person assessed to the duty charge- able under Schedule (A.) of the said Act in respect of any mine of coal, tin, lead, copper, mundic, or iron, or any quarry of stone or slate, to appeal against any such assessment to the Commissioners for Special Purposes, instead of the Commissioners for General Purposes, if he shall think fit, and give due notice of his intention so to do, and thereupon such appeal shall be heard and determined by two or more of the Commissioners for Special Purposes in like manner as any appeal against an assessment of the duties con- tained in Schedule (D.) of the said Acts may lawfully be heard and determined by them ; And all powers and authorities, rules and regulations, contained in the said Acts in relation to any such last-mentioned assessment and appeal, and to the carrying into execution and enforcing the determination of the said Commissioners for Special Purposes therein, shall be exercised and put into force in relation to any appeal by this Act authorized to be made to the said last-men- tioned Commissioners and their determination thereon. 5 & 6 Viet. c. 35, s. 83. Relief to be granted to occupiers aucl owners for losses caused by flood or tempest. Abatements. The Income Tax Act, 1842 83. And be it enacted, that whenever by any flood or tempest loss shall be sustained on the growing crops, or on the stock on lands demised to a tenant at a reserved rent, without fine or other sum paid, given, or contracted for in lieu of a reserved rent, or any part thereof, or the said lands, or any part thereof, shall by such flood or tempest be rendered incapable of cultivation for any year, and it shall be proved on oath to the satisfaction of the Commis- sioners for Greneral Purposes acting for the division where the said lands are situate that the owner of the said lands hath in con- sideration of such loss abated or agreed to abate to his tenant the whole or any proportion of the rent reserved or payable by such SCHEDULES (A.) AND (B.) Abatements. 173 tenant for any year of such demise, it shall be lawful for the said Commissioners to abate in the assessment made in respect of the property in the said lands for the same year for which such rent hath been abated, and to discharge therefrom the whole or the like proportion of duty as the said owner shall appear on such proof as aforesaid to have abated of or from the rent reserved and made payable to him on such demise ; and it shall also be lawful for the said Commissioners in every such case to abate in the assessment made in respect of the occupation of the said lands for the same year and to discharge therefrom the like proportion of duty as shall have been abated or discharged from the assessment made in respect of the property on the said lands for the cause aforesaid. 84. And be it enacted, that whenever from the cause aforesaid 5 & 6 Viet. the like loss shall be sustained on the lands of any infant, idiot, ^ 3 j.f " 84 ' lunatic, or other proprietor incapable of consenting to any abate- lief extended ment in the rent as aforesaid, being in the occupation of any such jj^owners 5 tenant as aforesaid, and the same shall be proved on oath before where the the said Commissioners to their satisfaction, it shall be lawful for them to abate in the assessment made in respect of the occupation consenting to of the said lands, and to discharge the whole or any part of the of rent. said duty, and in proportion to the loss so sustained, and to the amount which the said Commissioners shall be of opinion would or ought to have been abated as aforesaid if the said lands had belonged to a proprietor of full age and of sound mind, and capable of such consent as aforesaid. 85. And be it enacted, that whenever from the cause aforesaid 5 & 6 Viet. the like loss shall be sustained on lands in the occupation of the ' .' 8 ' ' r , Abatement owner, and the same shall be proved on oath before the said Com- of assessment missioners to their satisfaction, it shall be lawful for them to abate fog^^n in the several assessments made in respect of the property in or lands ^ tlie occupation of the said lands, and to discharge the whole or any O f owners. part of the said respective duties, and in proportion to the loss so sustained, and to the amount which the said Commissioners shall be of opinion would or ought to have been abated as aforesaid if the said lands had been demised to a tenant, and a proportionate abatement had been made to such tenant under the circumstances of the said loss. 86. And be it enacted, that if any person shall be guilty of 5 & 6 Viet. making any false claim for such abatement as aforesaid, or shall ^. J .... Penalty for be guilty of any fraud or contrivance in making such claim, or in making false obtaining any such abatement, or shall fraudulently or untruly declare the amount or value of such loss, or the amount or value of any abatement made or agreed to be made in the rent of the 174 THE SCHEDULES. 14 & 15 Viet. c. 12, s. 3. Abatement to be made from assessments on tenant farmers where profits fall short of assessments. 16 & 17 Viet. c. 34, s. 46. Belief granted by 13 & 14 Viet, c. 12, s. 3, to persons occupying lands for the purposes of husbandry lands in his occupation, on account of such loss, with intent fraudu- lently to obtain any such abatement, he shall forfeit the sum of fifty pounds and treble the amount of duty charged on him in respect of the said lands ; and if the owner of any such lands, or any other person whatever, shall aid, abet, or assist any person charged to the said duties in making such false or fraudulent claim, or shall fraudulently or untruly declare the amount or value of any abatement made or agreed to be made in the rent of the said lands or the amount of such loss, with intent fraudulently to obtain for himself, or for his tenant, or for the owner or tenant of the said lands, any such abatement as aforesaid, every such owner or other person aforesaid shall forfeit the sum of one hundred pounds. An Act to continue the duties on profits arising from property, professions, trades and offices, and to amend the Act imposing the same. 3. If at the end of the year of assessment of the said duties under this Act any person occupying lands for the purposes of husbandry only, and obtaining his livelihood principally from husbandry, who shall have been assessed in the said year to the duties chargeable under Schedule (B.) of the Income Tax Act, 1842, in respect of such lands, shall find, and shall prove to the satisfaction of the Commissioners by whom the assessment was made, that his profits and gains arising from the occupation of such lands during the said year fell short of the sum on which the assessment was made, it shall be lawful for the said Commis- sioners, upon appeal made to them in that behalf within three calendar months after the expiration of the said year, and of which notice in writing shall be given to the surveyor of taxes for the district, to cause an abatement to be made from the amount of the said duties charged on such appellant proportionate to the deficiency of his said profits and gains ; and in case the whole sum assessed shall have been paid, the amount of the sum overpaid shall be certified and repaid in like manner as is provided by section 133 of the said Act in the case of any over-payment of the duties assessed under Schedule (D.) of the same Act. The Income Tax Act, 1853 46. The relief granted by the third section of the said Act of the thirteenth and fourteenth years of her Majesty, chapter twelve, to persons occupying lands for the purposes of husbandry only, and obtaining their livelihood principally from husbandry, shall be extended and granted to every person occupying lands as tenant thereof for the purposes of husbandry only, although he SCHEDULES (A.) AND (B.) Abatements. 175 may not obtain his livelihood principally from husbandry, as well extended in as to every person occupying lands for the purposes aforesaid, of^enSt being the owner thereof, and obtaining his livelihood principally farmers. as aforesaid. The Inland Eevenue Act, 1880 43 & 52. The relief given by 14 & 15 Yict. c. 12, s. 3, and referred ^Vto* 2 ' to in 16 & 17 Yict. c. 34, s. 46, shall be extended and granted to owner occu- every person occupying lands for the purposes of husbandry only, piers ( being the owner thereof, although he may not obtain his livelihood principally from husbandry. The Customs and Inland Eevenue Act, 1890 53 & 54 Viet. 23. (1.) Where any person shall sustain a loss in any ^ ^ *' trade, manufacture, adventure, or concern, or profession, employ- trading or ment, or vocation carried on by him either solely or in partnership, or in the occupation of lands for the purpose of husbandry alone, farmers in it shall be lawful for him, upon giving notice in writing to the surveyor of taxes for the district within six months after the year of assessment, to apply to the Commissioners for the general pur- poses of the Acts relating to income tax for an adjustment of his liability by reference to the loss and to the aggregate amount of his income, for that year estimated according to the several rules and directions of the said Acts. (2.) The said Commissioners shall, on proof to their satisfaction of the amount of the loss, and of the payment of income tax upon the aggregate amount of income, 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 loss, and such certificate may extend to give exemption or relief by way of abatement in accordance with the provisions of the said Acts. Upon the receipt of the certificate the Commissioners of Inland Eevenue shall cause repayment to be made in conformity there- with. (3.) If any person shall be guilty of any fraud or contrivance in making any application under this section, or in obtaining any such adjustment or certificate as aforesaid, he shall forfeit the sum of fifty pounds, to be recoverable as a penalty imposed by virtue of the Taxes Management Act, 1880. (4.) Where repayment has been made to a person in any year under the provisions of this section, he shall not be entitled to claim, or be allowed, a deduction on the assessment for a subse- quent year by reference to the amount of loss in respect whereof such repayment has been obtained. 176 THE SCHEDULES. 16 & 17 Viet, c. 34, s. 30. Persons claiming abatement of assessment, and proving their incomes to be under 100/. a year to be entitled to the same relief as if they had claimed exemption on the ground of their in- comes being under that amount. 57 & 58 Viet. c. 30, s. 34. 5 & 6 Viet. c. 35, s. 87. First assess- ment under Schedules (A.) and (B.) to remain in force for three years ; unless the party be under-rated or omitted, or have obtained an exemption to which he is not entitled ; The Income Tax Act, 1853 30. Where, on any application for relief, or abatement of assessment in pursuance of the provisions contained respectively in section 133 and section 134 of the said Act of 5 & 6 Yict. c. 35, and in the third section of an Act of 14 Yict. c. 12, it shall be proved to the satisfaction of the Commissioners to whom such application shall be made that the total amount of the income from every source of the person claiming such relief or abatement for the year for which such assessment was made was under one hundred pounds (a), such person shall be entitled to the same relief and repayment respectively as by this Act and the said first- mentioned Act is provided in the case of persons claiming relief on the ground of their respective annual incomes being less than one hundred pounds () a year. (a) The sum is now 160Z. : see the Finance Act, 1894, s. 34, post, p. 294. Procedure. The Income Tax Act, 1842 87. And be it enacted, that the first assessment to be made after the fifth day of April one thousand eight hundred and forty-two, of the duties chargeable under either of the Schedules marked (A.) or (B.) of this Act, shall be and remain in force for the space of three years, without requiring returns from the parties charged therein for the second or third year of such assessment, and with-, out altering the names of the parties charged, notwithstanding a change in the occupation or interest of or in the premises charged in such assessment may have happened ; and the like sums shall be levied thereon for the second and third years respectively as shall or ought to have been levied thereon for the first year, and the assessment shall be subject to the like exemptions and allow- ances for the second and third years respectively as were granted for the first year; and the amount charged in such assessment shall be paid by four instalments in each year, on the days and times herein specified (a) for payment of such instalments, subject, nevertheless, to be varied and altered in the following cases; (videlicet) : First. If the inspector or surveyor shall find or discover that any person hath been under-rated in such assessment or omitted to be charged therein for the first year, or hath obtained an exemption or allowance for the first year which ought not to be allowed for the second or third year, it shall be lawful for such inspector or surveyor to surcharge such assessment for the second or third year in like manner in all respects as he is authorized to surcharge the assessment under the like circum- SCHEDULES (A.) AND (B.) Procedure. 177 stances for the first year of assessment, provided that such surcharge shall he made in the single duty, and no increase shall he made thereon ahove the rate of duty herehy granted, unless the Commissioners shall he of opinion that the assess- ment for the first year was, in the particular surcharged, deficient through the wilful default or neglect of the party to he charged : Second. If any person not chargeahle in the first year of or a person assessment shall hecome chargeahle in the second or third ablehfthe" year it shall be lawful for the assessor, inspector, or surveyor first 7 ear to require the like returns, and to proceed to the assessment subsequently ; of such person in like manner for the second or third year, as if the whole assessment of the parish, place, or district had commenced in that year : Third. If any person shall find himself aggrieved hy the con- or in case of tinuance of such assessment for the second or third year, hy appe ' occasion of his being over-rated therein, he may appeal from the same in that year on delivering ten days notice of such his intention to the inspector or surveyor, together with a true and perfect schedule of the annual value of the property charged on him for that year, in like manner as he might have appealed against the same assessment under the like circumstances for the first year, and no payment on such assessment for the first or second year shall be construed to preclude such appeal ; provided that for any vexatious appeal without reasonable cause it shall be lawful for the Commis- sioners to award reasonable costs for the attendance of the inspector, surveyor, or assessor to be added to the assessment and levied therewith for the use of such inspector, surveyor, or assessor, and which shall be paid to them respectively in like manner as any other payments under this Act may be made to them : Fourth. It shall be lawful for the respective collectors to levy Assessment and gather the assessment for the second and third years respectively on the occupiers for the time being by the same rate or book which shall have been delivered to them for the by the book first year, unless the Commissioners shall revoke the appoint- ment of the said collectors, or shall alter or vary the assess- ments, and deliver to them a new rate or book for the second or third year : Fifth. The duplicates of the Commissioners shall be made for Commis- each year, and delivered to the proper officer for receipt, and JSto te at the head office of Inland Eevenue, containing the like made for , . , each year. particulars for the second and third years respectively as are B. N 178 THE SCHEDULES. 43 & 44 Viet. c. 19, s. 82. 5 & 6 Viet. c. 35, s. 88. Duties in Schedule (C.) and rules deemed part of this Act. herein required for the first year of assessment, varying only the amounts therein to be specified if the case shall require the same ; and all the powers, regulations, matters, and things contained' in this Act for rectifying any assessment, or increas- ing or diminishing the duty according to circumstances, or for levying the same, shall be in force for the second and third years respectively, in respect of the sums to be levied in those respective years, and shall be applied in those respective years, as fully and effectually as if the assessment had been made for those years respectively under the directions and regu- lations of this Act. (a) This refers to sect. 176, but the part of the section dealing with this subject is now repealed. See p. 413. Quarterly instalments were abolished by 32 & 33 Viet. c. 14, s. 8. The time of payment is now regulated by the Taxes Management Act, 1880, sect. 82. See p. 86. The Income Tax Act, 1842 88. And be it enacted, that the duties hereby granted, contained in the Schedule marked (C.), shall be assessed and charged under the following rules, which rules shall be deemed and construed a part of this Act, and to refer to the said last-mentioned duties, as if the same had been inserted under a special enactment. 16 & 17 Viet. c. 34, s. 2. 5 & 6 Viet, c. 35, s. 88. By whom to be paid. To what stock the duty extends. Schedule (C.). The Income Tax Act, 1853 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 non- corporate, out of any public revenue, and to be charged for every twenty shillings of the annual amount thereof : The Income Tax Act, 1842 SCHEDULE (C.). Rules for assessing and charging the Duties under Schedule (C.}. The said last-mentioned duties shall be paid by the persons and corporations respectively intrusted with the payment of the annuities, dividends, and shares of annuities, therein charged on behalf of the persons, corporations, companies, or societies entitled thereto, their executors, administrators, successors, or assigns, and shall be assessed by the Commissioners hereby authorized or appointed for those purposes (a) ; and shall extend to all public annuities whatever payable in the United Kingdom out of any public revenue in the United Kingdom SCHEDULE (C.) Exemptions. 179 or elsewhere, and also to all dividends and shares of such annuities respectively which shall become payable after the fifth day of April one thousand eight hundred and forty-two, except in the following cases of exemption from the said duties ; viz. : (a) The governor and directors of the Bank of England, the Commissioners for the Keduction of the National Debt, the Special Commissioners, &c. See 5 & 6 Viet. sects. 24 to 29, p. 16. c. 35. Exemptions. First. The stock, dividends, or interest of any friendly society Stock of legally established under any Act of Parliament () relating to pieties friendly societies ; provided it shall appear by the rules of any exempted. such society deposited or to be deposited with the Commis- sioners for the Eeduction of the National Debt, or with the trustees of any savings bank, that the sums assured by any such society to any individual, or to any person nominated by or to claim under him, shall not exceed the sum of two hundred pounds, or the amount of any annuity or annuities granted or to be granted by any such society to any indi- vidual, or to any person nominated by or to claim under him, shall not exceed the sum of thirty pounds per annum : Pro- vided also, that when any property belonging to any such society shall be invested in the public securities in the Bank of England, the said last-mentioned property shall be duly claimed and proved by any trustee or treasurer of any such society, or by any member thereof, before the said Commis- sioners for Special Purposes : (a) The Friendly Societies Act, 1875, and amending Acts. 38 & 39 Viet. c. 60. The Industrial and Provident Societies Act, 1893 56 & 57 Viet. c 39 s 24 24. A registered society shall not be chargeable under Schedules Exei ^ ption ' (C.) and (D.) of the Income Tax Acts, unless it sells to persons of industrial not members thereof, and the number of shares of the society is societies. limited either by its rules or its practice. But no member of or person employed by the society shall be exempt from any assess- ment to the said duties to which he would be otherwise liable. The Income Tax Act, 1842 5 & 6 Viet. Second. The stock or dividends of any savings bank established ' 8 or to be established under the provisions of an Act passed in savings banks the ninth year of the reign of King George the fourth, exem P ted - intituled an act to consolidate and amend the laws relating to savings banks, arising from investments with the Commissioners N2 180 THE SCHEDULES. JZ. v. Special Commissioners of Income Tax (In re York- shire Penny Bank). for the Reduction of the National Debt ; and also the dividends or interest payable by the trustees of any savings bank upon any funds therein deposited belonging to any depositor or to any charitable institution. 1889. R. v. Special Commissioners of Income Tax (In re Yorkshire Penny Bank], 2 Tax Cas. 510. A penny bank receives deposits of any amount from one penny upwards without limit. The bank was originally constituted under the Act 9 Geo. 4, c. 92, and was subsequently incorporated as a company limited by guarantee for the promotion of objects within sect. 23 of the Companies Act, 1867. It claims repayment of the tax deducted from interest on investments, and on hearing that the payment is to be restricted to the duty applicable to the sum paid to depositors whose annual interest does not amount to 31., obtains a rule nisi calling on the Special Commissioners to show cause why the whole duty should not be repaid under sects. 88 and 105. Upon cause being shown the rule nisi is discharged with costs upon the understanding that the Com- missioners abide by their offer to grant the relief above mentioned. 57 & 58 Viet. The Finance Act, 1894 Exemption of 36. (1.) Any penny savings bank, or other bank for savings, income tax whether certified under the Savings Bank Act, 1863, or not, shall savingsbanks, be entitled to exemption from income tax chargeable under 26 & 27 Viet. Schedules (C.) and (D.) of the Acts relating to income tax in respect of the income of the funds of the savings bank, so far as it is applied in the payment or credit of interest to any depositor not exceeding the sum of five pounds in the year for which exemption is claimed. (2.) The exemption shall be claimed, proved, and allowed in the same manner as is prescribed by law in the case of income applic- able and applied to charitable purposes. (3.) Provided that where interest is paid, or dividends or interest are or is credited without deduction of income tax to a depositor in any savings bank whose income exceeds one hundred and sixty pounds a year, such interest, or dividends or interest, as the case may be, shall be accounted for and charged under the third case of Schedule (D.) under which profits of an uncertain annual value are directed to be charged. 5 & 6 Viet. c. 35, e. 88. Stock of charitable institutions exempted. The Income Tax Act, 1842 Third. The stock or dividends of any corporation, fraternity, or society of persons, or of any trust established for charitable purposes only, or which, according to the rules or regulations established by Act of Parliament, charter, decree, deed of trust, or will, shall be applicable by the said corporation, fraternity, or society, or by any trustee, to charitable purposes only, and in so far as the same shall be applied to charitable purposes only (a) ; or the stock or dividends in the names of any trustees applicable solely to the repairs of any cathedral, SCHEDULE (C.) Exemptions. 181 college, church, or chapel, or any building used solely for the purpose of divine worship, and in so far as the same shall he applied to such purposes, provided the application thereof to such purposes shall be duly proved before the said Commis- sioners for Special Purposes by any agent or factor on the behalf of any such corporation, fraternity, or society, or by any of the members or trustees. (a) " Charitable purposes," meaning of, see p. 153. Fourth. The stock or dividends transferred to the accounts in stock in the the books of the Bank of England in the name or under the S, ame of ^ . Treasury or description of the Treasury, or the Commissioners for the oftheCom- Eeduction of the National Debt, in pursuance of any Act or ^nS- Acts of Parliament : provided that the Bank of England ti n . of the shall from time to time cause to be transmitted to the said Debt. Commissioners for Special Purposes an account of the total amount of stock which shall have been transferred to the said respective accounts, also the payments to be made by the Commissioners for the Eeduction of the National Debt on account of the Waterloo subscription funds : Fifth. The stock or dividends belonging to her Majesty, in Stock be- whatever name the same may stand in the books of the Bank h of England, and also the stocks or dividends of any accredited r to accre- minister of any foreign state resident in the United King- ters. dom, provided the property thereof shall, if standing in the name of any trustee, be duly proved before the said Com- missioners for Special Purposes by such trustee. There are certain funds of trade unions which are exempt under Schedule (C.). The Act is given under Schedule (A.) ; see ante, p. 151. Procedure. 89. And for the assessing and charging of the said annuities 5 & 6 Viet. payable to the Bank of England, at the receipt of the Exchequer ^ ' 8 " as aforesaid, and the profits attached thereto respectively, and also of England for the assessing and charging of all annuities payable by the Commissioners for Reduction of the National Debt, and the the National dividends and shares of all other annuities payable out of any liver accounts public revenue, which are or shall be intrusted for payment to the of * 7 . annuities companies of the Bank of England, be it enacted, that the payable to respective companies, corporations, and Commissioners, having the respectively 1 distribution or payment of the said several annuities, dividends, totheCom- and shares shall from time to time, as often as the payments for assessing thereon shall become due, deliver to the respective Commissioners, the same - appointed for the purpose of assessing the duties thereon as afore- said, true and faithful accounts, in writing, in books to be provided 182 THE SCHEDULES. for that purpose, of the several amounts of such annuities and profits attached to the same, which shall be paid to the said companies respectively, in respect of their corporate stock, and of such dividends and shares of annuities as shall be intrusted to any of such companies, corporations, or Commissioners, for payment to the persons, corporations, and companies entitled thereto, and the amount of duty chargeable thereon at the rate before directed, without deduction on any pretence whatever, except as herein is allowed, distinguishing therein the separate account of each person, corporation, company, and society entitled unto any part, dividend, or share of such annuities respectively, as the same shall stand in the books of the said respective companies, or at the said Exchequer, in such manner as that the part, dividend, and share of each person, corporation, company, and society of or to such annuities respectively may be distinctly charged and assessed to the said duty ; and the said respective Commissioners shall from time to time make an assessment of the duty which shall appear to be chargeable on the accounts so delivered to the best of their judgment and belief, and shall from time to time deliver the said books of assessments, signed by them respectively, to the said Commissioners for Special Purposes ; and the said Commissioners for Special Purposes shall forthwith cause two certificates on parchment to be made out, under their hands and seals, containing the total amounts of duty, and of the annuities, dividends, and shares whereon the said duty shall have been charged contained in each assessment, together with the proper title or description of the corporation, company, or persons having the distribution or intrusted with the payment of such annuities, dividends, and shares respectively ; and they shall transmit one of such certificates to the respective Commissioners for making such assessments, and the other certificate to the Chief Office of Inland Revenue in England. 5 & 6 Viet. 93. And be it enacted, that the respective corporations, com- c. 35, s. 93. panics, and persons entitled unto such annuities and profits attached set apart and thereto, or intrusted with the payment of the annuities, dividends, retain sums or s h are s of such public annuities as are hereinbefore described, assessed. . * shall, on notice of the amount of each assessment, from time to time to be made as aforesaid, (which notice shall be given from time to time as and when the annuities, dividends, and shares aforesaid shall become payable, and before payment thereof,) set apart and retain the amount of duty so assessed for the purposes of this Act ; and every such setting apart and retaining of the said duties shall be deemed a payment thereof by and on the behalf of SCHEDULE (C.) Procedure. 183 the persons, corporations, and companies entitled unto the said annuities, dividends, and shares respectively ; and all persons, corporations, and companies entitled to such annuities or profits attached thereto or to any part thereof, or to such dividends or shares of annuities as aforesaid, are hereby required, on receipt of the residue of the said annuities, profits, dividends, and shares, over and above the duty so assessed, to allow such payments in respect of the said assessments ; and the corporations and persons having the distribution of such annuities, or intrusted with such payments, shall be and are hereby acquitted and discharged of so much money, as if the same had actually been paid unto the persons to whom such annuities, profits, dividends, and shares did or might belong, or were by law payable. 94. And be it enacted, that all moneys so set apart at the Bank 5 & 6 Viet. of England, and by the Commissioners for the Reduction of the ^ 3o ' s " National Debt, as before directed, shall be paid from time to time apart to be into the account to be kept at the Bank of England with the j^ into the Receiver General of Inland Eevenue as hereinafter directed, accompanied with a certificate of the amount of the assessment under which the same shall be so paid, under the hands of two or more of the Commissioners making such assessment ; and the governor and company of the Bank of England shall also cause the amount of such assessment as shall from time to time be charged on the trading profits of the said company to be paid into the said account. 95. Provided always, and be it enacted, that in respect of any 5 & Q Viet. of the annuities, dividends, and shares of annuities chargeable - 35 . s - 95 - under Schedule (C.) by the respective Commissioners for those dividends purposes, it shall not be required of them to make an assessment s ? a [ b for any amount or payment where the half-yearly payment on such annuities, dividends or shares shall not amount to fifty shillings, but that the annuities, dividends, and shares whereof the half-yearly payment shall not amount to fifty shillings shall be accounted for and charged under the third case of Schedule (D.) by which profits of an uncertain annual value are directed to be charged : Provided also, that no person shall be required to return any statement of the profits of such annuities, dividends, or shares, the half-yearly payment whereof shall amount to fifty shillings or more, and which are hereinbefore directed to be assessed in manner aforesaid, or be liable to any penalty for not returning the same, but all such dividends and shares whereof the half-yearly payment shall not amount to fifty shillings, and which shall be 184 THE SCHEDULES. 33 & 34 Viet. c. 71, s. 36. 5 & 6 Viet. c. 35, s. 96. Persons in- trusted with the payment of colonial annuities shall deliver accounts thereof. Commis- sioners for Special Pur- poses to make assessments thereon. paid without such assessment, shall be duly returned in the manner before directed, under the penalty before contained. See sects. 52 and 55 of the Income Tax Act, 1842, pp. 57 and 59. The National Debt Act, 1870 36. Income tax shall be deducted from coupons (a) in the same manner and subject to the same regulations in and subject to which it may by law be deducted from dividends payable by the Bank of England or of Ireland in respect of stock of stockholders inscribed in the books of that bank ; save only that income tax shall be deducted from a coupon, although the dividend represented thereby does not amount to fifty shillings. (a) This refers only to coupons attached to National Debt certificates. The Income Tax Act, 1842 96. And be it enacted, that every person (other than the governor and company of the Bank of England, the directors of the East India Company, and the Commissioners for the Reduction of the National Debt,) intrusted with the payment of annuities, or any dividends or shares of annuities, payable out of the public revenue of any colony or settlement belonging to the Crown of the United Kingdom, to any persons, corporations, or companies in the United Kingdom, or acting therein as agent or in any other character before described, shall, without further notice or demand thereof, deliver or cause to be delivered into the Chief Office of Inland Revenue in England an account in writing containing their names and residences, and a description of the annuities, dividends, and shares intrusted to them for payment, within one calendar month after the same shall have been required by public notice in the London Gazette, and shall also, on demand by the inspector authorized for that purpose by the Commissioners of Inland Revenue, deliver or cause to be delivered to him, for the use of the said Commissioners for Special Purposes, true and perfect accounts of the amount of annuities, dividends, and shares payable by them respectively ; and the said Commissioners for Special Purposes shall make an assessment thereon under Sche- dule (C.) at the rate before prescribed, subject to diminution on occasion of any exemptions to be allowed by the said Commis- sioners for Special Purposes, giving notice of the amount thereof to the respective persons intrusted with such last-mentioned payments, who shall respectively pay the duty on the said annuities, dividends, and shares on behalf of the persons, cor- porations, and companies entitled unto the same, out of the moneys in their hands ; and they shall be acquitted of such pay- SCHEDULE (C.) Procedure. 185 ments in like manner, and the like proceedings in all respects shall be had under the said Commissioners for Special Purposes, as are before directed in respect of annuities payable out of the public revenue of the United Kingdom : Provided always, that the persons intrusted with such payment shall from time to time pay the duty so assessed thereon into the Bank of England, to the account to be kept at the Bank of England, as aforesaid with the Eeceiver General of Inland Eevenue, and shall be answerable for such pay- ment, and which duty so assessed shall, in default of such payment, be recoverable against the persons respectively intrusted with such payments as other duties charged on the parties may be recovered against them ; and if any person intrusted with the payment of any such last-mentioned annuities, or any dividends or shares thereof, in the manner herein mentioned, or acting therein as agent, or in any other character herein described, shall neglect or refuse to deliver an account of his name and residence in the manner herein directed, or, after demand, shall neglect or refuse to deliver an account as aforesaid of the amount of such annuities, dividends, and shares as he is intrusted with the payment of, or in the payment of which he shall act as agent, or in any other character herein described, he shall forfeit the sum of one hundred pounds over and above the duty chargeable on such annuities, shares, or dividends. An Act to grant Relief from the Duties of Assessed Taxes in certain Cases, 5 & 6 Viet, and to provide for the Assessing and Charging the Property Tax on c - 80, a. 2. Dividends payable out of the Eevenue of Foreign States. 2. (a). All persons intrusted with the payment of annuities, or Persons in- any dividends or shares of annuities, payable out of the revenue the payment of any foreign state to any persons, corporations, companies, or ? ^ rei f a societies in Great Britain, or acting therein as agents or in any or annuities other character, shall, without further notice or demand thereof, accounts 1Ver deliver or cause to be delivered into the Chief Office of Inland thereof. Revenue in England an account in writing containing their names and residences, and a description of the annuities, dividends, and shares intrusted to them for payment, within one calendar month after the same shall have been required by public notice in the London Gazette, and shall also, on demand by the inspector authorized for that purpose by the Commissioners of Inland Eevenue, deliver or cause to be delivered to him, for the use of the said Commissioners for Special Purposes, true and perfect accounts of the amount of annuities, dividends, and shares payable by them respectively; and the said Commissioners for Special Commis- Purposes shall make an assessment thereon under Schedule (C.) of 186 THE SCHEDULES. assessments thereon. poses to make the said last recited Act, at the rate therein prescribed, subject to diminution on account of any exemptions to be allowed by the said Commissioners for Special Purposes, giving notice of the amount of such assessments to the respective persons intrusted with such payments, who shall respectively pay the duty on the said annuities, dividends, and shares, on behalf of the persons, corporations, and companies entitled unto the same, out of the moneys in their hands, and they shall be acquitted of such payments in like manner, and the like proceedings in all respects shall be had under the said Commissioners for Special Purposes, as are by the said last-recited Act directed in respect of annuities payable out of the public revenue of the United Kingdom : Pro- vided always, that the persons intrusted with such payment shall from time to time pay the duty so assessed thereon into the Bank of England, to the account to be kept at the Bank of England with the Receiver-General of Inland Revenue, as directed by the said Act, and shall be answerable for such payment, and which duty so assessed shall, in default of such payment, be recoverable against the persons respectively intrusted with such payments, as other duties charged on the parties may be recovered against them ; and if any person intrusted with the payment of any such last-mentioned annuities, or any dividends or shares thereof, in the manner herein mentioned, or acting therein as agent or in any other character, shall neglect or refuse to deliver an account of his name and residence in the manner herein directed, or, after demand, shall neglect or refuse to deliver an account as aforesaid of the amount of such annuities, dividends, and shares as he is intrusted with the payment of, or in the payment of which he shall act as agent or in any other character, he shall forfeit the sum of one hundred pounds, over and above the duty chargeable on such annuities, shares, or dividends. (a) The part omitted is repealed by the Statute Law Eevision (No. 2) Act, 1890. The provisions of this section have been applied by 24 & 25 Viet. c. 91, s. 3fi, to the assessment of colonial companies. See post, p. 232. 29 & 30 Viet, c. 36, s. 9. Extending to persons registering foreign divi- dends, &c. for payment in the United Kingdom the provisions contained in 5 & 6 Viet. By an Act to Grant, Alter, and Eepeal certain Duties of Customs and Inland Revenue, and for other Purposes relating thereto. 9. The provisions made by the several Income Tax Acts in force on the fifth day of April, one thousand eight hundred and sixty- six, for assessing and charging the duties on dividends and shares of annuities payable out of the revenue of any foreign state or colonial government, and all interest, dividends, or other annual payments payable out of or in respect of the funds, stocks, shares, adventure, or concern, intrusted to any person in the United SCHEDULE (C.) Procedure. 187 Kingdom, for payment to any person therein, shall be and the c. 35 ; 5 & 6 same are hereby extended and shall be applied to the assessing 16 1C & ' j yict. and charging of the income tax on all such dividends and shares 5i. 34 '> 24 & 25 of annuities, and interest, dividends, and other annual payments, where the right or title 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 Kingdom ; and for the purpose of such assessment and charge the agent or other person having the ordinary custody of such book or making such list shall be deemed to be the person intrusted with the payment of such dividends and shares of annuities, and interest, dividends, and other annual payments, within the meaning of the said Income Tax Acts. The Customs and Inland Eevenue Act, 1885 48 & 49 Viet. 26. Whereas the enactments hereinafter mentioned have been p rov isi on found inadequate to secure the charging and payment of income tax upon dividends payable out of the revenues of foreign and income tax colonial states, and dividends of foreign and colonial companies, be nd colcmial it therefore enacted that section ninety-six of 5 & 6 Yict. c. 35, dividends. section two of 5 & 6 Yict. c. 80, section ten of 16 & 17 Yict. c. 34, and section thirty-six of 24 & 25 Yict. c. 91, shall be read in relation to the dividends therein respectively mentioned, as if the said sections included amongst the persons intrusted with the payment of such dividends the persons hereinafter described (that is to say) (a) Any banker or person acting as a banker who shall sell or otherwise realize coupons or warrants for or bills of exchange purporting to be drawn or made in payment of any dividends (save such as are payable in the United Kingdom only), and pay over the proceeds to any person or carry the same to his account : (b) Any person who shall, by means of coupons received from any other person, or otherwise on his behalf, obtain payment of any dividends elsewhere than in the United Kingdom : (c) Any dealer in coupons who shall purchase 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 : A person intrusted with the payment of dividends, who shall perform all necessary acts so that the income tax thereon may be assessed and paid, shall be entitled to receive as remuneration an allowance of so much (not being less than threepence) in the pound 188 THE SCHEDULES. of the amount paid as may from time to time be fixed by the Com- missioners of the Treasury : Provided that this section shall not impose on any banker or other person the obligation to disclose any particulars relating to the affairs of any person on whose behalf he may be acting. 51 & 52 Viet. The Customs and Inland Eevenue Act, 1888 24. (2.) Section twenty-six of the Customs and Inland Revenue Act, 1885, shall be read and construed as if the word "coupons" in sub-section (b) of that section, and the expression " coupons for any dividends " in sub-section (c) of that section, included " warrants for or bills of exchange purporting to be drawn or made in payment of any dividends." 5 & 6 Viet. The Income Tax Act, 1842 Securiti ^' ^"^ ^ e ^ enacted, that any interest payable out of the issued at the public revenue on securities issued or to be issued at the Exchequer or X other U pub- or t ner public office, by whatever names such securities shall be lie office, and called, shall be charged to the said duties under the rules contained to be charged in Schedule (C.) by the Commissioners for assessing the profits of ffi es i n the said Exchequer or other office aforesaid at which the same shall be made payable, and the interest payable by the East India Company on the bonds issued or to be issued by them shall be charged to the said duties under the like rules by the Commis- sioners herein-before appointed for that purpose, which said Com- missioners respectively shall execute this Act in relation to the profits arising from such securities and bonds as aforesaid, in like manner as the Commissioners appointed by this Act are empowered to assess the profits arising from annuities payable out of the public revenue in other cases ; and the said Commissioners respectively hereby authorized to execute this Act in relation to such securities and bonds as aforesaid shall appoint assessors and collectors of the said duties arising from such securities and bonds from and amongst the officers intrusted with the payment or discharge of such securities and bonds, who shall respectively at the time of payment or discharge thereof compute the duty thereon, and after such computation shall enter the same in a certificate of assessment, and certify the same to the proper officer appointed for the pay- ment or discharge of such securities and bonds, which officer is hereby empowered to stop and detain the said duty, and to pay the same into the Bank of England to the credit of the Eeceiver- General of Inland Eevenue, in discharge of such assessment ; and every person receiving or purchasing any such security or bond in circulation, with current interest thereon, shall be entitled and is SCHEDULE (C.) Procedure. 189 hereby empowered to deduct from such interest the proportion of duty which will become chargeable thereon, in like manner and under the like powers and penalties as may be done in other cases of payment of interest, and as if such current interest were then due and charged to the said duty ; and the like computation and assessment shall be made whenever a new security or bond shall be issued in discharge of any former security or bond, with interest, or in discharge of interest due on any former security or bond ; and the person receiving such new security or bond in exchange for any former security or bond, with interest, or for such interest, shall pay to the proper officer at the time of receiving such new security or bond the full duty computed on the interest payable on the said former security or bond. An Act for granting to her Majesty an increased rate of duty on profits 17 & 18 Viet. arising from property, professions, trades and offices C- > S- ** 3 () . The interest on exchequer bills which shall become due Interest on and payable in June next after the termination of this Act and of bUisHow to the said Act of the last session of parliament respectively, or of the ^ charged. duties granted by the said Acts respectively, shall be chargeable and shall be assessed up to the day of payment in June, in manner following ; that is to say, on the interest computed up to the fifth day of April next immediately preceding with the rate of duty which shall be in force and chargeable under the said Acts respec- tively on the said fifth day of April, and on the interest computed from the said last-mentioned day up to the said day of payment in June, with the rate of duty which shall be in force and chargeable as aforesaid from and after the said fifth day of April ; provided, that if the duties by this and the said other Act respectively granted shall finally cease and determine on the said fifth day of April, then the said interest for the whole year up to the said day of payment in June shall be chargeable with the rate of duty in force on the said fifth day of April immediately preceding. (a) The part omitted is repealed by the Statute Law Eevision Act, 1875. 38 & 39 Viet. c. 66 (1). The Income Tax Act, 1842 5 & 6 Viet. 98. Provided always, and be it enacted, that all claims of c - 35 8 - 98 - /"'I * < exemption under any of the rules contained in Schedule (C.) from exemption the said duties on annuities, dividends, and shares of annuities, t be made ' to the Corn- payable out of the revenue of the United Kingdom, shall be made missionera to the Commissioners for Special Purposes at the Chief Office of Inland Revenue in England, according to the following rules ; according to . , 7 . . following videlicet, rules. First. Every claim shall be made in writing, in such form as 190 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 99. Penalty for fraudulently claiming exemptions of stock. 5 & 6 Viet. c. 35, s. 100. Duties in Schedule (D.) and rules deemed part of the Act. the Commissioners of Inland Revenue shall direct, and the said Commissioners for Special Purposes shall require the same to be verified on the affidavit of every such person as they shall think necessary, such affidavit to be made as before directed in all cases cognizable before the said Commissioners, and they shall have authority to demand and require, from every such person as they shall think proper to be examined touching such claim, true answers upon oath, to be made as before directed, to all such questions as they shall think material in such claim : Second. Whenever the Commissioners for Special Purposes shall have allowed any such exemption, they shall give an order for payment of the sums retained for the duties on such annuities, dividends, and shares, in respect of which they shall have allowed such exemption, to the respective claimants, or to the attornies or agents who shall have been authorized to receive the said annuities, dividends, and shares, on behalf of the said claimants ; and such payment shall be made in like manner as is hereinbefore provided with respect to allowances to be granted under Number Y. of Schedule (A.) of this Act. 99. And be it enacted, that if any person shall, with intent to defraud her Majesty, falsely or fraudulently make any claim to be exempted, either in his own behalf or any other, from the duty charged on such annuities, or any dividends or shares thereof, con- trary to the intent of this Act, every such person shall forfeit the sum of one hundred pounds, and if such claim shall be made by any person in his own behalf he shall moreover be liable to be assessed in treble the duty to be charged on the said annuities and shares. The Income Tax Act, 1842 100. And be it enacted, that the duties hereby granted, con- tained in the Schedule marked (D.) shall be assessed and charged under the following rules, which rules shall be deemed and con- strued to be a part of this Act, and to refer to the said last- mentioned duties, as if the same had been inserted under a special enactment. 16 & 17 Viet, c. 34, s. 2. Profits and gains from any kind of property. Schedule (D.). The Income Tax Act, 1853 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 whatever, whether situate in the United Kingdom or elsewhere : SCHEDULE (D.). 191 And for and in respect of the annual profits or gains arising or Profits and accruing to any person residing in the United Kingdom from professions, any profession, trade, employment, or vocation, whether the trades > &c - same shall be respectively carried on in the United Kingdom or elsewhere, and to be charged for every twenty shillings of the annual amount of such profits and gains : And for and in respect of the annual profits or gains arising or Profits or accruing to any person whatever, whether a subject of her pereon what- Majesty or not, although not resident within the United ever > whether Kingdom, from any property whatever in the United Kingdom, subject 5 or or any profession, trade, employment, or vocation exercised abroad* from within the United Kingdom, and to be charged for every property in twenty shillings of the annual amount of such profits and Kingdom or g a i ns : trade exer- And for and in respect of all interest of money, annuities, interest of and other annual profits and gains not charged by virtue of money, &c., any of the other schedules contained in this Act, and to annual profits be charged for every twenty shillings of the annual amount ^Jkar^ed thereof. by other schedules. Before proceeding farther we shall find it convenient to discuss the subject- matter of this somewhat lengthy schedule. It must, however, be borne in Schedule (D.) mind that Schedule (D.) must be read with the whole of sect. 100, and may to be read be restrained thereby. with s. 100 of " I do not, however, agree that the rest of Schedule (D.), which is found ^ & 6 Viet, in sect. 100, is mere machinery, or a mere collection of examples, not c - ^5. diminishing the generality of the earlier part of the schedule, but intended Lord Mac- only to furnish a guide where the particular rule applies. The whole of the naghten in schedule must be read together. Every case that can possibly happen under 1889, Colqu- Schedule (D.) is enumerated in sect. 100. For every case which cannot be hounv. Brooks, brought under one or other of the first 'five cases" must fall under the ^ ,r7. 'sixth case.' Unquestionably the rules applicable to a particular case may T as j n B cut down, and cut down very materially, the charging words in the earlier ^ ' ^' part of Schedule (D.)" : Lord Macnaghten in Colquhoun v. Brooks. The effect of Colquhoun v. Brooks is to cut down the second clause of Schedule (D.) in the case of a person residing in the United Kingdom, but carrying on trade exclusively abroad. In this case the person is only to be taxed on the profits or gains of the trade actually received by him in the United Kingdom. (See p. 220.) The following phrases and expressions will deserve our special attention : (1.) Profits or gains. (2.) Residing in the United Kingdom. (3.) Exercised within the United Kingdom. (4.) Interest of money, annuities, and other annual profits and gains not charged by virtue of any of the other schedules. At present we shall only discuss (2) and (3); we shall discuss (1) when we come to consider the cases and rules which arise under the schedule ; and we shall discuss (4) in connection with sect. 102 (see p. 224). (2.) " Residing in the United Kingdom." "Residing in A person may have several residences. Occupation for a portion of Kingdom." a year is sufficient. In Lloyd v. Solicitor of Inland Revenue, the Lord President said 1884, Lloyd " We know some persons in exalted stations who haye so many residences v. Solicitor 192 THE SCHEDULES. of Inland Revenue, 11 Scotch Sess. Gas. 4th Series, 690 ; 21 Sco. L. R. 482 ; 2 Tax. Cas. 37. 1875, Young \. Commis- sioners of In- land Revenue, 2 Scotch Sess. Cas. 4th Series, 926 ; 12 Sco. L. R. 602 ; 1 Tax. Cas. 57. A.-G. v. Coote, ap- proved by Lord Mure in 1884, Lloyd v. Solicitor of Inland Revenue, supra. Effect of s. 39 of 5 & 6 Viet. c. 35. Difference of opinion between The Lord Presi- dent and Lord Shand v. Solicitor of Inland Revenue, supra. A.-G. v. Coote, supra. Rugers v. Solicitor of In- land Revenue. The Lord President. that they find them a very great incumbrance. And yet they are all resi- dencies in the proper sense of the term -that is to say, they are places to which it is quite easy for the person to resort as his dwelling place whenever he thinks fit, and to set himself down there with his family and establish- ment. That is a place of residence, and if he occupies that place of residence for a portion of a year he then is within the meaning of this clause, as I read it, residing there in the course of that year." In Young v. Commissioners of Inland Revenue, the Lord President said " Nothing like continuous residence is contemplated by the statute .... If a man has his ordinary residence in this country, it does not matter whether he is absent for a longer or shorter period during the year." Subject to the exception in sect. 39 of the Income Tax Act, 1842 (see p. 285), in favour of temporary residents for less than six months in one year, it does not matter how short the residence is. 1817. Att.-Gen. v. Coote, 4 Price, 183. A statute imposing a duty on the property of persons residing in Great Britain applies to persons residing there for any length of time, however short, although they may, at the same time, have a more permanent residence elsewhere. Cited with approval, as applicable to the Act of 1853, by Lord Mure in Lloyd v. Solicitor of Inland Revenue. There is a difference of judicial opinion as to whether sect. 39 of the Income Tax Act, 1842 (see p. 285), affects the meaning of the word "resident" in Schedule (D.). In Lloyd v. Solicitor of Inland Revenue, the Lord President said it did not, but Lord Shand said ' ' I think that the appellant is right in saying that the expression ' ordinary residence ' (in sect. 39) ought to be read in connection with Schedule (D.) of the statute, and that from the use of that expression in sect. -39 of 5 & 6 Viet. c. 35, it may fairly be inferred that the residence referred to in Schedule (D.) is the ordinary residence of the person charged." As the two judges agreed in the result of their decision, the case does not decide which is the correct view. The fact of the defendant's domicile has nothing to do with the question: Eichards, C.B., in Att.-Gen. v. Coote. The occupation need not be personal. 1879. Rogers v. Solicitor of Inland Revenue, 6 Scotch Sess. Cas., 4th Series, 1109; 16 Sco. L. E. 682 ; 1 Tax Cas. 225. A master mariner was absent from Great Britain, in command of a British ship, for an entire fiscal year. During that time he possessed a dwelling- house in Great Britain, in which his wife and children resided, and had no other residence. Held, that "he resided in Great Britain" within Schedule D., and the Lord President said : ' ' He is not a bit the less resident in Great Britain because the exigencies of his business have happened to carry him away for a somewhat longer time than usual during this particular voyage." It is not stated in the case whether or not the master mariner had ever been at the dwelling-house, and it would seem, therefore, to make no differ- ence. Stress is, however, laid on the fact that he contemplated going there after the voyage. Suppose a man buys a house and sends his family there, never going there himself, and never contemplating doing so. Would he then " reside " there ? This point is not quite clear. Cases. We shall now give the facts of the two principal cases previously cited, which will conclude our remarks on the ordinary meaning of this phrase. We shall then consider the meaning of the phrase as applied to corporations. SCHEDULE (D.). J93 1875. Young v. Commissioners of Inland Revenue, 2 Scotch Sess. Cos., 4th Young v. Series, 925 ; 12 Sc. L. B. 602 ; 1 Tax Gas. 57. Commissioner* The master of a merchant vessel trading between Glasgow, the Mediter- ranean, and New York, who was absent from the country for more than nine months in the year, and was only resident in it during the remainder for short periods of two or three weeks at a time, but whose wife and family resided in Glasgow in. a house of which he was tenant, and in which he resided when on shore, was held "resident in Great Britain" within Sche- dule (D.). 1884. Lloyd v. Solicitor of Inland Revenue, 11 Scotch Sess. Cas., 4th Series, Lloyd v. 687 ; 21 Sc. L. E. 482 ; 2 Tax Cas. 37. Solicitor of In- A British subject, who had, for many years, had his only place of business and two residences, a town and a country house, in Italy, became possessor of an estate in Great Britain in 1875, and was in the habit of living there during the summer months. During the financial year, 1883 84, he and his family lived there from 6th July to 31st October. Held, that he was a person "residing in England" within Schedule (D.). Eesidence of Corporations. 1876, The " For the word ' person ' may be substituted ' corporation' or 'joint stock ^ Mr Q O v company ' : 5 & 6 Yict. c. 35, s. 40 A joint stock company resides Nicholson and where its place of incorporation is, where the meetings of the whole company, The Calcutta or those who represent it, are held, and where its governing body meet in Jute Mills v. bodily presence for the purposes of the company, and exercises the powers Nicholson, conferred upon it by statute and by the articles of association" : Kelly, C.B., L. R. l Ex. in The Cesana Sulphur Co. v. Nicholson, and The Cakutta Jute Mills v. Nichol- ^- 428 : 45 L. son. See also Imperial Continental Gas Association v. Nicholson. ' Q- " 821. (" These cases are authorities only on the point as to where a corporation 1877, Imperial resides. On other points their authority is shaken by Colquhoun v. Brooks, Continental L. E. 14 App. Cas. 493 ; 59 L. J. Q. B. 53" : Stephen and Charles, JJ., in ^asAssoc. v. London Bank of Mexico and South America v. Apthorpe, L. E. (1891) 1 Q. B. T T VQ'TI? 388; 60 L. J. Q. B. 196. See also Wright, J., in Bartholomay Brewing Co. J-tJwIS' (of Rochester] v. Wyatt, L. E. (1893) 2 Q. B. 515; 62 L. J. Q. B. 525.) " A corporation may be said to reside wherever it has its seat " : Amphlett, A.-G. v. B., in Att.-Gen. v. Alexander. Alexander, The last cited case shows that a foreign corporation, though it have a infra. branch in England, and for its own convenience holds its annual meetings and declares dividends in England, does not for these reasons " reside " in England. 1874. Att.-Gen. v. Alexander, L. E. 10 Ex. 20; 44 L. J. Ex. 3. A.-G. v. The Imperial Ottoman Bank was a corporation created by Turkish law. Its seat was fixed, by the concession and the statutes which constituted it, at Constantinople, with power to establish branches and agencies at other places. It was the state bank of Turkey, where it was a bank of issue, and was charged with the collection of the revenue, and with certain operations relat- ing to the currency, and with the payment of interest on the public debt, and received from the State a subsidy on account of the public business transacted by it. On its creation it took over and continued to carry on the business of an English bank in London ; and since its creation in 1863, the annual meet- ings of shareholders had always been held, and dividends declared, in London, though by its statutes the annual meetings might be held at any place which the committee of management might fix : Held, that the bank was not liable to be assessed to income tax in respect of its whole profits, as a "person residing within the United Kingdom," but was liable only in respect of the profits arising from its business carried on in England. R. O 194 THE SCHEDULES. Lord Esher, M.R., in 1888, JFerle v. Colquhoun, L. B. 20 Q. B. Div. 758 ; 57 L. J. Q. B. 323 ; and 1881, Urichsen v. Last, L. R. 8 Q. B. Div. 414 ; ol L. J. Q. B. 86. Cockburn, C.J. Denman, J., in 1886, Pommery v. Apthorpe, 56 L. J. Q. B. 159; 2 Tax Gas. 182. Erichsen v. Last. Next we must consider the effect of the words 3. " Exercised within the United Kingdom." It is a Question of Fact where a Trade is exercised. " The question in each case must be whether the facts shown to exist in that particular case establish that a trade is carried on, 'and that it is carried on in England :" Lord Esher, M.E., in Werle v. Colquhoun. And the following definition was given by Lord Esher, M.B., in the same case at page 759, and also by his lordship in the previous case of Erichsen v. Last. " Wherever profitable contracts are habitually made in England by or for foreigners ivith persons in England, because they are in England, to do some- thing for or supply something to those persons, a profitable trade is then exercised in England, even though everything to be done by them in order to fulfil the contracts is done abroad" The first case, and the only case, in which it was held that a trade was ' ' not exercised " is : 1860. Sully v. Attorney -General, 29 L. J. Ex. 464; 2 L. T. N. S. 439; 5 H. &N. 711. A firm of merchants having their principal establishment at New York, but having also branch establishments in England and other countries, carried on the business of buying goods in America, England and other European countries, and of selling them at a profit in New York. The defendant, a partner resident in England, and at the branch establishment, bought goods in England and shipped them to New York for the firm. Held, that the firm was not liable to be assessed to the income tax in respect of the profits earned by the firm from the purchase of the goods in England, and that the defendant was not bound to make a return of the profits of the firm, as the firm did not exercise trade in this country within the meaning of the Income Tax Acts, but in America, where the profits were received and the principal place of business was situated. ' (The defendant, however, was liable to be assessed in respect of his own share of the whole profits as a partner in the firm.) In this case Cockburn, C.J., said : "He buys in one country and sells in another ; but he has one given place of business in which he may be said to trade, and where his profits always come home to him. He carries on his trade where he is established as in his principal place of business. That I take to be the place where he exercises his trade, within the true meaning of the expression ' exercising trade ' in this Act of Parliament." Upon which dictum the following comment has been made "For when the Chief Justice " (alluding to Cockburn, C.J., supra] " uses the expression that a man exercises his trade where his profits come home to him, it does not mean at the place where he happens to reside, but where he gets the money :" Denman, J., in Pommery v. Apthorpe. It will be seen that this case does not come within Lord Esher's definition, for the profitable contracts were made in America when the re-sales took place. Until these contracts for re-sale were made, it could not be said that any profitable contract had been made at all. It may also be doubtful whether "buying something of" is equivalent to " doing something for," so as to bring the case within Lord Esher's definition. It will be noticed that in every case that comes within Lord Esher's definition a trade will be exer- cised, but there may be cases not within the definition in which a trade is exercised as the definition is framed in the form of a typical example of a condition of things under which a trade is exercised. The next case is 1881. Erichsen v. Last, L. B. 8 Q. B. Div. 414; 51 L. J. Q. B. 86. The appellants, a foreign company domiciled in Copenhagen, had three marine cables in connection with Aberdeen and Newcastle, communicating with the telegraph lines of the Post Office in the United Kingdom. They had also work rooms with clerks in London, Newcastle, and Aberdeen. Messages from this country were forwarded over the lines of the Post Office and SCHEDULE (D.). 195 the cables of the appellants to Denmark, and thence by their wires and the wires of foreign governments to Russia, China, Japan, and India. The total charges paid for transmitting such messages were collected by the Post Office, and, after deducting their dues, handed to the appellants who retained the amount due to them for the transmission of messages over their cables and lines, and paid the residue to the various governments and companies respectively entitled to it. No profits were made by the appellants from the transmission of messages over the land lines in the United Kingdom. Held, that the appellants " exercised a trade within the United Kingdom," and that they were chargeable to income tax on the balance of profits or gains from their receipts in this country from the transmission of messages. In this case Lord Esher, M.E., first gave his definition within which the case comes. 1885. Tiscliler v. Aptliorpe, 52 L. T. N. S. 814 ; 2 Tax Gas. 89. TiscMer v. Tischler & Co. are a firm of wine merchants residing and carrying on business at Bordeaux, and T., the senior partner of the firm, usually spends about four months at different times in every year in England, seeking and taking orders for wine from retail wine merchants and other customers, and living during that time chiefly in London, and when there always at an hotel, and having no other English residence. The appellants employ a firm of London wine merchants as their agents, in whose offices a room, the rent of which is paid by the appellants, is provided for their use, and there they have their own clerk, whose salary is paid by them, and their name is painted up on the premises. The wines ordered are shipped by the appellants from Bordeaux, where also bills of lading and invoices are forwarded by them, sometimes to the purchasers direct and sometimes to the agents, who collect all the accounts, receive payment for all the wines ordered, and transact all the necessary business not transacted by T. in England. For this the agents are paid not by salary, but by receiving a commission on all the wines sold in England by the appellants or ordered through T. , such commission covering all expenses attaching to the appellants' business in England, and including a guarantee of all debts for the appellants' wines sold in England; and they, the agents, have been charged and have paid income tax on the profits made by them by this agency. Held, that the appellants, though non-resident in this country, "exercised a trade" within the meaning of the second clause of Schedule (D.) to sect. 2 of 16 & 17 Yict. c. 34, and were rightly chargeable to income tax on the annual profits and gains derived by them therefrom, notwithstanding that the agents had been charged and paid income tax on their profits. 1886. Pommery v. Aptliorpe, 56 L. J. Q, B. 155 ; 2 Tax Cas. 182. Pommery v. Apthorpe. A foreign firm of wine merchants, whose chief office is in France, and none of whom are resident in England, had a resident agent established in London through whom wine is sold to and money in payment received from English customers. Held, that they "exercised a trade within the United Kingdom" within Schedule (D.). 1888. Werle v. Colyuhoun, L. E. 20 Q. B. Div. 753 ; 57 L. J. Q. B. 323. Werle v. The appellants, a firm of wine merchants at Eheims, employed a London firm to obtain orders for their wine in England. The wine was advertised in England, and the London firm issued circulars from time to time with the authority of the appellants, detailing the price and terms of sale. The name of the appellant's firm was put up at the business premises of the London firm, and was published in the London Directory with that address. The appellants had no wine in England, and all orders were forwarded to Eheims, and the wine, invoiced in the appellants' name, was packed and sent direct from thence to the customer at his expense and risk. Payments were either made direct to the appellants or to the London firm, who remitted the amount to the appellants without carrying it to any current account. Any bill drawn for payment of wine was sent to the London firm to obtain the acceptance and to hold for the appellants. Formal receipts were sent by the 196 THE SCHEDULES. London Sank of Mexico v. Apthorpe. Grainger $ Son v. Govgh, 6 & 6 Viet. c. 35, s. 100. To what the duty extends, and by whom to be paid. Lord Black- burn in 1871, appellants to purchasers for all payments, whether made direct or through the London firm. The London firm were paid by a commission on all wine sold, and the appellants alone were interested in the gain or loss on the sales. Held, that the appellants "exercised a trade within the United Kingdom," and were assessable to the income tax in respect of the profits arising there- from. 1891. London Bank of Mexico and South America, Ltd. v. Apthorpe, L. E. (1891) 2 Q. B. 378; 60 L. J. Q. B. 653. A company, registered under the Joint Stock Companies Acts, carried on business as bankers in London, with branches abroad. The directors and shareholders met at the head office in London, where the business of bankers (other than that of current banking accounts) was carried on, and from whence the affairs of the company were directed and managed, the seat of power being in London with the directors. All usual banking business was conductedat the branches abroad by managers, subject to general directionsand instructions for management issued by the head office in London. The com- pany's dividends were paid in London, an adjustment of balances being from time to time made between the head office and the branches, and no special remittance of profits from the branches for the purpose of paying the divi- dends was ordinarily made. Of the profits earned at one of the branches in Mexico, a portion was not remitted to England, but was applied to paying, in Mexico, the consideration for certain rights and concessions purchased by the company from another bank in that country. Held, the bank had only one business which they carried on in England, and were liable to pay income tax in respect of the portion of the profits earned in Mexico and not remitted to England. 1894. Grainger and Son v. Gough, 11 T. L. E. 39. The appellants are the London agents of Eoederer, a champagne shipper of Eheims. Orders are sought by the appellants in the name of Eoederer, and when received are sent to Eoederer, who exercises a discretion as to executing them. Eoederer forwards the wine direct to the customer. The wine is invoiced by Eoederer to the customer in Eoederer' s name as vendor. No other wines are sent to England except those ordered by the appellants. The sums due for the wine are collected by the appellants on behalf of Eoederer, and receipts are given by them on his behalf, but the customers frequently remit the amounts direct to Eoederer. The appellants are paid by a commis- sion on the orders executed. The appellants receive cash from customers on account of Eoederer, but rarely in excess of their commission, and Eoederer usually draws on his customers direct. Held, that Eoederer exercised a trade within the United Kingdom. The Income Tax Act, 1842 SCHEDULE (D.). The said last-mentioned duties shall extend to every description of property or profits which shall not be contained in either of the said Schedules (A.), (B.), or (C.), and to every description of employment of profit not contained in Schedule (E.), and not specially exempted from the said respective duties, and shall be charged annually on and paid by the persons, bodies politic or corporate, fraternities, fellowships, companies, or societies, whether corporate or not corporate, receiving or entitled unto the same, their executors, administrators, suc- cessors, and assigns respectively. "With reference to the above, and Case VI. hereinafter mentioned, Lord Black- burn has said, in A.-G. v. Black ; " The words in this section are very exten- SCHEDULE (D.) First Case, Rule L 197 sive. My brother Martin says : ' It seems impossible that any net could be A.-G.v. extended more widely ; every possible source of income seems included.' Slack, L. R. Not, however, that every kind of income derived by a corporation, in whatever 6 Ex. 310 ; way it may come to them, would be included in it. They would not be liable 4 ^ * " Ex. except in respect of something of the same nature and kind as what had been previously mentioned ; not, for instance, in respect of a borough rate, a poor rate, or a highway rate, because these are not within the analogy of the ' property or profit ' previously described." " Property or Profits." 1858, Foley v. "This refers to property or profits of the same description as in these ^ tc ^ e ^ \ Schedules " : Bramwell, B., in Foley v. Fletcher. ** J- - 3 ; 100. ' * The Income Tax Act, 1853 16 & 17 Viet. 50. In ascertaining, estimating, or assessing the profits of any In e g timatinff person chargeable under Schedule (D.) of this Act, either upon profits under appeal or otherwise, it shall be lawful to estimate the value of all doubtful debts doubtful debts due or owing to such person ; and in the case of the to be valued, bankruptcy or insolvency of the debtor, the amount of the dividend /)/ which may reasonably be expected to be received on any such debt shall be deemed to be the value thereof, and the duty chargeable under the said Schedule shall be assessed and charged upon the estimated value of all such doubtful debts accordingly. SCHEDULE (D.). FIRST CASE. The Income Tax Act, 1842 5 & 6 Viet. Rules for ascertaining the said Jmt-mentioned Duties in the particular Cases herein mentioned. First Case. Duties to be charged in respect of any trade, Rules for manufacture, adventure, or concern in the nature of trade, j^Lties^ not contained in any other Schedule of this Act. 1814. A.-G. v. Borrodaile, 1 Price, 148. A.-G. v. The ownership of trading vessels let to freights is a trade, or concern in Sorrodatle - the nature of trade, within the meaning of the 46 Geo. III. c. 65. (Schedule (D.) first case of the above Act, is identical with that of the Income Tax Act, 1842.) Interest. Interest. It will often be doubtful whether interest should be assessed under Case I. or Case IV., post, p. 218 ; and it may fall equally naturally under both Cases. It is then in the option of the income tax authorities under which Case it should be assessed. See as to this, and as to the distinction between Case I. and Case IV., post, p. 219. RULES. . The duty to be charged in respect thereof shall be com- Computation puted on a sum not less than the full amount of the balance of the profits or gains of such trade, manufacture, adventure, or concern upon a fair and just average of three years, ending 198 THE SCHEDULES. Lord Hers- chell in 1892, Gresham Life Assurance Society v. Styles, L. K. (1892) A. C. 323; 62 L. J. Q. B. 41. Lord Hals- bury, L.O., S. C. Lord Fitz- gerald in 1885, Last v. London Assur- ance Corpora- tion, L. B. 10 Ap. Gas. 450; 54 L. J. Q. B. 4. Dissented from by Lord Herschell in 1889, New York Life Insurance Co. v. Styles, L. R. 14 Ap. Cas. 410 ; 59 L. J. Q. B. 291. on such day of the year immediately preceding the year of assessment on which the accounts of the said trade, manu- facture, adventure, or concern shall have been usually made up, or on the fifth day of April preceding the year of assess- ment,, and shall be assessed, charged, and paid without other deduction than is hereinafter allowed : Provided always, that in cases where the trade, manufacture, adventure, or concern shall have been set up and commenced within the said period of three years, the computation shall be made for one year on the average of the balance of the profits and gains from the period of first setting up the same : Provided also, that in cases where the trade, manufacture, adventure, or concern shall have been set up and commenced within the year of assessment, the computation shall be made according to the rule in the Sixth Case of this Schedule. " Balance of the Profits or Gains." " The expression ' balance of the profits or gains ' is not a happy one ; but the meaning obviously is the balance arrived at by setting against the receipts the expenditure necessary to earn them " : Lord Herschell in Gresham Life Assurance Society v. Styles. " ' The amount of the profits and gains' was the expression all through the earlier legislation on the subject down to the Act of 1805. In that year the expression was altered, as is pointed out by Mr. Dowell in his valuable book on the Income Tax Acts, p. 114; and the observation appears to be well founded, that the alteration of the language pointed rather -to a more careful return or statement of income, an account in a debtor and creditor form, and intended to prevent deductions, which possibly had been up to that time claimed, being permitted to reduce the amount of the profit which the debtor and creditor account ought to show. But except as indicating the form rather than the substance of what should be shown in the return as the balance of profits and gains, I am in the condition of Lord Blackburn, who said, in the case of Coltness Iron Co. v. Black, L. E. 6 Ap. Cas. 334, that he had been unable to discover any difference in the meaning of the two phrases" : Lord Halsbury, L.O., S. C. It was said by Lord Fitzgerald in Last v. London Assurance Corporation, that the interpretation put on " profits" in 1883, in the Mersey Docks v. Lucas, L. E. 8 Ap. Cas. 891 ; 53 L. J, Q. B. 4, decided on Schedule (A.), No. III., and referred to on p. 129, was applicable to Schedule (D.). " We are bound . to adopt the interpretation put on 'profits' in the Mersey Docks v. Lucas, L. E. 8 Ap. Cas. 891, that the expression means 'the incomings of the concern after deducting the expenses of earning them,' or, ' income of what- ever character it may be over and above the costs and expenses of receipt and collection,' and that ' the gains of a trade are what is gained by the trading for whatever purpose it is used ' "; but this view was dissented from by Lord Herschell in the later case of New York Life Insurance Co. v. Styles, in which, after quoting the above passage he says that " These definitions were, I doubt not, correct in relation to the facts of the Mersey Docks Case, and must be accepted for the purposes of any other case of a similar character. But I do not think they are applicable when dealing with a life insurance concern." The concern was a mutual life insurance concern, and Lord Herschell con- sidered that all the members being policy holders, no income tax should be deducted from the income received from premiums on the policies of its members. There could be no trading between the concern and its members. Therefore, to this concern, not being a trading concern, the definition of Lord Fitzgerald was inapplicable. Lord Herschell, however, agreed with the definition that " the gains of a SCHEDULE (D.) First Case, Rule 1. 199 trade are what is gained by the trading, for whatever purpose it is used." Lord Herschell went on to say, " once show that profits are made by trading, and they are taxable, whatever the purpose to which they may be applied." And in Russell v. Town and County Sank, Lord Herschell explained the Lord Hers- meaning of the word " profits " as follows : chell in 1888, " For the purpose of arriving at the balance of profits, all that expenditure Russell v. which is necessary for the purpose of earning the receipts must be deducted, other- Town and wise you do not arrive at the balance of profits ; indeed, you do not ascertain, County Bank, and cannot ascertain, whether there is such a thing as profit or not. The profit p J j* "? of a trade or business is the surplus by which the receipts from the trade or 8 ' business exceed the expenditure necessary for the purpose of earning those receipts, That seems to me to be the meaning of the word 'profits ' in relation to any trade or business. Unless and until you have ascertained that there is such a balance, nothing exists to which the name 'profits' can properly be applied." Thus, to make the definitions cited by Lord Fitzgerald applicable to Schedule (D.), we must incorporate the idea of trading into them. "The fact that moneys, which were not in fact profits, are erroneously 2f. T. L. Ins. so called does not make them profits within the Income Tax Acts": Lord Co. \. Styles, Herschell in New York Life Insurance Go. v. Styles. L. R. 14 Ap. Gas. 409 ; 59 L.J.Q.B.291. Gains Profits and Gains are Equivalent Terms. See Lord Selborne, isss, Mersey L. 0., in The Mersey Docks v. Lucas. Docksv. Lucas, L. R. 8 Ap. Cas. 905 ; 53 When there are " Profits " within the Schedule their destination is L - J - 0- B - 4 - immaterial. " In this case the burial board are entitled to charge any fees they think 1884, Pad' proper, and in the course of their business they make a profit. "When once ding ton you have the fact that a profit is made, it is taxable under the Income Tax Bur * al Board Act, and since the case of Mersey Docks v. Lucas, L. E. 8 App. Cas. 891, it J^JJJJJ^M must be taken to be wholly immaterial what is the destination of such i an( i % even w profit whether it is appropriated to the benefit of one or more persons, or -^ ^ 13 Q.' retained for the benefit of the person who makes it " : Smith, J., in Padding- % D 14 . 53 ton Burial Board v. Commissioners of Inland Revenue. L. J. Q. B. 224. The fact that there is a statutable dedication of a Fund does not make The Mersey it not liable to Income Tax The Mersey Docks v. Lucas. * Lucas > Consolidation by Act of Parliament of a taxable Fund with an untax- i87i.-4.-fl 1 . v. able Fund does not make the former untaxable Att.-Gen. v. jfajjIuHL.t Black, and Corporation of Dublin v. M'Adam. j j< j EX'. 194. 1887, Corpora- tion of Dublin Application of the Rule to a Triple Business, and also to a Life In- %fff. surance Business. 2TaxCas.387l 1884. Last v. London Assurance Corporation, L. E. 12 Q. B. D. 389 ; Lasty. Lon- 'A T T n ~R d. don Assurance 04 L. d.U. O. *. Corporation. An insurance company having one body of shareholders carried on three branches of business, viz., marine, fire, and life insurance business. The liabilities of the company were discharged partly out of premiums, partly out of income arising from large invested funds, which in the management of the business were allocated to the marine, fire and life branches respec- tively, and styled the marine, fire and life funds; but the results of the business in all the branches were thrown together into one account called the "profit and loss account," and dividends were declared out of the balance of this account, and not out of the profits of the particular branches. Held, that for the purpose of income tax the three branches must be treated as one business, and the profits calculated on the results of that 200 THE SCHEDULES. 1889, Scottish Union and Nat. Ins. Co. v. Inland Revenue, 16 Scotch Sess. Cas. 4th Series, 461 ; 26 Sc. L. R. 330 ; 2 Tax Cas. 551. Day, J., in 1884, Last v. London Assurance Corporation, L. R. 12 Q. B. D. 400; 54 L. J. Q. B. 4. Scottish Union and National Insurance Co. v. Inland Revenue, supra. Imperial Fire Insurance Co. v. Wilson. business taken as a whole. See also to the same effect, Scottish Union and National Insurance Co. v. Inland Revenue. Held, also, that additions made to the life fund of the company out of receipts of the year were not subject to income tax as profits. See also to the same effect, Scottish Union and National Insurance Co. v. Inland Revenue. NOTE. Other questions arose in this case, and it is partly reversed in L. E. 10 Ap. Cas. 438, but the above decisions were not appealed against. Distinction between a Life Insurance and a Fire Insurance Business. ' ' In the course of the argument I have pointed out the radical distinction and difference between fire and life assurance, and I will not repeat myself further than to observe generally that, as fire insurances run out in all their incidents in one year, each payment of premium representing a thoroughly fresh transaction, it practically matters not to either side for income tax purposes whether the profit, which is in such case simply the excess of annual premiums received over annual losses actually sustained, is ascer- tained with minute accuracy by reference to the current year of each policy, or whether one takes the arbitrary year of the calendar and assumes that to be the true policy year in respect of all receipts and payments within it ; the average must be substantially the same in either. In lif e assurance each year's premium has relation to the whole duration of the life or risk, and every year's premium has to be set aside and capitalized for payment of the future debt : in no sense whatever can the life fund as such be deemed to represent profit ": Day, J., in Last v. London Assurance Corporation. " The profits and gains of a life insurance business can be ascertained only by actuarial calculation. And this actuarial calculation may be obtained by taking the result of the quinquennial investigation prescribed by statute, or of the periodical investigation in use in companies established before the statute, or by an investigation covering the three years prescribed by Schedule (D.) of the Income Tax Acts " : The Court in Scottish Union and National Insurance Co. v. Inland Revenue. 1876. Imperial Fire Insurance Co. v. Wilson, 35 L. T. N. S. 271 ; 1 Tax Cas. 71. In making a return of their profits for assessment to income tax under Schedule (D.) of the Income Tax Act, a fire insurance company is not per- mitted by the Act to credit themselves with, or to claim a deduction for, a portion, calculated by them at 33 per cent., or one-third of the amount of premiums received during the given year, as the unearned or unexhausted portion of such premiums, although in respect of such portion the company remain liable to losses which they may incur in the ensuing year. The fair and proper mode of ascertaining the amount of net profits for the purposes of the Act (it being impossible to ascertain it with such strictly mathematical accuracy as to do perfect and absolute justice) is to take on the one side the whole receipts, and on the other the whole expenditure and disbursements for the given year, the balance remaining being, for the time at least, net profits on which the tax should be assessed. This being done year by year, there is an absolute balancing of accounts ; and if any wrong be done by losses afterwards occurring in respect of premiums on which, as profits, income tax has been assessed and paid, that will be taken into consideration in the ensuing year. This case has been followed in Scottish Union and National Insurance Co. v. Inland Revenue. See p. 201. Application of the Rule to Participating Policies in a Life Insurance Business. 1885. Last v. London Assurance Corporation, L. E. 10 App. Cas, 438 ; 54 L. J. Q. B. 4. Lastv. London A life assurance company issued "participating policies" at an increased Assurance premium, according to the terms of which at the end of each quinquennial Corporation. period " the gross profits" of such policies were thus dealt with : two thirds Scottish Union and National Insurance Co. v. Inland Revenue, supra. SCHEDULE (D.) First Case, Rule I. 201 were returned by -way of bonus or abatement of premiums to the holders of such policies then in force; the remaining third went to the company who bore the -whole expenses of the business, the portion remaining after payment of expenses constituting the only profit available for division among the shareholders : Held, that the two thirds returned to the policy holders were "annual profits and gains," and assessable to income tax. The fact that Customers receive a portion of the Incomings does not prevent them from being Profits. " I have been unable to agree with this opinion. The Master of the Eolls Lord Black- seems to think that in estimating the profits of a business you must always, burn in 1885, as he words it, ' consider the shareholders and the customers in antithesis.' Last v. London As I understand this figurative expression, he seems to think that whatever -Assurance is by the bargain to be given to the customer must be an expense preliminary Corporation, to the earning of profit, and cannot be itself a part of the profit. I rather ^ i??/^' think it was from (I cannot but think hastily) assenting to this position that V as j n V> . Cotton, L.J., put the construction from which I have dissented on 5 & 6 Viet, c. 3o, s. 54 " : Lord Blackburn in Last v. London Assurance Corporation, L. E. 10 App. Cas. 444. Application of the Rule to Participating Policies in a Mutual Insur- ance Concern. 1889. New York Life Insurance Co. v. Styles, L. E. 14 App. Cas. 381 ; 59 New York L. J. Q. B. 291. Life Insurance A life insurance company had no shares or shareholders. The only mem- ' T ' ^ *" bers were the holders of participating policies, each of whom was entitled to a share of the assets and liable to all losses. A calculation was made by the company of the probable death rate among the members, and of the probable expenses and other liabilities, and the amount claimed for premiums from members was commensurate therewith. An account was annually taken and the greater part of the surplus of such premiums over expenditure referable to these policies was returned to the policy holders as bonuses, either by addition to the sums insured, or in reduction of future premiums. The remainder of the surplus was carried forward as funds in hand to the credit of the general body of the members. It being admitted that the income derived by the company from investments, and from all transactions with persons not members, was assessable to income tax : Held, that no part of the premium income received under participating Last v. Lon- policies was liable to be assessed to income tax as profits or gains under don Assurance Schedule (D.) ; and that Last v. London Assurance Corporation, L. E. 10 App. Corporation, Cas. 438, was distinguishable, the income in that case being derived from supra. transactions with persons not members, and not (as in the present case) from mutual insurances between members only. The distinction between Last v. London Assurance Corporation and New York Life Insurance v. Styles : " The main and to my mind the essential difference between Lastv. London Assurance Corporation and the present case, consists in the fact that in this case the policy holders are not outsiders, because they, and they alone, are members of the company " : Lord Watson in New York Life Insurance Co. v. Styles. 1889. Scottish Union and National Insurance Co. v. Inland Revenue, 16 Scottish, Union Scotch Sess. Cas., 4th Series, 461 ; 26 Sc. L. E, 330 ; 2 Tax Cas. 551. * National -r m Insurance Co. In a question as to the assessment of income tax under the Income lax v i n i an d Act, 1842, Schedule (D.), on the profits and gains of a company carrying on Revenue. the business of fire and life insurance : Held : 1. That the net profits and gains from the two branches of the business must be massed together as one undivided income assessable accord- ing to the rules applicable to the first case under Schedule (D.). 3. That as fire insurance policies are contracts for one year only, the pre- Fire insur- ance. 202 THE SCHEDULES. Life insur- ance. Northern Assurance Co. v. Inland Scottish Investment Trust Co. v. Surveyor of Taxes. Grove, J., in 1881, Eyhope Coal Co. v. Foyer, L. R 7 Q. B. D. 494. miums 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 the profits and gains of the company without making any allowance for the balance of annual risks unexpired at the end of the financial year. 4. That the profits or gains upon the life business could be ascertained by actuarial calculation only, and that this actuarial calculation might be obtained by taking the result of the quinquennial investigation prescribed by statute, or of the periodical investigation in use in companies established before the statute, or by an investigation covering the three years prescribed by Schedule (D.) of the Income Tax Acts. Profits from a Else in the Value of Investments, 1889. Northern Assurance Co. v. Inland Revenue, 16 Scotch Sess. Cas., 4th Series, 461 ; 26 Sc. L. E. 330 ; 2 Tax Cas. 551. Where a gain is made by a company (within the year of assessment or the three years prescribed by the Income Tax Act, Schedule (D.)), by realizing an investment at a larger price than was paid for it, the difference is to bo reckoned among the profits and gains of the company. 1893. Scottish Investment Trust Co. v. Surveyor of Taxes, 21 Scotch Sess. Cas., 4th Series, 262; 31 Sc. L. E. 219. The memorandum of association of a company stated that its objects were to raise money by share capital and invest the same in stocks and shares, to vary " the investments of the company, and generally to sell, exchange, or otherwise dispose of, deal with, or turn to account, any of the assets of the company." Held, that gains made by the company by realizing investments at larger prices than those paid for them were to be reckoned as "profits and gains" of the company, in the sense of the Property and Income Tax Act, 1842, Schedule (D.). The meaning of the words " set up and commenced." " The proviso in rule 1 of Schedule (D.) does not apply to a mere change in the individuals constituting the firm or company, but applies to the setting up of an adventure or concern ; and I think that the words ' set up ' and ' commenced ' apply strictly to that, and it cannot be said to be ' set up ' or ' commenced,' because there is a change in the partnership carrying on identically the same adventure or concern. On this question I do not feel much doubt. It appears to me that the words ' trade, manufacture, or con- cern ' apply to the undertaking, and have no reference to the individuals who carry it on" : Grove, J., in My hope Coal Co. v. Foyer. 5 & 6 Viet. c. 35, s. 100. To whom the duty extends. 5 & 6 Viet, c. 35, s. 100. Deductions not to be allowed. The Income Tax Act, 1842, Schedule (D.), Case I., Eules Second. The said duty shall extend to every person, body politic or corporate, fraternity, fellowship, company, or society, and to every art, mystery, adventure, or concern carried on by them respectively, in the United Kingdom or elsewhere, as aforesaid; except always such adventures or concerns on or about lands, tenements, hereditaments, or heritages as are mentioned in Schedule (A.), and directed to be therein charged : Third. In estimating the balance of profits and gains chargeable under Schedule (D.), or for the purpose of assessing the duty thereon, no sum shall be set against or deducted from, or allowed to be set against or deducted from, such profits or SCHEDULE (D.) First Case, Rule III. 203 gains on account of any sum expended for repairs of premises occupied for the purpose of such trade, manufacture, adven- ture, or concern, nor for any sum expended for the supply or repairs or alterations of any implements, utensils, or articles employed for the purpose of such trade, manufacture, adven- ture^ or concern beyond the sum usually expended for such purposes according to an average of three years preceding the year in which such assessment shall be made ; nor on account of loss not connected with or arising out of such trade, manu- facture, adventure, or concern ; nor on account of any capital withdrawn therefrom ; nor for any sum employed or intended to be employed as capital in such trade, manufacture, adven- ture, or concern ; nor for any capital employed in improvement of premises occupied for the purposes of such trade, manufac- ture, adventure, or concern ; nor on account or under pretence of any interest which might have been made on such sums if laid out at interest; nor for any debts, except bad debts proved to be such to the satisfaction of the Commissioners respec- tively ; nor for any average loss beyond the actual amount of loss after adjustment; nor for any sum recoverable under an insurance or contract of indemnity. "Profits or Gains." "When we come to the third rule, and the first of the rules ' applying to Lord Hers- both the preceding cases,' it must be admitted that the words ' profits or gains' chell in 1892, are not always used in their proper or ordinary sense. The third rule, for Grcsham Life example, provides that, in estimating the balance of profits and gains charge- Assurance able under Schedule (D. ), ' no sum shall be set against or deducted from, or Society \. allowed to be set against or deducted from, such profits or gains ' on account Styles, L. R. of any sum expended for the repairs of trade premises, or for the supply, ( 18 , ; . w V T repair's, or alterations of trade implements beyond the sum usually expended Q -D 41 ' ' for such purposes on an average of three years. Here it is obvious that the ' profits or gains ' against which the cost of repairs is not to be set, or from which it is not to be deducted, cannot be profits or gains of the business properly so called. The subject-matter necessitates the conclusion that Inaccurate language is being employed loosely and inaccurately. The rule contemplates use of words, the making up of a balance-sheet, and deals with what may be put on the debit side of it. And the first rule ' applying to both the preceding cases ' which commences with the same words as the rule I have just referred to, evidently requires a similar construction " : Lord Herschell in Gresliam Life Assurance Society v. Styles. Diminishing or Exhausted Capital cannot be taken into account in estimating the Profits and Gains. " It seems to me that in the case of The Coltness Iron Co. v. Black, L. R. A. L. Smith, 6 Ap. Cas. 315, with regard to mining under Schedule (A.), the learned law J- in 1885, lords who decided that case undoubtedly laid down that which seems to me Gillatt and to be as applicable to Schedule (D.) as to Schedule (A.), namely, that ^ tts ,^' diminishing capital or exhausted capital cannot be brought into your profits |y j-^Gl and gains when making out your accounts, either under Schedule (D.) or 2 fax Cas Schedule (A.). But if that is not so with regard to The Coltness Iron Co. v. -^ Black, it is clear to my mind that it is so with regard to Forder v. Handyside, and this case has been so far acted on by the legislature, because, by 41 & 42 204 THE SCHEDULES. Huddlestone, B., in 1888, Smith v. Westinghouse Drake Co., 2 Tax Cas. 357. DEDUCTIONS CASES. Watney v. Musgrave. Premium paid for lease. Gillatt and Watts v. Colquhoun. Depreciation in lease. Smith v. Westinghouse Erake Co. Arizona Copper Co. v. Surveyor of Taxes. Bonus paid with loan repaid. Reid's Brew- ery Co. v. Male. Viet. c. 15, s. 12, they allowed depreciation of machinery to be brought into the balance-sheet made out by the traders under Schedule (D.), but left everything standing as it was before as regards depreciation or what not, where the law theretofore had applied" : A. L. Smith, J., in Gillatt and Watts v. Colquhoun. " And I repeat what I said in the case of Forder v. Handy side, and I quite concur with what fell from my brother Smith in the case of Gillatt and Watts v. Colquhoun that you cannot bring in either depreciation or exhausted expen- diture as a debit against the assets. If the capital is lost, depreciated, or exhausted, you cannot bring it as a debit against the assets": Huddle- stone, B., in Smith v. Westinghouse Brake Co. CASES. 1880. Watney v. Musgrave, L. E. 5 Ex. D. 241 ; 49 L. J. Q. B. 493. The appellants, a firm of brewers, in order to increase the sale of their beer, and so to increase their profits, purchased the leases of public-houses, which they let to tenants, who covenanted to buy of them all the beer to be sold in such houses. The appellants, besides covenanting to pay fixed rents for the terms of years reserved by the leases, were obliged, in some instances, to pay premiums for such leases. They claimed in arriving, for the purpose of the income tax, at the balance of profits and gains of their trade, to be entitled each year to an allowance in respect of a portion of the amount so paid by them as premiums, on the ground that such allowance represented a portion of their capital exhausted during the year in earning profits. Held, that the appellants were not entitled to any allowance in respect of the premiums. 1885. Gillatt and Watts v. Colquhoun, 33 W. E. 258 ; 2 Tax Cas. 76. A trader pays a ground rent of 2507. per annum for his business premises, having already paid as a premium for a lease of twenty-two years the sum of 34,0007. In order to ascertain the profits, you must take from the gross profits the annual expenditure, one element of which is the rent paid for the premises. It was found that the annual value of the premises under Schedule (A.) was 1,0007. K Held, that the proper sum to be deducted from the gross profits was 1,0007.'; for the depreciation in the lease was capital exhausted, and could not be deducted. 1888. Smith v. Westinghouse Brake Co., 2 Tax Cas. 357. A company, to extend its business, opens a manufactory and fits machinery, but subsequently closes it, removes a portion of the machinery, and re-opens the manufactory on a smaller scale, and thereby loses a portion of the original expenditure. Held, that this is a loss of capital, and no deduction can be allowed. 1891. Arizona Copper Co. v. Surveyor of Taxes, 19 Scotch. Sess. Cas. 4th Series, 150; 3 Tax Cas. 149; 29 Sco. L. E. 134. A company borrowed a large sum of money, and undertook, along with repayment of the capital sum, to pay the lenders a bonus of 10 per cent, thereon. Held, that in estimating the balance of profits and gains, the company could not deduct the bonus. In the following case the deduction was allowed on the ground that the deduction claimed was Money used in the Business and not Capital invested, Reid's Brewery Co. v. Male, L. E. (1891) 2 Q. B. 1 ; 60 L. J. Q. B. 340, The appellants carried on the business of brewers, and also, as a branch or adjunct of their brewery business, the business of bankers and money-lenders, and in the course of such business lent money to their customers on security, and received money on deposit from their customers, who were allowed to draw bankers' cheques or orders on the appellants. In no case was any loan SCHEDULE (D.) First Case, Rule III. 205 or advance made by way of permanent investment, but the same -was taken only in connection with the current dealings and transactions of the customer with the appellants, and, in the event of such current dealings or transactions terminating, the loan or advance was required to be paid off, and the account closed. The profits of the brewery were largely increased by the addition of the banking and money-lending business, and the loans were necessary to enable the appellants to realize profits. They claimed to deduct from an assessment to the income tax on profits from trade, bad debts in respect of loans to customers. Held (distinguishing Watney v. Musgrave, L. E. 5 Ex. D. 241), that, on the facts above stated, the appellants must be taken to have carried on one business only, that the money advanced to customers was used in the business and not capital invested, and that the appellants were entitled to the deduc- tion claimed. Distinguishing this case from Watney v. Musgrave, Pollock, B., said: 1880, Watney " I find no real difficulty in Watney v. Musgrave if it is confined to the case v. Musgrave, itself. It might be an advantageous investment of the capital of brewers to L. R. 5 Ex. purchase out of that capital a number of cottages, and, between partners, D. 241 ; 49 L. such purchases might be taken into account before they arrived at the profit * Q- " ^**. of the business. That is the case put by Hawkins, J., of houses built in order that the inhabitants might deal with the brewery. In such a case the money could not be said to be money expended in the business of brewers before they made their money. I admit that there are some observations by Kelly, C.B., which might militate against our present decision; but he probably did not anticipate cases which might arise in the future on some- what different facts." " Sum employed or intended to be employed as Capital." 1875. Addiey. Solicitor of Inland Revenue, 2 Scotch Sess. Gas., 4th Series, Addiev. 431 ; 12 Sc. L. E. 274 ; 1 Tax Cas. 1. Solicitor of In- land Revenue. In computing profits, a tenant of minerals is not entitled to make deductions from the gross receipts of sums necessary to replace capital expended in sinking new pits. This was one of the concerns in No. III. of Schedule (A.) which are to be assessed under Schedule (D.) by 29 & 30 Viet. c. 36, s. 8. It has now been held in, 1881, Coltness Iron Co. v. Black, L. E. 6 Ap. Cas. 315, that the rule in Schedule (D.) which prevents deductions for sums employed as capital is not applicable to such a concern : see p. 130. We have, however, given the case because the decision is in its result correct, and if the rule were applic- able, the reason for the judgment, which is based on the above rule, seems sound. These observations also apply to Forder v. Handyside, infra. 1887. City of London Contract Corporation v. Styles, 4 Times Law Eeports, City of Lon- 51 ; 2 Tax Cas. 239. don Contract Corporation The corporation purchased a business consisting of partially executed and v . styks. wholly unexecuted contracts, and the total purchase-money was 180, OOOJ. They claimed to deduct 80,000?. from the net annual profits as being a portion of the purchase-money, and 20,0007. for sums paid away by them to the shareholders of other companies as interest guaranteed by the corporation from which no income tax had been deducted. Neither deduction was allowed. A Deduction is not allowed for Expenses incurred in raising Capital. Expense in raising 1894. Texas Land and Mortgage Co. v. Hotham, 10 T. L. E. 337; 63 L. J. capital. Q. B. 496. Texas Land A company raised capital by debentures and incurred expenses in placing the debentures. Held, that these expenses could not be deducted, 206 THE SCHEDULES. Capital lost by deprecia- tion of buildings. Addie v. Solicitor of In- land Revenue. Forder v. Handyside. Repairs actually executed. Diminished value of machinery and plant. 41 & 42 Viet. c. 15, s. 12. A Deduction is not allowed for Sums necessary to replace Capital lost by Depreciation of Buildings. Although a deduction is allowed for repairs of premises actually executed (see the rule and, 1876, Forder v. Handyside, L. E. 1 Ex. D. 233), no deduc- tion will be allowed for the above because it comes under the head of capital exhausted. 1875. Addie v. Solicitor of Inland Revenue, 2 Scotch Sess. Gas., 4th Series, 431 ; 12 Sco. L. E. 274; 1 Tax Cas. 1. In computing profits, a tenant of minerals is not entitled to make deduc- tions from the gross receipts to replace capital lost by depreciation of buildings and machinery. 1876. Forder v. Handyside, L. E. 1 Ex. D. 233. A company carrying on business as iron founders set apart, in accordance with their articles of association, a sum of money from their net profits for depreciation of buildings, fixed plant and machinery, and claimed, in making a return under Schedule (D.) of their annual profits or gains, to deduct this amount. Held, that such a deduction was contrary to 5 & 6 Viet. c. 35, s. 100, Case I., Eule 3, as the amount set aside was in effect an addition to capital. (See the remarks, supra, on these two cases.) In Forder v. Handyside, it was admitted in the argument that the company had written off a certain amount for the repairs actually executed, and that they might properly do so. It will be observed that in these cases a deduction was not allowed for sums necessary to replace capital lost by depreciation of machinery and plant. This has now been altered. A Deduction is allowed for Diminished Value of Machinery or Plant. The Customs and Inland Eevenue Act, 1878 12. Notwithstanding any provision to the contrary contained in any Act relating to the income tax, the Commissioners for General and Special Purposes shall, in assessing the profits or gains of any trade, manufacture, adventure, or concern in the nature of trade, chargeable under Schedule (D.), or the profits of any concern chargeable by reference to the rules of that schedule, allow such deduction as they may think just and reasonable as representing the diminished value by reason of wear and tear during the year of any machinery or plant used for the purposes of the concern, and belongiog to the person or company by whom the concern is carried on ; and for the purpose of this provision, where machinery or plant is let to the person or company by whom the concern is carried on, upon such terms that the person or company is bound to maintain the machinery or plant, and deliver over the same in good condition at the end of the term of the lease, such machinery or plant shall be deemed to belong to such person or company. And where any machinery or plant is let upon such terms that the burden of maintaining and restoring the same falls upon the lessor, he shall be entitled, on claim made to the Commissioners for Greneral or Special Purposes, 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 may have been assessed and charged in respect of the machinery or SCHEDULE (D.) First Case, Rule III. 207 plant, and deducted by the lessee on payment of the rent, as shall represent the income tax upon such an amount as the said Commis- sioners may think just and reasonable, as representing the diminished value by reason of wear and tear of such machinery or plant during the year: Provided that no such claim shall be allowed unless it shall be made within twelve calendar months after the expiration of the year of assessment. We have retained the words " diminished value " in our heading because a somewhat restricted meaning has been attached to them. signifie the purpose for which it was intended in a going concern, I cannot say they Railway v. were wrong in so holding. I do not think that the words had any reference ^P ecial Com- to the value of the plant as merchantable or marketable articles, because its issione f capacity to earn income constitutes its sole value to the railway company, and { n ^ m f r\f ' is the only quality contemplated under the statutes relating to the taxation Cas4th &BB ' of income." e ' oc . 1Q . , , , . , beries, 96 18 And he also said g co L. R 35 . " During the first five years of the life of a railway locomotive or carriage i Tax Gas. it requires no repairs, and is therefore of the same value that is, capable of 487. earning the same amount of income as when it was new." The result of this decision is that if no repairs are required no deduction will be allowed, though the market value of the plant may have diminished. The effect of the statute is thus greatly reduced. We have already seen that where repairs of plant were actually executed a deduction was allowed for them before the statute (Forder v. Handyside). Therefore the only effect of the statute is to allow a deduction for repairs of plant which are necessary, but have not been executed. 1880. Caledonian Railway v. Special Commissioners of Income Tax, 8 CASE. Scotch Sess. Gas., 4th Ser. 89; 18 Sc. L. B. 85 ; 1 Tax Gas. 487. Caledonian The Commissioners, in assessing a railway company under Schedule (D.) Railway v. of the Income Tax Act, 1842, for income tax, allowed a deduction from Special Gom- income of sums expended or set aside for renewal and repairs of plant during issione f the year. The company demanded a further deduction under sect.' 12 of the ncome lax ' Act of 1878 of a sum representing the diminished value by reason of wear and tear of new additional plant purchased within five years which had hitherto required no repairs. The Commissioners refused the additional deduction, holding that the deduction allowed to the railway company from year to year for actual renewal and repairs of the plant was all to which they were entitled. The railway company appealed, but the Court declined to allow the additional deduction. It will be seen that there is really no hardship on the railway company. When the repairs or renewals are necessary they are allowed for. They only diminish the income of the company when they are executed. It is true the capital of the company may be diminished by the wear and tear of the stock though no repairs or renewals are necessary; but the tax is a tax on income, not on capital. 1889. Highland Railway Co. v. Special Commissioners of Income Tax, 16 Highland Scotch Sess. Cas., 4th Ser. 950 ; 23 Sc. L. K. 116 ; 2 Tax Gas. 151. Railway Co. A railway company, in making their return for assessment of income tax, ^ om ^issioners claimed as deductions from the revenue of the year of assessment O s j ncome y ax ^ (1.) A sum expended upon the improvement of the permanent way of a line of railway which they had acquired and amalgamated with their concern, in order to bring it up to the standard of the rest of the line. 208 THE SCHEDULES, The Burnley Steamship Co. v. Aiken. 41 Viet. c. 15. Inland Revenue v. Watt. (2.) A sum representing the cost of the extra weight in relaying part of the main line with steel in place of iron rails, and with chairs of additional weight. In the books of the company these sums were charged against capital. Both claims were disallowed. 1894. The Burnley Steamship Co. v. Aiken (Surveyor of Taxes], 31 Sc. L. E. 803; 21 Scotch Sess. Cas., 4th Ser. 965. Under sect. 12 of the Customs and Inland Eevenue Act, 1878, a shipowner is not entitled to an allowance for depreciation in the value of his ship caused by better vessels being built. See, also, the cases on deductions under Schedule (A.), No. III., ante, p. 131. Loss " connected with or arising out of such. Trade," &c. 1886. Inland Revenue v. Watt, 23 Sc. Law Eep. 403 ; Brown v. Watt, 13 Scotch Sess. Cas., 4th Ser. 590; 2 Tax Cas. 143. A farmer, who was assessed under Schedule (B.) upon the rent in respect of the occupation of his farm, and who was also assessed under Schedule (D.) in respect of the annual profits arising from his business as a seed merchant, was not entitled, either under sect. 100, Schedule (DA first Case, Eule 3, or sect. 101, to deduct from, the profits arising from his business as seed merchant the loss which he sustained as tenant of the farm. This was not a loss " connected with or arising out of the trade " of seed merchant. 5 & 6 Viet. c. 35, B. 100. No deduction for annual interest. The rule to be read with s. 102. Lord Hers- chell in Gresham Life Assurance Society v. Styles, L. R. (1892) A. C. 322 ; 62 L. J. Q. B. 41. Profits or gains. Lord Hers- chell, S. C. Application of this rule. Lord Hers- chell, S. C. The Income Tax Act, 1842, Schedule (D.), Case I., Eules Fourth.. In estimating the amount of the profits and gains arising as aforesaid no deduction shall be made on account of any annual interest, or any annuity or other annual payment, payable out of such profits or gains. This rule must be read in connection with sect. 102 of the Act. " The controversy mainly turns upon the construction to be put upon the fourth rule, which I have already quoted ; but the 102nd section of the Act must be read in connection with it " : Lord Herschell in Gresham Life Assurance Society v. Styles. And his lordship goes on to explain the relation between the rule and the section as bearing on the interpretation of the words "profits or gains " in the rule. " That section, after enacting that income tax shall be charged upon all annuities, yearly interest of money, or other annual payments, provides that ' in every case where the same shall be payable out of profits or gains brought into charge by virtue of this Act, no assessment shall be made upon the person entitled to such annuity, interest or other annual payment, but the whole of such profits or gains shall be charged with duty on the person liable to such annual payment, without distinguishing such annual payment; and the person so liable to make such annual payment out of the profits or gains charged with duty ' shall be entitled to deduct the income tax from the annual payment, and the person to whom payment is made is to allow such deduction. It was admitted that, reading this enactment in con junction with the fourth rule, the prohibition contained in that rule only applied when the annuity was payable out of profits and gains brought into charge by virtue of the Act. What is the meaning of ' profits or gains,' as found in the con- cluding words of the fourth rule ? Unless the context requires a different meaning, or the words appear to be used throughout the Act in another sense, I think they must be construed according to their ordinary significa- tion. When we speak of the profits or gains of a trader, we mean that which he has made by his trading. Whether there be such a thing as profit or gain can only be ascertained by setting against the receipts the expenditure or obligations to which they have given rise." In the same case Lord Herschell further says : " I think the fourth rule was primarily designed to meet such a case as that in which a trader had SCHEDULE (D.) First Case, Rule IV., and Second Case. 209 contracted to make an annual payment out of his profits ; as, for example, when lie had agreed to make such a payment to a former partner, or to a person who has made a loan on the terms of receiving such payment. But for the rule, it might plausibly have been contended that in such a case a trader was only to return as his profits what remained after making such payment." We shall now consider the cases in order of date : CASES. 1883. Alexandria Water Co. y. Musgrave, L. E. 11 Q. B. Div. 174 ; 52 L. J. Alexandria Q. B. 349. Water Co. v. An English company, carrying on their business in Alexandria, where their Musgrave. gains and profits were earned, were held to be properly assessed to the income tax in respect of the whole of the profits of the concern, without any deduction on account of the interest on the debenture bonds of the company paid to the holders of such bonds in Alexandria. This case was commented on in Gresham Life Assurance Society v. Styles in the House of Lords, and their lordships approved of the decision though not of all the reasons for it. 1887. Mersey Loan and Discount Co. v. Wootton, 4 Times Law Eep. 164 ; Mersey Loan 2 Tax Gas. 316. and Discount The company paid interest on deposits and received a larger interest from ' v< on ' their borrowers. They claimed to deduct the interest paid to their depositors from their profits and gains. The claim was disallowed. This case was said by Lord Herschell to be in conflict with his view in Gresham Life Assurance Society v. Styles, and is therefore wrongly decided. Gresham Life Assurance Society v. Styles, L. E. (1892) A. 0. 309 ; 62 L. J. Gresham Life Q,. B. 41. Assurance A life assurance society, as part of its business, sold or granted annuities g( V i e / in consideration of a lump sum or premium paid down in the case of an immediate annuity, and of a similar payment or of periodical premiums in the case of a deferred or contingent annuity. They claimed to deduct from the amount of their profits chargeable with income tax the sums paid by them in discharge of the annuities so granted. Held, that the claim was good. By the Customs and Inland Eevenue Act, 1888, s. 24 (3), it is provided Alteration in. that the income tax on interest of money and annuities, though not payable the law by out of profits and gains, shall be deducted by the person paying the same ol & 52 Viet, and shall be paid by him. Thus, a case like Gresham Life Assurance Socitty c - &> s. 24 (3). v. Styles would now be differently decided, for the society would be obliged to deduct the income tax from the annuities and pay it. Of course, there is no additional taxation on the assurance society, they are simply the conduit- pipe by which the annuitants pay their income tax. 1894. Anglo- Continental Guano Works y. Sell, 10 E. May, 261; 70 L. T. Anglo- Con- N. S. 670. tinental Guano .. . , , , * J.T. Works v. Bell. A trading company is properly assessed to income tax in respect ot the whole of the profits of the concern, without any deduction on account of interest paid on short loans borrowed by the company to enable it to buy goods at cost instead of credit prices. The Income Tax Act, 1842, Schedule (D.), Case II. 5 & 6 Viet. c. 35, B. 100 Second case. The duty to be charged in respect of profes- sions, employments, or vocations, not contained in any other schedule of this Act. Vocation. Vocation. " The word ' vocation' is analogous to ' calling,' a word of wide significa- penman, J., tion, meaning the way in which a man passes his lif e. ... I think the word in Partridge \. ' vocation ' is not limited to a lawful vocation, and that even the fact of a Mallandaine, infra. R. P 210 THE SCHEDULES. Partridge v. Mallandaine. In 1 and Revenue v. Strung. Turner v. Cuxon, Lord Cole- ridge, C.J. 5 & 6 Viet, c. 35, s. 100. To what the duty shall extend. Computation of duty on professions, vocation being unlawful could not be set up against the demand for income tax" : Demnan, J., in Partridge v. Mallandaine. " ' Vocation' and ' calling' are synonymous terms" : Hawkins, J., S. C. 1886. Partridge v. Mallandaine, L. E. 18 Q. B. D. 276; 56 L. J. Q. B. 251. Persons receiving profits from betting systematically carried on by them throughout the year are chargeable with income tax on such profits in respect of a "vocation" under Schedule (D.). What is Chargeable. 1878. Inland Revenue v. trang, 15 Sc. L. R. 704 ; 1 Tax Gas. 207. A clergyman of the Established Church received at Christmas time a pecuniary gift of 100Z. raised by voluntary subscription among his friends, the majority being members of his congregation. He had received a similar gift at the same time each of the two previous years that he had held the charge. No receipt was granted, and the contributors were under no obliga- tion to repeat the payment. Held, that this was a payment to the appellant as clergyman, and was received by him in respect of the discharge of the duties of his office, which was one of public employment in the sense of the statutes. The payment was therefore either an " emolument " under Schedule (E.) or "gain" under Schedule (D.). This case has been commented on adversely in 1888 : Turner v. Cuxon, L. R. 22 Q. B. D. 150; 58 L. J. Q. B. 131. The council of the Curates' Augmentation Fund made a grant of 501. to a curate in recognition of faithful service for more than fifteen years. The grant was renewable at the discretion of the council, and such renewal was upon the condition that the curate obtained donations to the fund to half the amount of the grant. Held, that the grant was not assessable to income tax, and Lord Coleridge, C. J., said : "If Inland Revenue v. Strang had been the same as this, I should have felt myself bound to differ from it ; but the circumstances are different. There the payment was made to the minister by his parishioners in return for, and as an acknowledgment of, his services in the parish, and might pro- perly be said to arise from his office or vocation. Here that is not so, but the payment is a gift made by a society to a deserving man upon certain conditions ; it is a purely voluntary gift, there could be no claim upon the society ; and it is not made in respect of the parish of which the respondent is the curate." The Income Tax Act, 1842, Schedule (D.), Case II. RULES. First. The said duty on employments shall be construed to extend to every employment by retainer in any character whatever, whether such retainer shall be annual, or for a longer or shorter period ; and to all profits and earnings of whatever value, subject only to such exemptions as are herein- after granted : Second. The duty to be charged shall be computed at a sum not less than the full amount of the balance of the profits, gains, and emoluments of such professions, employments, or vocations (after making such deductions, and no other, as by this Act are allowed), within the preceding year, ending as in the first case to be paid on the actual amount of such profits or gains, without any deduction, subject to the like provisions SCHEDULE (D.) Second Case, Rules. 211 as are made in the first case in respect of the period of average, in the case of setting up and commencing such profession, employment, or vocation within the period herein limited : This is now altered by The Income Tax Act, 1853 16 & 17 Viet. c. 34, B. 48. 48. The duty to be charged under Schedule (D.) in respect of Duty on pro- professions, employments, or vocations not contained in any other charged on schedule of this Act shall be computed on a sum not less than the an average full amount of the balance of the profits, gains, and emoluments of of three years, such professions, employments, or vocations upon a fair and just average of three years, instead of the amount of such profits, gains, and emoluments within the preceding year, as directed by the rules of Schedule (D.) in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, but subject in all other respects to the said last-mentioned rules. " Profits, Gains, and Emoluments." " Haying regard to the general scheme and context of the Act, I am unable Lord Watson to come to the conclusion that these words, ' profits, gains, and emoluments' * n Tennant v. of a private employment, as bank agent, under Schedule (D.) were meant by Smith, L. R. the Legislature to include more than the ' salaries, fees, wages, perquisites, iV, ' or profits whatsoever,' accruing to a similar employment by a public com- pany. In my opinion, the word ' emolument ' occurring in the rules of Schedule (D.) means some more tangible benefit than a servant's residence in his master's house, or a meal or a suit of livery supplied by the master" : Lord Watson in Tennant v. Smith. In the above case it was held that a bank agent who is bound to occupy the bank house, and occupies it rent free, but cannot sub-let it, and is under obligation to quit the premises on ceasing to hold his office, cannot be assessed on the yearly value of the privilege of free residence. See also 1894, McDouyallv. Sutherland, 21 Scotch Sess. Cas., 4th Series, 753; 31 Sc. L. E. 680. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 100. Third. The third and fourth rules in the first case shall also Certain rules extend to the profits arising under the second case, as far as cage to ex _ they are applicable. tend *? the * x second. The Income Tax Act, 1853 16 & 17 Viet. c. 34, s. 52. 52. In assessing the duty chargeable under any schedule of this Abatement Act upon any clergyman or minister of any religious denomination jj^^adVto in respect of any profits, fees, or emoluments of his profession or clergymen vocation, it shall be lawful to deduct from such profits, fees, or incurred in emoluments any sum or sums of money paid or expenses incurred performance by him wholly, exclusively, and necessarily in the performance of duties, his duty or function as such clergyman or minister ; and if such sum or sums or expenses shall not have been deducted as aforesaid, then a proportionate part of the duty charged and paid by such clergyman or minister shall, on due proof to the Commissioners of 212 THE SCHEDULES. Lothian v. Macrae. Gharlton v. Corke. 5 & 6 Viet. c. 35, s. 100. Deductions not to be allowed on first and second cases. Lord Hers- chell in 1892, Gresham Life Assurance Society v. Styles, L. R. (1892) A. C. 324 ; 62 L. J. Q. B. 41. Inaccurate use of words. sucli sum or sums having been expended as aforesaid, be repaid to such clergyman or minister. 1884. Lothian v. Macrae, 12 Scotch Sess. Gas., 4th. Series, 336 ; 22 Sc. L. E. 219 ; 2 Tax Gas. 65. The 52nd section does not apply to a sum of money contributed by a minister who, from his age, required the services of an assistant, to make up that assistant's salary to a certain fixed sum, the rest of which was raised by the congregation. 1890. Charlton v. Corke, 17 Scotch Sess. Gas., 4th Series, 785. A minister of the Church of Scotland is entitled under sect. 52 to deduct from his emoluments 1. Expenses incurred by him in visiting members of his congregation beyond the limits of his parish. 2. Travelling expenses involved in the discharge of duties laid upon him by his ecclesiastical superiors. The Income Tax Act, 1842, Schedule (D.), Cases I. and IE., Eules Rules applying to both the preceding Cases. First. In estimating the balance of the profits or gains to be charged according to either of the first or second cases, no sum shall be set against or deducted from, or allowed to be set against or deducted from such profits or gains, for any disbursements or expenses whatever, not being money wholly and exclusively laid out or expended for the purposes of such trade, manufacture, adventure, or concern, or of such pro- fession, employment, or vocation ; nor for any disbursements, or expenses of maintenance of the parties, their families or establishments ; nor for the rent or value of any dwelling house or domestic offices, or any part of such dwelling house or domestic offices, except such part thereof as may be used for the purposes of such trade or concern, not exceeding the proportion of the said rent or value hereinafter mentioned; nor for any sum expended in any other domestic or private purposes, distinct from the purposes of such trade, manu- facture, adventure, or concern, or of such profession, employ- ment, or vocation. Profits or Gains. "When we come to the third rule, and the first of the rules ' applying to both the preceding cases,' it must be admitted that the words ' profits or gains ' are not always used in their proper or ordinary sense. The third rule, for example, provides that in estimating the balance of profits and gains chargeable under Schedule (D.), 'no sum shall be set against or deducted from, or allowed to be set against or deducted from, such profits or gains ' on account of any sum expended for the repairs of trade premises, or for the supply, repairs, or alterations of trade implements beyond the sum usually expended for such purposes on an average of three years. Here it is obvious that the ' profits or gains ' against which the cost of repairs is not to be set, or from which it is not to be deducted, cannot be profits or gains of the business properly so called. The subject-matter necessitates the con- clusion that language is being employed loosely and inaccurately. The rule contemplates the making up of a balance sheet, and deals with what may be SCHEDULE (D.) First and Second Cases, Rules. 213 put on the debit side of it. And the first rule ' applying to both the preced- ing cases,' which commences with the same words as the rule 'I have just referred to, evidently requires a similar construction" : Lord Hersehell in Gresham Life Assurance v. Styles. " Money wholly and exclusively laid out or expended for the purpose of the Trade." An annual payment to Government by a bank for the statutory power to Stephen and issue notes is not money so laid out and expended. Charles, JJ., " If money had been paid for the statutory power to issue notes, and for in London Bk. that alone, it would still not be a proper subject for deduction. It would of Mexico and remain money paid, in the nature of capital expenditure, to acquire a new, South -America but by no means essential branch of banking business " : Stephen and v. Apthorpe, Charles, JJ., in London Bunk of Mexico and South America v. Apthorpe. /'' London Sank of Mexico and South America v. Apthorpe, L. R. (1891) London Bank 1 Q. B. 383; 60 L. J. Q. B. 653. of Mexico and Mainly with the object of securing the right to issue notes the bank entered into an agreement with another banking company in Mexico, whereby that company transferred to the London Bank of Mexico and South America a certain concession granted by the Federal Government, including, amongst other things, the right to issue notes. The appellants paid the other company 20,000/. for this transfer. Held, that this was not money wholly and exclusively laid out for the purpose of the adventure. Reid's Brewery Co. v. Male, L. E. (1891) 2 Q. B. 1 ; 60 L. J. Q. B. 340. Reid's Brew- The appellants carried on the business of brewers, and also, as a branch or jf a ' e adjunct of their brewing business, the business of bankers and money- lenders, and in the course of such business lent money to their customers on security, and received money on deposit from their customers, who were allowed to draw bankers' cheques or orders on the appellants. In no case was any loan or advance made by way of permanent investment, but the same was taken only in connection with the current dealings and trans- actions of the customer with the appellants, and, in the event of such current dealings or transactions terminating, the loan or advance was required to be paid off, and the account closed. The profits of the brewery were largely increased by the addition of the banking and money-lending business, and the loans were necessary to enable the appellants to realize profits. They claimed to deduct from an assessment to the income tax on profits from trade, bad debts in respect of loans to customers. Held, that the money advanced to customers was used in the business, and not capital invested, and that the deduction must be allowed. Dillon v. Corporation of Haverfvrdwest, L. E. (1891) 1 Q. B. 575; Dillon v. 60 L. J. Q. B. 477. Corporation of By a local Act the duty was imposed upon the respondent corporation west ^ J of lighting a town with gas, and the Act further provided that it should be lawful for the respondents, after lighting the town, to supply private customers with gas. The respondents, from the supply of gas to private customers, earned profits, on which they were assessed to income tax. They claimed to deduct from these profits the expenses incurred in lighting the town, as being money wholly and exclusively laid out or expended for the purposes of a trade, within the meaning of 5 & 6 Viet. c. 35, s. 100, Schedule (D.), r. 1 of the rules applying to the first and second cases. Held, that the lighting of the town and the supply of gas to private customers were separate and distinct operations ; that no trade was carried on until the respondents, after having lighted the town, began to supply gas to private customers, and therefore the expenses incurred in lighting the town were not money laid out or expended for the purposes of a trade, and the deduction could not be allowed. See remarks on this case, ante, p. 130. 2U THE SCHEDULES. Lord Hers- chell in 1888, Russell v. Town and County Bank, L. R. 13 Ap. Gas. 424. Lord Hers- chell, S. 0. Lord Fitz- gerald in Russell v. Town and County Bank. Russell v. Town and County Bank. A Deduction may be made for the Annual Value of Premises exclu- sively used for Business Purposes. " Now it is not disputed that the annual value of premises exclusively used for business purposes is properly to be deducted in arriving at the balance of profits and gains But there may be a question where the right to make that deduction is to be found. I am myself disposed to think that it is allowed because it is an essential element to be taken into account in ascer- taining the amount of the balance of profits :" Lord Herschell in Russell v. Town and County Bank. "nor for the Rent or Value of any Dwelling-house or Domestic Offices, or any part of such Dwelling-house or Domestic Offices, except such part thereof as may be used for the purposes of such Trade or Concern." " I think that that manifestly is intended to apply to the case where a dwelling-house is occupied or rented by the person assessed in part for busi- ness purposes, and in part for purposes which are other than business pur- poses :" Lord Herschell in Russell v. Town and County Bank. Dwelling-house. " The occupation of certain rooms in a bank by the bank manager for bank purposes, which occupation is necessary for the protection of the institution and the carrying on of its business, does not convert that part of the bank premises into a dwelling-house, though it may make them for certain pur- poses the dwelling of the manager or clerk :" Lord Fitzgerald in Russell v. Town and County Bank. 1888. Russell v. Town and County Bank, L. E. 13 App. Cas. 418. The respondents, a banking company, carried on their business in build- ings which contained accommodation occupied as a dwelling-house by the manager or resident agent. Held, that the respondents were entitled to deduct from their profits, before returning them for assessment under Schedule (D)., the annual value of the whole bank premises, including the part occupied by the manager. 5 & 6 Viet. c. 35, s. 100. Duty on trade to be computed exclusive of the profits of lands. Duty on trade carried on by two or more persons, how to be charged. The Income Tax Act, 1842, Schedule (D.), Cases I. and LI., Eules Second. The computation of the duty to be charged in respect of any trade, manufacture, adventure, or concern, or any profession, whether carried on by any person singly, or by any one or more persons jointly, or by any corporation, com- pany, fraternity, or society, shall be made exclusive of the profits or gains arising from lands, tenements, or hereditaments occupied for the purpose of such profession, trade, manufacture, adventure, or concern : Third. The computation of duty arising in respect of any trade, manufacture, adventure, or concern, or any profession carried on by two or more persons jointly, shall be made and stated jointly and in one sum, and separately and distinctly from any other duty chargeable on the same persons, or either or any of them ; and the return of the partner who shall be first named in the deed, instrument, or other agreement of co- partnership (or where there shall be no such deed, instrument, or agreement, then of the partner who shall be named singly, SCHEDULE (D.) First and Second Cases, Rules. 215 or with precedence to the other partner or partners, in the usual name, style, or firm of such copartnership, or where such precedent partner shall not be an acting partner, then of the precedent acting partner,)' and who shall he resident in the United Kingdom, (and who is hereby required, under the penalty herein contained for default in making any return required by this Act, to make such return on behalf of himself and the other partner or partners whose names and residences shall also be declared in such return,) shall be sufficient authority to charge such partners jointly : Provided always, that where no such partner shall be resident in the United Kingdom, then the statement shall be prepared and de- livered by their agent, manager, or factor resident in the United Kingdom, jointly for such partners, and such joint assessment shall be made in the partnership name, style, firm, or description ; and no separate statement shall be allowed in any case of partnership, except for the purpose of the partners separately claiming an exemption as herein directed, or of accounting for separate concerns ; provided that if any partner being entitled to exemption shall declare the proportion of his share in such partnership, trade, profession, or concern, in order to a separate assessment for the above purpose, it shall be lawful to charge such partner separately ; but if no such claim be made, then such assessment shall be made jointly, according to the amount of the profits and gains of such partnership : Provided also, that any joint partner in such trade, profession, or concern, which shall have been already returned by such precedent partner as aforesaid, may return his name and place of abode, and that he is such partner, without returning the amount of duty payable in respect thereof, unless the Commissioners respectively shall think proper to require a further return, in which case it shall be lawful for such Commissioners to require from every such partner the like return, and the like information and evidence, as they are hereby entitled to require from the precedent partner : The joint owners of ships are partners within this rule, and the ship's hus- Ship, band is a " precedent acting partner." 1814. Attorney-General v. Borrodaih, 1 Price, 148. A.-G. v. This was decided on 46 Geo. 3, c. 65 ; but the rule in that Act is very Borrodaile. similar. Fourth. If amongst any persons engaged in any trade, manu- i n case of facture, adventure, or concern, or in any profession, in 216 THE SCHEDULES. duty to be charged on the profits antecedent to the change. Change from partnership to limited company. Grove, J., 1881, in Ey- hope Coal Co. v. Foyer, L. R. 7 Q. B. D. 485. Grove, J., 8. C. Ryhope Coal Co. v. Foyer. partnership together, any change shall take place in any such partnership, either by death, or dissolution of partnership as to all or any of the partners, or by admitting any other partner therein, before the time of making the assessment, or within the period for which the assessment ought to be made under this Act, or if any person shall have succeeded to any trade, manufacture, adventure, or concern, or any profession, within such respective periods as aforesaid, the duty payable in respect of such partnership, or any of such partners, or any person succeeding to such profession, trade, manufacture, adventure, or concern, shall be computed and ascertained according to the profits and gains of such business derived during the respective periods herein mentioned, notwith- standing such change therein or succession to such business as aforesaid, unless such partners, or such person succeeding to such business as aforesaid, shall prove, to the satisfaction of the respective Commissioners, that the profits and gains of such business have fallen short or will fall short from some specific cause, to be alleged to them, since such change or succession took place, or by reason thereof. Change in a Partnership Succeeding to a Profession, Trade, &c. This applies to a change from a partnership to a limited company. ' ' I am of opinion that the facts here were no other than that a change took place in the partnership. The words are not 'as to one partner or more,' but ' as to all or any.' It took place here as to ' all.' It is undoubtedly a change in a partnership, and a very important change, that it should be converted from an ordinary partnership into a limited liability company. I am of opinion that there was a change, and that this limited company did 4 succeed ' to such profession, trade, manufacture, adventure, or concern ; therefore they are brought within the portion of this clause to which I have referred" : Grove, J., in Eyliope Coal Co. v. Foyer. " from some Specific Cause." ' ' A specific thing, and a specified thing are to my mind totally different ; I think 'specific' cause must be something capable of expression, but also something exceptional; it must not be the ordinary fluctuation incident to every business The specific cause must, I think, be something unusually exceptional and extraordinary, just as in those cases of damage done by floods, where the ordinary overflowing and annual flooding of. the year is not considered an act of God and an exceptional thing, but a flood which does not occur for a century or so " : Grove, J., S.C. An extraordinary Depression in Trade is a " Specific Cause." 1881. The Eyliope Coal Co. v. Foyer, L. E. 7 Q. B. D. 485. A partnership, after working certain coal mines for more than five years, was on the 21st of December, 1875, incorporated as a limited company, and sold to the company the assets, subject to the liabilities, of the partnership. The partners became holders of all the shares in the limited company accord- ing to their interests. After the 3rd of August, 1876, changes took place in the shareholders. The company being assessed by the Income Tax Commissioners to the income tax under 5 & 6 Viet. c. 35, Schedule (D.), for the year ending the 5th of April, 1877, on an average of the five preceding years, appealed, and contended that they were only liable to pay on a computation for one SCHEDULE (D.) First. 6f Second Cases, Rules, Sf Third Case. 217 year on the average of the profits from the 21st of December, 1875, the date of the incorporation. The Commissioners stated a case, in which they found that ' ' the profits and gains of the appellants' business had fallen short since the 21st of December, 1875, from the following specific causes, viz., the extraordinary depression in the iron and coal trades, whereby the appellants were unable to sell either so large a quantity of their coals as they had formerly been enabled to do, or to obtain anything like so good a price for such coals." Figures showing that the annual profits had fallen short by one-half were set out. Held, that the company was a new association carrying on an old concern; and had "succeeded" to it within Clause IV. of the third set of rules in Schedule (D.), but that, since such succession, the profits had fallen short from a " specific cause" within the exception in that clause, and that the rule of the sixth case, Schedule (D.), applied, and under it the computation should be made " on the amount of the full value of the profits and gains received annually," i.e., for the current year. Fifth. Every statement of profits to be charged tinder this 5 & 6 Viet. Schedule shall include every source so chargeable on the -^ ..' * , ' person delivering -the same on his own account, or on account charged in of any other person, and every person shall be chargeable in except'wliere respect of the whole of such duties in one and the same the sa e division, and by the same Commissioners, (except in cases eng-aged in where the same person shall be engaged in different partner- concerns m ships, or the same person shall be engaged in different trade in divers concerns relating to trade or manufacture in divers places, in p each of which cases a separate assessment shall be made in respect of each concern at the place where such concern if singly carried on ought to be charged as herein directed,) and every such statement on the behalf of any other person for which such person shall be chargeable as acting in any of the characters before described, or on the behalf of any corpora- tion, fellowship, fraternity, company, or society, shall include every source chargeable as last aforesaid, and shall be delivered in that division where such person, corporation, fellowship, fraternity, company, or society would be chargeable if acting on his or their own behalf. Third case. The duty to be charged in respect of profits of 5 & 6 Viet, an uncertain annual value not charged in Schedule (A.). ' ' 8 ' 1 ' First. The duty to be charged in respect thereof shall be com- Computation puted at a sum not less than the full amount of the profits or gains arising therefrom within the preceding year, ending as profits, in the first case, to be paid on the actual amount of such profits or gains, without any deduction : Second. The profits on all securities bearing interest payable On interest, out of the public revenue (except securities before directed to 218 THE SCHEDULES. On dealers in cattle and sellers of milk. 5 & 6 Viet, c. 35, s. 100. Computation of duty from securities in Ireland, in the colonies, &c., and foreign securities. 16 & 17 Viet, c. 34, s. 7. Duties in respect of securities and possessions in Ireland to be charged in same manner as securities, &c. of the like nature in Great Britain are charge- able, except as modified. "be charged under the Eules of Schedule (C.), and on all discounts, and on all interest of money, not being annual interest, payable or paid by any person whatever, shall he charged according to the preceding Eule in this case : Third. Whenever the Commissioners shall, on examination, find that any lands occupied hy a dealer in cattle, or by a dealer in or seller of milk, (which lands shall have been estimated and charged on the rent or annual value,) are not sufficient for the keep and sustenance of the cattle brought on the said lands so that the rent or annual value of the said lands cannot afford a just estimate of the profits of such dealer, it shall be lawful for the said Commissioners to require a return of such profits, and to charge such further sum thereon as, together with the charge in respect of the occupation of the said lands, shall make up the full sum wherewith such trader ought to be charged in respect of the like amount of profits charged according to the First Eule in this Case. Fourth Case. The duty to be charged in respect of interest arising from securities in Ireland, or in the British planta- tions in America, or in any other of her Majesty's dominions out of Great Britain, and foreign securities, except such annuities, dividends, and shares as are directed to be charged under Schedule (C.) of this Act. The duty to be charged in respect thereof shall be computed on a sum not less than the full amount of the sums (so far as the same can be computed) which have been or will be received in the United Kingdom (a) in the current year, without any deduction or abatement. (a) Great Britain before the Income Tax Act, 1853. The Income Tax Act, 1853 7. Provided also, that the duties in respect of interest arising from securities in Ireland, and in respect of possessions in Ireland, which by the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, are directed to be charged and assessed respec- tively according to certain rules prescribed for charging the duties under the head respectively of " Fourth Case " and " Fifth Case " of Schedule (D.), and in section one hundred and six of the said Act, shall under this Act be charged and assessed in Ireland in the same manner and under the same schedules, rules, and regulations respectively as the duties on securities and possessions of the like nature in Great Britain are directed to be charged, except so far as such schedules, rules, and regulations are altered or modified in SCHEDULE (D.) Fourth Case. 219 regard to the assessing or charging of duties in Ireland by the express provisions of this Act. The words " in Ireland or " in the fourth case are now repealed by the 37 & 33 Viet. Statute Law Revision (No. 2) Act, 1874. c. 96. It will often be doubtful whether interest should be assessed under Interest Case IV. or under Case I., and it may fall equally naturally under both Cases, falling under It is then in the option of the income tax authorities under which case it Case I. and should be assessed. See 1886. Scottish Mortgage and Land Investment Co. Case IV. of New Mexico v. Commissioners of Inland Revenue, 14 Scotch Sess. Cas., Option to 4th Series, 98 ; 24 Sc. L. E. 87 ; 2 Tax Cas. 165 ; and 1887, Smiles v. Northern income tax Investment Co. of New Zealand, 14 Scotch Sess. Cas., 4th Series, 734; 24 authorities. Sc. L. E. 530 ; 2 Tax Cas. 165 : infra. The distinction between the cases is given by Lord Shand in the following Distinction dictum : between " It appears to me that if we are dealing with a company making profits Case I. and by the use of its capital in mercantile transactions, that should fall under the Case IV. first case ; but if a company which has a large rent or fund laid aside for the Lord Shand purpose of investment, makes investments in foreign stock or other foreign in 1&S8, securities, including securities over moveable property in the colonies, that is Smiles v. a case in which the charge is to be made under the fourth case" : Smiles v. -Australasian Australasian Mortgage and Agency Co., Ltd. Mortgage and In the first and second cases given below the interest was held assessable ~f^ nc ^e.a'' either under Case I. or Case IV. ; in the last case it was held assessable under c '' n co ,?l* /-^ T i bess. Las. 4th. Case I. only. Series 878 It was also decided in the first case that "received in the United Kingdom " 25 Sco' L B, extends to a case where the money is not actually sent to the United King- 645 ; 2 Tax ' doin, but a portion of capital is spent as profits representing the sum earned Cas.' 367. abroad. CASES. 1886. Scottish Mortgage and Land Investment Co. of Neiu Mexico v. Commis- Scottish . sioners of Inland Revenue, 14 Scotch Sess. Cas., 4th Series, 98; 24 Mortgage and Sc. L. E. 87 ; 2 Tax Cas. 165. Land Invest- ment Co. of A Scottish company, which had invested funds in America, instead of 2few Mexico bringing home the interest, invested it in America, but deducted an equiva- v. Commis- lent amount from capital raised in this country for transmission to America sioners of In- for investment. The amount so deducted was divided as income among the tod Revenue. shareholders. Held, that the interest was to be regarded as interest received in this country within Case IV. of Schedule (D.). Held, also, that the company were assessable either under Case I. or Case IV. in the option-of the Commissioners. 1887. Smiles v. Northern Investment Co. of New Zealand, 14 Scotch Sess. Cas. Smiles v. 734 ; 24 Sc. L. E. 530 ; 2 Tax Cas. 165. Northern .. . Investment A company carrying on the business of borrowing money in this country Q O O f _$- ew and investing it abroad may, in the option of the Surveyor of Taxes, be Zealand. assessed either under Case I. or Case IV. of Schedule (D.). 1888. Smiles v. Australasian Mortgage and Agency Co., Limited, 15 Scotch Smiles v. Sess. Cas., 4th Series, 872; 25 Sc. L. E, 645; 2 Tax Cas. 367. Australasian A Scottish limited company carried on the business of wool brokers in Agency Co. Australia, and made advances of money, which were secured partly on real ia < ' property, and partly by liens or charges upon wool and other produce in that colony, the advances and interest thence accruing being of fluctuating amounts. Held, that the company should be assessed under Case I. of Schedule (D.) and not under Case IV. 220 THE SCHEDULES. 5 & 6 Viet. c. 35, a. 100. Computation of duty from possessions in Ireland, the colonies, &c. Fifth case. The duty to be charged in respect of possessions in Ireland, or in the British plantations in America, or in any other of her Majesty's dominions out of Great Britain, and foreign possessions. The duty to be charged in respect thereof shall be computed on a sum not less than the full amount of the actual sums annually received in the United Kingdom (a), either for remittances from thence payable in the United Kingdom, or from property imported from thence into the United Kingdom, or from money or value received in the United Kingdom, and arising from property which shall not have been imported into the United Kingdom, or from money or value so received on credit or on account in respect of such remittances, property, money, or value brought or to be brought into the United Kingdom, computing the same on an average of the three preceding years, as directed in the first case, without other deduction or abatement than is hereinbefore allowed in such case. 16 & 17 Viet. () Great Britain before the Income Tax Act, 1853. c. 34, s. 7. As to possessions in Ireland, see Case IV., supra, and the alteration made 37 & 38 Viet. " by the Income Tax Act, 1853, given thereunder. The words "in Ireland c. 96. or " are now repealed by the Statute Law Eevision (No. 2) Act, 1874. Lord Mac- naghten in 1889, Colqu- houn v. Brooks, 14 App. Cas. 516 ; 59 L. J. Q. B. 53; Lord Hers- chell, S. 0. 1876, The Cesana Sul- phur Co. and Calcutta Jute Mills v. Nicholson, L. R. 1 Ex. Div. 428 ; 45 L. J. Q. B. 821. 1877, Imperial Continental Gas Associa- tion v. Nichol- son, 37 L. T. N. S. 717; 1 Tax Cas. 138. Colquhoun v. Brooks. " Possessions." " The word ' possessions ' is not a technical word. It seems to me that it is the widest and most comprehensive word that can be used " : Lord Mac- naghten in Colquhoun v. Brooks. " When, therefore, the term ' possessions ' is employed, it seems to indicate an intention to cover by it something more than ' property.' And it is difficult to see why, unless the intention were to embrace something more, the latter word was not used. ' Possessions ' is a wide expression, it is not a word with any technical meaning ; the Act supplies no interpretation of it. I cannot see why it may not fitly be interpreted as relating to all that is possessed in her Majesty's dominions out of the United Kingdom or in foreign countries, and which is a source of income. And if so, I do not think any violence would be done to the language if it were held to include the interest which a person in this country possesses in a business carried on elsewhere " : Lord Herschell in Colquhoun v. Brooks. In The Cesana Sulphur Co. v. Nicholson and The Calcutta Jute Mills v. Nicholson, it was held that a company " resident " in England, but trading abroad, was liable to be assessed on all its profits, whether received in the United Kingdom or not. This was followed in The Imperial Continental Gas Association v. Nicholson, in which the point was argued that the company should only be taxed on the profits received in England under Schedule ().), Case V., but the Court held the contrary, following the Cesana Case, in which the point was not argued, the arguments turning on the residence of a company. On this question, however, these cases have now been virtually over- ruled by 1889. Colquhoun v. Brooks, L. E. 14 App. Cas. 493 ; 59 L. J. Q. B. 53. A person resident in the United Kingdom and engaged in a trade carried on entirely abroad is liable to income tax in respect of so much only of the profits of that trade as are received in the United Kingdom. SCHEDULE (D.) Fifth Case. 221 The respondent, who resided solely in England, was a partner in a firm which carried on business in Australia. Profits were made by the firm, and a portion of the respondent's share thereof was remitted to him in England, and on this portion he paid income tax under Schedule (D.). The larger portion of his share was not remitted to him in England, but was placed to his credit in Australia. Held, that the case fell under the head of "possessions in any of her Majesty's dominions out of Great Britain, or foreign possessions " dealt with by the fifth case of Schedule (D.) in 5 & 6 Viet. c. 35, s. 100 ; and that the respondent's portion of profits not received in the United Kingdom was not liable to income tax. The following comment has been made on the effect of Colquhoun v. Brooks Charles and on the previous cases : Stephen, JJ., "In The Cesanu Case and The Calcutta Jute Mills Case, the question, it is m London true, was not raised, whether profits earned abroad and not transmitted here -# aw * of Mexico were ' foreign possessions,' and the arguments were confined to the subject of a " d South the ' residence ' of the companies. But in The Imperial Continental Gas Asso- ~^ m ^ tca v ' elation v. Nicholson the question was fully raised and argued, and the Court T/ ? R r mj91^ decided that foreign earnings were not ' foreign possessions' within the fifth ^ Q ^ 358 case of Schedule (D.). Under these circumstances, although the cases were go L. J. Q. B. not actually overruled in Colqnhoun v. Brooks, there can be no doubt that 195. ' their authority is shaken. Indeed, Lord Herschell, in his judgment at p. 510, expressly says they cannot be regarded as authorities determining the question, aud Lord Macnaghten, at p. 511, also regards the cases as not decisive. Having regard to these expressions of judicial opinion, we should hesitate to regard the cases as any longer of binding authority, and in giving our judgment for the crown we do not act upon them": Charles and Stephen, JJ., in London Bank of Mexico and South America v. Apthorpe. BartJwlomay Brewing Co. (of Rochester], Limited v. Wyatt, and. Nobel Dynamite Bartliolomay Trust Co., Limited v. Wyatt, L. B. (1893) 2 Q. B. 499; 62 L. J. Q. B. 525. Brewing Co. An English company, having an office in London, was formed to acquire a ^. Wvatl and brewery in the United States. By a law in the States an English company jf h e i Lyna- is prohibited from owning or carrying on a brewery there, and the English m ^ f . Trust Co. company thereupon arranged for the formation of an American company v. Wyatt. with share capital, and having seven trustees appointed to manage, in the interests of the English company, the business in America. All the shares in the American company except seven, of which each of the trustees held one as a qualifying share were held by and in the name of the English company. The brewery was carried on in the City of Rochester in New York State. At the end of each financial year the trustees of the American company sent the English company the accounts of the brewery for the year, and the directors of the English company, having agreed upon the amount to be distributed out of the profits, informed the American company of the rate of dividend which the directors thought should be declared by that company on their shares. On hearing that the American company had declared a dividend, the directors declared a dividend of a similar value upon the 'shares in the English company. No dividend warrant was issued by the American company, but the amount of profits to be divided on the shares held by the English company, so far as that amount was required for dis- tribution among the shareholders of the English company, was sent over to the English company in London, such portion of the dividend as was required for certain American shareholders in the English company being retained by the American company, and distributed by them direct in America on behalf of the English company. Held, that the profits of the English company arose from "foreign posses- sions" so as to bring the case within 5 & 6 Viet. c. 35, s. 100, Schedule (D.) Case V. ; that the portion of profits retained in America for distribution among the American shareholders of the English company was not received by that company in England within the meaning of Case V. ; that the business on which the profits depended being wholly carried on abroad, the decision of the House of Lords in Colquhoun v. Brooks (14 App. Cas. 493), applied, and, therefore, that the English company were not liable to pay income tax upon the portion of the profits retained in America. 222 THE SCHEDULES. Denver Hotel Co, v. Andrews (Surveyor of Taxes), and San Paulo Brazilian Railway Co. v. Carter (Surveyor of Taxes). 5 & 6 Viet. c. 35, s. 100. Computation of duty on undescribed profits. 1881, fit/hope Coal Co. v. foyer, L. R. 7Q.B.D.485. A.-G. v. Slack. In another case the appellant company, an English company, having an office in London, was formed to acquire, and did acquire, shares in various companies or corporations, with limited liability, trading in explosives in England and in Germany. The affairs of the company were managed and controlled wholly by its directors. It did not carry on any manufacturing business, nor sell any materials or goods, in the United Kingdom or else- where. In dividing any profits made, the directors declared a dividend in London on all the appellant company's shares, of which a large number were held by foreigners living in Germany. The dividends due to the appellant company in respect of its shares in the German companies were, at the request of the directors, paid by those companies into banks abroad, and applied in paying the dividend, when declared, to the foreign shareholders of the appellant company. Held, that this case was also brought within the decision of the House of Lords in Colquhoun v. Brooks (14 App. Cas. 493), and therefore that the appellant company was not liable to pay income tax on the profits paid by way of dividend to the foreign shareholders of that company in Germany. 1894. The Denver Hotel Co. v. Andrews (Surveyor of Taxes), and The St. Paulo Brazilian Railway Co. v. Carter (Surveyor of Taxes], 11 T. L. E. 85. In the first case the company was registered and had its office in London, and the board sat there to direct its affairs. Dividends were declared in London and paid there to English shareholders, but dividends due to American shareholders were paid at Denver by the resident manager there, who had a large discretion in the management of the business. In the second case the company was registered in London and had its office and board of directors here. All the shareholders were English. The whole profit for the year was 375,OOOL, but only 295,OOOL was received here. It did not appear what was done with the difference. Held, that in the first case the American dividends were not assessable, and in the second case only the smaller sum. was assessable. Sixth case. The duty to be charged in respect of any annual profits or gains not falling under any of the foregoing rules, and not charged by virtue of any of the other Schedules contained in this Act. The nature of such profits or gains, and the grounds on which the amount thereof shall have been computed, and the average taken thereon (if any), shall be stated to the Commissioners, and the computation shall be made either on the amount of the full 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 directed by the said Commissioners ; and such statement and computation shall be made to the best of the knowledge and belief of the person in receipt of the same or entitled thereto. For an example of the application of this case, see Ryhope Coal Co. v. Foyer, ante, p. 217. 1871. Att.-Gen. v. Black, L. E. 6 Ex. Div. 308; 40 L. J. Ex. 194. By 13 Geo. 3, c. 34, a power was given to Improvement Commissioners for Brighton to levy a duty of sixpence on every chaldron of coals landed on the beach or brought into the town, for the purpose of erecting and main- taining groyns, &c. against the sea. By subsequent Acts the duty was continued and increased, and by 6 Geo. 4, c. 179, it was, together with rates which the Commissioners were empowered to levy, market tolls, &c., to form. SCHEDULE (D.) Losses in Separate Businesses. 223 a common fund for the general purposes of the Act, which included paving, lighting, and watching, and the maintenance of groyns and other sea works. Held, that this was either in the nature of a toll within Schedule (A.), No. III., Eule 3, or within Case VI. of Schedule (D.). As to the limits of the application of Case VI., see Lord Watson in Tennant Tennant v. V. Smith. Smith, L. R. (1892) A. C. Losses in Separate Businesses. 160. 101. Provided always, and be it enacted, that nothing herein Persons contained shall be construed to restrain any person carrying on either solely or in partnership, two or more distinct trades, manu- concerns may factures, adventures, or concerns in the nature of trade, the profits sustained in whereof are made chargeable under the Rules of Schedule (D.), , n . . . the profits from deducting or setting against the profits acquired in one or acquired in 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 such manner as may be done under this Act where a loss shall be deducted from the profits of the same concern, or to restrain any of such persons from making separate statements thereof, or to restrain any such person renting a dwelling-house, part whereof shall be used by him for the purposes of any trade or concern or any profession hereby charged, from deducting or setting off from the profits of such trade, concern, or profession such sum not exceeding two third parts of the rent bond fde paid for such dwelling-house, with the appurtenances, as the said respective Commissioners shall on due consideration allow; and the respective Commissioners shall have authority to allow such deductions as in other cases, and to assess such person accordingly. The 101st section only applies where the profits of both concerns are chargeable under Schedule (D.). 1886. Inland Revenue v. Watt, 23 Sc. L. E. 403 ; 13 Scotch Sess. Cas., 4th Inland Revenue Series, 590 ; 2 Tax Cas. 143. v. Watt. A farmer, who was assessed under Schedule (B.) upon the rent in respect of the occupation of his farm, and was also assessed under Schedule (D.) in respect of the annual profits arising from his business as a seed merchant, was not entitled, under sect. 101, to deduct from the profits arising from his business as seed merchant the loss which he had sustained as tenant of the farm. 1875. In re Corporation of Birmingham, 1 Tax Cas. 26. J re Cor- The Corporation of Birmingham held to be correctly assessed for profits of p ~ atwn f market hall, fish market, vaults, and meat market, and not entitled to deduct and set against profits in one or more of the said matters any loss sustained in any other concern. The 101st section does not apply to the case of a corporation which owns various kinds of property, such as " fines," " profits of market," &c. 1873. Att.-Gen. v. Scott, 28 L. T. N. S. 302 ; 1 Tax Cas. 55. A.-G. v. The income of the Corporation of the City of London, including the profits " cott - derived from "renewing fines," "profits of market," "corn and fruit 224 THE SCHEDULES. Webber v. Corporation of Glasgow. 5 & 6 Viet. c. 35, s. 102. Charging with duty- all annual interest not otherwise charged. Interest from profits charged liable to deduction. All other interest to be charged under Schedule (D.). ," "brokers' rents," " Mayor's Court and other fees," is liable to income tax ; and the proper principle on which deductions are to be allowed is to take each item or head of income separately, and to assess the income tax upon the net value of such item after deducting from its gross receipts the costs incurred in earning it. 1893. Webler v. Corporation of Glasgow, 30 Sc. L. K. 255. The " common good " of the City of Glasgow which consists of (1) burgess and freedom fines, (2) land lordship, (3) petty customs, is assessable to income tax, and the principle on which the assessment is to be made is to take each item or head of income separately and assess the income tax on the produce of such item after deducting from the gross receipts only the expenses incurred in earning and collecting the same, and not the general expenditure of the Corporation. The Income Tax Act, 1842 102. And be it enacted, that upon all annuities, yearly interest of money, or other annual payments, whether such payments shall be payable within or out of the United Kingdom (a), either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation thereout, or as a personal debt or obligation by virtue of any contract, or whether the same shall be received and payable half-yearly or at any shorter or more distant periods, there shall be charged for every twenty shillings of the annual amount thereof the sum of seven- pence without deduction, according to and under and subject to the provisions by which the duty in the third case of Schedule (D.) may be charged ; provided that in every case where the same shall be payable out of profits or gains brought into charge by virtue of this Act no assessment shall be made upon the person entitled to such annuity, interest, or other annual payment, but the whole of such profits or gains shall be charged with duty on the person liable to such annual payment, without distinguishing such annual payment, and the person so liable to make such annual payment, whether out of the profits or gains charged with duty, or out of any annual payment liable to deduction, or from which a de- duction hath been made, shall be authorized to deduct out of such annual payment at the rate of seven-pence for every twenty shillings of the amount thereof, and the person to whom such payment liable to deduction is to be made shall allow such deduc- tion, at the full rate of duty hereby directed to be charged, upon the receipt of the residue of such money, and under the penalty hereinafter contained, and the person charged to the said duties having made such deduction shall be acquitted and discharged of so much money as such deduction shall amount unto, as if the amount thereof had actually been paid unto the person to whom such payment shall have been due and payable ; but in every case where any annual payment as aforesaid shall, by reason of the SCHEDULE (D.) Interest, Annuities, 6fc. 225 same being charged on any property or security in the British plantations, or in any other of her Majesty's dominions, or on any foreign property or foreign security, or otherwise, be received or receivable without any such deduction as aforesaid, and in every case where any such payment shall be made from profits or gains not charged by this Act, or where any interest of money shall not be reserved or charged or payable for the period of one year, then and in every such case there shall be charged upon such interest, annuity, or other annual payment as aforesaid the duty before mentioned, according to and under and subject to the several and respective provisions by which the duty in the third case of Schedule (D.) may be charged: Provided always, that Interest where any creditor on any rates or assessments not chargeable by this Act as profits shall be entitled to such interest, it shall be charged on lawful to charge the proper officer having the management of the managing accounts with the duty payable on such interest, and every such tlie a 000 1 * 8 - officer shall be answerable for doing all acts, matters, and things necessary to a due assessment of the said duties, and payment thereof, as if such rates or assessments were profits chargeable under this Act, and such officer shall be in like manner indem- nified for all such acts, as if the said rates and assessments were chargeable. In connection with sect. 102 we shall discuss the last clause of Sche- Interest of dule (D.), " and for and in respect of all interest of money, annuities, and money, other annual profits and gains not charged by virtue of any of the other annuities, schedules contained in this Act, and to be charged for every twenty shillings an ^ other of the annual amount thereof." annual profits In the original Schedule (D.) to the Act of 1842 there was no such clause and S ams - as this (see p. 315), but the rest of the schedule was practically the same as the Schedule (D.) at present in force (Act, 1853). Now sect. 102 is not a charging section (Charles, J., in 1888, Clerical Sect. 102 is Medical and General Life Assurance Society v. Carter, L. E. 21 Q. B. D. 347 ; not a charg- afnrmed 22 Q. B. D. 444), so that, prior to the Act of 1853, the " annuities, ^8 section. yearly interest of money, or other annual payments," described in sect. 102, were chargeable under Schedule (D.) of the Act of 1842, though not speci- fically mentioned as in Schedule (D.) of the Act of 1853. Sect. 102 was the rule showing how the duty was to be charged. The origin of this additional clause in Schedule (D.) of the Act of 1853 is Origin of the thus stated by Wood, V.-C., in Sebb v. Sunny. last clause of " The authorities of the Inland Revenue Office say that this schedule was Schedule (D.). framed more particularly in reference to the case of public bodies, such as ^ood V.-C. parochial boards, who have no income out of which interest is payable, and in 1 354, Bebb are not assessed to the duty, and, having to pay interest on bonds or the \. Bunny, 1 like, are not, therefore, parties entitled to deduct the tax under sect. 40 ; K. & J. 219. so that the tax becomes payable by the receiver of the interest under Schedule (D.)." In discussing the contents of the last clause of the present Schedule (D.), we shall find that it has extended the scope of Schedule (D.) of the Act of 1842, because although it does not add annuities, interest of money, and other annual profits and gains, as fresh subjects of taxation, yet, at any rate, with regard to "interest of money," it has extended the meaning of the term by bringing a class of "interest" within the schedule which would not R. Q 226 THE SCHEDULES. Lord Esher, M.R., in 1889, Clerical, Medical and General Life Assurance Society v. Carter, L. R. 22 Q. B. Div. 449 ; 58 L. J. Q. B. 224. Clerical, Medical and General Life Assurance v. Carter, supra. 1889, Goslings and Sharps v. Blake, L. R. 23 Q. B. Div. 327; 58 L. J. Q. B. 446. Fry, L.J., in Clerical, Medical and General Life Assurance v. Carter, supra. 1889, Scottish Union and National Insurance Co. v. Inland Revenue, 16 Scotch Sess. Cas. 4th Series, 461 ; 26 Sco. L. R. 330 ; 2 Tax Cas. 551. otherwise be chargeable. In Clerical, Medical and, General Life Assurance Society v. Carter, Lord Esher, M. B,., said " There appears to be no such section in the Act of 1842 as sect. 1 (a) of the Act of 1853 : but when we come to the Act of 1853 we find that sect. 1 of that Act does mention ' interest on money ' as if it were a distinct and separate subject-matter of taxation. Having regard to that alteration in the Act of 1853, it seems to me that the contention, that Schedule (D.) cannot possibly have been intended to add any subject-matter of taxation to those mentioned in the former Act, falls to the ground. Then when we come to Schedule (D.) we find the words ' and for and in respect of all interest of money.' Therefore, that which appears to be mentioned in sect. 1 as a separate subject-matter of taxation, is again mentioned in Schedule (D.) in similar terms. Having regard to the terms of sect. 1 and the ordinary grammatical construction of the words of Schedule (D.), I cannot see my way to adding to the schedule any such words as have been suggested, or to reading the words as equivalent to 'for and in respect of all profits and gains, if any, in a trade or business arising from any interest of money.' That appears to me too large a paraphrase for us to make. I think we must read the words in their plain ordinary sense." We shall now consider the contents of this clause. "Interest of Money." As to whether the words "interest of money" in Schedule (D.), being followed by the words "annuities and other annual profits and gains," the interest to be charged must be annual interest, qucere. See Fry, L.J., in Clerical, Medical and General Life Assurance Society v. Carter ; see also Lord Esher, M.E,., on section 40 of the Act of 1853 in Goslings and Sharpe v. Blake, post, p. 242. The meaning of the expression "yearly interest of money" will be dis- cussed when we consider section 40 of the Act of 1853 ; see post, p. 240. It is not necessary that interest of money should be in the nature of profits. Thus, if I carry on a business which involves the investment of sums of money, though I make no profit from my business, I must pay income tax on the " interest of money " from my investments. " It seems to me comparatively immaterial what a man does with the money when he has received it ; and I think ' profits or gains ' are in many cases used by the Act of 1853 in reference to profits or gains of particular investments, and not necessarily to profits or gains of the trade of which those investments may be part:" Fry, L.J., Clerical, Medical and General Life Assurance v. Carter. The case was as follows The interest arising from investments made by a life insurance company for the purposes of their business, income tax on which had been deducted at its source, exceeded the amount of the profits of the company for the year of assessment. The company had also during the year received interest on in- vestments from which there had been no deduction for income tax. Held, affirming the judgment of the Queen's Bench Division, that the company were liable to assessment to income tax in respect of such last- mentioned interest as "interest of money " within the last clause of Schedule (D.). See also to the like effect, Scottish Union and National Insurance Co. v. Inland Revenue. " Other Annual Profits and G-ains." Yearly instalments in payment of a debt are not included in the above, not being in the nature of profits and gains. (a) Sect. 1 of the Income Tax Act, 1853, is repealed by the Statute Law Revision Act, 1875. It is given in the Appendix. SCHEDULE (D.) Interest, Annuities, fyc. 227 1856. Taylor v. Evans, 1 H. & N. 101 ; 25 L. J. Ex. 269. Taylor v. By indenture the plaintiff, in consideration of 1,3801. to be paid by instal- ^vaiu. ments, sold the defendant a coal mine for a term of fifty years. The defen- dant covenanted to pay the plaintiff 150?. on the execution of the indenture and 1507. per year after that time, but if a certain amount of coal should be worked in any year, the defendant was to pay a larger sum in proportion to the coal worked, until the whole sum of 1 , 3801. should be paid. No coal was worked by the defendant, who claimed to deduct income tax from an instalment. Held, that the deduction could not be made ; the defendant was not liable to be assessed as he had never worked the mine ; but if the defendant worked the mine and got coal, then he must pay the tax, and deduct it from the pay- ments made to the plaintiff. If this was an "annual payment" within section 102, the plaintiff was primarily liable. 1858. Foley v. Fletcher, 3 H. & N. 769 ; 28 L. J. Ex. 100. Foley v. F. being seised in fee of one moiety of certain mines, sold her share for c er ' 45,000?., payable 3,885?. down, and the residue by half-yearly instalments of 768?. 11s. 8d. during a period of thirty years. Held, that the instalments were not chargeable with income tax under the words " annual payments, payable as a personal debtor obligation, by virtue of any contract," in the 5 & 6 Viet. c. 35, s. 102, such instalments being the payment of a debt, and not being profits and gains, and therefore not within the purview of the Acts. The following cases have also been decided on the question as to whether certain interest is taxable. 1853. Udney v. The East India Co., 13 C. B. 733 ; 22 L. J. 0. P. 260. Udney v. The The Bengal Civil Service Annuity Fund, is a fund formed in India, under East India ' the sanction of the East India Company, by the subscriptions of their civil ser- vants upon the Bengal establishment, augmented by contributions from the company; and a civil servant who has regularly subscribed to the fund, and retires after the regular period of service, becomes entitled to receive thereout an annuity of 10,000 rupees. The fund is invested in India and managed there by a committee of nine, four of whom are officially connected with the government. By an arrangement with the company, the annuitants have the option of receiving their annuity in India from the managers of the fund, or of being paid at the East India house in London, at the rate of 2s. per sicca rupee, the company being in that case provided out of the fund with moneys for the purpose of making the payments. The plaintiff, a retired civil servant, entitled to a pension of 1,000?. a year, whose permanent residence was in France, elected to receive his annuity in London. Held, that the annuity was not subject to income tax, under the 5 & 6 Viet. c. 35, not being payable out of any fund in England, and that he might maintain an action for money had and received against the company, to recover sums deducted and retained by them in respect of such tax, and paid over to the Commissioners. 1880. North British Railway Co. v. Alercorn (Duke of), 7 Scotch Sess. Cas., North British 4th Series, 419; 17 Sc. L. E. 270. Railway Co. A railway company having taken land by virtue of their Act, agreed with Alercorn the landowner that he, instead of giving his tenants an abatement of rent in respect of the land taken, should receive the full rent during the remainder of the leases, and that the company should settle the full tenants' claims, the landowner during that period paying the company 3 per cent, interest upon the compensation paid him to enable them to do so. Held, that under section 102 of the Income Tax Act, 1842, the landowner was entitled to deduct income tax in paying the 3 per cent, to the company. 1884. Blake v. Imperial Brazilian Railway, 2 Tax Cases, 58. Government A company undertakes to construct a railway in Brazil under a govern- ui tee> ment guarantee of 7 per cent. It raises capital by debentures at 5per cent. B lake J- Q 2 228 THE SCHEDULES. Brazilian Railway. H. E. H. The Nizam State Railway Co. v. Wyatt. Colonial companies. Foreign companies. Profits or gains not charged by the Act. Aberdeen Commissioners of Supply v. Mussell. and devotes the 7 per cent, to payment of debenture interest,and to the forma- tion of a sinking fund to pay off the debentures. Held, that the whole of the sum paid under the guarantee during construc- tion is liable to income tax as interest of money. 1890. H. R. H. The Nizam State Railway Co. v. Wyatt, L. E. 24 Q. B. D. 548 ; 59 L. J. Q. B. 430. By an agreement between the government of the Nizam of Hyderabad and an English company incorporated for the purpose of constructing a railway through his dominions, the government agreed to pay for twenty years to the company in London an annuity equal to 5 per cent, per annum on the issued capital, the company being bound by the agreement to apply the annuity in payment of interest at 5 per cent, per annum on the share capital paid up, and of interest at 4 per cent, per annum on the debentures of the company, and to pay over the balance, viz., 1 per cent., to trustees, to form a sinking fund for the redemption of the debenture capital. The company duly received the annuity and paid over such balance accordingly. They claimed to deduct the balance from an assessment on them to the income tax under 16 & 17 Viet. c. 34, Schedule (D.). Held, that they were liable to be assessed to the income tax in respect of the whole amount of the annuity received by them, and were not entitled to any deduction in respect of the balance applied to the purposes of the sinking fund. "or in the British Plantations, or in any other of her Majesty's Dominions." As to colonial companies, &c., see 24 & 25 Viet. c. 36, infra. " or on any Foreign Property or Foreign Security." As to foreign companies, &c., see 16 & 17 Viet. c. 34, s. 10, infra. " from Profits or Gains not charged by this Act." See 51 & 52 Viet. c. 8, s. 24, infra. " Creditor on Rates or Assessments." 1890. Aberdeen Commissioners of Supply v. Russell (Surveyor of Taxes], 2 Tax Gas. 643; 17 Scotch Sess. Gas., 4th Ser. 942 ; 27 Sc. L. E. 759. Certain municipal buildings which are charged with income tax upon their annual value were erected with moneys borrowed on the security of the public rates, and the interest payable on the loans is raised out of the rates. Held, that the interest is chargeable with income tax within the concluding provision of sect. 102. 16 & 17 Viet. c. 34, s. 10. Persons in- trusted with the payment in the United Kingdom of interest or dividends from foreign companies to do all acts necessary in order to assessments being made thereon in We shall now proceed to give the sections of the Acts above referred to, showing how the scheme for deduction of the tax has been extended in order that people may not evade it. The Income Tax Act, 1853 10. The provision made by the Act passed in the said session of the fifth and sixth years of her Majesty, chapter eighty, section two, for the assessing and charging the duties on dividends and shares of annuities payable out of the revenue of any foreign state, shall be and the same is hereby extended to the assessing and charging of the duties granted by this Act, as well on such dividends and shares of annuities as aforesaid as on all interest, dividends, or other annual payments payable out of or in respect of the stocks, funds, or shares of any foreign company, society, adventure, or concern, or in respect of any securities given by or SCHEDULE (D.) Foreign Dividends, fyc. 229 on account of any such company, society, adventure, or concern, manner and which said interest, dividends, or annual payments have been or shall be intrusted to any person in the United Kingdom for c - 80 - payment to any persons, corporations, companies, or societies in the United Kingdom, and all persons intrusted with the payment of any such interest, dividends, or other annual payments as afore- said in the United Kingdom, or acting therein as agents or in any other character, shall and they are hereby required to do and perform all such acts, matters, and things, in order to the assessing and charging and paying of the said duties on all such interest, dividends, or other annual payments as aforesaid, and under and subject to the like penalty or other liability for any neglect, refusal, or default in that behalf, as by the said Act of the fifth and sixth years of her Majesty, chapter eighty, persons intrusted with the payment of annuities or any dividends or shares of annuities are required to do and perform, or are subject or liable to for any similar neglect, refusal, or default ; and the assessments of the duties on all such interest, dividends, and other annual payments as aforesaid shall be made by the Commissioners for Special Purposes under Schedule (D.) of this Act, and the said Commissioners shall do and perform all such acts, matters, and things in relation to such assessments as by the said Act, chapter eighty, they are required to do or perform in relation to any assessment under the said last-mentioned Act. An Act to grant relief from the duties of assessed taxes in certain cases, and 5 & 6 Viet, to provide for the assessing and charging the property tax on dividends c. 80, s. 2. payable out of the revenue of foreign states. 2 (a). All persons intrusted with the payment of annuities, or Persons in- any dividends or shares of annuities, payable out of the revenue the^men of any foreign state to any persons, corporations, companies, or of foreign societies in Great Britain, or acting therein as agents or in any acuities 8 other character, shall, without further notice or demand thereof, sha11 d^ver deliver or cause to be delivered into the Chief Office of Inland thereof. Revenue in England an account in writing containing their names and residences, and a description of the annuities, dividends, and shares intrusted to them for payment, within one calendar month after the same shall have been required by public notice in the London Gazette, and shall also, on demand by the inspector authorized for that purpose by the Commissioners of Inland Eevenue, deliver or cause to be delivered to him, for the use of the said Commissioners for Special Purposes, true and perfect accounts of the amount of annuities, dividends, and shares payable by them respectively ; and the said Commissioners for Special Purposes Commis- 230 THE SCHEDULES. sioners for shall make an assessment thereon under Schedule (0.) of the said poses a tomake last-recited Act, at the rate therein prescribed, subject to diminu- assessments tion on occasion 'of any exemptions to be allowed by the said Commissioners for Special Purposes, giving notice of the amount of such assessments to the respective persons intrusted with such payments, who shall respectively pay the duty on the said annui- ties, dividends, and shares, on behalf of the persons, corporations, and companies entitled unto the same, out of the moneys in their hands, and they shall be acquitted of such payments in like manner, and the like proceedings in all respects shall be had under the said Commissioners for Special Purposes, as are by the said last-recited Act directed in respect of annuities payable out of the public revenue of the United Kingdom : Provided always, that the persons intrusted with such payment shall from time to time pay the duty so assessed thereon into the Bank of England, to the account to be kept at the Bank of England with the Beceiver- Greneral of Inland Eevenue, as directed by the said Act, and shall be answerable for such payment, and which duty so assessed shall, in default of such payment, be recoverable against the persons respectively intrusted with such payments, as other duties charged on the parties may be recovered against them ; and if any person intrusted with the payment of any such last-mentioned annuities, or any dividends or shares thereof, in the manner herein mentioned, or acting therein as agent or in any other character, shall neglect or refuse to deliver an account of his name and residence in the manner herein directed, or, after demand, shall neglect or refuse to deliver an account as aforesaid of the amount of such annuities, dividends, and shares as he is intrusted with the payment of, or in the payment of which he shall act as agent or in any other character, he shall forfeit the sum of one hundred pounds, over and above the duty chargeable on such annuities, shares, or dividends. 53 & 54 Viet. (a) The preceding part of the section is repealed by the Statute Law o. 51. Kevision (No. 2) Act, 1890. Example of "We shall now give a very curious example of the application of sect. 10. the applica- We know that under Schedule (D.) a corporation "residing" abroad is not tion of sect. 10 chargeable with income tax on its profits earned abroad. It is clear, however, of 16 & 17 that the shareholders of the corporation who "reside in the United Kingdom" and receive their dividends in the United Kingdom are chargeable under Schedule (D.), Case Y. Now observe the effect in the following case : A corporation resides abroad, but has an agency in England, and does business both abroad and through its agency in England. The share certifi- cates are made out to bearer, and the shares themselves are transferable by delivery of the certificates. The dividends are payable, at the option of the holders, in England or abroad, by means of coupons attached to the certifi- cates. Viet. c. 34. SCHEDULE (D.) Foreign Dividends, $c, 231 The corporation must pay income tax as follows : (1.) On the profits earned in England. This follows at once from Clause 2 of Schedule (D.). It is tax payable by the corporation as a body earning profits in the United Kingdom. (2.) On such part of the profits earned abroad as is expended in dividends paid in England. This is tax payable by the agency on behalf of those shareholders who reside in the United Kingdom. In order to determine from what profits the dividends flow, the whole profit, English and Foreign, of the corporation is first determined, and every dividend paid is considered to be made up of English and Foreign profits in the proportion that the whole English profit bears to the whole Foreign profit. It does not matter that in fact the dividends paid in England are paid entirely out of the English profits already taxed by (1). In theory, the corporation pays its dividends out of one lump sum consisting of all the profits, English and Foreign, and in the assessment it must be taken that this is done, although, in fact, it is not so. Thus, although, in fact, all the dividends paid in England are paid out of English profits only, and no Foreign profit is actually received in the United Kingdom, yet the corporation may be assessed in a much larger sum than the English profits, on account of the Foreign profit theoretically supposed to exist in each dividend paid. 1881. Gillertsonv. Fergmson, L. E. 7 Q. B. D. 562. Gilbertson v. The Imperial Ottoman Bank (constituted as described in A.-G. v. Alexander, ante, page 193) had an agency in London which conducted a branch and earned profits. The dividends of the shareholders were payable by coupon either abroad or at the London agency at the option of the shareholders. In a particular year, the London agency earned an amount of profits which enabled them, to pay all the dividends demanded of them in that year without requiring or obtaining any remittance from the company abroad. The London agency were assessed to income tax under Schedule (D.) on the profits earned in the United Kingdom on an average of the three preceding years. They were also assessed in respect of the dividends paid by them. They appealed against the latter assessment. Held, that since the dividends were payable out of the general earnings of the company consisting of profits made partly in the United Kingdom, and partly elsewhere, and the London agency had already been assessed to income tax on the former, they ought only to be assessed in respect of that portion of the dividends which represented profits arising out of the United Kingdom. EXAMPLE. Example, Suppose the bank earns 800,000 profit, of which 100,000 is earned in 1st method. England, and 700,000 abroad : And suppose it expends this profit in dividends, of which 150,000 are paid in England, and 650,000 abroad (1.) Assess the English profits = 100,000. (2.) Assess so much of the Foreign profits as is expended in dividends paid in England. Let this be F, And let E denote that part of the English profit which is expended in dividends paid in England. Then E + F = whole English dividend = 150,000. Now the English profit : the Foreign profit :: 100,000 : 700,000 :: i : 7 .-. E :F :: 1 : 7 .-. E + F:F :: 8: 7 .-. 150,000 : F :: 8:7 .-. F = - X 150,000 = 131,250 8 .. Total assessment = 100,000 + 131,250 = 231,250 This is the method indicated by Brett, L. J. 232 THE SCHEDULES, Example, We can arrive at the same result by a different method (see Bramwell, 2nd method. L. J., in GiTbertson v. Ferguson). (1.) Assess the dividends paid in England = 150,000. As it is assumed that the shareholders who receive these dividends in England reside in England they are liable to pay the tax, and the agency pays it on their behalf under sects. 102 and 10 of the Acts of 1842 and 1853 respectively. (2.) Assess so much of the dividends paid abroad as flows from profit earned in England. This follows from clause 2 of Schedule (D.). It is tax payable by these shareholders as exercising a trade in England, and is payable by the agency on their behalf under sect. 102. Let E be that part of the dividend paid abroad which flows from profits earned in England ; And let P be that part of the dividend paid abroad which flows from Foreign profit ; Then E + F = whole Foreign dividend 650,000. Now the English profit : Foreign profit : : 100,000 ; 700,000 ::1:7 .-. E:F :: 1 : 7 .-. E :E + F :: 1 : 8 .-. E : 650,000 : : I : 8 .-. E = i X 650,000 = 81,250 8 ,-. Total assessment = 150,000 + 81,250 = 231,250 24 & 25 Viet. By the Eevenue (No. 2) Act, 1861 The 'revision ^' ^ e P rov i s i n made by the Act passed in the 5 & 6 Viet. made for c. 80, s. 2, and the Act passed in the 16 & 17 Yict. c. 34, s. 10, for the assessing and charging the income tax on interest, dividends, the interest O r other annual payments payable out of or in respect of the stocks, and dividends u * * x J payable in funds, or shares of any foreign company, society, adventure, or K^dom* 1 concern, shall be and the same is hereby extended and shall be arising out applied to the assessing and charging of the income tax on all companfes, interest, dividends, or other annual payments payable out of or in extended to respect of the stocks, funds, or shares of any colonial company, companies. society, adventure, or concern, and in respect of any securities given by or on account of any such colonial company, society, adventure, or concern, and which said interest, dividends, or annual payments have been or shall be intrusted to any person in the United Kingdom for payment to any persons, corporations, com- panies, or societies in the United Kingdom ; and for this purpose the said section ten of the last-mentioned Act and this enactment shall be read and construed together as one enactment, in like manner as if the words " or colonial " had been inserted and con- tained in the said section ten, immediately after the word "foreign," used therein with reference to any company, society, adventure, or concern. 29 & 30 Viet. By an Act to grant, alter, and repeal certain duties of customs and inland c. 36, s. 9. revenue, and for other purposes relating thereto Extending 9. The provisions made by the several Income Tax Acts in force to persons SCHEDULE (D.) Foreign and Colonial Dividends, fyc. 233 on the 5th day of April, 1866, for assessing and charging the duties registering on dividends and shares of annuities payable out of the revenue of any foreign State or colonial government, and all interests, divi- * or payment dends, or other annual payments payable out of or in respect of Kingdomthe the funds, stocks, shares, or securities of any foreign or colonial P rovi ^ ions . . J & contained in company, society, adventure, or concern, intrusted to any person 5 & 6 Viet. in the United Kingdom for payment to any person therein, shall y ict ; c 80 . 6 be and the same are hereby extended and shall be applied to the 16 & 17 Viet, assessing and charging of the income tax on all such dividends and 24 & 25 Viet, shares of annuities, and interest, dividends, and other annual pay- c - 91> ments, where the right or title 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 Kingdom ; and for the purpose of such assessment and charge the agent or other person having the ordinary custody of such book or making such list shall be deemed to be the person intrusted with the payment of such dividends and shares of annuities, and interest, dividends, and other annual payments, within the mean- ing of the said Income Tax Acts. By an Act to grant certain duties of customs and income tax 31 & 32 Viet. 5. The provisions contained in section ten of the said Act of the Th e provision 16 & 17 Yict. c. 34, with reference to the assessing and charging made for ,, . . , , ,. ., , ,, , assessing the the income tax on interest, dividends, or other annual payments income tax on payable out of or in respect of the stocks, funds, or shares of any foreign company, society, adventure, or concern, shall be and the payable in same are hereby extended and shall be applied to the assessing and Kingdom charging of the income tax on all annuities, pensions, or other arising out annual sums payable out of the funds of any institution in India, companies, which said annuities, pensions, or annual sums have been or shall acuities * be intrusted to any person in the United Kingdom for payment to pensions, &c., any persons resident in tne United Kingdom. of funds in India. The Customs and Inland Revenue Act, 1885 48 & 49 Viet. c. 51, s. 26. 26. Whereas the enactments hereinafter mentioned have been Provision found inadequate to secure the charging and payment of income tax souring ^ upon dividends payable out of the revenues of foreign and colonial income tax States, and dividends of foreign and colonial companies ; be it there- and colonial fore enacted that sect. 96 of 5 & 6 Yict. c. 35, sect. 2 of 5 & 6 Viet, dividends. c. 80, sect. 10 of 16 & 17 Yict. c. 34, and sect. 36 of 24 & 25 Yict. c. 91, shall be read in relation to the dividends therein respectively mentioned, as if the said sections included amongst the persons 234 THE SCHEDULES. 51 & 52 Viet. c. 8, s. 24. Interest of money, &c., not payable out of profits or gains. intrusted with the payment of such dividends the persons herein- after described ; (that is to say,) (a) Any banker or person acting as a banker who shall sell or otherwise realize coupons or warrants for or bills of exchange purporting to be drawn or made in payment of any dividends (save such as are payable in the United Kingdom only), and pay over the proceeds to any person or carry the same to his account ; (b) Any person who shall, by means of coupons received from any other person, or otherwise on his behalf, obtain pay- ment of any dividends elsewhere than in the United Kingdom ; (c) Any dealer in coupons who shall purchase coupons for any dividends (save such as are payable in the United King- dom only) otherwise than from a banker or person acting as a banker, or another dealer in coupons. A person intrusted with the payment of dividends, who shall per- form all necessary acts so that the income tax thereon may be assessed and paid, shall be 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 Commissioners of the Treasury. Provided that this section shall not impose on 'any banker or other person the obligation to disclose any particulars relating to the affairs of any person on whose behalf he may be acting. The Customs and Inland Revenue Act, 1888, 51 & 52 Viet. c. 8 24. (2.) Sect. 26 of the Customs and Inland Eevenue Act, 1885, shall be read and construed as if the word " coupons " in sub-sect, (b) of that section, and the expression " coupons for any dividends " in sub-sect, (c) of that section, included " warrants for or bills of exchange purporting to be drawn or made in payment of any dividends." (3.) 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 or gains brought into charge to such tax, the person by or through whom such interest or annuities shall be paid shall deduct thereout the rate of income tax in force at the time of such payment, and shall forthwith render an account to the Commissioners of Inland Revenue of the amount so deducted, 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 shall be a debt SCHEDULE (D.) Void Agreements, $c. 235 from such person to her Majesty, and recoverable as such accord- ingly; and the provision contained in sect. 8 of 13 & 14 Yict. c. 97, now in force in relation to money in the hands of any person for legacy duty, shall apply to money deducted by any person in respect of income tax. Sect. 8 of 13 & 14 Viet. c. 97, is to the effect that all persons receiving moneys for legacy duties and misappropriating the same are to be liable for the amount, and the Court of Exchequer is to enforce payment thereof. 1890. Lord Advocate v. Forth Bridge Railway Co., 3 Tax Gas. 1 ; 28 Sc. L. E. Lord Advocate 576. v. Forth A bridge company during the construction of its works made no profits, B^ge J but paid under deduction of income tax interest on its own share and deben- wa ^ ture capital. Held, the income tax so deducted is a debt to the Crown under 51 & 52 Viet. c. 8, s. 24, sub-s. 3. The Income Tax Act, 1842 5 & 6 Viet. 103. And be it enacted, that if any person shall refuse to allow penalty on ' any deduction authorized to be made by this Act out of any refusing to payment of annual interest of money lent, or other debt bearing auctions. annual interest, whether the same be secured by mortgage or other- wise, he shall forfeit for every such offence treble the value of such principal money or debt ; and if any person shall refuse to allow any deduction authorized to be made by this Act out of any rent or other annual payment mentioned in the ninth and tenth Rules of No. IV. Schedule (A.), or out of any annuity or annual payment mentioned in Schedules (0.) or (E.), or in the next preceding clause, save such annual interest as aforesaid, every such person shall forfeit the sum of fifty pounds ; and all contracts, covenants, and agreements made or entered into, or to be made or entered into, for payment of any interest, rent, or other annual payment aforesaid, in full, without allowing such deduction as aforesaid, shall be utterly void. Examples of void " contracts, covenants, and agreements." Marriage Settlements. 1858. A.-G. v. Shield, 3 H. & N. 834; 28 L. J. Ex. 49. A.-G. v. By a marriage settlement, certain lands were conveyed subject to " au ie ' annuity or clear yearly sum. of 1 001. freed and clear and without any deduction or abatement whatsoever in respect of any taxes or impositions then already or which should thereafter be taxed, charged, assessed, or imposed upon the said premises, or upon the said annuity, by authority of parliament or other- wise howsoever." Held, that the parties paying the annuity were entitled to deduct income tax under 5 & 6 Viet. c. 35, s. 103, and that the annuitant, refusing to permit the deduction, was liable to the penalty under sect. 103. 1863. Floyer v. SanJees, 32 L. J. Ch. 610. Fkyer v. By a marriage settlement, made in 1810, certain hereditaments were ankes - limited to the use that the intended wife might, upon the decease of her 236 THE SCHEDULES. husband, receive a jointure rent-charge, payable without any deduction in respect of any taxes already imposed, or thereafter to be imposed, upon the hereditaments, or the yearly rent-charge, or the intended wife in respect thereof. Held, that assuming the terms of the deed to amount to an express pro- vision that the jointure should be paid free of income tax (which it would seem they did), still the income tax must be paid by the jointress, the 103rd section of the 5 & 6 Viet. c. 35 prohibiting any contract to that effect. How much of Only that Part of the "Contract, Covenant, and Agreement" is void contract void. which compels Payment in full without Deduction. The " Con- tract, Covenant, and Agreement" for Payment remains good. Lord Ellen- "The legislature do not avoid the deed itself, but only the contract for the borough, C.J., payment, without allowing the deduction for the tax. The words do not in 1812, Howe necessarily import that the whole contract is to be avoided, but only so much v. Synge, 15 as disallows the deduction for the tax : indeed, as the Act refers to contracts East, 442. then made, as well as those to be made, it would have been unjust to avoid the whole " : Lord Ellenborough, C.J., in Howe v. Synge. Howe v. 1812. Howe v. Synge, 15 East, 442. y n 9 e ' A deed granting an annuity recited the agreement for the purchase of a certain annuity, free from the property or income tax, and covenanted for the payment of it without any deduction in respect of the property or income tax. Held, it was not void in toto, but only to the extent of such disallowance. See also 1812, Tinckler v. Prentice, 4 Taunt. 549 ; 1818, Fuller v. Abbott, 4 Taunt. 105. Howe v. Synge was decided on 46 Geo. III. c. 65, s. 115, but that part of the section avoiding contracts is the same as sect. 103 of 5 & 6 Viet. c. 35. Valid The Section does not make an Agreement void which, provides for the agreement. Payment of Rent in full, without deducting the Tax, and that the Landlord will re-pay to the Tenant all Sums paid by the Tenant as Landlord's Property Tax. Brett, L.J., " The substance of sect. 103 is, that although the tax is levied upon the in 1879, Lamb tenant who is in occupation, yet the landlord is ultimately to bear the burden of v. Brewster, it, and that any agreement to the contrary is void. In order to cast the burden TV ^" n ^ ? u P on ^ ne landlord, it is unnecessary to hold that an agreement is illegal if it Jjiv. 609; 48 p rO yi(i es that the tenant shall in the first instance pay the rent without 42 ', ' ' deducting the tax, and that the landlord will subsequently repay him ; for the object of the statute is thereby fulfilled": Brett, L. J., in Lamb v. Breiuster. Lamb v. 1879. Lamb v. Brewster, L. E. 4 Q. B. Div. 607 ; 48 L. J. Q. B. 421. Brew&ter. ^ agreement that if the tenant will continue to pay his rent in full without any deduction in respect of landlord's property tax paid by him, the landlord will repay to the tenant all sums which he has paid or shall pay for the landlord's property tax, is not invalid as being contrary to the provisions of 5 & 6 Viet. c. 35, s. 103. Wills. The Section does not apply to Wills. Sect. 102 does It will be noticed that the section does not include wills, and it has been not apply to held not to apply to wills. wills. " We find it impossible to exclude from consideration this remarkable 1862, Festwg omission of wills in section 103 This omission could not have v. Taylor, 3 been accidental .... because, shortly before, wills are expressly referred B. & S. 242 ; to. Nor is it so absurd to suppose that wills should have been intended by the 32 L. J. Q. B. legislature to stand upon a different footing from deeds, as to justify us in 41. being astute to find reasons for introducing them into a nullifying clause, from which the legislature has, for aught we know, deliberately omitted them " : Per Curiam in Festing v. Taylor. SCHEDULE (D.) Void Agreements, Sfe. 237 " All the cases proceed on this foundation : that if the testator expressly 1864, Abadam points to the deduction of the income tax, it is a bequest of so much addi- v. Abadam, 33 tional to the legacy or annuity ; and the Court of Exchequer Chamber has Beav. 475 ; 33 determined, notwithstanding the policy of the 103rd section of the Act, that a L. J. Eq. 593. testator may direct payment of that tax if he thinks fit " : Sir John Bomilly, M.E., in Abadam v. Abadam. _ " The rule is : Whether or not an annuity should be free from any deduc- 1882, Ban- tion for income tax must depend upon the meaning of the words used by the nerman v. testator " : Hall, V.-C., in Bannerman v. Young. Young, L. E. 21 C. D. 108; 1861. Turner v. Mullineux, 1 J. & H. 334. 5lL.J.Eq.449. A testator gave three annuities, the first ' ' free from income or property Turner v. tax, or any other deduction," the second ''free from all deductions," the Mullineuz. third " free from deduction." Held, that all the annuities were free from income tax. 1862. Festing v. Taylor, 3 B. & S. 217 ; 32 L. J. Q. B. 41. Festing v. A testator gave a rentcharge " without any deduction or abatement what- soever on account of any taxes, charges, impositions, or assessments already or to be thereafter taxed, charged, assessed or imposed on the same heredita- ments, or on the said rentcharge, or on the said donee or her assigns in respect thereof, by authority of parliament or otherwise howsoever. Held, that the rentcharge was free from income tax. 1862. Lord Lovat v. Duchess of Leeds, 2 Dr. & Sm. 62 ; 31 L. J. Eq. 503. Lord Lovat v. A testator devised a mansion-house and lands to his wife for her life, and directed his trustees, out of the rents and profits of his other real estate, during the wife's life, to insure and repair, and to pay and defray all taxes- parliamentary, parochial, or otherwise affecting the hereditaments given to his wife. Held, that income tax came within the words " taxes affecting the hereditaments ; '' and, therefore, that the trustees were bound to pay any income or property tax payable in respect of the widow's interest in such hereditaments. 1875. Hackle's Trustees v. Mackie, 2 Scotch Sess. Cas., 4th Ser. 312. Hackle's A testator left to his widow an annuity " free from all burdens, taxes, and deductions whatsoever," and declared it to be in full of all her legal rights. Held, that the annuity was given free of income tax. 1882. Bannerman v. Young, L. E. 21 C. D. 105; 51 L. J. Eq. 449. Bannerman A testator gave to his wife annuities or clear yearly sums for her life " free v< Young. from all deductions in respect of any present or future taxes, charges, assess- ments, or impositions, or other matter, cause, or thing whatsoever," and directed the trustees to appropriate and invest a sufficient part of his personal estate as a fund for the purpose of paying them. Held, that the widow was entitled to be paid the annuities in full, free from, any deduction ; and also entitled to be paid all the sums which had been deducted. Lord Lovat v. Duchess of Leeds followed. In re Buckle, Williams v. Marson, L. E. (1893) 1 Ch. 286. In re Buckle, A testator gave annuities "to be paid clear of all deductions whatsoever, ^ llliams v - except income tax." By a codicil made five years afterwards, after making certain alterations and increasing the amount of one of the annuities, he proceeded : " And I expressly direct that every legacy and other interest as well derivable under my will as any codicil thereto shall be free of legacy duty and every other deduction." Held (reversing the decision of North, J.), that, although income tax is not a deduction, as the testator had shown in his will that he understood it as such, the annuities must be paid free of income tax. The following case is an apparent exception to the rule, but has been 1880, Kin- commented on adversely in KinlocKs Trustees y. Kinloch, infra, where the loch's Trustees Court was of opinion that a testamentary bequest of an annuity in full of v. Kinloch, 1 Scotch Sess. 238 THE SCHEDULES. Cas., 4th legal rights, free of income tax, was not an agreement or contract struck at Series, 596; 17 by sect. 103. It is probably not good law. Sco.L.R.444. 1875. fiodgers' Trustees v. Badgers, 2 Scotch Sess. Cas., 4th Ser. 294 ; 12 Sc. L. E. 204. Rodger s* Trustees v. Rodgers. Bannerman v. Young, L. R. 21 C. D. 105 ; 5lL.J.Eq.449. 1862, Lord Lovat v. Duchess of Leeds, 2 Dr. & Sm. 62 ; 31 L.J. Eq. 503. Lethbridge v. Thurlow. Sadler v. Richards. Abadam v. Abadam. Trustees v. Kinloch. Oleadow v. Leetham. A husband, in a trust disposition, directed his trustees to pay to his wife, if she survived him, "a free yearly annuity" of 1,200Z., and he further pro- vided that if she accepted this annuity, it should be in full satisfaction of all her rights, legal and conventional. The wife survived and accepted the annuity. Held, that if the annuity was given free of income tax, the widow, by accepting it as in full of her legal rights, had entered into an agreement of the nature struck at by sect. 103. Words in Wills which have been held insufficient to free Annuities, &c. from Income Tax. As stated by Hall, V.-O., in Bannerman v. Young, supra, " Whether or not an annuity should be free from any deduction for income tax must depend upon the meaning of the words used by the testator." It has been decided that a gift " without any deduction " is not given free of income tax, although Lord JKindersley, in Lord Lovat v. Duchess of Leeds, at one time expressed a doubt; but in 1864, Abadam v. Abadam, 33 Beav. 475 (infra], decided the point. " Clear of Legacy Duty and every other Deduction whatsoever." 1851. Lethbridge v. Thurlow, 15 Beav. 334; 21 L. J. Eq. 538. A testator gave to his son an annuity of 500Z. during his life, clear of legacy duty and every other deduction whatsoever. Held, that the annuity was subject to property tax. "free from Legacy Duty and other Deductions." 1858. Sadler v. Richards, 4 K. & J. 302. A testator gave to his wife the annual sum of 500Z. free from legacy duty and other deductions. Held, that the annuity was subject to income tax, and that there was no substantial difference in this respect between the Acts of 1842 and 1853. " without any Deduction whatsoever." 1864. Abadam v. Abadam, 33 Beav. 475 ; 33 L. J. Ex. 593. A testator appointed an annuity of 500Z. to his widow for life "to be payable without any deduction whatsoever." Held, that it was not given free of income tax. " exempted from all Burdens and Deductions whatsoever." 1880. KirilocKs Trustees v. Kinloch, 7 Scotch Sess. Cas., 4th Ser. 596; 17 Sc. L. E. 444. An annuity bequeathed "exempted from all burdens and deductions whatsoever." Held, that the annuity was subject to income tax. " clear yearly Sum free from all Deductions and Abatements whatsoever." 1882. Oleadow v. Leetham, L. E. 22 C. D. 269. A testator declared that his trustees should stand possessed of his residuary estate, and directed them, out of the income, to pay to his wife "the clear yearly sum of 600/.". . . . "the said annuities . . . to be paid free from all deductions and abatements whatsoever." By a codicil an annuity of 1,OOOZ. was given in lieu of 600?. Held that the annuity was not given free of income tax. SCHEDULE (D.) Hoiv Deduction of Duty is Made. 239 " clear of all Taxes and Deductions." In the case of 1847, Wall v. Wall, 15 Sim. 513 ; 16 L. J. Eq. 305, it was Wall v. Wall. held that an annuity " clear of all taxes and deductions" was not free of income tax ; but this seems to have been decided on the ground that the Income Tax Acts did not allow the annuity to be given free of income tax, which proposition, as we have seen, is now untenable. This case would now be differently decided, as taxes would include income tax ; see cases supra. The Income Tax Act, 1842 5 & 6 Viet. 104. And be it enacted, that whenever it shall be proved, to the Deductions ' satisfaction of the said respective Commissioners acting in the dis- on payment trict where any person making the application shall reside, that any money, and interest of money, annuity, or other annual payment shall be annually paid out of the profits and gains bond fide accounted for profits and charged by virtue of this Act at the rate and according to the rules specified in Schedule (D.), without any deduction on account to be made thereof, it shall be lawful for such Commissioners to grant a certifi- a certificate, cate thereof, under the hands of any two of them, in such form as shall be provided under the authority of this Act, which certificate shall entitle the person so assessed, upon payment of such interest, annuity, or other annual payment, to abate and deduct so much thereof as a like rate on such interest, annuity, or other annual payment would amount unto; and every person to whom such interest, annuity, or other annual payment shall be paid shall allow such deductions and payments upon receipt of the residue of such interest, annuity or other annual payment, and the person paying the same shall be acquitted and discharged of so much money as a like rate thereon would amount unto, as if the same had actually been paid unto the person to whom such interest, annuity, or other annual payment shall have been due and payable ; pro- vided no such certificate shall be required where such payments are to be made out of the profits or gains arising from lands, tenements, hereditaments, or heritages, as before mentioned, or of any office or employment of profit, or out of any annuity, pension, stipend, or any dividend or share in such public annuities as are herein mentioned, but such deductions may be made without having obtained such certificate. The necessity for a certificate has ceased since- The Income Tax Act, 1853 16 & 17 Viet. c. 34 s. 40. 40. Every person who shall be liable to the payment of any Deduction of rent, or any yearly interest of money, or any annuity or other duty on pay- annual payment, either as a charge on any property, or as a interest, &c. ' personal debt or obligation by virtue of any contract, whether the same shall be received or payable half-yearly or at any shorter or more distant periods, shall be entitled and is hereby authorized, 240 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 158. When duties are to be detained . 27 & 28 Viet. c. 18, s. 15. Yearly interest of money. on making such payment, to deduct and retain thereout the amount of the rate of duty which at the time when such payment becomes due shall be payable, for every twenty shillings of such payment ; and the person liable to such payment shall be acquitted and dis- charged of so much money as such deduction shall amount unto, as if the amount thereof had actually been paid unto the person to whom such payment shall have been due and payable; and the person to whom such payment as aforesaid is to be made shall allow such deduction upon the receipt of the residue of such money, under pain of forfeiting the sum of 5(R for any refusal so to do. (Proviso with regard to tenants and occupiers under Schedule (A.), see ante, p. 138.) Upon section 40 we have some observations to make, but before doing so it will be convenient to give the two following enactments, The Income Tax Act, 1842 158. Provided always, and be it enacted, that such of the said duties granted by this Act which may be detained or stopped and deducted out of the sums in respect whereof they shall be charged or deducted, shall be respectively detained at such times in each year as the said sums shall be payable to the person entitled thereto. By the Revenue (No. 1) Act, 1864 15. "And whereas under and by virtue of 16 & 17 Yict. c. 34, s. 40, persons liable to the payment of rent, yearly interest, or any annuity or other annual payment therein mentioned, are entitled and authorized on making such payment to deduct and retain thereout the amount of the rate of income tax which shall be pay- able at the time when such payment becomes due " : Be it enacted, that the persons liable to and making any such payment as afore- said shall be entitled, and are hereby authorized to deduct and retain thereout the amount of the rate or a proportionate amount of the several rates of income tax which were chargeable by law upon or in respect of such rent, interest, annuity, or other annual payment, or the source thereof, during the period through which the same was accruing due, anything in the said recited Act to the contrary notwithstanding. Yearly Interest of Money. It will be noticed that "interest of money" in section 104 becomes "yearly interest of money " in section 40. In considering what is " yearly interest of money " it became necessary to decide whether this expression applied to interest at a certain rate per annum on sums loaned for periods less than a year. In the first place, in considering purchase-money and money on mortgage SCHEDULE (D.) Deduction of Income Tax from Interest. 241 it was decided that the purchaser and the mortgagor were entitled to deduct income tax on paying the interest. Purchase-money. Purchase- 1854. Bebb v. Bunny, 1 K & J. 216. money. A purchaser liable to pay interest on his purchase-money may deduct Sebbv. Sunny. income tax from such interest. The tax is not deducted on payment of purchase-money into Court, but the purchaser, it seems, may apply to have it deducted when the purchase-money is paid out of Court. Note that the tax cannot be deducted on payment of the purchase-money and interest into Court : 1847, Holroyd v. Wyatt, 1 De Gex & S. 125 ; 16 L. J. Ch. 174; 1848, Dawson v. Dawson, 11 Jur. 984; 1849, Humble v. Humble, 12 Beav. 43. The reason for this is given by Wood, V.-C., in Bebb v. Bunny: " On pay- -^r oo ^ y _c. ment of purchase-money into Court the deduction has not been allowed, and ^ 1354 ^ebb for the very obvious reason, stated by Lord Langdale in Duval v. Mount, 35 v . Bunny, 1 Leg. Obs. 260, that payment into Court is not payment to the party, as K. & J. 216. against whom the purchaser is entitled to deduct the tax. But the purchaser must apply for the deduction when the money is paid out of Court ; and, of course, the Court cannot be subject to the penalty mentioned in section 40, for not allowing the deduction. In that case Lord Langdale expressly gave leave to apply, when the money should be paid out, though it does not appear whether the purchaser availed himself of such liberty." Mortgage. Mortgage. 1863. Mosse v. Salt, 32 Beav. 269; 32 L. J. Eq. 756. Mosse v. Salt. Though in dealings between merchants, in discounting bills and the like, and in loans made for short periods, the income tax is not deducted, yet, in a mortgage transaction, the mortgagor is entitled to deduct it. In this case, Lord Eomilly distinguishes between mortgages on the one hand, and bills of exchange and short loans on the other hand, as follows : "It is very true, that in dealings between merchants, such as in the dis- Lord Romilly counting of bills and the like, and on loans made for short periods, the in 1863, Mosse . income tax is not deducted ; but it is equally clear, that in the mode of v. Salt, 32 taking the accounts (whatever it may be) in the city of London, and in the Beav. 269 j 32 mode of taking the accounts in Chancery, in all cases of mortgagor and ** J - *& < ob - mortgagee, when the Court has once arrived at the conclusion that it is a case of mortgagor and mortgagee, the mortgagor is entitled to deduct the income tax from the interest paid to the mortgagee, which he necessarily has paid on the property mortgaged, either in the shape of deductions from his rents, or from his dividends prior to that period, and, accordingly, this is so provided by the Act." Now in a previous case it had been decided that, on payment of the Bill of interest on a bill of exchange, the income tax might be deducted. exchange. Bill of Exchange. 1850. Dinning v. Henderson, 3 De Gex & S. 702 ; 19 L. J. Ch. 273. jJJHLi In the course of the administration of the estate of a testator, a debt, in respect of a dishonoured bill of exchange, and nine years' interest on it, were found to be due from his estate to a creditor. It appeared that it was the practice in the Master's offices to deduct income tax in respect of the interest, and Knight Bruce, V.-C., refused to disturb such practice. And in Bebb v. Bunny, supra, Wood, V.-C., had given the following Yearly explanation of " yearly interest of money " : interest of "The whole difficulty is in the expression 'yearly' interest of money; money, but I think it susceptible of this view, that it is interest reserved, at a given Wood, V.-C., rate per cent, per annum ; or, at least, in the construction of this Act, I must in 1854, Bebb hold that any interest which may be or become payable de anno in annum, v. Sunny, I though accruing de die in diem, is within the fortieth section. I cannot make * J /J any solid distinction between interest on mortgage money and interest on purchase-money." On the strength of this dictum of Wood, V.-C., and the case of Dinning v. Henderson, supra, it was attempted to apply the words "yearly interest of money" to the case of interest on a loan by a banker to a customer for a period less than a year. The Court, however, declined to do this. R. * THE SCHEDULES. Loan by a banker for less than a year. Goslings and Sharps v. make. Bowen, L.J., in 1889, Goslings and Sharpe v. Blake, L. K. 23 Q. B. Div. 324 ; 58 L. J. Q. B. 446. Lord Esher's comment on Dinning v. Henderson, S. C. Lord Esher, M.E., S. C. Loan by a Banker for less than a Year. 1819. Goslings and Sharpe v. Blake, L. E. 23 Q. B. D. 324; 58 L. J. Q. B. 446. Interest upon a loan by a banker to a customer for a period of less than a year is not within the words ' ' any yearly interest of money or any annuity or other annual payment" in 16 & 17 Viet. c. 34, s. 40; and therefore the customer is not entitled to deduct income tax from such interest. And Bowen, L. J., said : " In Bebb v. Bunny, the V.-C. expressly confines his judgment to interest at a yearly rate which may have to be paid de anno in annum, such as interest on purchase-money or mortgage interest." In the same case, Lord Esher, M.E., expressed considerable doubt about the case of Dinning v. Henderson, supra, and considered that the bills of exchange dealt with in the Master's Office must have borne interest on the face of them ; but if they did not, he doubted the correctness of the decision. If the bills bore interest on the face of them, the interest runs on till payment, and so might run on over the year so as to be "yearly interest." The following passage from Lord Esher's judgment is also instructive : " ' Every person who shall be liable to the payment of any rent.' If that stood alone, that might be rent for less than a year ; but it is followed by ' or any yearly interest of money, or any annuity or other annual payment.' Dealing with this according to ordinary English idiomatic language, I think that the word 'other' obliges us to say that an annual payment is an instance of the same kind as those that have gone before, so that what have gone before are in the nature of annual payments ; but besides those, there are other annual payments which may be brought in. If that is so, ' any rent ' becomes ' any annual rent.' ' Any yearly interest of money ' surely cannot be interest for less than a year in ordinary English, and. there remains ' any annuity,' which is admitted to be an annual thing, and any 'other annual payment.' " If the Deduction is not made at the Time when the Yearly Interest of Money, Annuity, or other Annual Payment is paid, it cannot afterwards be made. This proposition seems to have the greater weight of authority to support it, although there are cases in conflict with it. The cases which support it are 1719. Atwood v. Lamprey, cited in note to East v. Thorribury, 3 P. Wms. 127. An annuitant was not compelled to refund in respect of payment she had received tax free, and from which the party paying had omitted to deduct the tax. 1817. Currie v. Goold, 2 Mad. 163. Where the agent of an executor paid interest on a legacy for seventeen years, without deducting the property tax, held, he could not afterwards deduct out of future interest due, the amount of the property tax on such precedent payments. 1827. Fraser v. Fraser, 5 Shaw & Dunlop (Sc.) 348. Interest having been paid for a series of years without deducting the tax, it is not competent to withhold payment of a balance to that extent, the debt on which the interest arose being originally a West India debt, and being payable in London, and it appearing that no such relief would be allowed in England, or at least that the party must go to the Courts there to seek such relief. Ee Middles- 1885. Re Middlesbrough Building Society, 53 L. T. 492. brouflh Build- Deduction not allowed in respect of past payments of income tax on ing Society. interest, the deduction of which had not been made at the proper time. jdtwood v. Lamprey. Currie v. Goold. Fraser v. Fraser. SCHEDULE (D.) Exemptions. 243 1893. Galashiels Provident Building Society v. Newlands, 20 Scotch Sess. Cas. Galathiek 4th Series, 821 ; 30 Sc. L. E. 730. Provident If a debtor makes payment of interest without deducting the income tax, he loses the right to the deduction in respect of such interest (dub. Lord Kinnear). The cases in conflict are 1814. Butcher v. Barclay, Decisions of the Court of Session (Bell, Campbell, Butcher v. Wilson, and EoUo), 1814, p. 106. Barclay. Where a debtor, in consequence of an obligation in a bond granted by him for borrowed money, pays the interest without deduction of the property tax, he is, notwithstanding, entitled to deduct the same from any after payment of interest, together with the tax upon that particular payment. 1822. Wilson v. Paterson, 1 Shaw & Ballantine (So.) 431. Wilson v. Wilson, having been charged on his bond for 100Z. to the Horse-setters' ^ aterson - Society, presented a bill of suspension, alleging that he was entitled to retain part of it in compensation of property tax, which he had neglected to deduct from interest formerly paid. To this it was answered, that the society fell under the exception of sect. 103 of the 46 Geo. HI. c. 65, exempting friendly societies from payment of property tax. The Lord Ordinary refused the bill ; but the Court passed it, upon consignation. 1823. Corporation of Weavers of Ayr v. Bone, 2 Shaw & Dunlop, 401. The corporation in 1810 sold a piece of ground to Mrs. Bone, who granted a bond for part of the price, and for the interest. The interest was regularly paid till 1822, when the bond was discharged. The debtors, however, reserved a claim for property tax, which they had not hitherto deducted from the interest. The inferior Court discerned for the amount, and the Lord Ordinary and the Court refused a bill of advocation. 1868. Crane v. Kilpin, L. E. 6 Eq. 334; 37 L. J. Eq. 913. A fund was assigned to trustees upon trust to pay a fixed sum annually to creditors pro raid with interest on their debts till payment. In making the payments of interest no deductions were made for income tax. In finally settling with his creditors, the assignor was held entitled to deduct the income tax on the several payments of interest. See on this point sect. 158 of the Income Tax Act, 1842, ante, p. 240. See also the analogous cases under Schedule A., ante, p. 141. Exemptions. The Income Tax Act, 1842 5 & 6 Viet. 105. Provided always, and be it enacted, that any corporation, c - 35 > 8 - 105 - fraternity, or society of persons, and any trustee for charitable ins Stions Durrjoses only, shall be entitled to the same exemption in respect exempted i 1,1.1 j from the of any yearly interest or other annual payment chargeable under duties on Schedule (D.) of this Act, in so far as the same shall be applied ^rgeabie to charitable purposes only, as is hereinbefore granted to such under Sche- corporation, fraternity, society, and trustee respectively, in respect of any stock or dividends chargeable under Schedule (C.) of this Act, and applied to the like purposes ; and such exemption shall be allowed by the Commissioners for Special Purposes, on due proof before them, and the amount of the duties which shall have been paid by such corporation, fraternity, society, or trustee in respect of such interest or yearly payment, either by deduction from the same or otherwise, shall be repaid, under the order of the R2 244 THE SCHEDULES. St. Andrew's Hospital, Northampton v. Shearsmith. said Commissioners for Special Purposes, in the manner hereinbefore provided for the repayment of sums allowed by them, in pursuance of any exemption contained in the said Schedule (C.) . 1887. St. Andrew's Hospital, Northampton v. Shearsmith, L. E. 19 Q. B. D. 624. The managing committee of a hospital, founded by voluntary contribution for the care and treatment of insane persons, made large yearly profits by receiving wealthy patients, who were charged sums greatly exceeding the actual cost of their maintenance and treatment. The committee applied a portion of those profits in aid of the maintenance and treatment of poorer patients, who were themselves unable to pay the actual cost thereof, and the remainder in executing works which were pressed upon the committee by the Commissioners in Lunacy, and were deemed necessary to bring the hospital into a proper state of efficiency. Held that, assuming the profit was yearly interest or other annual payment (which it was thought was not so), it was not "applied to charitable purposes only" within sect. 105: followed in 1888, Needhamy. Sowers, L. E. 21 Q. B. D. 436, without argument. 1890. The Trustees of Psalms and Hymns v. Whitwell (Surveyor of Taxes], 3 Tax Gas. 7 ; 7 T. L. E. 164. Trustees publish a hymn book, and, in accordance with the directions of the trust deed, distribute the profits among widows and orphans of Baptist ministers and missionaries. Held, that trading profits are not an " annual payment" within sect. 105. so as to be exempt from income tax when applied to charitable purposes. The Income Tax Act, 1853 49. Any friendly society legally established under any Act of Parliament relating to friendly societies, and which does not assure or grant to any individual any sum or annuity to an amount which would debar such society from the benefit of the exemption granted to friendly societies by the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, in respect of their stocks, divi- dends, and interests chargeable under Schedule (0.) of the said Act, shall be entitled to exemption under this Act, as well in respect of all their interest and other profits and gains chargeable under Schedule (D.) as in respect of their stocks, dividends, and interest chargeable under Schedule (0.) of this Act. 57 & 58 Viet. The Finance Act, 1894 Exemption of ^ - (^-) ^- n y P enn y savings bank, or other bank for savings, income tax in whether certified under the Savings Bank Act, 1863, or not, shall savings banks. be entitled to exemption from income tax chargeable under 26 & 27 Viet. Schedules (C.) and (D.) of the Acts relating to income tax in respect of the income of the funds of the savings bank, so far as it is applied in the payment or credit of interest to any depositor not exceeding the sum of five pounds in the year for which exemption is claimed. (2.) The exemption shall be claimed, proved, and allowed, in the same manner as is prescribed by law in the case of income applicable and applied to charitable purposes. The Trustees of Psalms and Hymns v. Whitwell (Surveyor of Taxes'). 16 & 17 Viet. c. 34, s. 49. Friendly societies legally established entitled to exemption under both Schedule (C.) and Schedule P.) SCHEDULE (D.) Exemptions. 245 (3.) Provided that where interest is paid, or dividends, or interest are or is accredited without deduction of income tax to a depositor in any savings bank whose income exceeds one hundred and sixty pounds a year, such interest, or dividends or interest, as the case may be, shall be accounted for and charged under the third case of Schedule (D.), under which profits of an uncertain annual value are directed to be charged. There are certain funds of trade unions which are exempt under Schedule (D.). The Act is given under Schedule (A.) : see p. 151. The Industrial and Provident Societies Act, 1893 56 & 57 Viet. c. 39, s. 24. 24. A registered society shall not be chargeable under Schedules Exemption of (C.) and (D.) of the Income Tax Acts unless it sells to persons not iQdu ? tlial and / \ ' L provident members thereof, and the number of shares of the society is limited societies. either by its rules or its practice. But no member of or person employed by the society shall be exempt from any assessment to the said duties to which he would be otherwise liable. The Income Tax Act, 1853 16 & 17 Viet. 54. Any person who shall have made insurance on his life or on Persons who the life of his wife, or shall have contracted for any deferred have made TC i TI i> i < insurance or annuity on his own life or on the life of his wile, in or with any contracted for insurance company which shall become registered under any Act to annuitTon be passed in the present session of Parliament for that purpose, and the lives of which shall comply with the requirements of such Act, and any wives V r person who shall under any Act of Parliament be liable to the ^owed an J abatement of payment of an annual sum, or to have an annual sum deducted duty in from his salary or stipend, in order to secure a deferred annuity tne P annual to his widow or a provision to his children after his death, shall premiums be entitled to 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 aforesaid, from any profits or gains in respect of which he shall be liable to be assessed under either of the Schedules (D.) or (E.) of this Act, or to have any assessment which may be made upon him under either of the said schedules reduced or abated by the deduction of the amount of the said annual premium from the amount of the profits or gains on which such assessment has been made ; or if such person shall be assessed to duties under any of the schedules contained in this Act, and shall have paid such assessment, or shall have paid or been charged with any of the said duties by deduction or otherwise, such person, on claim made to the Commissioners for Special Purposes, and on production to them of the receipt for such annual payment, and on proof of the facts to the satis- 246 THE SCHEDULES. 16 & 17 Viet. c. 91. Defining insurance offices in which insur- ance on lives may be effected in order to give a i-ight to abatement of income tax. faction of the said Commissioners, shall be entitled to have repaid to him such proportion of the said duties paid by such person as the amount of the said annual premium bears to the whole amount of his profits and gains on which he shall be chargeable under all or any of the schedules of this Act : Provided always, that no such abatement, allowance, or repayment as aforesaid shall be made in respect of any such annual premium beyond one-sixth part of the whole amount of the profits and gains of such person so chargeable as aforesaid, nor shall any such deduction or abatement entitle any such person to claim total exemption or any relief from duty on the ground of his profits and gains being thereby reduced below one hundred or one hundred and fifty pounds, as the case may be. An Act to extend for a limited Time the Provision for Abatement of Income Tax in respect of Insurance on Lives Whereas by the Act of the present session (chapter thirty-four) for granting to her Majesty duties on profits arising from property, professions, trades, and offices (section fifty-four) , provision is made for deduction, abatement, allowance, or repayment in favour of any person (assessed or charged with the duties therein mentioned) who shall have made insurance on his life, or on the life of his wife, or should have contracted for any deferred annuity on his own life, or on the life of his wife, in or with any insurance company which should become registered under any Act to be passed in the present session of Parliament for that purpose, and which should comply with the requirements of such Act (in respect of the annual premiums paid by him for such insurance or contract) : 1. Any person who shall have made any such insurance or con- tracted for any such deferred annuity as in the said provision mentioned, in or with any insurance company existing on the first day of November, 1844, or in or with any insurance company registered pursuant to the 7 & 8 Yict. c. 110, for the registration, incorporation, and regulation of joint stock companies, shall be entitled to all the benefits and advantages, which by the said provision are expressed to be given in respect of the like insurance or contract in or with any insurance company which shall become registered under any Act to be passed in the present session of Parliament for that purpose. The rest of this Act is repealed by the Statute Law Revision Acts, 1875 and 1892. 1890. Colgukmin v. Heddon, L. E. 25 Q. B. Div. 129 ; 59 L. J. Q. B. 465. This provision does not apply to an insurance with a foreign company, even Foreign company. Colquhonn v. though that company was in existence on November 1st, 1844, and has an Heddon. office i n England. SCHEDULE (D.) Exemptions. 247 By an Act to continue the Act for extending for a limited time the 18 & 19 Viet. provision for abatement of income tax in respect of insurance on c. 35, s. 1. lives 1. Any person or persons who shall have made any such Persons insurance or contracted for any such deferred annuity as in the 5 said recited Acts mentioned, in or with any friendly society legally "with friendly societies to be established under any Act of Parliament relating to friendly entitled to societies, shall be entitled to all the benefits and advantages con- be efits of recited Acts. ferred by the said recited Acts (a) ; provided that the premiums payable in respect of such insurances shall not be made for shorter periods than three months. (a) 16 & 17 Viet. c. 91, and 17 & 18 Viet. c. 40 (Repealed by Statute Law Revision Act, 1875). The rest of this Act is repealed by the Statute Law Revision Acts, 1875 and 1892. By an Act for granting to her Majesty additional rates of income tax 22 & 23 Viet. 6. " And whereas by the 54th section of 16 & 17 Yict. c. 34, pii on 6 ' for provision is made for deduction, abatement, allowance, or repay- allowance of ment of duty in favour of any person who should have contracted sonf in respect for any deferred annuity on his own life or on the life of his wife of deferred . . . . annuities in or with any such insurance office as in the said Act mentioned, extended to The benefit and advantage of such provision shall be and is hereby extended and granted to any person who has or shall have con- with National tracted for any such deferred annuity as aforesaid with the missioners" Commissioners for the Eeduction of the National Debt. The rest of this Act, except sect. 7, which does not relate to income tax, is repealed by the Statute Law Revision Acts, 1875 and 1892. Procedure. The Income Tax Act, 1842 5 & 6 Viet. 106. And be it enacted, that every person being a householder (except persons engaged in any trade, manufacture, adventure, or tricts the f i i- \ -i 11 -i duties are to concern, or any profession, employment, or vocation,) shall be be charged. charged to the said duties contained in Schedule (D.) by Commis- sioners acting for the parish or place where his dwelling-house shall be situate ; and every person engaged in any trade, manu- facture, adventure, or concern, or any profession, employment, or vocation, shall be chargeable by the respective Commissioners acting for the parish or place where such trade, manufacture, adventure, or concern shall be carried on, or where such pro- fession, employment, or vocation shall be exercised, whether such trade, manufacture, adventure, or concern shall be carried on, or such profession, employment, or vocation shall be exercised, wholly or in part only in the United Kingdom (), or whether such person shall be engaged in one only or more of such concerns, except where the same person shall be engaged in different concerns, 248 THE SCHEDULES. Declaration to be deli- vered of the place where party is chargeable. In cases of persons not engaged in. trade having two residences, where the duties to be charged. 16 & 17 Viet. c. 34, s. 7. 5 & 6 Viet. c. 35, s. 108. Duties on profits of and a loss from one concern shall be set off or deducted from the profits of another concern ; and every person not being a householder, nor engaged in any trade, manufacture, adventure, or concern, nor in any profession, employment, or vocation, who shall have any place of ordinary residence, shall he charged by the Commissioners acting for the parish or place where he shall ordinarily reside ; and every person not hereinbefore described shall be charged by the Commissioners acting for the parish or place where such person shall reside at the time of beginning to execute this Act in each year by giving such general notices as are herein_mentioned (i), or shall first come to reside after the time for giving such general notices ; and every such charge made in such parish or place shall be valid and effectual, notwithstanding the subsequent removal of the person so charged from the parish or place ; and in order that the place where the said last-mentioned duties are to be charged may be ascertained, every person is hereby required, on the delivery of any list or statement as aforesaid, at the same time to deliver a declaration in writing signed by him declaring in what place he is chargeable, and whether he is engaged in any trade, manufacture, adventure, or concern, or in any pro- fession, employment, or vocation, or not, and if he shall be so engaged in any trade, manufacture, adventure, or concern, or any profession, employment, or vocation, also declaring the place where the same shall be carried on or exercised, and every particular concern, profession, or employment in which he shall be engaged in such place in the United Kingdom (a), whether wholly in the United Kingdom (a), or in part only, as aforesaid ; provided that where any trade shall be carried on in the United Kingdom (a) by the manufacture of goods, wares, or merchandise, the assessment thereon shall be at the place of manufacture, although the sales of such goods, wares, or merchandise shall be elsewhere : Provided always, that every person not being engaged in any trade, manu- facture, adventure, or concern, or in any profession, employment, or vocation, having two or more houses or places at which he shall be ordinarily resident, shall be charged at such of the parishes or places wherein the dwelling-house is situate in which he shall be ordinarily resident at the time of beginning to execute this Act in each year in manner aforesaid, or in which he shall first come ordinarily to reside after giving such general notices as aforesaid. (a) As to Ireland, see the Income Tax Act, 1853, s. 7, ante, p. 218. (i) See pp. 53 et seq. 108. And be it enacted, that the duty to be assessed by virtue of this Act in respect of the profits or gains arising from foreign possessions or foreign securities, or in the British plantations in SCHEDULE (D.) Procedure. 249 America, or in any other of her Majesty's dominions, may be foreign or stated to and assessed hy the respective Commissioners acting for the respective places hereinafter mentioned, videlicet, London, or securities, Bristol, Liverpool, and Glasgow, according to the regulations charged. hereinafter mentioned, as if such duty had been assessed upon the profits or gains arising from trade or manufacture carried on in such places respectively ; and such duty shall be stated to and assessed and charged by the Commissioners acting for such of the said places at or nearest to which such property shall have been first imported into the United Kingdom, or at or nearest to which the person who shall have received such remittances, money, or value from thence, and arising from property not imported as aforesaid, shall reside ; and in default of the owner or proprietor thereof being charged, the trustee, agent, or receiver of such profits or gains shall be charged for the same, and shall be answer- able for the doing all such acts, matters, and things as shall be required by this Act to be done, in order to the assessing such profits to the duties granted by this Act, and paying the same, whether the person to whom the said profits belong shall be resi- dent in the "United Kingdom or not : Provided always, that when- ever the produce or the profits or gains arising from such possessions or securities as last aforesaid shall have been imported partly into the port of London, and partly into any of the outports of Bristol, Liverpool, or Glasgow, or shall have been received by any person partly in the City of London and partly in any of the said out- ports, within the period of making up the account on which the duty is chargeable by this Act according to the rules herein contained, the whole of the duty chargeable in respect of such produce, profits, or gains so imported or received shall be assessed and charged by the Commissioners acting for the said City of London, and not elsewhere, and as if the whole of the said produce or the said profits or gains arising within the said period had been imported into or received in London ; and whenever such produce or profits or gains arising as aforesaid shall have been within such period wholly imported into or received at the said outports of Bristol, Liverpool, and Glasgow, and different parts thereof shall have been imported into or received at two or more of such outports, the duty chargeable thereon shall be assessed and charged at one of such places only, and in one account, and at such of the said places at which the major part in value of such produce or profits or gains shall have been so imported or received ; pro- vided that the statements of such produce, profits, or gains shall be delivered to the Commissioners acting for each place at which any part of the said produce or profits or gains shall have been so 250 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 109. London and East and West India Docks and St. Katherine Dock to be assessed in London. 5 & 6 Viet, c. 35, s. 110. Statements to be delivered at eacli place of residence. Statements of profits under Schedule (D.) may be de- livered under peal. 5 & 6 Viet. c. 35, s. 111. Additional Commis- sioners to consider statements, and make assessments 011 such as are satisfactory. imported or received, and transmitted by the respective Commis- sioners to the Chief Office of Inland Revenue in England, and the Commissioners of Inland Revenue shall cause all such statements to be sent to the Commissioners acting for the place where the duty thereon shall appear by such statements to be chargeable according to this Act, who shall accordingly assess the same in one sum. 109. And be it enacted, that the profits arising from the docks called the London Docks, the East and West India Docks, and Saint Katherine Dock respectively, situate in the county of Middlesex, shall be assessed by the Commissioners acting for the City of London. 110. And be it enacted, that every person having two residences, or carrying on any trade or exercising any profession in different parishes, places, or in any place different from the place of his ordinary residence, shall if required by the respective Commis- sioners, deliver at each such parish or place the like lists, declara- tions, and statements as he is hereby required to deliver in the parish or place where such person ought to be charged, but shall not be liable to any double charge by reason thereof ; and all lists, declarations, and statements containing the amount of profits chargeable under Schedule (D.) may be delivered to- the respective persons and in manner herein directed, sealed up, if superscribed with the name and place of abode of, or place of exercising the profession or carrying on trade by, the person by whom the same shall have been made. 111. And be it enacted, that all statements of profits and gains described in Schedule (D.) (except statements whereon assessments are to be made by the Commissioners for Special Purposes, as hereinafter authorized,) shall be laid before the additional Com- missioners, or the Commissioners for General Purposes acting as additional Commissioners in their respective districts, who shall appoint meetings for taking all statements then and from time to time to be delivered to them into consideration, within a reasonable time after the inspector or surveyor shall have had the examination of such statements ; and in case the said additional Commissioners respectively shall be satisfied that any such statements have been bond fide made according to the provisions of this Act, and so as to enable the Commissioners to charge the respective persons returning the same with the full duties with which they ought respectively to be charged on account thereof, and in case no information shall be given to the said Commissioners of the insufficiency thereof, or no objection shall be made thereto by the inspector or surveyor, SCHEDULE (D.) Procedure. 251 which he is hereby empowered to make for sufficient cause, the said Commissioners shall direct an assessment to be made of the duties chargeable on such statement by virtue of this Act. 112. Provided always, and be it enacted, that where the sur- 5 & 6 Viet. veyor or inspector shall apprehend the determination made by the L?' s ;, 112 ' ...,.. , * Where the said Commissioners to be contrary to the true intent and meaning surveyor is of this Act, and shaU then declare himself dissatisfied with such Sjh^f ^ determination, it shall be lawful for him to require the said Com- assessment, missioners to state specially and sign the case upon which the question arose, together with their determination thereupon, which case the said Commissioners are hereby required to state and sign opinion of accordingly, and to deliver to the said inspector or surveyor, to be Com'Ss- by him transmitted to the Commissioners for Greneral Purposes si <> n ers. for the same district, who shall with all convenient speed return an answer to the case so transmitted, with their opinion thereon subscribed ; and according to such opinion the assessment which shall have been the cause of such appeal shall be altered or con- firmed. 113. And be it enacted, that in every instance in which any 5&6Vict. person shall have made default in the delivery of any statement, ^J*' s- 113 ' such person not having been otherwise charged to the said last- statement or mentioned duties, or if the said additional Commissioners shall not ^ be satisfied with the statement delivered by any person or any returned, the objection shall be made thereto by the inspector or surveyor, (which he is hereby authorized and required to make in writing, setting Slon ers to forth the cause thereof, whenever he shall see sufficient cause,) or assessment the said Commissioners shall have received any information of the thebest of* insufficiency of any statement, the said Commissioners shall make their J u -ig- an assessment on such person in such sum as, according to the best of their judgment, ought to be charged on him by virtue of this Act, which assessment shall be subject to an appeal, according to the directions hereinafter contained. 114. And be it enacted, that whenever the additional Commis- 5 & 6 Viet. sioners shall think it proper to refer any statement to the Commis- / J *' . ' sioners for Greneral Purposes without making any assessment thereon, Commis- it shall be lawful for them so to do on delivering to the last-men- tioned Commissioners the case in writing relative to such statement, ments to as the same shall appear to the said additional Commissioners, with sioners for any matter in question between them, either as to law or fact ; and the said Commissioners for General Purposes shall proceed to inquire into the merits of such statement, in like manner as they would have been hereby authorized to do in case the said additional THE SCHEDULES. 5 & 6 Viet. c. 35, s. 115. Inspector and surveyor may examine assessments, and erroneous assessment may be amended on their cer- tificate. 43 & 44 Viet. c. 19, s. 52. 43 & 44 Viet. c. 19, s. 52. 5 & 6 Viet. c. 35, s. 116. Inspector or surveyor to "state his objections to assessments, in writing 1 , and to give notice to the party. 43 & 44 Viet. c. 19, s. 63. 43 & 44 Viet. c. 19, s. 63. 5 & 6 Viet, c. 35, s. 117. Additional Commis- sioners to deliver cer- tificates of assessments. Commissioners had made an assessment on such statement, and the party charged had appealed against the same, and thereupon an assessment shall he made according to the determination of the said Commissioners for General Purposes. 115. And he it enacted, that the inspector or surveyor, heing sworn as aforesaid, shall and may at all seasonahle times inspect and examine any assessment which shall he made hy the additional Commissioners, hefore the delivery thereof to the Commissioners for General Purposes, and in case he shall discover any error in the same which in his judgment shall require amendment, he shall certify the same to the said additional Commissioners hy whom the assessment shall have been made, and the said additional Commis- sioners, upon sufficient cause heing shown to them, shall amend the same as in their judgment the case shall require. As to additional first assessments under Schedule (D.), see the Taxes Management Act, 1880, sect. 52, p. 68. 116. And he it enacted, that in every case where the inspector or surveyor shall ohject to the amount of the duty charged hy any assessment made by the additional Commissioners, which he is hereby empowered to do in any case upon sufficient cause, he shall state such objection in writing to the said additional Commissioners, who shall thereupon certify the same, together with the reasons for making such assessment, and any information they shall have obtained respecting the same, to the Commissioners for General Purposes ; and the said inspector or surveyor shall also give such notice thereof to the party assessed as he is required to do by the Taxes Management Act, 1880, in cases of surcharge (a) , in order that the party so charged may be at liberty to appear before the said Commissioners for General Purposes in support of such assessment. (a) See the Taxes Management Act, 1880, sect. 63, p. 70. 117. And be it enacted, that the said additional Commissioners shall cause certificates of assessments to be duly made out, from time to time as the same shall be completed, distinguishing the ward, parish, or place within their respective districts for which each such assessment shall be made, which shall contain the names and surnames of the parties charged, and the sums which they respectively ought to pay by virtue of this Act, and shall cause such certificates to be entered in books provided for that purpose, according to such forms as shall be transmitted to them by the Commissioners of Inland Revenue ; and the said additional Com- missioners shall sign such assessments, and from time to time deliver the same, so entered and signed, to the Commissioners for SCHEDULE (D.) Appeals. 253 General Purposes, under cover sealed up, and shall also cause the statements returned to them by the parties so assessed, or by the assessors relating to such assessments, to be delivered at the same time, sealed up in the like manner, to the said Commissioners for General Purposes ; provided that no assessment made by additional Commissioners, or persons acting as such, shall be delivered to the respective parties until the expiration of fourteen days after the assessment, so signed as aforesaid, shall have been delivered to the Commissioners for General Purposes, or the persons acting as such, and the inspector or surveyor shall have had notice thereof. 118. And be it enacted, that if any person shall think himself 5 & evict, aggrieved by an assessment made by the said additional Commis- ' 3o ' 8 ' 118 ' . , Persons sioners, or by any objection to such assessment made by any sur- aggrieved veyor or inspector as aforesaid, it shall be lawful for him, on giving ten days notice thereof in writing to the inspector or surveyor, to appeal to the Commissioners for General Purposes in the same dis- trict where such assessment was made, who shall hear and determine such appeal; and the Commissioners for General Purposes shall For fixing from time to time appoint days for hearing appeals as soon after hearing 6 C any assessments shall be returned to them by the additional Com- appeal, missioners as conveniently can be done, and the assessors shall cause notice of the days so appointed to be given to the respective appellants, and the meetings of the Commissioners for the purpose of hearing appeals shall be held from time to time, within the time limited by the said Commissioners, with or without adjourn- ment ; and no appeal shall be received after the time so limited, except on the ground of diminution of income, as herein mentioned : Provided always, that if any person shall be prevented, by absence, sickness, or other reasonable cause, to be allowed by the said Commissioners, from making or proceeding upon his appeal within the time so limited, it shall be lawful for the said Commissioners to give further time for that purpose, or to admit the same to be made by any agent, clerk, or servant on the behalf of such appellant. As to the general procedure on appeals, see the Taxes Management Act, 43 & 44 yict. 1880, sect. 57. See p. 73. c . 19, 8 . 57. " 119. And be it enacted, that in order that all appeals upon such 5 & 5 Viet, assessments may be determined in due time, the Commissioners for c - 3 f> 8 - 119 * General Purposes shall cause a general notice to be fixed up in giveiTofthe their office or left with their clerk, and also to be affixed on or near * ime ^ted i r hearing to the door of the church or chapel or such parish or place, or of appeals. some adjoining parish or place, in cases requiring the same by 254 THE SCHEDULES. 5 & 6 Viet. c. 35, s. 120. On appeal, and when objection made by the surveyor is allowed, the Commis- sioners to require a schedule. reason of any such place having no church or chapel, limiting the time for hearing all appeals, and which appeals shall be limited to be heard within a reasonable time after the cause thereof shall have arisen ; and no appeal shall be heard after the time limited in such notice, unless the appeal shall be made on behalf of any person who shall be absent out of the realm, or prevented by sickness from attending in person within the time so limited, in which cases it shall be lawful for the said Commissioners to postpone any such appeal from time to time, or to admit other proof than the oath of the party of the truth of the several matters required by this Act to be proved by his oath. 120. And be it enacted, that upon receiving notice of appeal against any assessment made as last aforesaid, and also in every case where the Commissioners for General Purposes shall see cause to allow the objection of such inspector or surveyor to such assess- ment, the said Commissioners shall direct their precept to the person appealing to return to them, within the time limited therein, a schedule containing such particulars as the said Com- missioners shall demand, under the authority of this Act, for their information, respecting the property of such person, or the trade, manufacture, adventure, or concern in the nature of trade, or the profession, employment, or vocation respectively carried on or exercised by such person, and the amount of the balance of his profits and gains, distinguishing the particular amounts derived from each separate source before mentioned, or respecting the particulars of the deductions from any of such profits or gains made in such statements or schedules, and which the said Commis- sioners are hereby empowered and required to demand, at their discretion, whenever the same shall appear to them necessary for the purposes mentioned in this Act, and so from time to time until a complete schedule, to the satisfaction of the said Commissioners, of all the particulars required by them, shall be delivered; and every such precept, being delivered to or left at the last or usual place of abode of the person to whom the same shall be directed, shall be binding upon him according to the exigency thereof ; or in case such person shall have removed from the jurisdiction of the said Commissioners, or cannot be found, or his place of abode shall not be known, then, upon fixing such precept on or near to the door of the church or chapel of the place where the Commissioners shall meet in the execution of this Act, such precept shall also be binding upon such person according to the exigency thereof, and such person shall make the return required by the said Commis- sioners within the time limited in such precept, under the penalty SCHEDULE (D.) Procedure. 255 in this Act contained, and subject to such charge as the said Com- missioners are hereby authorized to make in such case ; to which schedule any inspector or surveyor sworn as aforesaid shall have free access at all reasonable times, and shall take such copies thereof or of any parts thereof or extracts from the same, as he shall think necessary for the due execution of this Act. 121. And be it enacted, that it shall be lawful for the inspector 5 & 6 Viet. or surveyor, sworn as aforesaid, within a reasonable time to be T" ' 8 " 1/1 f _ Inspector or allowed by the said Commissioners for General Purposes, after he surveyor may shall have had the examination of such schedules, to object to the statements in same or any part thereof, and to state such objections in writing, schedule, and the cause thereof, to the best of his knowledge or information ; to the" party. and the said inspector or surveyor shall, in every case of objecting to any such schedule, deliver a notice in writing of such objection to the party to be charged, or leave the same at his last or usual place of abode, under cover sealed up and directed to such party, in order that he may, if he shall think fit, appeal from the same to the said Commissioners : Provided always, that no assessment shall be confirmed, nor any alteration therein be made, until the appeal upon such objection or assessment shall be heard and determined. 122. And be it enacted, that if, upon receiving the objection of 5 & 6 Viet. such inspector or surveyor to any schedule, the said Commissioners fL-ls, for General Purposes shall see cause to disallow such objection, or sioners over- if, upon the hearing of any such appeal as aforesaid, the said jectfoD^or Commissioners shall be satisfied with the assessment made by the satisfied with additional Commissioners, or after delivery of a schedule they mentor shall be satisfied therewith, and shall have received no information of the insufficiency thereof, the said Commissioners for General or alter the Purposes shall direct such assessment to be confirmed or altered accordingly. according to such schedule, as the case may require ; provided that in every case where they shall think proper that the said statement on which the additional Commissioners made their assessment, or the schedule delivered to the Commissioners for General Purposes, should be verified, they shall direct the assessor to give notice to the person to be charged with the said duties to appear before them to verify the said statement or schedule in the manner hereinafter mentioned ; and every such person is hereby required to appear accordingly before the said Commissioners, and, on oath as aforesaid, to verify the contents of his statement or schedule, and to sign and subscribe the same with his proper name; and such oath shall be, that the contents of such statement or schedule are true to the best of his judgment or belief, and that the same contains the just balance of the profits and gains arising from the 256 THE SCHEDULES. source or sources therein contained, after making such reductions as are therein stated, and that no deduction whatever than such as is therein stated, and to such amount only as is therein stated, hath been made from the profits or gains accounted for ; Provided always, that such person shall be at liberty to amend his said statement or schedule before he shall be required to take such oath ; and after such oath, and in every case where such statement or schedule shall not have been objected to as aforesaid, and the said Commissioners shall be satisfied therewith, they shall make an assessment according thereto, on the amount therein stated, at which the duty shall have been computed ; and every such assess- ment, made after verification of such statement or schedule, shall be final and conclusive as to the matters contained in such state- ment or schedule. 5 & 6 Viet. 123. And be it enacted, that whenever the Commissioners for c ' ' . ' General Purposes shall be dissatisfied with any assessment returned sioners may by the additional Commissioners to them, or with any Schedule uT writing 0118 delivered to them, or shall require further information respecting touching any the same, it shall be lawful for the said Commissioners for General assessment T ^ ... , , i or schedules, 1 urposes to put any question in writing touching such assessment, or ^ e con ^ en ^ s ^ sucn schedule, or touching any of the matters which ought to be contained therein, or any sums which shall have been set against or deducted from the profits or gains to be esti- mated in such assessment or schedule, and the particulars thereof, and to demand an answer in writing accordingly from and signed by the person to be charged, and so from time to time whenever the said Commissioners shall think the same necessary, and the said Commissioners for General Purposes shall from time to time issue their precept,' requiring true and particular answers to be given to such questions within seven days after the service of such precept ; and every such person shall make true and particular answers, in writing, signed by him, to such questions, within the time limited by such precept, or shall within the like period tender himself before the said Commissioners for General Purposes to be examined by them viva voce to such matters ; and every person required to make such answers, or appearing before the said Com- missioners to be examined as a party, or as the clerk, agent, or servant of such party, as herein is mentioned, shall be permitted to give his answers, either in writing as aforesaid or viva voce, without having taken any oath, and shall be at liberty to object to any question, and peremptorily to refuse answering the same; and the substance of such answers as he shall give viva voce shall, in his presence, be reduced into writing and read to him, and he SCHEDULE (D.) Procedure. 257 shall be at liberty to alter any part thereof, and also to alter or amend any particular contained in his answers in writing, or in any schedule or declaration, before he shall be called upon to verify the same in the manner herein directed ; and every such schedule shall be altered or amended as shall seem requisite, after such inquiry or examination. 124. And be it enacted, that it shall be lawful for the Commis- 6 & 6 Viet, sioners for General Purposes, in every such case as aforesaid, when- Commis ever they shall think the same necessary, to require the person sioners for upon whom any assessment hath been made by the additional po^smay^' Commissioners, with which the said Commissioners for General cal1 u P n tte Purposes are dissatisfied, or from whom such schedule or answers verify their in writing as aforesaid have been received, with which the said examination Commissioners are dissatisfied, to appear and verify the same, and, upon oath ; upon the appearance of such person, to permit him to alter or amend such schedule or answers, and thereupon to administer to such person the oath, hereinafter mentioned, and also to require any person who shall have been examined viva voce before them to .verify his examination on oath, which any one of the said Commis- sioners is hereby empowered to administer, and such oath shall be, that the contents of the said statements or schedules are true to the best of his knowledge and belief and contain a full and true account of the balance of all the profits and gains of the deponent chargeable by this Act, to the best of his knowledge and belief, and a full and true account of every deduction made from his profits or gains in adjusting such balance, or that the contents of all such answers in writing as shall have been returned to the said Commissioners by him as the same are then stated or that the contents of his examination, as the same have been reduced into writing, are true ; and every such oath shall be subscribed by the party taking the same. 125. And be it enacted, that it shall be lawful for the Commis- 5 & 6 Viet. ./-. -r TJ c - 35. s. 125. sioners for General Purposes to summon in like manner any person, m summon whom they shall think able to give evidence or testimony respecting witnesses, the assessment made or to be made on any other person, to appear them up'on before them to be examined, and to examine every such person, who oath, shall so appear before them on oath (except the clerk, agent, or servant of the person to be charged, or other person confidentially intrusted or employed in the affairs of such party to be charged, and who shall respectively be examined in the same manner and subject to the same restrictions as are hereinbefore provided for the vim voce examination of any party touching the assessments to be charged on him), which oath any one of the said Commissioners is R. s 258 THE SCHEDULES. Penalty for refusing to attend or to be examined. 5 & 6 Viet. c. 35, s. 126. Commis- sioners agree- ing 1 to make an assessment on the sche- dule may do so ; but in certain cases Commis- sioners may make an assessment according to their judg- ment, which shall be final. hereby empowered to administer ; and such oath shall be, that the testimony or evidence to be given by such person shall contain the whole truth, and nothing but the truth, in respect of the matter in question concerning which such evidence or testimony is to be given, and every such oath shall be subscribed by the person taking the same ; and if any person, being duly summoned as aforesaid, shall refuse or neglect to appear before the said Commissioners at the time and place to be appointed for that purpose, or if any person, other than such clerk, agent, servant, or person confi- dentially intrusted or employed as aforesaid, being summoned, shall appear before the said Commissioners, but shall refuse to be sworn, or to subscribe such oath as aforesaid, or having taken and subscribed such oath, shall refuse to answer any lawful question touching the matter depending before the said Commissioners, every person so offending shall forfeit any sum not exceeding twenty pounds. 126. And be it enacted, that if the Commissioners for General Purposes, or the major part of them present, after hearing all such appeals as shall be depending before them, or upon any objection made by the inspector or surveyor to any such assessment or sche- dule, whether such inquiry or examination as aforesaid shall have taken place or not, shall agree to make an assessment according to the statement contained in the said schedule, as the same shall have been returned, or altered or amended upon appeal as afore- said, they shall direct an assessment to be made of the duties chargeable on the statement contained in the said schedule at the rate contained in this Act ; and if the said Commissioners shall think proper to require a verification of the said schedule, they shall give notice in manner aforesaid to the party to appear before them to verify the same, and such verification shall be made by the party in such manner, and such assessment thereupon shall be made, as hereinbefore directed, which assessment shall be final and conclusive ; but nevertheless, in every instance where any person shall have neglected or refused to return such schedule according to the exigency of the precept of the said Commissioners, or if any clerk, agent, or servant of such party as aforesaid, being summoned, shall have neglected or refused to appear before the Commissioners to be examined, or if such party, or his clerk, agent, or servant, as aforesaid shall have declined to answer any question put to him by the said Commissioners in writing or viva vocc, or where the schedule delivered shall have been objected to as aforesaid, and such objection shall not have been appealed against within such reasonable time as is directed by this Act, or where any person, SCHEDULE (D.) Procedure. 259 being required so to do, shall have neglected or refused to verify his statement or schedule, or his answers or examination in writing, or where the Commissioners shall agree as aforesaid to allow the objections, or any of them, made by such inspector or surveyor, it shall be lawful for the said Commissioners, and they are hereby required in every such case, according to the best of their judg- ment, to settle and ascertain in what sums such person ought to be charged, and to make an assessment accordingly, which assessment shall be final and conclusive. The Commissioners are not bound by the schedule, though the party offers 1894, E. v. to verify it on oath ; and if they are not satisfied with the way the schedule Chew, 11 T. has beep, prepared, and the party declines to produce his books, &c., they L. R. 1. may confirm the assessment and decline to take the oath of the party : B. v. Chew and others, Ex parte Fletcher. 127. And be it enacted, that in every case where the Commis- 5 & 6 Viet. sioners for General Purposes shall have made any increased assess- L? 5> 8 - 127> ment upon the amount contained in the statement or schedule of assessment the party to be charged, or shall at any time during the continu- ance of this Act discover that any increase ought to be made, Commis- whether upon the surcharge of the inspector or surveyor, or from charge the 7 his information, or otherwise, it shall be lawful for them to charge P art T vri ^ !i .111 11-1 th* 3 penalty, such person in a sum not exceeding treble the amount by which not exceeding the duties shall have been increased ; (that is to say,) where the party shall have refused or neglected to deliver any statement or duty. schedule, then in a sum not exceeding treble the amount of the sum which, according to the rate prescribed in Schedule (D.), such person, in the judgment of the said Commissioners, ought to be charged at, to be added to the assessment, and applied as directed by this Act in other cases of increased assessments, and in case a statement or schedule shall have been so delivered, then in a sum not exceeding treble the amount beyond the amount contained in such statement or schedule, unless such person shall in every such case make it appear to the satisfaction of the said Commissioners that the omission complained of did not proceed from any fraud, covin, art, or contrivance, or any gross or wilful neglect. 128. And be it enacted, that if any person required by the 5 & 6 Viet. Commissioners for Greneral Purposes to make out and deliver any ' 35 ' 8- 12 ' schedule to the person to whom the same ought to be delivered in persons pursuance of this Act shall refuse or neglect so to do, or shall refuse deifve? s^L^ or neglect to appear before the said Commissioners, or to verify doles, or upon oath before them any statement or schedule by him delivered, mons of Com . within the time limited by such Commissioners, in pursuance of this Act, every such person so offending shall forfeit any sum not s2 266 THE SCHEDULES. 6 & 6 Viet. c. 35, s. 129. Schedules may be amended. 5 & 6 Viet. c. 35, s. 130. Parties assessed or surcharged to the duties in Schedule (D.) may appeal to bpec:al Com- missioners. exceeding twenty pounds, and treble the duty at which he ought to be assessed. 129. Provided always, and be it enacted, that if any person who shall have delivered a statement or schedule shall discover any omission or wrong statement therein, it shall be lawful for him to deliver an additional statement or schedule rectifying such omission or wrong statement, and such person shall not afterwards be subject to any proceeding by reason of such omission or wrong statement ; and if any person shall not have delivered a statement or schedule within the time limited by the Commissioners for that purpose, it shall be lawful for him to deliver a statement or schedule, in manner herein directed, at any time before a proceeding shall be had to recover the penalty herein mentioned, and no proceeding shall be afterwards had for recovering such penalty ; and if any proceeding shall have been actually had before the Commissioners for recovering such penalty, it shall be lawful for the same Com- missioners, on due proof to their satisfaction that no fraud or evasion whatever was intended, to stay such proceedings, either on the terms of paying or without paying the costs then incurred, as the Commissioners shall think fit ; and if any proceeding shall have been commenced in any Court, it shall be lawful for the Commis- sioners to certify, that in their judgment, no fraud or evasion was intended by the party making such omission, and it 'shall be lawful for any judge of such Court, on a summary application, to stay such proceedings on such terms as he shall think fit ; or if such person shall have delivered an imperfect statement or schedule, and shall give to the Commissioners a sufficient reason why a perfect statement or schedule cannot be delivered, the said Commissioners, being satisfied therewith, shall give further time, and so from time to time, for the delivery of such statement or schedule ; and such person shall not be liable to any penalty for not having delivered such statement or schedule within the time before limited, in case such person shall have delivered as perfect a statement or schedule as from the nature of the case he was enabled to give, and so from time to time as long as the Commissioners shall grant further time as aforesaid. 130. Provided always, and be it enacted, that in any case in which an appeal is allowed to be made to the Commissioners for General Purposes against any assessment of the duties contained in Schedule (D.) of this Act, or against any objection of the inspector or surveyor to such assessment, or against any surcharge of the said duties, it shall be lawful for the person assessed or charged, if he shall think fit, instead of appealing to the said Commissioners SCHEDULE (D.J Procedure. 261 for General Purposes, to appeal to the Commissioners for Special Purposes, upon giving notice thereof in writing to the inspector or surveyor within the time limited for notices of appeal to the Com- missioners for General Purposes in similar cases, and thereupon every such appeal shall be heard and determined by two or more of the Commissioners for Special Purposes who shall be directed by the Commissioners of Inland Eevenue to hear appeals in the district in which such appellant shall be chargeable, and the determination of the said Commissioners for Special Purposes shall be final and conclusive in the matter: Provided always, that no person who Claims of shall claim the exemption hereinafter granted to persons whose forkLcome annual income is less than one hundred and fifty pounds (a) shall be bein less , , . , ~ . . , th an ISO/, to allowed to appeal to the said Commissioners for Special Purposes, be determined but that every such claim shall be determined by the Commissioners CommiT^ for General Purposes as hereinafter directed. bioners. (a) Now 100?. The Finance Act, 1894, sect. 34. See p. 294. 131. Provided also, and be it enacted, that it shall be lawful 5 & 6 Viet. for any person chargeable to the duties contained in the said Sehedule (D.), and who shall not claim the said exemption herein- after granted, to require, if he shall think fit, that all proceedings ma in order to an assessment upon him, in respect of profits and gains require the chargeable under the said schedule, shall be had and taken before the Commissioners for Special Purposes in the manner hereinafter an assessment directed, instead of the additional Commissioners or the Commis- before Special sioners for General Purposes, provided he shall deliver a notice of such request, together with the list, declaration, and statement of such profits and gains, to the assessor of the parish or place, to be by him transmitted to the inspector or surveyor of the district in which the same shall be chargeable, withiri the time to be limited by the general notice hereinbefore directed to be given for delivery of all such lists and statements as aforesaid ; and thereupon the said inspector or surveyor shall examine the said list and statement, and shall compute and assess the duties which, according to his judgment, shall be chargeable upon the party under the said Schedule (D.), and shall make a certificate of such assessment, and deliver the same, together with the said list, declaration, and statement, to the Commissioners for Special Purposes, who shall examine the same, and make or sign and allow such an assessment of the said duties as shall appear to them to be just and proper, subject to an appeal by the party to be charged, or by the in-pector or surveyor objecting to such assessment, in like manner and uuder the like rules and regulations as in cases of appeal against assess- ments made by the said additional Commissioners ; and every such appeal shall be heard and determined by the Commissioners fo 262 THE SCHEDULES. Special Purposes directed by the Commissioners of Inland Revenue to hear appeals in such district ; provided that if either the party to be charged, or the inspector or surveyor, shall apprehend the determination of the said Commissioners for Special Purposes on such appeal to be erroneous in any particular, and shall then express himself dissatisfied therewith, the said Commissioners, if required by him, shall state specially and sign the case on which the question arose, together with their determination thereon, and transmit the same to the Commissioners of Inland Revenue for their opinion ; and the said last-mentioned Commissioners shall, with all convenient speed, state and subscribe their opinion on the case so transmitted, and according to such opinion the assessment which shall have been the subject of appeal shall be altered or confirmed, and the decision of the Commissioners of Inland Revenue shall be final and conclusive in the matter ; and in every case in which an assessment shall be made by the said Commissioners for Special Purposes they shall notify the amount thereof to the party assessed, who shall cause the same to be paid to the Receiver- Greneral of Inland Revenue, or the proper officer for receipt in England, Scotland, or Ireland at such time or times and in such manner as the said Commissioners shall direct ; and in default of such payment the said Commissioners shall make a duplicate of such assessment, and deliver the same, together with their warrant for levying the amount thereof, to the collector of the duties appointed by the Commissioners for Greneral Purposes for the parish or place in which the party assessed shall reside, and such collector is hereby authorized and required to levy and raise the duties so assessed according to the exigency of such warrant. 5 & 6 Viet. 132. And be it enacted, that whenever by this Act authority c. 35, s. 132. j given to the Commissioners for Special Purposes to make, sign, Powers and fo r . ' authorities of or allow any assessment, or to hear any appeal, then and in every General Com- guc j 1 cage a ]j fa Q p 0wers an( j authorities, rules and regulations, missioners may be which under or by virtue of this or any other Act may be exercised Speciafcom- or P u ^ i n force by the said additional Commissioners or the said missioners in Commissioners for Greneral Purposes, or by or under their warrant, order, or direction respectively, with relation to the making, sign- ing, or allowing of any assessment, or to the proceedings on any appeal before them, or to the collecting, levying, and receiving of any of the duties hereby granted, shall and may lawfully be exercised and put in force by the said Commissioners for Special Purposes, or by or under their warrant, order, or direction, with reference to any assessment to be made, signed, or allowed by such last-mentioned Commissioners, or any appeal to be heard or deter- mined by them. SCHEDULE (D.) Abatements. 263 Abatements. 133. And be it enacted, that if within or at the end of the year 5 & 6 Viet, current at the time of making any assessment under this Act, or at c- 35) e - 133 - the end of any year when such assessment ought to have been account^ " made, any person charged to the duties contained in Schedule (D.), ? iminuti o n of i IT -i TI i . \ /' income, now whether he shall have computed his profits or gains arising as last to be allowed, aforesaid on the amount thereof in the preceding or current year, or on an average of years, shall find, and shall prove to the satis- faction of the Commissioners by whom the assessment was made, that his profits and gains during such year for which the compu- tation was made fell short of the sum so computed in respect of the same source of profit on which the computation was made, it shall be lawful for the said Commissioners to cause the assessment made for such current year to be amended in respect of such s&uree of profit, as the case shall require, and in case the sum assessed shall have been paid, to certify under their hands to the Commissioners for Special Purposes at the Chief Office of Inland Eevenue in England the amount of the sum overpaid upon such first assess- ment, and thereupon the said last-mentioned Commissioners shall issue an order for the repayment of such sum as shall have been so overpaid, and such order shall be directed to the Beceiver- General of Inland Revenue, or to an officer for receipt or collector of the duties granted by this Act, or to a distributor or sub-distributor of stamps, and shall authorize and require the repayment of the said sum so overpaid as aforesaid, in like manner as is hereinbefore provided with respect to the allowances to be granted under No. V. of Schedule (A.) (a) of this Act. (a) See p. 146. " within or at the end of the Year." Within or Interpreting these words in JR. v. Commissioners for Special Purposes of the a * tne en f, * Income Tax, Lord Esher, M.E., said: "I do not think, on the one hand, e vear - that they ought to be construed so widely as to make them equivalent to ' at Lord Esher, any time after the end of the year,' or, on the other hand, that they ought ^-R-> in to receive such a restrictive construction as suggested, or to be held to mean *> v> a single period which the Court is to determine, within which every case fo^Sneci^^ must be brought. I think they ought to receive such an interpretation as p ur poses of the would make them applicable in a reasonable manner to the circumstances of Zncome Tax each particular case. I think the proper construction of them is that they (Cape Copper mean that the overpayment must be found out and proved in as short a time Case), L. R. after the end of the year as is possible in the particular case with exertion on 21 Q. B. Div. the part of the person claiming a repayment. I will not say that the statute 318 ; 57 L. J. simply means within a reasonable time after the end of the year. I think it Q- B. 513. must be the shortest time in which it could be done if every exertion was 1891, Russell made that ought to be made." v. North of This passage from Lord Esher's judgment was cited and approved by the Scotland Bank, Court in Russell V. North of Scotland Bank, Ltd. Limited, 18 In the former case Lord Esher, M.E., also said : " In this case I think the Scotch Sess. Act gave the Commissioners for General Purposes jurisdiction to inquire into ^ as ; ^ , , . and finally determine the question whether the applicant has brought his 28 1 &x) ^L R case within the terms ' at the end of the year ' interpreted in the sense I have 339 . 3 i ' mentioned. ' ' Cas.' 1 4 . 264 THE SCHEDULES. 1891, Russell v. North of Scotland Bank, Limited, 18 Scotch Sess. Cas. 4th Series, 543. It. v. Com- missioners for Special Pur- poses of the Income Tax (Cape Copper Case}. Mandamus to compel the Special Com- missioners to issue orders for payment " at the end of the year." Mandamus. Lord Esher, M.R., S. C. "Russell v. North of Scotland Bank, Ltd. But this was doubted by Lindley, L.J., S. G.: "Having regard to the terms of sect. 133, I must admit that I doubt whether the Commissioners for General Purposes are made the final judges of that question. But supposing that they are not, I think that, the certificate having been granted, the pre- sumption is in favour of its validity, and the onus of proving that the Com- missioners for General Purposes exceeded their jurisdiction is thrown on those seeking to impeach its validity ; and it lies on them to show that the applicants did not find or prove what is requisite under the section ' at the end of the year.' " The case of Russell v. North of Scotland Bank, Ltd., infra, supports the view of Lindley, L.J., as in that case the Court sustained the objection of the Surveyor of Taxes to the certificate of the Commissioners. 1888. R. v. Commissioners for Special Purposes of the Income Tax, L. E. 21 Q. B. Div. 313 ; 57 L. J. U. B. 513. An English company, working mines abroad, made, in March, 1887, an application under the above section for certificates in respect of overpayments of income tax assessed on profits for the years ending respectively April 5th, 1884, and April 5th, 1885, and the General Commissioners by whom the assessments were made having inquired into the case gave them certificates under the section. The Special Commissioners refused to issue orders for repayment on such certificates on the ground that they were made without jurisdiction, the company not having found and proved "within or at the end of the year," as required by the section, that their profits in the respective years fell short of the sum computed. Held, that the certificates given were valid ; and that mandamus lay to compel the Special Commissioners to issue orders for repayment of the amounts certified to be overpaid. The expression "at the end of the year" in the above section does not' mean at any time after the end of the year, or, on the other hand, within any limit of time generally applicable, but as soon after the end of the year as, having regard to the circumstances of the particular case, is practicable by the use of due exertions. " With regard to the question whether mandamus will lie, I am of opinion that the case falls within the class of cases where, officials having a public duty to perform, and having refused to perform it, mandamus will lie on the application of a person interested to compel them to do so" : Lord Esher, M.K. See further as to mandamus, post, p. 302. 1891. Russell v. North of Scotland Bank, Ltd., 18 Scotch Sess. Cas., 4th Ser. 543 ; 28 Sc. L. E. 389 ; 3 Tax Cas. 14. A banking company, on 12th October, 1888, discovered that they had been over-assessed, on their return, for the year 1888-89, but they made no claim until 10th July, 1890. The General Commissioners granted a cer- tificate of over-assessment, holding, inter alia, that the claim for overpay- ment had been made " within a reasonable time." The Surveyor of Taxes appealed. The bank objected to the competency of the appeal, on the ground (a) that an application for a certificate of over-assessment was not an appeal to the Commissioners within the meaning of the Taxes Management Act, 1880, and that therefore an appeal from the determination of the Commis- sioners was incompetent; and(b) that the appeal was against a determination of the Commissioners on a question of fact, viz., the reasonableness of the delay. The bank also contested the appeal on its merits. The Court allowed the appeal. The claim must be made either within the year or within the shortest period after the close of the year sufficient in the circumstances to enable the person assessed to ascertain, by using due diligence, whether and to what extent an overpayment has been made. 28 & 29 Viet. By an Act to grant certain duties of Customs and Inland Eevenue No reduction ' -^^ wnereas ^J sec t- 133 of the said Act of 5 & 6 Yict. to be made c 35 provision is made for giving relief, by reduction of the assess- SCHEDULE (D.) Abatements. 265 ment or repayment of duty, in certain cases where the profits of the unless profits year of assessment fall short of the sum in which the assessment are proved has been made : Be it enacted, that no such reduction or repay- less than the r average of last ment shall he made in any such case unless the profits of the said three years, year of assessment are proved to be less than the profits for one year on the average of the last three years, including the said year of assessment; nor shall any such relief extend to any greater amount than the difference between the sum on which the assess- ment has been made and such average profits for one year as aforesaid. By the Customs and Inland Eevenue Act, 1890 53 & 54 Viet. c. 8, s. 23. 23. (1.) Where any person shall sustain a loss in any trade, Relief to manufacture, adventure, or concern, or profession, employment, tra dmg * or vocation carried on by him either solely or in partnership, or persons and in the occupation of lands for the purpose of husbandry only, it shall be lawful for him, upon giving notice in writing to the surveyor of taxes for the district within six months after the year of assessment, to apply to the Commissioners for the Greneral Pur- poses of the Acts relating to income tax for an adjustment of his liability by reference to the loss and to the aggregate amount of his income for that year estimated according to the several rules and directions of the said Acts. (2.) The said Commissioners shall, on proof to their satisfaction of the amount of the loss, and of the payment of income tax upon the aggregate amount of income, 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 loss, and such certificate may extend to give exemption or relief by way of abatement in accordance with the provisions of the said Acts. Upon the receipt of the certificate the Commissioners of Inland Revenue shall cause repayment to be made in conformity therewith. (3.) If any person shall be guilty of any fraud or contrivance in making any application under this section, or in obtaining any such adjustment or certificate as aforesaid, he shall forfeit the sum of fifty pounds, to be recoverable as a penalty imposed by virtue of the Taxes Management Act, 1880. (4.) Where repayment has been made to a person in any year under the provisions of this section, he shall 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 whereof such repayment has been obtained. 266 THE SCHEDULES. 5 & 6 Viet. o. 35, s. 134. Abatement to be allowed when persons shall cease to exercise any trade or shall die before the end of the year. 16 & 17 Viet. c. 36, B. 30. Persons claiming abatement of assessment, and proving their incomes to be under IOQI. a year to be entitled to the same relief as if they had claimed ex- emption on the ground of their incomes being under that amount. The Income Tax Act, 1842 134. And be it enacted, that in case any person charged to the said duties under Schedule (D.), whether the computation thereon shall have been made on the profits of one year or on an average, as herein allowed, shall cease to exercise the profession, or to carry on the trade, employment, or vocation, in respect whereof such assessment was made, or shall die, or become bankrupt or insolvent, before the end of the year for making such assessment, or shall from any other specific cause be deprived of or lose the profits or gains on which the computation of duty charged in such assess- ment was made, it shall be lawful for such person, or his executors or administrators, to make application to the Commissioners for General Purposes of the district, within three calendar months after the end of such year, and on due proof thereof to their satisfaction the said Commissioners shall cause the assessment to be amended, as the case may require, and give such relief to the party charged, or his executors or administrators, as shall be just, and in cases requiring the same the said Commissioners shall direct, in manner before mentioned, repayment to be made of such sum as shall have been overpaid on the assessment amended or vacated : Provided always, that where any person shall have succeeded to the trade or business of the party charged, no such abatement shall be made, unless it shall be proved to the satisfaction of the said Commis- sioners that the profits and gains of such trade or business have fallen short from some specific cause (), to be alleged to them and proved, since such change or succession took place, or by reason thereof, but such person so succeeding to the same shall be liable to the payment of the full duties thereon without any new assessment. (a) As to -what is a " specific cause," see p. 216. An abatement is also allowed to clergymen for expenses incurred in performance of their duties. See p. 211. The Income Tax Act, 1853 30. Where, on any application for relief, or abatement of assess- ment in pursuance of the provisions contained respectively in section one hundred and thirty-three and section one hundred and thirty-four of the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, and in the third section of an Act of the fourteenth year of her Majesty's reign, chapter twelve, it shall be proved to the satisfaction of the Commissioners to whom such application shall be made that the total amount of the income from every source of the person claiming such relief or abatement for the year for which such assessment was made was under one hundred pounds (), such person shall be entitled to the same relief and repayment respectively as by this Act and the said first-men- SCHEDULE (D.) Procedure. tioned Act is provided in the case of persons claiming relief on the ground of their respective annual incomes being less than one hundred pounds (a) a year. (a) Now 160?. The Finance Act, 1894, s. 34, p. 294. 57 & 58 Viet. c. 30, s. 34. Procedure. The Income Tax Act, 1842 5 & 6 Viet. 135. And be it enacted, that the persons acting as Commissioners Commis- in the execution of this Act shall be charged and assessed to the sioners to be duties contained in Schedule (D.), if liable thereto, in like manner duties under as any other person may be charged and assessed to the said duties : . Provided always, that any Commissioners whose statement or persons. schedule shall be under consideration, or shall be concerned or interested therein, either for himself or for any other person, in any character before described, shall have no voice, and shall not Not to be be present, except upon an appeal, for the purpose of being ^ the con- examined viva wee by the Commissioners then having: his assess- "deration of J their state- ment or schedule under consideration, but shall withdraw during ments. the consideration and determination thereof. 136. And be it enacted, that the Commissioners for General 5 &6 Viet. Purposes acting in relation to the duties contained in Schedule (D.) c ' m " .' shall, in their respective books of assessment, enter and cause to be sioners to entered the several amounts of the sums assessed by them ; and assessments they shall from time to time make out, and transmit to the Com- in books, missioners of Inland Revenue, accounts of the amount of duty accounts to assessed by them, distinguishing the amount charged on each person, which accounts shall severally be made out, with the par- Revenue. ticulars required by this Act; and they shall also from time to time make out, and transmit to the said Commissioners of Inland Revenue, lists containing the name, description, and place of resi- dence of every person assessed by them respectively, as soon as the same conveniently can be done, which lists shall be made out according to an alphabetical arrangement of the respective parishes or places of residence in their respective districts. 137. And be it enacted, that all assessments upon profits or gains 5 & 6 Viet. under Schedule (D.) made by the Commissioners for General Pur- c- 35> 8- 13 ^' -A-SscssmGnts poses shall be entered in books, with the names and descriptions of under Sche- the persons, corporations, companies, or societies to be charged ^e^ntered* therewith, and their respective places of abode set opposite thereto, and certifi- and which entries shall respectively be numbered progressively, or amount to 6 lettered, or distinguished by numbers or letters, as the said Com- be delivered i n , i i j J.T- i i xu by a number missioners shall think proper ; and that wnen and as soon as tne O r letter, said Commissioners shall have caused to be made any such entry in J "{ ^ such book, in case the person charged by such assessment shall have parties, where -x: 268 THE SCHEDULES. they intend payment to the officer for receipt. declared his intention to pay the duty to the proper officer for receipt within the time limited by this Act for payment thereof, and in case the said Commissioners shall be satisfied with such declaration, they shall deliver to such person, or to such other person as shall be there attending on his behalf, a certificate under the hands of two or more of such Commissioners, specifying the amount of the sums to be paid within one year upon such assess- ment; and every such certificate shall be numbered or lettered with the same number or letter as the entry in the book of the said Commissioners to which such certificate shall relate shall be marked and numbered or lettered, without naming or otherwise describing the person charged thereby ; which certificate shall, on production thereof, be a sufficient authority to the said officer for receipt from time to time to receive from any person bearing and producing such certificate the amount of the sums therein contained, in such proportions thereof as by this Act are made payable by instalments, and at the times by this Act appointed for payment thereof, or in advance ; and on the payment of the sums contained in any such certificate, or any proportion thereof, the said officer for receipt shall give certificates for the same acknowledging the receipt of the sum paid on account of the certificate of the said respective Commissioners by the number or letter marked thereon as before directed. "5 & 6 Viet. c. 35, s. 138. Commis- sioners to deliver warrants to collectors, except where parties are assessed by a number or letter. 138. And be it enacted, that in all cases where the Commis- sioners shall not have received a declaration of the intended pay- ment to the officer for receipt as aforesaid of the duty to be charged under Schedule (D.), or shall not be satisfied with such declaration, they shall deliver a duplicate of the assessments to the collector, with the names and descriptions of the parties charged therewith, together with their warrants for collecting the same, in such form and under the like powers as they are authorized to collect the duty under any of the other Schedules contained in this Act ; and if after the receipt of any such declaration the duties shall not be duly satisfied and paid accordingly, the said Commissioners shall cause the names of the defaulters, and the amount of duty assessed on each, to be inserted from time to time in the duplicate of such collector ; and the warrant for collecting the same shall be of the like force and effect as if such names and sums had been inserted therein at the time of issuing such warrant. 5 & 6 Viet. 139. And be it enacted, that it shall be lawful for the respective ^ v S \ A ' Commissioners for General Purposes to issue out and deliver to the Duplicates to r be delivered respective officers for receipt duplicates of the assessments made by forreceTpt, them, containing the sums assessed on every person to whom a SCHEDULE (D.) Procedure. 269 certificate hath been delivered by letter or number, together with and where the number or letter set opposite thereto in their respective books before mentioned, without naming such persons, with their warrants und er a for receiving the duties charged by such Commissioners respectively letter, with when the same shall become payable as aforesaid; and all such ^ceivin 8 the sums shall be paid to the respective officers for receipt, and such duties. part thereof as shall not be so paid to them may be levied and collected as herein is mentioned; and if not so paid, levied, or collected, the same shall be recoverable as a debt to the Queen's Majesty, with full costs of suit, and all charges and expenses attending the same. 140. And be it enacted, that the duties payable on such last- 5 & 6 Viet. mentioned assessments shall be paid to the proper officer for receipt, p ' ' 8 " by such instalments (a) as by this Act is directed, before the respec- charged to tive days appointed for such payments, according to the regula- j^the proper 8 tions of this Act, or by three or two instalments, or in one sum in officer for full, as the parties shall choose ; and the certificates hereby required the days ap- to be given on such payments shall be delivered to the respective Pu 3 * 11 !^. . bjr d Commissioners, or to one or more of them, or to their clerk, at their in default the office, before the times when the same are hereby made payable, b^ievied^ taking his or their receipt for the same, which receipt shall be a sufficient discharge for the money so paid in satisfaction of so much of the assessment as shall be mentioned in such certificate to be so paid ; and if any person shall neglect to pay such duties at the time and in the manner hereby directed for payment thereof, or, having paid the same, shall neglect to deliver the certificate required to be given on such payment as hereinbefore directed, it shall be lawful for the Commissioners for General Purposes, and they are hereby required, to deliver a duplicate of all sums assessed on any person who shall have made default in paying or account- ing for the payment of the same, together with their warrant, to such collector as they shall appoint to levy the sum in arrear and unpaid, and such duplicate shall be made out, and such sums shall be levied, according to the regulations of the Taxes Management Act, 1880. (a) Payment by instalments is now abolished : see p. 178. 141. And be it enacted, that it shall be lawful for any person to 5 & 6 Viet. pay in advance to the Eeceiver General of Inland Eevenue, or to the p proper officer for receipt, any sum of money charged as aforesaid, be paid in and to require a certificate acknowledging such payment ; and it gubjVjctt shall be lawful for the said Eeceiver General or officer for receipt, discount. on production of the notice or certificate of such assessment at the 270 THE SCHEDULES. 52 & 53 Viet. c. 42, s. 10. 5 & 6 Viet. c. 35, s. 142. One certifi- cate or sepa- rate certifi- cates shall be given as required for the duties so paid. On delivery of certificates to the Com- missioners, the clerk to give a receipt, which shall be a discharge for the duties. time of payment of the said duty in advance (the sum so paid not in any case to be less than the sum which appears by such certifi- cate to be payable by two instalments), to make an allowance, at the rate of four pounds per centum per annum, out of the sum so paid in advance, calculated upon such sum for the period by which the same shall be paid sooner than the period prescribed by this Act for the payment thereof; and in every such case the said Receiver General or officer for receipt shall give the person paying the same a certificate of such payment, specifying therein the number of instalments thereby discharged, and the amount of the allowance for such prompt payment, and referring thereby to the notice or certificate of assessment then produced, and the name, number, or letter therein mentioned ; and all such allowances shall be made at the time of paying the said duties ; and such certificates as aforesaid, being delivered at the respective offices of the Com- missioners for executing this Act, shall be received by them as cash in discharge of the assessments, and shall be allowed to them in their accounts. By the Revenue Act, 1889 10. The allowance to be made under sect. 141 of 5 & 6 Viet. c. 35 shall be at the rate of two pounds ten shillings per centum per annum in lieu of the rate of four pounds per centum per annum. The Income Tax Act, 1842 142. And be it enacted, that upon the payment of any such sum of money as aforesaid the said Receiver General or officer for receipt shall give such certificate as aforesaid for the whole of the sum so paid, or separate certificates in like form for such portions thereof as shall be required, which certificates shall severally be cut off indentwise from the counter-cheques thereof, which counter-cheques are to remain with the said Receiver General or officer for receipt ; and every such certificate shall be denominated in the body thereof to be on account of payments made in discharge of the duties assessed by virtue of this Act ; and upon the delivery of any such certificate as last aforesaid to the said Commissioners for General Purposes, or at their office, in discharge of the whole or any part of the said duties assessed or charged upon the person delivering such certificate, the said Commissioners or their clerk shall, if required, indorse in writing on the back of the certificate to be given by them or him in such case the amount of the number of instalments of the said duties to be discharged by such payments, which receipts of the said Commissioners or their olerks as afore- SCHEDULE (E.). 271 said shall be received, without further proof, as evidence of such payments, in all Courts and places and before all persons whatever. 146. And be it enacted, that the duties hereby granted contained 5 & 6 Viet. in the Schedule marked (E.) shall be assessed and charged under ^^g 8 ^ 146 ' the following Eules, which Rules shall be deemed and construed Schedule (E.), a part of this Act, and to refer to the said last-mentioned duties, as if the same had been inserted under a special enactment. Act. Schedule (E.) The Income Tax Act, 1853 16 & 17 Viet. 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 annuities charged to the duties under the said Schedule (C.), and to be charged for every twenty shillings of the annual amount thereof. " Schedule (E.) extends only to offices or employments Tinder corporations 1864, A.-G. which, are of a public nature, and not to workmen or artizans like engine v - L. $ Y. E. drivers, porters, and labourers": Pollock, C.B., Martin, Channell and Co., 2H. &C. Pigott, BB., in Att.-Gen. v. Lancashire and Yorkshire Railway Co. ,11 '> ** * Income arising from employment as a bank agent is assessable under Schedule (E.) and not under Schedule (D.) : see Lord Halsbury, L.C., and Lord Watson in Tennant v. Smith. (1892) A G Schedules (D.) and (E.) are in terms exclusive of each other: Lord 150 Halsbury, L.C., S. C. The office of national schoolmaster is a public office -within the meaning of Sowers (Sur- Schedule (E.) : Sowers (Surveyor of Taxes} v. Harding. veyorof Taxes) v. Harding, Langston (Surveyor of Taxes) v. Glasson, L. B. (1891) 1 Q. B. 567; 60 L. J. j n g 550- 60 Q- B - 356 - L.J.Q'.B.474. The statutes of a college, after declaring that the college should consist of j^anastcn (Sur~ a president, fellows, and scholars, provided for the appointment by the pre- ve yor of Taxes) eident and fellows of a bursar, and gave them power to regulate the conditions v. Glasson. of tenure and the powers, duties, and emoluments of the office ; a further statute provided that the college seal should not be affixed to any act or document except in the presence of (among others) the bursar. The respon- dent was appointed bursar of the college, in accordance with the provisions of the statutes, at a salary which was fixed by the president and fellows and was paid to him out of the ordinary corporate revenues of the college without any deduction in respect of income tax. Held, that the respondent, not being a member of the corporate body, although a necessary officer of the college, was liable to direct assessment to income tax upon the amount of his salary, as holding an office or employment of profit under Schedule (E.). The Income Tax Act, 1842 5 & 6 Viet. . c. 35, s. 146. Rules for charging the said Duties. First. The said duties shall be annually charged on the persons Duties to be respectively having, using, or exercising the offices, or employ- ^^jfes, fees, or profits ; 272 THE SCHEDULES. after deduct- ing duties chargeable on the same by Act of Parliament. Provision respecting arrears on quitting office or dying. Lord Watson in Tennant v. Smith, L. R. (1892) A. C. 159. (Surveyor of Taxes) v. Sutherland. ments of profit mentioned in the said Schedule (E.), or to whom the annuities, pensions, or stipends mentioned in the same Schedule shall be payable, for all salaries, fees, wages, perquisites, or profits whatsoever accruing by reason of such offices, employments, or pensions, after deducting the amount of duties or other sums payable or chargeable on the same by virtue of any Act of Parliament, where the same have been really and bond fide paid and borne by the party to be charged ; and each assessment in respect of such offices or employments shall be in force for one whole year, and shall be levied for such year without any new assessment, notwithstanding a change may have taken place in any such office or employ- ment, on the person for the time having or exercising the same; provided that the person quitting such office or employ- ment, or dying within the year, or his executors or adminis- trators, shall be liable for the arrears due before or at the time of his so quitting such office or employment, or dying, and for such further portion of time as shall then have elapsed, to be settled by the respective Commissioners, and his successor shall be repaid such sums as he shall have paid on account of such portion of the year, as aforesaid ; and each assessment in respect of such annuity, pension, or stipend shall be in force for one whole year, unless the same shall cease or expire within the year, by lapse, death, or otherwise, from which period the assessment thereon shall be discharged : " Perquisites or Profits." " It is clear that the benefit, if any, which a bank agent may derive from his residence in the business premises of the bank is neither salary, fee, nor wages. Is it, then, a perquisite or a profit of his office ? I do not think it comes within the category of profits, because that word, in its ordinary acceptation, appears to me to denote something acquired which the acquirer becomes possessed of and can dispose of to his advantage in other words, money or that which can be turned to pecuniary account. If the context had permitted, it might have been possible to argue that a benefit of that kind was a perquisite. But the fourth rule of Schedule (E.) defines per- quisites, for all purposes of the Act, to be ' such profits of offices and employ- ments as arise from fees and other emoluments, and payable either by the Crown or by the subject in the course of executing such offices or employ- ments ' " : Lord Watson in Tennant v. Smith. A bank agent who is bound to occupy the bank-house and occupies it rent free, but cannot sub-let it, and is under obligation to quit the premises on ceasing to hold his office, cannot be assessed on the yearly value of the privilege of free residence : S. C. 1894. McDougal (Surveyor of Taxes] v. Sutherland, 21 Scotch Sess. Cas., 4th Ser. 753 ; 31 Sc. L. E. 630. The annual value of a manse occupied rent free by the minister of a con- gregation of the Free Church of Scotland, the feudal title to which is in trustees for behoof of the congregation, is not assessable. SCHEDULE (E.) Rules. 273 The Income Tax Act, 1853 16 & 17 Viet. 53. Where any person who shall hold or exercise any puhlic p u bii c officers office or employment of profit shall at any time or times during: or becoming 4, . J , * _ t . A , , x entitled to ior or m respect of any year 01 assessment become entitled to any increased additional salary, fees, or emoluments beyond the amount for which any assessment may have been made upon him, or beyond for the same the amount for which at the commencement of such year he may jn^ntaU-s^ have been liable to be assessed, an additional or supplemental sessment. assessment shall from time to time, as often as the case shall require, be made upon such person for such additional salary, fees, or emoluments, so that he shall be assessed and charged for the full amount of the whole of the salary, fees, and emoluments which he shall receive or become entitled to at any time, and from time to time during or for or in respect of the said year of assessment. The Income Tax Act, 1842 6 & 6 Viet. c. 35, s. 146. Second. The said duties to be assessed by the respective Com- Duties to be missioners for all the offices in each department in the place assessed for r r all omces in where the said Commissioners shall execute their offices, the place although certain of the offices in the same department may be executed elsewhere, and shall be due and payable from sionersexe- the respective officers, and their respective successors, for the offices. time being : Third. The said duties shall be paid on all public offices and Description employments of profit of the description hereinafter men- be charged. tioned within the United Kingdom ; (videlicet,) any office belonging to either House of Parliament, or to any court of justice, whether of law or equity, in England, Ireland, or Scotland, Wales, the Duchy of Lancaster, the Duchy of Cornwall, or any criminal or justiciary or ecclesiastical Court, or Court of Admiralty, or Commissary Court, or court martial; any public office held under the civil government of her Majesty, or in any county palatine, or the Duchy of Cornwall; any commissioned officer serving on the staff, or belonging to her Majesty's army, in any regiment of artillery, cavalry, infantry, royal marines, royal garrison battalions, or corps of engineers or royal artificers ; any officer in the navy, or in the militia or volunteers ; any office or employment of profit held under any ecclesiastical body, whether aggregate or sole, or under any public corporation, or under any company or society, whether corporate or not corporate; any office or employment of profit under any public institution, or on any public foundation, of whatever nature or for whatever purpose R. T 274 THE SCHEDULES. 23 & 24 Viet. c. 14, s. 6. The Com- missioners for Special Purposes to assess the persons em- ployed by railway companies. 39 & 40 Viet. c. 16, s. 9. 40 & 41 Viet. c. 13, s. 7. 46 & 47 Viet. c. 39. A.-G. v. Lancashire and Yorkshire Railway Co. 5 & 6 Viet. c. 35, s. 146. Fees or other emoluments may be esti- mated on the profits of the preceding year, or on an average of three years. the same may be established ; any office or employment of profit in any county, riding, or division, shire, or stewartry, or in any city, borough, town corporate, or place, or under any trusts or guardians of any fund, tolls, or duties to be exercised in such county, riding, division, shire, or stewartry, city, borough, town corporate, or place; and every other public office or employment of profit of a public nature : By an Act for granting to her Majesty duties on profits arising from pro- perty, professions, trades and offices 6. In like manner as aforesaid, the Commissioners for Special Purposes shall assess the duties payable under Schedule (E.) in respect of all offices and employments of profit held in or under any railway company, and shall notify to the secretary or other officer of such company the particulars thereof, and the said assess- ment shall be deemed to be and shall be an assessment upon the company, and paid, collected, and levied accordingly ; and it shall be lawful for the company or such secretary or other officer to deduct and retain out of the fees, emoluments, or salary of each such officer or person the duty so charged in respect of his profits and gains. Sect. 6 of 23 & 24 Viet. c. 14 is repealed by sect. 9 of the Customs and Inland Eevenue Act, 1876, but is revived by sect. 7 of the Customs, Inland Eevenue and Savings Bank Act, 1877. Both the repealing and the reviving sections are repealed by the Statute Law Eevision Act, 1883, so that sect. 6 of 23 & 24 Viet. c. 14 remains intact. 1864. Att.-Gen. v. Lancashire and Yorkshire Railway Co., 2 H. & C. 792 ; 33 L. J. Ex. 163. A railway company is not liable to be assessed under Schedule (E.) of the Income Tax Acts in respect of engine-drivers, porters, and labourers, whether employed by them at annual salaries, or at weekly wages amounting to IQQl. a year; but such servants are assessable under Schedule (D.). Schedule (E.) extends only to offices or employments under corporations which are of a public nature. The Income Tax Act, 1842 Fourth. The perquisites to be assessed under this Act shall be deemed to be such profits of offices and employments as arise from fees or other emoluments, and payable either by the crown or the subject, in the course of executing such offices or employments, and may be estimated either on the profits of the preceding year, or of the fair and just average of one year of the amount of the profits thereof in the three years pre- ceding ; such years in each case respectively ending on the fifth day of April in each year, or such other day of each year on which the accounts of such profits have been usually made up. SCHEDULE (E.) Rules. 275 The following is an extreme case : 1878. Inland Revenue v. Strang, 15 Scot. Law Sep. 704. Inland Sevenue A clergyman of the established church received at Christmas time a Vt Stran ff- pecuniary gift of 100, raised by voluntary subscription among his friends, the majority being members of his congregation. He had received a similar gift at the same time each of the two previous years that he had held the charge. No receipt was granted, and the contributors were under no obligation to repeat the payment. Held, that this was a payment to the appellant as clergyman, and was received by him in respect of the discharge of the duties of his office, which was one of public employment in the sense of the statutes. The payment was therefore an "emolument" under Schedule (E.), or "gain" under Schedule (D.). This case has been commented on adversely in 1888. Turner v. Cuxon, L. E. 22 Q. B. D. 150. Turner v. The Council of the Curates Augmentation Fund made a grant of 50?. to a Cuxon. curate in recognition of faithful service for more than fifteen years. The grant was renewable at the discretion of the council, and such renewal was upon the condition that the curate obtained donations to the fund to half the amount of the grant. Held, that the curate was not assessable to income tax in respect of the sum granted under Schedule (E.) ; and Lord Coleridge, C. J., said "If Inland Revenue v. Strong had been the same as this, I should have Lord Cole- felt myself bound to differ from it ; but the circumstances are different. ridre, C.J., There the payment was made to the minister by his parishioners in return S. C. for, and as an acknowledgment of, his services in the parish, and might properly be said to arise from his office or vocation. Here that is not so, but the payment is a gift made by a society to a deserving man upon certain conditions ; it is a purely voluntary gift, there could be no claim upon the society, and it is not made in respect of the parish of which the respondent is the curate." Fifth. In all cases where any salaries, fees, wages, or other 5 & 6 Viet. perquisites or profits, or any annuities, pensions, or stipends, ,J, ' ' shall be payable at any public office, or by any officer of her on salaries, Majesty's household, or by any of her Majesty's receivers or paymasters, or by any agent employed in that behalf, the payable at duties chargeable under this Act in respect of such salaries, office to be fees, wages, perquisites, or profits, or in respect of such annuities, pensions, or stipends, shall be detained and stopped payment. out of the same or out of any money which shall be payable upon such salaries, fees, wages, perquisites, or profits, or upon such annuities, pensions, or stipends, or for the arrears thereof, whenever the same shall happen, and be applied to the satis- faction of the duties on such offices or employments, or on such annuities, pensions, or stipends, respectively, (not being otherwise paid,) in the manner directed by this Act; and whenever the same so payable shall be assessed by the Com- missioners for General Purposes in their respective districts, they shall transmit an account of the amount of the duty assessed to the office where the same are payable, in order that the amount so assessed may be there stopped or detained : T2 276 THE SCHEDULES. Duties on salaries, &c. not arising from offices mentioned in the foregoing rule to be stopped by persons paying such salaries, fees, &c. Such portion of the duties as are charged with sums payable to any other persons to be deducted out of such sums. Duty paid by the principal in an office upon salary paid to his deputy or clerk to be deducted out of such salary. Payments on receipt of salaries, &c. or in passing accounts, or upon the re- ceipt of pen- sions, to be deducted. Pensions pay- able out of a branch of revenue to be charged by Sixth. In all cases where the salaries, fees, wages, allowances, or profits of any officer chargeable to the said duties shall not arise out of any of the offices mentioned in the foregoing rule, but shall arise from any other office or employment of profit chargeable to the said duties, and the salaries, fees, wages, perquisites, or profits shall be payable at such office by any officer thereof, or by any receiver of the same respectively, or by any agent employed in that behalf, the duties chargeable under this Act in respect of such salaries, fees, wages, perqui- sites, or profits shall be detained and stopped out of the same, or out of any money which shall be paid upon such salaries, fees, wages, perquisites, or profits, or for arrears thereof, whenever the same shall happen, and be applied to the satis- faction of the duties (not otherwise paid) in the manner directed by this Act : Seventh. Such portion of the said duties on offices or employ- ments of profit, or on annuities, pensions, or stipends, as are charged with any sum of money payable to any other person, shall be deducted out of the sum payable to such other person, as a like rate on such sum would amount unto ; and all such persons, their agents and receivers, shall allow such deductions and payments upon receipt of the residue of such sums : Eighth. Such portion of the said 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 the salary, fees, wages, perqui- sites, or profits of such principal, shall be deducted out of the salary or wages so payable as a like rate on such salary or wages would amount unto ; and all such deputies, clerks, and other persons so employed shall allow to their respective principals such deductions and payments upon the receipt of the residue of such salaries or wages : Ninth. In estimating the duty payable for any such office or employment of profit, or any pension, annuity, or stipend, all official deductions and payments made upon the 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, shall be allowed to be deducted, provided a due account thereof be rendered to the said Commissioners, and proved to their satisfaction : Tenth. In all cases where any annuity or pension shall be pay- able out of any particular branch of the public revenue, and at the office of that branch of revenue, the Commissioners SCHEDULE (E.) Procedure Allowances and Deductions. 277 acting for that department shall have authority to assess and the Commis- levy the same as a salary or wages payable thereout. Procedure. The Income Tax Act, 1842 5 & 6 Viet. 147. And be it enacted, that every person to be assessed for his p ers(m8 office or employment shall be deemed to have exercised the same assessed for at the head office of the department under which such office or deemed to employment shall be held, and shall be rated for such office or h . av * * t ' cised the employment as if exercised at such head office, although the duties same at the of such office or employment shall be performed, or the profits or any part thereof arising from such office or employment shall be payable elsewhere, within or out of the United Kingdom ; and all assessments made on any inferior officer, wherever he shall exercise his office or employment, shall be rated accordingly in the same district where such head office shall be established ; and every In what de- office shall be deemed to belong to and to be assessed by or under officers^all the principal officers of that department by or under whom the be assessed. appointment to such office was made, provided that where such appointment shall be made by any inferior officer in any depart- ment, then such office shall be assessed by the same Commissioners by whom such inferior officer shall be chargeable for his office : Provided that where any such appointment shall be held under the Great Seal or Privy Seal either of England or Scotland, or shall be made under the Royal Sign Manual, or where any such appointment shall be under the hands or seals of the Treasury, and the same shall not be exercised in the department of the Treasury, then the officer holding the same shall be assessed in that department where the office shall have been executed : Pro- vided also, that nothing herein contained shall be construed to limit the right hereinbefore given to Commissioners of the district of assessing offices before described within their respective juris- dictions, although such offices, or any of them, may not be held under their appointment, or the profits of such offices may not be payable by them or their order. Allowances and Deductions. 149. Provided always, and be it enacted, that the like allowances 5 & 6 Viet. shall be granted to the Trustees of the British Museum in respect Cert ai u a i_ of any charge under Schedule (A.) to be made on the lands and lowances to tenements vested in such trustees, as are granted to colleges and British other properties mentioned in No. VI. of that schedule ; and the JJ^^ * nd like exemptions shall be allowed in respect of any dividends of emptions as 278 THE SCHEDULES. now allowed to charitable institutions. 16 & 17 Viet. c. 34, B. 51. Expenses necessarily- incurred in the perform- ance of the duties of a public office to be de- ducted from the amount of salary, &c. to be assessed. Cook v. Knott. Itevell (Sur- veyor of Taxes] v. Directors of Elworthy Brothers. Boivers (Sur- veyor of Taxes) v. Harding. Abatement in respect of the annual premiums of certain insurances. Abatement to clergymen for certain expenses. stock vested in such trustees, or any of them, or in any other for their use, as are granted to charitable institutions hy this Act : and no salary or payment made or to be made out of her Majesty's Exchequer to such trustees for the use of such institutions shall be charged at the said Exchequer, provided all salaries of officers or persons employed under the said trustees shall be charged on the said officers respectively. The Income Tax Act, 1853 51. In assessing the duty chargeable under Schedule (E.) of this Act in respect of any public office or employment where the person exercising the same is necessarily obliged to incur and defray out of the salary, fees, or emoluments of such office or employment the expenses of travelling in the performance of the duties thereof, or of keeping and maintaining a horse to enable him to perform the same, or otherwise to lay out and expend money, wholly, exclu- sively, and necessarily in the performance of the duties of his office or employment, it shall be lawful to deduct from the amount of the said salary, fees, and emoluments to be assessed under this Act the amount of all such expenses and disbursements necessarily incurred and defrayed in manner aforesaid. 1887. Cook v. Knott, 4 Times Law Eeports 164, 2 Tax Cas. 246. A person holding two or more public offices in places at some distance is not entitled to deduct his travelling expenses between the different places. 1890. Bevell (Surveyor of Taxes] v. Directors of Elwortliy Brothers, 3 Tax Gas. 12. The directors of a company travel from their residences to the place of meeting of the company. Held, that the travelling expenses are not an allowable deduction under sect. 51. 1891. Bowers (Surveyor of Taxes] v. Harding, (1891) 1 Q. B. 560, 60 L. J. Q. B. 474. The respondent and his wife were master and mistress of a national school, and were paid a joint salary. The respondent was assessed to income tax under Schedule (E.) on the joint income of himself and his wife. A further allowance was claimed for the wages and maintenance of a domestic servant, whose employment was necessary in order that the duties of the respondent's household might be carried on while his wife was engaged in the school. Held, that the deduction claimed was not for money wholly, exclusively, and necessarily expended in the performance of the duties of the respon- dent's office or employment within the meaning of sect. 51. An abatement is allowed under Schedules (D.) and (E.) to persons who have made insurance or contracted for a deferred annuity on the lives of themselves or wives in respect of the annual premiums. We have already given the Acts when considering Schedule (D.) See p. 245. As they can be conveniently referred to, and do not depend on any section of Sche- dule (E.), we do not repeat them here. An abatement is also allowed, under the Income Tax Act, 1853, sect. 52, to clergymen for expenses incurred in performance of their duties. The section and cases thereunder have been given under Schedule (D.). Seep. 211. SCHEDULE (E.) Procedure. 279 Procedure. The Income Tax Act, 1842 5 & 6 Viet. 150. And be it enacted, that the several Commissioners autho- rized to act in the execution of this Act in relation to the duties Boners on on offices or employments of profit, and on pensions or stipends, the oaths as soon after their appointment respectively as conveniently can be done in their respective departments, shall meet in some con- power to ap- venient place, in order to qualify themselves by taking the oaths prescribed by the Taxes Management Act, 1880, and shall have collectors power to elect a clerk and assessors, and in cases where the duties officers in cannot be stopped and detained at the department of office of the said Commissioners, or for which the said respective Commissioners shall act, collectors of the said duties to be assessed by them from and amongst the officers in their respective departments, and separate assessors and collectors in each such department, under the cognizance of the same Commissioners, which assessors shall, within a time to be fixed by the respective Commissioners, deliver to them their certificates of assessment, in writing under their hands, to be verified upon their oaths, of the full and just annual value of all offices and employments of profit chargeable under this Act in the department for which they shall be appointed assessors, and of all pensions and stipends, estimated according to this Act, with the names and surnames of the several officers and persons entitled to pensions or stipends, and the several sums of money they ought to pay by virtue of this Act, at the rate of gevenpence for every twenty shillings of such value, without abatement or deduction, and without concealment or favour, upon pain of forfeiture for every neglect in the premises of any sum not exceeding one hundred pounds nor less than twenty pounds, which said assessors are hereby strictly enjoined and required, with all care and diligence, to charge and assess themselves, and all other officers, clerks, and persons employed in their respective depart- ments of office, and with respect to the duty on pensions or stipends to charge and assess all persons entitled unto any such pensions or stipends, and respectively to make their assessments according to the provisions of this Act ; and every such assessor shall have free All such , . , . assessors to access to all documents and papers whatever in their respective have access offices touching the salaries, fees, wages, perquisites, and profits of ^ l^ 9 ' any officer, clerk, or person aforesaid, belonging to their respective quire returns. offices, and touching the amount of the respective pensions or stipends, and shall be at liberty, whenever the same may be neces- sary, to require returns from the parties themselves, according to the provisions of this Act, that they may be enabled to make a true assessment in pursuance thereof. 280 THE SCHEDULES. 5&6Vict. c. 35, s. 151. of profits required ral notice. 611 '" 5 & 6 Viet. 2l, ' 8 ' 15 n ' The full value of offices to although' exemptions 5 & 6 Viet. ^ ' ? ' ' pay for prin- the receipt of ceiving sala- be answerable for duties. 5 & 6 Viet. .' ' s - Assessors to be furnished &c. in public departments ; 151. Provided always, and be it enacted, that no person shall, n res p ec t O f the profits arising from offices or from pensions or stipends, chargeable before the respective Commissioners appointed ^ or ^ nose purposes in their respective departments of office as aforesaid, be liable to the penalty herein contained for not return- *& a statement of the profits, arising from such office, pension, or stipend, in pursuance of any general notice hereinbefore directed, nor in any case except where the assessor for those profits respec- tively shall have required a return thereof in pursuance of the next preceding clause. 152. And be it enacted, that in every case where any person holding: such offices or employments, or being entitled unto any r .; ' . pension or stipend as aforesaid, shall claim to be exempt from such assessment, the Commissioners shall nevertheless set down in such assessment the names of such persons, and the full and just annual value of such offices, employments, pensions, or stipends ; and the claim to such exemption shall be preferred and examined, and the merits thereof shall be heard and determined, under the regulations of this Act with respect to other assessments. 153. And be it enacted, that where any office or employment of profit chargeable by this Act is or shall be executed by deputy, such deputy shall, in all cases where he shall be in the receipt of ^ ne P ron ^s thereof, be answerable for and shall pay such assessment a s shall be charged thereon, and 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 sna ^ ^e receivable by any one or more of the said officers for the use O f such officer, or as a fund to be divided amongst such officers in certain proportions, the officer or officers receiving such salaries, fees, wages, perquisites, or profits shall be answerable for the duties charged thereon, and shall pay the same, and deduct the same out of the funds provided for such respective offices or em- ployments, before any division or apportionment thereof, and in case of refusal or nonpayment thereof shall be liable to such dis- tress as by this Act is prescribed against any person having the office or employment, and to all other remedies and penalties respectively herein contained. 1 54. And be it enacted, that the proper officers, or their respec- ti ve deputies, and the receivers and paymasters in every public . if * department of office, and in every other office for which Commis- sioners are hereby intended to be appointed for raising the duties hereby charged on such offices respectively, and any agent by whom SCHEDULE (E.) Procedure. 281 any salaries, fees, wages, perquisites, or profits shall be payable, and may shall, upon request to him made by the assessors of the said duties, deliver gratis true lists or accounts of all such salaries, fees, wages, and profits perquisities, and profits received by him, and belonging to such officers respectively, and of all pensions and stipends payable to them respectively, for the better guidance of the said assessors in charging the same ; and if the said assessors shall be dissatisfied with such accounts it shall be lawful for them to require any officer whose office shall not be truly valued in such account to prepare and produce to them, within the like period of time as is limited for the returns of other accounts by this Act, a list or account of the salaries, fees, wages, perquisites, and profits of the office exer- cised by him, which returns such officer shall be obliged to make under the penalties and forfeitures contained in this Act for not making other returns hereby required ; and from the documents To make up and papers in their respective offices the said assessors shall make m ^^^" their assessment upon the persons holding such offices, or entitled the documents unto such pensions respectively, according to the annual value and deliver ' thereof, and shall in like manner as is before directed with respect ^ em *? the . (jommis- to assessors for any parish or place bring in their said assessments sioners. to the respective Commissioners for their allowance, who shall forthwith set their hands to the same, which assessments shall be in force for one year, commencing and payable at the like periods as the assessments in parishes are made payable ; and the said respective Commissioners for the duties on offices shall, in all cases where collectors are authorized to be appointed, cause the like duplicates to be made thereof, and delivered to collectors, with like warrants to collect the said duties, as are before directed to be given to collectors for any parish or place ; and the said collectors of the said duties on offices shall have the like authority to demand and levy the said duties as is herein given to collectors of any parish or place : Provided always, that in all cases where the duties, and any salaries, fees, wages, perquisites, or profits of any public office shall be detained and stopped out of the same, or out of any moneys which shall be paid thereupon, the respective Com- missioners shall cause the like duplicates to be delivered to the proper officers in the respective offices, who shall keep true accounts of all moneys stopped and detained under the authority of this Act, and shall be answerable for the same ; and the money so detained of the duty on annuities, pensions, or stipends shall be accounted for and paid in the manner hereinafter directed. 155. And be it enacted, that where any person having, using, 5&6Vict. or exercising any office or employment of profit which shall be c 282 THE SCHEDULES. offices which cannot be stopped to be certified in case of nonpayment to the Com- missioners of the district where the parties reside, who shall issue their warrants for leyying the same. 5 & 6 Viet. c. 35, s. 156. No qualifi- cation to be required of Commis- sioners on offices and public annuities. 5 & 6 Viet. c. 35, s. 157. Officers act- ing in raising the duties on offices liable to penalties for default. charged to the duties "by this Act granted thereon, and the said duties cannot be detained and stopped in the hands of the proper officer, or in the hands of any agent employed to pay the moneys due in respect of the said office or employment, or the same moneys shall have been paid over to the person having, using, or exercising the said office or employment, and such person shall refuse or neglect to pay the sum of money charged upon him, the Commis- sioners for raising the duties on the said offices shall and may, by writing under their hands and seals, certify such neglect or refusal, and the sum payable by virtue of this Act, to the Commissioners for executing this Act, in relation to lands, tenements, and here- ditaments, in the parish or place where such officer shall reside ; and such last-mentioned Commissioners are hereby authorized and required, upon receipt of such certificate, by warrant under their hands and seals, to authorize and empower the respective collectors of the said duties, or the collectors of the parish or place where such officer shall reside, to levy the same, by such ways and means as they are authorized to levy the duties charged by them respectively in pursuance of this Act ; and such collectors are hereby required to execute such warrant accordingly, and which shall be executed under the like powers and in like manner as is hereinafter directed, and as if such officer were charged to the said duties in such parish or place ; and the moneys arising thereby shall be paid to the collectors charged to the said duties on such office or employ- ment. 156. Provided always, and be it enacted, that no qualification shall be required of any of the officers or persons herein described to be Commissioners for the duties on offices, or on employments of profit, or on pensions, stipends, annuities, interests, or dividends, contained in the said several schedules, who shall act as such Com- missioners by virtue of their several offices, other than such offices respectively, anything herein contained to the contrary notwith- standing. 157. And be it enacted, that the respective assessors and collec- tors appointed to raise and assess, or levy, collect, and pay, the sums of money to be charged on offices or employments of profit, or on annuities, pensions, or stipends payable by her Majesty by virtue of this Act, and also the inspectors and surveyors acting in relation to the said duties, shall respectively be subject to the penalties and forfeitures for refusing or neglecting the perform- ance of their duty, or for being guilty of any fraud or abuse in executing the same, as are inflicted on such officers respectively for the like offences by the Taxes Management Act, 1880. 283 PART IY. (A,) PERSONS TO BE CHARGED. THE most frequent question that arises under the Income Tax Acts is in the Question following form : Is A. (a person) liable to pay income tax on B. (property) ? which usually This is a double question, and may be split up into the two following ques- arises under tions: (1) Is B. (property) chargeable under the Income Tax Acts? (2) If the Income so, is A. the person liable to pay the tax ? Now the great majority of the ax -A- * 8 - cases under the Income Tax Acts are answers to the former question. The second question is generally easy to answer, because the Acts have, as a rule, made it clear who is the proper person to pay the tax, and what persons are exempted from payment thereof. It is the second question with which we now propose to deal. The second question must fall under one of three heads : (a) It may not be . dealt with by the Income Tax Acts at all; (b) It may be dealt with by general rules in the Acts applying to all the schedules ; (c) It may be dealt with by the Acts under the particular schedule in which the property B. is charged. It will be seen that (a) and (b) are independent of the question as to what B. is ; but (c) is not so. We propose now only to deal with questions that fall under (a) and (b), questions that fall under (c) having already been dealt with under the schedules themselves. (a) Questions not dealt icith by the Income Tax Acts (1.) The Crown is exempt from the payment of Exemption of -T m the Crown. Income Tax. It is a well-known rule of law that the Crown, by virtue of its prerogative, 1 790, R. v. is not bound by any statute, unless it be expressly named (see Lord Kenyon, Cook, 3 T. R. C. J., in R, v. Cook) ; and therefore the Crown is not subject to Income Tax. 521. We have now to consider the application of this principle to Income Tax, and as the principle applies equally to the Poor Kate, the cases on the latter are here authorities with regard to Income Tax. "It seems tome that it is not material whether the assessment statute Lord Black- imposing any tax does so, like the Poor Rate Acts, for a local purpose, or, burn in 1883, like the statute imposing a duty on post-horses, considered in R. v. Cool; Coomber v. (3 T. R. 519), or the Income Tax, for an imperial purpose. In each there is Justice* f an implied exemption on the ground of prerogative. And if the property is #*'&*> L. R- so held as to bring it within the ground of exemption for the one statute, it ?^y' TOR must surely be brought within the ground of exemption for the other" : Lord 909 ' ' Blackburn in Coomber v. Justices of Berks. The application of the principle is given by Lord Westbury in Mersey Docks Lord West- V. Cameron. " The only occupier exempt from the operation of the Act is the bury in 1864, king, because he is not named in the statute, and the direct and immediate Mersey Docks servants of the Crown, whose occupation is the occupation of the Crown * ?' w ro; * itself, also come within the exemption. But the ground of exemption does 443 . " S -'TJ not warrant many decisions which have held that property used for public j 284 PERSONS TO BE CHARGED. What is occupation by the Crown. Blackburn, J., and other judges, in 1864, Mersey Docks v. Cameron, 11 H. L. C.460; 35 L. J. M. C. 1. Lord Black- burn in 1883, Coomber v. Justices of Berks, 9 Ap. Cas. 61 ; 53 L. J. Q. B. 239. The exemp- tion does not extend to tenants of Crown pro- perty. Blackburn, J., in Mersey Docks v. Cameron, supra. CASES. Exemption allowed. purposes is not rateable." The passage cited from Lord Westbury's judgment gives at once the rule and its limits. Before the Mersey Docks v. Cameron, the cases were in direct conflict as to whether the principle ' ' that property used for public purposes is not rateable," was correct. The Mersey Docks v. Cameron decided this point, but it left untouched a large class of cases which lie on the borderland between occupation for public purposes, but not by the Crown, and occupation for public purposes by the Crown and its servants. ' ' Long series of cases have established that where property is occupied for the purposes of the government of the country, including under that head the police and the administration of justice, no one is rateable in respect of such occupation. And this applies not only to property occupied for such purposes by the servants of the great departments of State, such as the Post Office, Smith v. Birmingham, 7 E. & B. 483 ; the Horse Guards, Lord Amherst v. Lord Somers, 2 T. E. 372 ; or the Admiralty, The Queen v. Stewart, 8 E. & B. 360 ; in all which cases the occupiers might strictly be called the servants of the Crown, but also to property occupied by local police, Justices of Lancashire v. Shelford, E. B. & E. 225, to county buildings occupied for the assizes, and for the judges' lodgings, Hodgson v. Local Board of Carlisle, 8 E. & B. 116 ; or occupied as a county court, R. v. Manchester, 3 E. & B. 336 ; or for a jail, B. v. Shepherd, 1 Q. B. 170. In these latter cases it is difficult to maintain that the occupants are, strictly speaking, servants of the Sovereign, so as to make the occupation that of her Majesty; but the purposes are all public purposes, of that kind which, by the constitution of this country, fall within the province of government, and are committed to the Sovereign, so that the occupiers, though not perhaps strictly servants of the Sovereign, might be considered in consimili casu " : Blackburn, J., giving the opinion of the majority of the judges in Mersey Docks v. Cameron. As we have said, the Mersey Docks v. Cameron left these cases untouched, and, indeed, somewhat confirmed them ; but in 1883, Coomber v. Justices of Berks, 9 Ap. Cas. 61, where the question was as to assize courts and a county police station, the exact point arose as to whether they were correct, and was decided in the affirmative ; and Lord Blackburn says, at p. 68, citing Lord Westbury, " that the public purposes to make an exemption must be such as are required and created by the Government of the country, and are there- fore to be deemed part of the use and service of the Crown," and that " pro- perty occupied by the servants of the Crown, and (according to the theory of the Constitution) property occupied for the purposes of the administration of the government of the country is exempt." It should be observed that the exemption only extends to property occupied by the Crown. It does not extend to tenants of Crown property. " The tenants of Crown property, paying rent for it, are rateable like all other occupiers ; and it has even been determined that where apartments in Hampton Court, a royal palace, were gratuitously assigned to a subject, who occupied them by the permission of the Sovereign, but for the subject's benefit, the subject was rateable in respect of her occupation of this royal property: R. v. Lady E. Ponsonby, 3 Q. B. 14;" Blackburn, J., in Mersey Docks v. Cameron. The following is a summary of the principal cases : Exemption allowed in case of 1788. Lord Amherst v. Lord Sommers, 2 T. E. 372 (The Horse Guards). 1789. R. v. Hurdis, 3 T. E. 497 (master gunner in occupation of Battery House). 1790. R. v. Cook, 3 T. E. 521 (post horses). 1841. R. v. Shepherd, 1 Q. B. 170 ; 10 L. J. M. C. 44 (Governor of West Eiding House of Correction, for house and garden within parcel of prison matrons and turnkeys for dwellings within walls justices for porter's lodge, treadmill and workrooms). 1854. R. v. Manchester, 3 El. & Bl. 336; 23 L. J. M. C. 48 (County Court). 1855. De la Beche y. James, 4 El. & Bl. 484 ; 24 L. J. M. C. 74 (Museum of Practical Geology, under control of the Treasury). EXEMPTION OP THE CROWS. 285 1857* Smith v. Birmingham, 1 El. & Bl. 483 ; 26 L. J. M. 0. 105 (the Post Office). 1857. M. v. Stewart, 8 El. & Bl. 360 (the War Office). 1858. Justices of Lancashire v. Shelford, El. Bl. & El. 225 ; 27 L. J. M. 0. 161 (police offices). 1867. M. v. St. Martins, Leicester, L. E. 2 Q. B. 493 ; 36 L. J. M. C. 99 (occupation by county police). 1868. B. v. McCann, L. E. 3 Q. B. 577 ; 37 L. J. M. C. 123 (tolls of bridge in occupation of Commissioner of Works and Buildings). 1877. Bent v. Roberts, L. E. 3 Ex. D. 66 ; 47 L. J. Q. B. 112 (superinten- dent of police for residence within boundary of police station). 1883. Coomber v. Justices of Berks, 9 Ap. Gas. 61; 53 L. J. Q. B. 239 (Assize Courts, county police station). 1889. Magistrates and Town Council of Edinboro' v. Surveyor of Taxes (Adam v. Maughan), 17 Scot. Sess. Cas. 4th Series, 73 ; 27 Sc. L. E. 64 ; 2 Tax Cas. 541 (Burgh Court). Exemptions not allowed in case of Exemption 1836. Governors of Bristol Poor v. Wait, 5 A. & E. 1 ; 5 L. J. (N. S.) not ^^e 3 ' M. C. 113 (governors of poor hiring house for paupers). 1839. B. v. Wallingford Union, 10 A. & E. 259; 8 L. J. M. C. 89 (guardians of the poor for workhouse). 1853. E. v. Temple, 2 El. & Bl. 160; 22 L. J. M. C. 129 (normal and model school). 1854. Gambier v. Overseers of Lydford, 3 El. & Bl. 340 ; 23 L. J. M. C. 69 (chaplain, medical officers, &c., for residences outside prison). 1864. The Mersey Docks v. Cameron, and Jones v. the Mersey Docks, 11 H. L. C. 443 ; 35 L. J. M. C. 1 (docks). 1867. Justices of Lancashire v. Cheetham, L. E. 3 Q. B. 14; 37 L. J. M. C. 12 (justices letting assize courts). 1868. Greig v. University of Edinborough, L. E. 1 Sc. Ap. 348 (Edin- borough University). 1875. R. v. West Derby, L. E. 10 Q. B. 283; 44 L. J. M. C. 98 (certified industrial school). 1883. Martin v. Assessment Committee of West Derby, L. E. 11 Q,. B. Div. 145 ; 52 L. J. M. C. 66 (superintendent of police for residence outside police station). 1884. Mackay v. Stoke-upon-Trent, 48 J. P. 775 (sergeant of police for residence outside police station). 1888. Tunnidiffe v. Overseers of Birkdale, L. E. 20 Q. B. D. 450 ; 56 L. J. M. C. 109 (reformatory school). 1889. Bray v. Justices of Lancashire, L. E. 22 Q. B. Div. 484 ; 58 L. J. M. C. 54 (county lunatic asylum). 1889. Magistrates and Town Council of Edinboro 1 v. Surveyor of Taxes (Adam v. Maughan), 17 Scot. Sess. Cas. 4th Series, 73; 27 Sc. L. E. 64 ; 2 Tax Cas. 541 (municipal buildings). (b) Questions dealt with by General Rules in the Acts applying to all the Schedules. (1.) Temporary Absentees and Residents. The Income Tax Act, 1842 5 & 6 Viet. c. 35, s. 39. 39. And be it enacted, that any subject of her Majesty whose Temporary ordinary residence shall have been in the United Kingdom, and absentees to * D8 charged as residents. PERSONS TO BE CHARGED. Temporary residents to be charged after six months residence. Persons de- parting after claiming ex- emption, and returning within the year, to be charged. Person taking house in London. A.-G. v. Coote. Master mariner. Rogers v. Solicitor of In- land Revenue. Foreign owner of English estate. who shall have departed from the United Kingdom and gone into any parts beyond the seas, for the purpose only of occasional residence, at the time of the execution of this Act, shall be deemed, notwithstanding such temporary absence, a person chargeable to the duties granted by this Act as a person actually residing in the United Kingdom, and shall be assessed and charged accordingly (in manner hereinafter directed) upon the whole amount of his profits or gains, whether the same shall arise from property in the United Kingdom or elsewhere, or from any allowance, annuity,' or stipend, (except as herein is excepted,) or from any profession, employment, trade, or vocation, in the United Kingdom or else- where : Provided always, that no person who shall on or after the passing of this Act actually be in the United Kingdom for some temporary purpose only, and not with any view or intent of estab- lishing his residence therein, and who shall not actually have resided in the United Kingdom at one time or several times for a period equal in the whole to six months in any one year, shall be charged with the said duties mentioned in Schedule (D.), as a person residing in the United Kingdom, in respect of the profits or gains received from or out of any possessions in any other of her Majesty's dominions, or any foreign possession, or from securities in any other of her Majesty's dominions, or foreign securities ; but nevertheless every such person shall, after such residence in the United Kingdom for such space of time as aforesaid, be chargeable to the said duties for the year commencing on the sixth day of April preceding : Provided also, that any person who shall depart from the United Kingdom after claiming such exemption, and shall again return to the United Kingdom on or before the fifth day of April next after such claim made, shall be chargeable to the said duties as a person residing in the United Kingdom for the whole of the year in which such claim shall have been made. Temporary Residents Exemption. The exemption does not include a person taking a house in London, and furnishing and residing in it for a less period than six months at any one time, and who then goes elsewhere with his establishment, and resides for the remainder of the year there, leaving behind him someone merely to take care of the house : 1817, Att.-Gen. v. Coote, 4 Price, 183. Nor does the exemption extend to a master mariner absent from Great Britain in command of a British ship for an entire fiscal year. During that time he possessed a dwelling-house in Great Britain, in which his wife and children resided, and had no other residence : 1879, Rogers v. Solicitor of Inland Revenue, 6 Scotch Sess. Gas. 4th Series, 1109; 16 Sc. L. E. 682; 1 Tax Gas. 225. See also, 1875. Young v. Commissioners of Inland Revenue, 2 Scotch Sess. Gas. 4th Series, 925 ; 12 Sc. L. E. 602 ; 1 Tax Gas. 57. Nor does the exemption extend to a person who had, for many years, had his only place of business and two residences, a town and country house, in Italy, but who became possessor of an estate in Great Britain in 1875, and was in the habit of Hying there during the summer months for a period less TEMPORARY ABSENTEES AND RESIDENTS. 287 than six months : 1884, Lloyd v. Solicitor of Inland Revenue, 11 Scotch Sess. Lloyd v. Cas. 4th Series, 687 ; 21 Sc. L. E. 482 ; 2 Tax Gas. 37. Solicitor of In- The point decided in each of the above cases was that the person had a land Revenue. residence, and did not come within the proviso at all. Assuming, however, that a person did fall within the proviso, there is another question that may arise as to what taxable income the exemption extends. It will be seen that the exemption extends to possessions and securities, To what and an interesting question arises as to whether this extends to the profits of property the a trade or vocation. There seems no more reason why a temporary resident exemption should pay income tax on the profits of a trade or vocation carried on abroad extends, than on the profits from possessions in the more restricted sense of the word. We have two dicta to the effect that he is not liable, but the reasons given are quite different. Lord Shand says the exemption is explanatory and not limited to the subjects therein contained, while Lord Macnaghten says that the word "possessions" includes every source of income (other than secu- rities) belonging to the person chargeable. "Although the proviso in sect. 39 is in the language of exemption, yet, Lord Shand as I have indicated in the course of the argument, it rather appears to me to in 1884, Lloyd be a section of an explanatory nature intended to impose liability, or to show v. Solicitor of that liability exists in certain circumstances, upon persons who come to this Inland country but who are the subjects of other realms. For although, no doubt, Revenue, H the language there used is the language of exemption, it concludes with Scotch bess. words which impose liability, viz. , that ' nevertheless every .... preced- o as .' fi87 . ing,' and the clause itself provides that persons who have been 'in Great 2i I sT'li R Britain for some temporary purpose only .... or any foreign possessions ' 432 '2 Tax' and so on, exempting if you take it as an exemption only from liability for Cas.' 37. profits from possessions as distinguished from profits or gains in respect of the carrying on of a profession or vocation or trade. If it be an exempting clause only, the result would be that a person coming for a temporary pur- pose only, with no view of establishing a residence, and who does not remain for six months in all, would nevertheless be liable for income tax upon profits upon any trade or vocation, which I do not think is the meaning of this section" : Lord Shand, in Lloyd v. Solicitor of Inland Revenue. " The only way to give a rational meaning to sect. 39 is to construe the Lord Mac- expression ' possessions in Ireland ' (a) as including every source of Irish naghten in income (other than Irish securities which are separately mentioned) belonging 1889, Col- to the person chargeable": Lord Macnaghten, in Colquhoun v. Brooks. quhoun v. (a) The words "Ireland or" are repealed by the Statute Law Eevision 14 Ap.'Cas. (No. 2) Act, 1874, as the income tax now applies to Ireland. See the 516 ; 59 L. J. appendix for the original section. Q. B. 53. Ireland. Ireland. The income tax was extended to Ireland by the Income Tax Act, 1853. The following section of that Act deals particularly with sect. 39 of the Income Tax Act, 1842 : 6. Provided always, that nothing in the said first-mentioned 16 & 17 Viet. Act (a) contained shall be deemed or construed to extend to exempt c- ' s ' ' any person, although not resident in any part of the United Kingdom, from the duties granted by this Act in respect of the profits or gains received from or out of any possessions or securities in Ireland, or to exempt any person resident in any part of the United Kingdom from the said duties in respect of the profits or gains received from or out of any possessions or securities in any other of her Majesty's dominions, or any foreign possessions or securities. (a] The Act of 1842. Owing to the alteration made by the Act of 1853 the words " The United Kingdom " in sect. 39 haye been substituted for the words " Great Britain" in the original section. 288 PERSONS TO BE CHARGED. 6 & 6 Viet. c. 35, s. 40. Corporations and societies to be charged with duties, and their officers to do all acts requisite for assessment. 42 & 43 Viet, c. 21, s. 18. Officers of corporations and societies to do all acts requisite for assessment of persons employed by the corpo- rations or societies. (2.) Corporations and Societies. The Income Tax Act, 1842 40. And be it enacted, that all bodies politic, corporate, or col- legiate, companies, fraternities, fellowships, or societies of persons, whether corporate or not corporate, shall be chargeable with such and the like duties as any person will under and by virtue of this Act be chargeable with, and that the chamberlain or other officer acting as treasurer, auditor, or receiver for the time being of every such corporation, company, fraternity, fellowship, or society shall be answerable for doing all such acts, matters, and things as shall be required to be done by virtue of this Act, in order to the assessing such bodies corporate, companies, fraternities, fellowships, or societies to the duties granted by this Act, and paying the same. By the Customs and Inland Eevenue Act, 1879 18. Every officer of any corporation, company, fraternity, fellowship, or society who is answerable under the provisions of the 40th section of 5 & 6 Viet. c. 35, for doing all such acts, matters, and things as shall be required to be done by virtue of the said Act in order to the assessing the corporation, company, fraternity, fellowship, or society to the duties of income tax, shall also be answerable under the provisions of the 50 and 55 sections of the same Act for doing all such acts, matters, or things as shall be required to be done by virtue of the said Act in order to the assessing the officers and persons in the employment of the cor- poration, company, fraternity, fellowship, or society to the duties of income tax. 5 & 6 Viet. c. 35, s. 41. Trustees and guardians of incapacitated persons to be charged. (3.) Trustees, Guardians, Factors, and Agents. The Income Tax Act, 1842 41. And be it enacted, that the trustee, guardian, tutor, curator, or committee of any person, being an infant, or married woman, lunatic, idiot, or insane, and having the direction, control, or management of the property or concern of such infant, married woman, lunatic, idiot, or insane person, whether such infant, married woman, lunatic, idiot, or insane person shall reside in the United Kingdom or not, shall be chargeable to the said duties in like manner and to the same amount as would be charged if such infant were of full age, or such married woman were sole, or such lunatic, idiot, or insane person were capable of acting for himself ; TRUSTEES, GUARDIANS, FACTORS, AND AGENTS. 289 and any person not resident in the United Kingdom, whether Non-residents a subject of her Majesty or not, shall be chargeable in the name thetaSZ? of such trustee, guardian, tutor, curator, or committee, or of any of then-factors factor, agent, or receiver, having the receipt of any profits or gains OI arising as herein mentioned, and belonging to such person, in the like manner and to the like amount as would be charged if such person were resident in the United Kingdom, and in the actual receipt thereof ; and every such trustee, guardian, tutor, curator, committee, agent, or receiver shall be answerable for the doing of all such acts, matters, and things as shall be required to be done by virtue of this Act in order to the assessing of any such person to the duties granted by this Act, and paying the same. It does not follow that because no one can be found to be assessed as an agent or factor no such trade is carried on as was intended by the statute. " If the Crown can find such an agent as is described in s. 41, they can assess Lord Esher, him ; but, supposing they cannot, they must take such means as they are M.R., in able to get at the person who should be assessed" : Lord Esher, M.E., in 1888 > Werle Werlev. ColquJioun. v - Colquhoun, "The right to assess is not limited by sect. 41, which is only machinery" : ~!' 5: 20 - Lord Esher, M.E., S. C. . Div. ,60^ " It was objected that the Income Tax Commissioners had no power to 323 recover from the principal the amount of the assessment, but must make their charge against the agent, and against the agent only. The language . a j L ( f w ' - of sect. 41 justified for the moment that construction of it; but when I look ^ , . . ~ at sect. 41 and afterwards to sect. 44 (post, p. 290), it seems to me perfectly **^ % ' clear that sect. 41 is intended to aid the Commissioners in recovering the tax, ^ L T N 's and not to alter the incidence of taxation in any way. That is manifest to my 816; 33 W. mind from sect. 44, which points out the object of sect. 41. Under sect. 44, the R. 543 ; 2 agent who is charged under sect. 41 is entitled to recover from his principal, Tax Gas. 89. as the person really liable, any payment he may make. If the principal can be got at, there is no need to have recourse to sect. 41. "When the case arises contemplated by sect. 41 of a person resident abroad who cannot be reached by the Commissioners, then the Commissioners are entitled to fall back upon the valuable and useful provisions contained in those two sections " : Mathew, J., in Tischler & Co. v. Apthorpe. "It was argued that, by reason of a provision of sect. 41 of the old Income Smith, J., Tax Act (o & 6 Viet, c. 35), Mr. Tischler is not the person to make the return, S. C. but that it should be made by his agent in this country ; and I agree with my brother Mathew that, at first sight, there seemed to be some substance in that argument ; but, having carefully looked into the 41st section, and also the subsequent section (44), to which my attention has been called, I am clearly of opinion that sect. 41 was not passed in derogation of the rights of the Crown with regard to the revenue, but, on the contrary, in aid and support of them. If the principal is in this country, and the notices prescribed by sects. 48 and 52 can be served on him it seems to me there is no reason whatever, as he is carrying on a trade in this country, why he should not be the person to return the profits of the trade which he exercises in this country. In my opinion, sect. 41 was passed in order, where a person, though trading in this country, whether a subject of her Majesty or not, is not resident here, and so the revenue officers cannot serve the proper notice, and cannot get at him as the principal, that then they should be enabled and entitled to serve the agent who is carrying on that trade in this country on behalf of the principal" : Smith, J., S. C. For an example of an agent charged, see Grainger and Son v. Gough, ante, 1894, Grain- 196 gerQSonv. Gough, 11 T. R. U L. R. 39. 290 PERSONS TO BE CHARGED. 5 & 6 Viet. c. 35, s. 42. Trustees or agents of persons of full age, resident in the United Kingdom, not required to do more than deliver lists of names and residences of such per- sons. 5 & 6 Viet. c. 35, s. 43. Receivers of trust property appointed by the Court of Chancery or other courts chargeable. 6 & 6 Viet, c. 35, s. 44. Trustees, agents, re- ceivers, and officers may retain the duties charged upon them out of trust moneys. The words "having the receipt of any profits or gains" only apply to "receiver." The word " agent " means simply an agent to carry on the business of a foreign principal in England : Lord Esher, M.E., S. C. As to the liability of parents and guardians of infants, see also p. 92. 42. Provided always, and be it enacted, that no trustee who shall have authorized the receipt of the profits arising from trust property by the person entitled thereunto, or by the agent of such last-mentioned person, and which person shall actually receive the same under such authority, nor any agent or receiver of any person being of full age, and resident in the United Kingdom, (other than a married woman, lunatic, idiot, and insane person,) who shall return a list in the manner hereinafter required of the name and residence of such person, shall be required to do any other act for the purpose of assessing such person, unless the Commissioners acting in the execution of this Act in respect of the assessment to be made on such person shall require the testimony of such trustee, agent, or receiver in pursuance of the powers and authorities by this Act given. (4.) Receivers of Trust Property. The Income Tax Act, 1842 43. And be it enacted, that the receiver appointed by the Court of Chancery, or by any other Court in the United Kingdom, having the direction and control of any property in respect whereof a duty is charged by this Act, whether the title to such property shall be uncertain or not, or subject to any contingency or not, or be depending or be not ascertained by reason of any dispute or other cause, shall be chargeable to the said duties in like manner and to the like amount as would be charged if the said property was not under the direction and control of such Court, and the title thereto was certain, and not subject to any contingency whatever ; and every such receiver shall be answerable for doing all such matters and things as shall be required to be done by virtue of this Act, in order to the assessing of the duties granted by this Act, and paying the same. Retention of Duties out of Trust Moneys. 44. And be it enacted, that where any person, being trustee, agent, factor, or receiver, guardian, tutor, curator, or committee of or for any person, shall be assessed under this Act in respect of such person, or where any chamberlain, treasurer, clerk, or other officer of any corporation, company, fraternity, or society shall be so assessed in respect of such corporation, company, fraternity, or society as aforesaid, it shall be lawful for every such person who MARRIED WOMEN. 291 shall be so assessed, by and out of the money which shall come to his hands as such trustee, agent, factor, or receiver, guardian, tutor, committee, or curator as aforesaid, or as such chamberlain, treasurer, clerk, or other officer, to retain. so much and such part thereof from time to time as shall be sufficient to pay such assess- ment ; and every such trustee, agent, factor, or receiver, guardian, tutor, committee, or curator, chamberlain, treasurer, clerk, or other officer, shall be and is hereby indemnified against every person, corporation, company, fraternity, or society whatsoever, for all payments which he shall make in pursuance and by virtue of this Act. (5.) Married Women. The Income Tax Act, 1842 45. And be it enacted, that any married woman acting as a sole 5 & 6 Viet, trader by the custom of any city or place, or otherwise, or having *V*| 45 ' or being entitled to any property or profits to her sole or separate women sole use, shall be chargeable to such and the like duties, and in like h a a ^ rs ' S e r a - manner, except as hereinafter is mentioned, as if she were actually rate property, sole and unmarried : Provided always, that the profits of any a biL C married woman living with her husband shall be deemed the profits of the husband, and the same shall be charged in the name of the husband, and not in her name, or of her trustee : Provided also, that any married woman living in the United Kingdom, separate from her husband, whether such husband shall be temporarily absent from her or from the United Kingdom, or otherwise, who shall receive any allowance or remittance from property out of the United Kingdom, shall be charged as a feme sole if entitled thereto in her own right, and as the agent of the husband if she receive the same from or through him, or from his property or on his credit. Bowers (Surveyor of Taxes] v. Harding, L. E., (1891) 1 Q. B. 560; 60 L. J. Boicers (Sur- Q. B. 474. veyor of Taxes) The respondent and his wife were master and mistress of a national school, v ' Hardin 3- and were paid a joint salary. The respondent was assessed to Income Tax, on the joint income of himself and his wife. Held, that by sect. 45, the profits of the wife were rightly charged as the profits of the husband, and the respondent was liable to be assessed on the joint income. The effect of sect. 45 as laid down by Bowers v. Harding, has been altered by- The Finance Act, 1894 57 & 58 Viet 34. (2.) Where the total joint income of a husband and wife charged to income tax, by way either of assessment or deduction, does not exceed five hundred pounds and, upon any claim under u2 292 PERSONS TO RE CHARGED. this section, the Commissioners for the general purposes of the Acts relating to income tax are satisfied that such total income includes profits of the wife derived from any profession, employ- ment, or vocation chargeable under Schedule (D.)> or from any office or employment of profit chargeable under Schedule (E.), they shall deal with such claim as if it were a claim for exemption or relief or abatement as the case may be in respect of such profits of the wife, and a separate claim, on the part of the husband, for exemption or relief or abatement in respect of the rest of such total income. 53 & 64 Viet. c. 8, s. 24. Assessment on estate of deceased persons. (6.) Deceased Persons. The Customs and Inland Eevenue Act, 1890 24. Where any person shall die after the passing of this Act without having made a return of all his profits and gains charge- able to income tax with a view to an assessment thereon in due course, an assessment in respect of the profits and gains which arose or accrued to him before his death, may be made at any time within the year of assessment, or within four months after the expiration thereof, upon his executors or administrators, and the amount thereof shall be a debt due from and payable out of his estate. See also p. 92. (7.) Letters Patent, 5 & 6 Viet. The Income Tax Act, 1842 No person to 1^7. And be it enacted, that no letters patent granted by her be exempt by Majesty or any of her royal progenitors, or to be granted by her Majesty, to any person, city, borough, or town corporate within this realm, of any manner of liberties, privileges, or exemptions from subsidies, tolls, taxes, assessments, or aids, nor any statute granting any salary, annuity, or pension to any person free of any taxes, deductions, or assessments, shall be construed or taken to exempt any person, city, borough, or town corporate, or any of the inhabitants of the same, from the burden and charges of any of the duties granted by this Act ; and all non obstantes in such statutes or letters patent made or to be made in bar of this Act are hereby declared to be void and of none effect ; any such statutes, letters patent, grants, or charters, or any clause of non obstante, or other matter or thing therein contained, or any law or statute, to the contrary notwithstanding. EXEMPTION OF PERSON WHOSE INCOME IS UNDER 160, ETC. 293 (8.) Exemption of Person whose Income is under 160, and abatement where Incomes are under 400 and 500. The Income Tax Act, 1842 5 & 6 Viet. 163. Provided always, and be it enacted, that any person Exemption charged or chargeable to the duties granted by this Act, either of P eraon8 , PIT- . whose income by assessment, or by way or deduction from any rent, annuity, is less than interest, or other annual payment to which he may be entitled, who shall prove before the Commissioners for General Purposes, in the manner hereinafter mentioned, that the aggregate annual amount of his income, estimated according to the several rules and direc- tions of this Act, is less than one hundred and fifty pounds, shall be exempted from the said duties, and shall be entitled to be repaid the amount of all deductions or payments on account thereof in the manner hereinafter directed, except so much of such duties as the person claiming such exemption shall or may be entitled to charge against any other person, or to deduct or retain from or out of any payment to which such claimant may be or become liable ; and such exemption shall be claimed and proved, and the proceedings thereupon shall be had, before the Commissioners for General Purposes in the district where the claimant shall reside, pursuant to and under the powers and provisions by which the duties in Schedule (D.) are herein directed to be ascertained and charged, but nevertheless subject to the rules and directions hereinafter contained. This exemption was limited by the Income Tax Act, 1853, sect. 28, to incomes under 100?., but was restored by The Customs and Inland Eevenue Act, 1876 39 & 40 Viet. c. 16, s. 8. 8. The exemption granted by the Act of 5 & 6 Viet. c. 3o, to Exemption persons whose respective incomes are less than one hundred and ^ her ? in ^ ni 7 e . is under loQl., fifty pounds a year is hereby restored, and in lieu of the relief and abate- granted by section twelve of the " Customs and Inland Eevenue JJJjJjJj"" Act, 1872," to a person whose income, although amounting to one under 400/. hundred pounds or upwards, is less than three hundred pounds, the following relief or abatement shall be given or made to a person whose income is less than four hundred pounds, that is to say, any person who shall be assessed or charged to any of the duties of income tax granted by this Act, or who shall have paid the same either by deduction or otherwise, and who shall claim and prove in the manner prescribed by the Acts relating to income tax that his total income from all sources, although amounting to one hundred and fifty pounds or upwards, is less than four hundred 294 PERSONS TO BE CHARGED. 57 & 58 Viet, c. 30, s. 34. Exemption where income does not exceed 160^., and abate- ment where income does not exceed 500/. 39 & 40 Viet. c. 16. Lord Mac- naghten, in Tennant v. Smith, L. R. (1892) A. C. 161. Tennant v. Smith. pounds, shall be entitled to be relieved from so much of the said duties assessed upon or paid by him as an assessment or charge of the said duties upon one hundred and twenty pounds of his income would amount unto, and the relief shall be given by reduction or abatement of the assessment upon such person, or by the repayment to him of so much of the excess as he shall have paid, or by both of these means, as the case may require. The Finance Act, 1894 34. The provisions of the Income Tax Acts with respect to the exemption granted to persons whose respective incomes are less than one hundred and fifty pounds a year, shall extend to persons whose respective incomes do not exceed one hundred and sixty pounds a year, and in lieu of the relief or abatement from income tax granted by section eight of the Customs and Inland Revenue Act, 1876, to persons whose respective incomes are less than four hundred pounds a year, the following provisions shall have effect : (1.) Any person who shall be assessed or charged to any of the duties of income tax granted by this Act, or who shall have paid the same either by deduction or otherwise, and who shall claim and prove in the manner prescribed by the Income Tax Acts, that his total income from all sources, although exceeding one hundred and sixty pounds or upwards, does not exceed five hundred pounds, shall be entitled to relief or abatement, as follows : (a) If the total income of such person does not exceed four hundred pounds, to relief from so much of the said duties assessed upon or paid by him as an assessment or charge upon one hundred and sixty pounds of his income would amount to ; and (b) If the total income of such person exceeds four hundred pounds, and does not exceed five hundred pounds, to the relief from so much of the said duties assessed upon or paid by him as an assess- ment or charge upon one hundred pounds of his income would amount to. How Income is estimated. " I think it is perfectly clear that nothing is to be brought into account on a claim to relief except what is chargeable for the purpose of assessment " : Lord Macnaghten in, Tennant v. Smith. Tennant v. Smith, L. E. (1892) A. C. 159; 61 L. J. P. C. 11. The appellant claimed relief under sect. 8 of 39 & 40 Viet. c. 16, on the ground that his income was less than 400?. It appeared that he was agent EXEMPTION OF FE&SON WHOSE INCOME IS UNDEE 160, ETC. 295 for a bank, and -was bound, as part of his duty, to occupy the bank house as custodier of the whole premises belonging to the bank, and also for the transaction of any special bank business after bank hours. He was not entitled to sublet the bank house or use it for other than bank business, and, in the event of his ceasing to hold his office, he was under obligation to quit the premises forthwith. Held, that in estimating the appellant's total income from all sources, the yearly value of his privilege of free residence in the bank premises could not be brought into account. 1894. McDougal (Surveyor of Taxes) v. Sutherland, 21 Scotch Sess. Cas., 4th McDougall Series, 753 ; 31 Sc. L. E. 630. (Surveyor of The annual value of a manse occupied rent free by the minister of a congregation of the Free Church of Scotland, the feudal title to which was in trustees for behoof of the congregation, does not fall to be reckoned as " income " of the minister in the sense of sect. 8 of 39 & 40 Viet. c. 16. See also under Claims of Exemption, ante, p. 84. 296 MISCELLANEOUS SECTIONS OF GENEKAL APPLICATION. (B.) MISCELLANEOUS SECTIONS OF GENERAL APPLICATION. 5 & 6 Viet. c. 3-5, s. 158. When duties are to be detained. 5 & 6 Viet. c. 35, s. 159. What deduc- tions shall not be allowed in computing the duties to be charged under this Act. 1883, Alexandria Water Co. v. Musgrave, L. R. 11 Q. B. Div. 177; 52 L. J. Q.B. 349. 5 & 6 Viet, c. 35, s. 160. Commis- When the Duties are to be deducted. The Income Tax Act, 1842 158. Provided always, and be it enacted, that such of the said duties granted by this Act which may be detained or stopped and deducted out of the sums in respect whereof they shall be charged or deducted shall be respectively detained at such times in each year as the said sums shall be payable to the person entitled thereto. Deductions are not allowed unless expressly enumerated in the Act. The Income Tax Act, 1842 159. And be it enacted, that in the computation of duty to be made under this Act in any of the cases before mentioned, either by the party making or delivering any list or statement required as aforesaid, or by the respective assessors or Commissioners, it shall not be lawful to make any other deductions therefrom than such as are expressly enumerated in this Act, nor to make any deduction on account of any annual interest, annuity, or other annual payment to be paid to any person out of any profits or gains chargeable by this Act, in regard that a proportionate part of the duty so to be charged is allowed to be deducted on making such payments, nor to make any deduction from the profits or gains arising from any property herein described, or from any office or employment of profit, on account of diminution of capital employed or of loss sustained in any trade, manufacture, adventure, or concern, or in any profession, employment, or vocation. " 'In regard' here is not an expression of the reason of the legislature, but is to render impossible an erroneous view which might otherwise be entertained by the person computing as to his being entitled to make the deduction " : Bowen, L. J., in Alexandria Water Co. v. Musgrave. Commissioners to settle differences respecting Deductions. The Income Tax Act, 1842 160. And be it enacted, that if any difference shall arise DIVIDED OCCUPATIONS, ETC. 297 between tenant and landlord, or any other persons to whom any sioners to interest, rent, rentcharge, annuity, fee-farm rent, rent service, differences quitrent, feu duty, or other rent or annual payment shall be pay- respecting able, touching the sums to be deducted thereout on account of the to duties hereby charged having been paid, or between the occupier for the time being and any former occupier of any lands, tene- ments, hereditaments, or heritages, his executors, administrators, or assigns, touching the proportion of duty to be paid or allowed by either party, the respective Commissioners for General Purposes in their several districts shall have authority, and they are hereby required to settle the proportions of such payments and deductions as shall be according to the directions of this Act," and in default of payment to levy the same respectively under the like powers as they might have levied the same if the assessment had been made in the same proportions, and to pay over the same to the collector or party, as the case may require : and the judgment and deter- mination of such Commissioners shall be final. Occupations divided during the Year of Assessment. An Act for granting to Her Majesty Duties on Profits arising from 23 Viet. c. 14, Property, Professions, Trades and Offices s. 4. 4. If since the making of any assessment under Schedules (A.) and (B.) for the year ending the 5th day of April, 1860, the lands thereby charged shall have been divided into two or more distinct occupations, the Commissioners for General Purposes shall, on the appeal of the parties interested respectively, settle and adjust what proportion of the duties granted by this Act under the said schedules shall be paid or borne by each occupier, and the amount apportioned on the respective parties shall be collected and levied in like manner as an original assessment. Non-payment of Duties does not disqualify from Voting at Elections for Members of Parliament, The Income Tax Act, 1842 5 & 6 Viet. 184. Provided always, and be it enacted, that no neglect or ; 3o> 8- 184> uu- V * J A 4.1. A ^ J Nonpayment omission to pay, within any limited period, the duties assessed O f duties not under the authority of this Act in respect of any house or other building, shall prevent any person from being admitted or retained at elections on the register or list of persons entitled to vote in the election of ofParUament. a member or members to serve in parliament for any city or borough, or from voting at any such election. 298 MISCELLANEOUS SECTIONS OF GENERAL APPLICATION. The Provisions applied to any particular Schedule may extend to another Schedule. The Income Tax Act, 1842 188. And be it enacted, that every provision in this Act con- tained, and applied to the duties in any particular schedule, which shall also be applicable to the duties in any other schedule, and not repugnant to the provisions for charging, ascertaining, or levying the duties in such other schedule, shall, in charging, ascertaining, and levying the same, be applied as fully and effectually as if the application thereof had been so expressly and particularly directed ; anything herein contained to the contrary notwithstanding. " The respondent did not rely in argument upon the terms of that clause (sect. 1 88), the construction of which is by no means free from difficulty. Thus far its terms are clear enough. The provisions of Schedule (D.) with respect to employments and vocations are not to be applied to offices and employ- 1 L. J. men tg under Schedule (E.), unless they are in the first place ' applicable ' to such offices and employments, and, in the second place, not repugnant to the rules of assessment enacted for Schedule (E.). Assuming, for the sake of argument, that the rules of assessment for employments and vocations under Schedule (D.) differed in material respects from the rules for assessing public offices and employments under Schedule (E.), I do not think they would be applicable to cases falling under Schedule (E.), or could be applied without repugnancy, or, in other words, without abrogating pro tanto the rules of Schedule (E.)" : Lord Watson, in Tennant v. Smith. 5 & 6 Viet. c. 35, s. 188. Provisions applied to any particular schedule may extend to another schedule in charging the duty. Lord Watson in Tennant v. Smith, L. E,. (1892) A. C. P. C. 11. 5 & 6 Viet. c. 35, s. 192. Construction of the terms used in this Act. Construction of the Terms used in this Act. The Income Tax Act, 1842 192. And be it enacted, that wherever in this Act, with reference to any person, matter, or thing, any word or words is or are used importing the singular number or the masculine gender only, yet such word or words shall be understood to include several persons as well as one person, females as well as males, bodies politic or corporate as well as individuals, and several matters or things as well as one matter or thing, unless it be otherwise specially pro- vided, or there be something in the subject or context repugnant to such construction ; and that wherever the terms and expressions following occur in this Act they shall be construed respectively in the manner hereinafter directed ; (that is to say,) that the term " affidavit " and the term " oath " shall respectively mean and include an affirmation in the case of Quakers or other persons entitled by law to make an affirmation in lieu of an affidavit or oath ; the term " England " shall mean and include England and "Wales and Berwick-upon- Tweed. VARIOUS. 299 Various. The Taxes Management Act, 1880 43 & 44 yict. 4. (3.) All existing bonds and securities given under or in ' pursuance of any enactment hereby repealed shall have the same force and effect as if they had been given under or in pursuance of this Act. 6. Nothing in this Act shall alter the effect of, or in any way 43 & 44 Viet. supersede - 19 > 8 - 6 - (1.) An Act passed in the session of the seventeenth and locai D lcts r eighteenth years of her present Majesty, intituled " An n & 18 Viet. Act for the valuation of lands and heritages in Scotland " : ' ' (2.) Any Act amending such last referred-to Act : (3.) The Valuation (Metropolis) Act, 1869. 32 & 33 Viet. c. 67. 7. (1.) In the several enactments described in the Fourth 43 & 44 Viet. Schedule () to this Act a reference to this Act shall be deemed to c- 19) . s - be substituted for a reference to any one or more of the enactments described in the Third Schedule to this Act, or any enactment Acts - amending the same. (2.) Where any Act passed before this Act and not specified in the Third and Fourth Schedules to this Act refers to any enactment described in the Third Schedule, or to any enactment amending such last referred-to enactment, the reference shall be deemed to be to this Act. (a) For the Schedule, see Appendix. The Third Schedule is now repealed 57 & 55 yi c t. by the Statute Law Eevision Act, 1894. c . 55. 8. (1.) Nothing in this Act shall affect the powers conferred on 43 & 44 vict. and exercised by the Special Commissioners. c - 19 > s - 8 - (2.) Any power which in England under or by virtue of this SpedaTcom- Act may be executed by the General Commissioners may in * . . -' powers. Ireland be executed by the Special Commissioners. 9. All powers, authorities, rules, regulations, directions, and 43 & 44 Viet. penalties contained in the Tax Acts and Land Tax Acts in regard c ' 19 ' a ' 9 ' ,..,. ,, ,. . . ,. Savings of to the mode of raising, levying, collecting, receiving, accounting powers con- for, and securing the duties and the land tax shall, in all cases not expressly provided for by this Act, and so far as the same are not superseded by and are consistent with the express provisions of this Act, be observed, applied, practised, and put in execution through- out the respective parts of the United Kingdom, for raising, levy- ing, collecting, receiving, accounting for, and securing the duties and the land tax as fully and effectually to all intents and pur- poses as if the same were particularly repeated and re-enacted in this Act. 300 MISCELLANEOUS SECTIONS OF GENERAL APPLICATION. 43 & 44 Viet. 10. All matters within the jurisdiction of the High Court under Hi* h Coirt ttis ^ ct sba11 te assi g ne(i ~ (i.) In England and Ireland, subject to the Acts regulating the High Court, to the Exchequer Division of her Majesty's High Court of Justice in England and Ireland respec- tively : (ii.) In Scotland to the Court of Session sitting as a Court of Exchequer. 301 APPENDICES. APPENDIX I. INTERPRETATION OF THE INCOME TAX ACTS. THERE are certain principles, which have been laid down as applicable to the interpretation of the Income Tax Acts, which it is necessary to bear in mind when we are endeavouring to arrive at the meaning of an obscure passage. They are as follows : 1. It is a well established rule that the subject is not to be taxed 1855, Re without clear words for that purpose : see Parke, B., in Micklethwait, Re Micklethivait, and, therefore, if the Crown cannot bring i ? X V 4 T? ' the subject within the letter of the law, the subject is free, 19. '' however apparently within the spirit of the law he may be: 18 g 9 p art - ing . see Lord Cairns in Partington v. A.-G. ton v. A.-G., 2. If the person sought to be taxed comes within the letter of the L. B. 4 H. L. law, he must be taxed, however great the hardship may *" 22 ; 38 L - J - appear to be : see Lord Cairns, S. C. From these two principles may be deduced the following general principle : 3. If there be admissible in any statute what is called an equitable construction, certainly such construction is not admissible in a taxing statute : see Lord Cairns, S. C. The following passage, from the judgment of Lord Blackburn, in 1881, Coltness Coltness Iron Co. v. Black, has been cited with approval by Lord Iron Co. v. Herschell, in Colquhoun v. Brooks, and throws considerable light on l< k ' J" R ' the interpretation of the Income Tax Acts : 880-61 L J " The object of those framing a Taxing Act is to grant to her Majesty Q. B. 626. a revenue ; no doubt they would prefer, if it were possible, to raise \889, Col- that revenue equally from all, and as that cannot be done, to raise it quhoun v. from those on whom the tax falls, with as little trouble and annoyance Brooks, L. R. and as equally as can be contrived ; and when any enactments for the 505 .59 L' j purpose can bear two interpretations, it is reasonable to put that con- Q. B. 53. struction upon them which will produce these effects." 302 APPENDIX II. EXTEAOEDINAEY EEMEDIES IN INCOME TAX OASES. 1887, Holborn Viaduct Land Co. v. R., 2 Tax Gas. 228 ; 52 J. P. 341. Lord Esher, M.R., in 1888, R. v. Commissioners for Special Purposes of Income Tax (Cape Copper Case], L. R. 21 Q. B. Div. 317; 57 L. J. Q. B. 513. 1884, Re Nathan, L. R. 1 2 Q. B. Div. 470; 53 L. J. Q. B. 229. Lord Hers- chell, in Commissioners for Special Purposes of Income Tax v. Pemsel, L. R., (1891) A. C. 569 ; 61 L. J. Q. B. 265. An income tax payer who has paid money to the Crown, to which he believes the Crown is not entitled, on searching the Income Tax Acts for relief, may find himself in the following difficulties : 1 . He may find that the Income Tax Acts have provided a measure for relief which he has neglected to avail himself of. 2. He may find that the Income Tax Acts have provided a measure for relief, but the income tax officers (believing that he has no right to relief) decline to give the necessary certificates and orders for payment which are usually provided in such relief. 3. He may find that the Income Tax Acts have provided no measure for relief. In the first case he must console himself for his loss as best he can, he has no other remedy : See Holborn Viaduct Land Co. v. R. In the second case his proper and only remedy is mandamus. " Officials having a public duty to perform, and having refused to perform it, mandamus will lie on the application of a person interested to compel them to do so" : Lord Esher, M. R.., in R. v. Commissioners for Special Purposes of Income Tax. In the third case his proper recourse is a petition of right, which is appropriate for the purpose of obtaining restitution of money wrong- fully taken and detained by the Crown : See Re Nathan (infra]. It is very important to apply the remedy that is proper to the cir- cumstances. A petition of right would not be the proper remedy in the second case, nor would a mandamus avail in the third case. A writ of mandamus is never issued when there is any other reasonable remedy : See Brett, M. R., in Re Nathan. The following passage from Lord Herschell's judgment in Commis- sioners for Special Purposes of Income Tax v. Pemsel shows the differ- ence between the two remedies : "It was sought in Re Nathan to compel the Commissioners of Inland Revenue to make payment of a certain sum of money to the applicant for the mandamus ; and it was held that for such a purpose recourse must be had to a petition of right. Here the applicant seeks that the appellant should be compelled to grant an allowance and certificate, which it is necessary for him to obtain before he is in a position to require payment of the sum which it is no doubt his ultimate object to recover. Until he obtains this allowance and cer- tificate, he is not in a position to maintain a petition of right." EXTRAORDINAEY REMEDIES IN INCOME TAX CASES. 303 CASES. 1887. Holborn Viaduct Land Co. v. R., 2 Tax Gas. 228 ; Holbom 52 J. P. 341. Viaduct Land A land company pays debenture interest in excess of the assessments under Schedule (A.), deducts income tax from the interest, and returns the whole amount deducted for assessment under Schedule (D.) : Held, that as the proper remedy by appeal had been neglected, a petition of right did not lie to obtain repayment of the sum paid under the Schedule (D.) assessment. 1884. Re Nathan, L. E. 12 Q. B. Div. 461 ; 53 L. J. Q. B. 229. Re Nathan. Sect. 23 of 5 & 6 Viet. c. 79 provides for the return by the Commis- sioners of Inland Revenue of probate duty on proof by oath and proper vouchers to their satisfaction of the payment of debts of the deceased, whereby the amount of probate duty payable on the estate is reduced below the amount which has been paid. On an application by an administrator for a mandamus to the Commissioners to pay to the applicant the amount of the duty overpaid by him, on the ground that he had supplied evidence of overpayment, and had no other legal remedy : Held, that the mandamus ought not to issue, for the statute created no duty between the Commissioners and the applicant, whose remedy, if the decision of the Commissioners could be reviewed, was by petition of right. 1888. R. v. Commissioners for Special Purposes of Income Tax, E. v. Cotn- L. E. 21 Q. B. Div. 313 : 57 L. J. Q. B. 513. missioners . , .- H f or Special An English company, working mines abroad, made, in March, 1887, Purposes of an application under sect. 133 of 5 & 6 Yict. c. 35, for certificates in Income Tax respect of overpayments of income tax, and the Commissioners, by (C a P* Copper whom the assessments were made having inquired into the case, gave them certificates under the section. The Commissioners for Special Purposes refused to issue orders for repayment on such certificates : Held, that the certificates being valid, mandamus lay to compel the Commissioners for Special Purposes to issue orders for repayment of the amounts certified to be overpaid. The Commissioners for Special Purposes of Income Tax v. Pemsel, Commissioners 1891, A. C. 531 ; 61 L. J. Q. B. 265. & Special Purposes of Where an allowance under sects. 61 & 62 of 5 & 6 Viet. c. 35 ought income Tax to be granted and is refused, mandamus lies to the Commissioners v. Pemsel. commanding them to grant the allowance and to give a certificate of the allowance and an order for the payment thereof. 304 APPENDIX III. THE METEOPOLIS. 32 & 33 Viet. c. 67, s. 45. Valuation not to be conclu- sive for pur- pose of certain rates, taxes, and qualifica- tions. 5 & 6 Viet. c. 35, &c. 5 & 6 Viet. c. 35, &c. 32 & 33 Viet. c. 67, s. 8. Duplicate of valuation list sent to sur- veyor of taxes. 32 & 33 Viet. c. 67, s. 12. Surveyor of taxes, &c., may inspect, copy, and object to valuation list. 32 & 33 Viet. c. 67, s. 53. Amount of gross value specified by the surveyor of taxes to be inserted, un- less disproved. The Metropolis Valuation Act, 1869 45. The valuation list for the time being in force shall be deemed to have been duly made in accordance with this Act and the Acts incorpo- rated herewith, and shall for all or any of the purposes in this section mentioned be conclusive evidence of the gross value and of the rateable value of the several hereditaments included therein, and of the fact that all hereditaments required to be inserted therein have been so inserted ; that is to say, ****** (2.) For the purpose of any of the following taxes which become chargeable during the year that the list is in force; namely, ****** (b) Any tax assessed in pursuance of the Income Tax Act, and any Acts continuing or amending the same, on any lands, tenements, and hereditaments, in all cases where the tax is charged on the gross value, and not on profits : ****** (3.) And in construing the Income Tax Act and any Acts continuing or amending that Act, with respect to Schedules (A.) and (B.) thereof, annual value shall be deemed to mean the gross value stated in such list. 8. The overseers shall send one duplicate of the valuation list to the surveyor of taxes of the district at the same time that the other dupli- cate is deposited by them. The surveyor of taxes shall insert in the duplicate so sent to him the amount in his opinion of the gross value of the hereditaments comprised in such list where such amount differs from the amount inserted by the overseers, and shall transmit the duplicate to the assessment committee within twenty-eight days after he has received the same. 12. A surveyor of taxes, and any ratepayer in the parish, shall have the same right of inspecting, copying, taking extracts from, and ob- jecting to any valuation list which relates to his district or parish as is given to any person by this Act and the Acts incorporated herewith. 53. When a surveyor of taxes gives notice of objection or of appeal, the amount specified in the notice as being in his judgment the gross value of any hereditament referred to in the notice shall be inserted in the valuation list by the assessment committee, special sessions, or assessment sessions, unless it is proved to the satisfaction of the assess- ment committee, special sessions, or assessment sessions, that such amount ought not to be inserted. IRELAND. 305 77. And so much of any Acts, whether public or local and personal, 32 & 33 Viet, as authorizes any valuation of hereditaments to be made for the pur- c - 6 ? s - 77. poses of any rate or tax in respect of which the valuation list is by this Repeal of Act made conclusive, are hereby repealed, where they relate only to Acts .^ er , ein the metropolis absolutely, and in other cases so far as they relate to the metropolis. Sect. 77 is given as amended by the Statute Law Revision Act, 1883. 46 & 47 Viet. The above sections are not exhaustive. For further information reference must c. 39. be made to the Act itself, which is outside the scope of the present work. (See also 47 Viet. c. 5.) APPENDIX IV. IRELAND. Before the Income Tax Act, 1853, the income tax did not extend to Ireland. By that Act it was extended to Ireland, but there are a number of sections in the Act of 1853 which alter the procedure, &c. in that country. We have thought it convenient to collect these sections here. The Income Tax Act, 1853 16 & 17 Viet. c. 34, s. 7. 7. Provided also, that the duties in respect of interest arising from securities, securities in Ireland, and in respect of possessions in Ireland, which Duties in respect by the said Act of the fifth and sixth years of her Majesty, chapter Stoto d thirty-five, are directed to be charged and assessed respectively ac- Ireland to be cording to certain rules prescribed for charging the duties under the Lmfmannerlis head respectively of "fourth case" and " fifth case" of Schedule (D.), securities and j.t/ \ / " "possessions of and in section one hundred and six of the said Act, shall under this the like nature Act be charged and assessed in Ireland in the same manner and under are G c^arg^abie, n the same schedules, rules, and regulations respectively as the duties except as modi- on securities and possessions of the like nature in Great Britain are ( directed to be charged, except so far as such schedules, rules, and regulations are altered or modified in regard to the assessing or charging of duties in Ireland by the express provisions of this Act. 8. Provided also, that, notwithstanding anything in the said Act of 16 & 17 Viet, the fifth and sixth years of her Majesty contained, persons holding c. 34, s. 8. offices in Ireland and residing in Great Britain, and persons usually o^f-^ 110131118 ^ residing in Ireland and serving in Parliament, shall be chargeable to Ireland, and the duties by this Act granted, without regard to any exemption from ^5^,3* the duties of assessed taxes ; and that this Act shall extend to charge resi.Un? in persons resident in Ireland with the duties under Schedule (E.) in chargeable, not- respect of public offices or employments, although the duties thereof withstanding i -i .1 ic j T i j certain pro- are necessarily and permanently performed in Ireland. visions in 5 & e Viet. c. 35. R. X 306 APPENDIX IV. 16 & 17 Viet. c. 34, s. 11. Governor and directors of the Bank of Ireland to be Commis- sioners for assessing duties on. annuities, dividends, pensions, and salaries payable by the bank, and on their profits. 16 & 17 Viet. c. 34, s. 12. The clerks of the boards of guardians in Ireland to transmit to the Commis- sioners of In- land Revenue annually copies of the poor rates. 17 & 18 Viet. c. 24, s. 5. 11. The Governor and Directors of the Bank of Ireland shall be Commissioners for executing this Act, for the purpose of assessing and charging the duties hereby granted in respect of all annuities, dividends, and shares of annuities payable by the Bank of Ireland out of the public revenue of the United Kingdom to any persons, corpo- rations, or companies whatever, and in respect of all profits and gains of the said company chargeable under Schedule (D.) of this Act, and in respect of all other dividends, interests, annuities, pensions, and salaries payable by the said company, and also in respect of all other profits chargeable with duty under this Act and arising within any office or department under the management or control of the said governor and company ; and the said last-mentioned Commissioners shall have, use, and exercise all the powers and authorities of Commis- sioners for the general purposes of this Act, so far as the same relate to the said duties to be assessed and charged by the said governor and directors, and shall make their assessments of the said duties, under and subject to the rules, regulations, and exemptions contained in the said first-mentioned Act in relation to the said duties respectively : Provided always, that the duties by this Act granted shall extend to and be payable upon all annuities, dividends, and share of annuities payable in Ireland out of the revenue of the United Kingdom to or for the use or benefit of any person, whether resident in Ireland or elsewhere. 12. In order to the assessing of the duties chargeable under the respective Schedules (A.) and (B.) of this Act in Ireland, the clerk of the board of guardians of every poor law union in Ireland, or the person acting as such clerk, shall transmit to the Commissioners of Inland Revenue, at their head office in Dublin, true copies of the last rates made by such guardians for the relief of the poor in such union, and in every electoral division thereof, and the Collector General of Rates in the City of Dublin shall, in like manner transmit to the said Commissioners true copies of the last rates made for the relief of the destitute poor in the several electoral divisions or parts thereof in which he is by law authorized to make and declare such rates ; and the Commissioners of Inland Revenue shall pay to the said clerk and collector respectively the cost and expense of making all such copies, not exceeding the rate of two shillings and sixpence for every one hundred ratings ; and if any such clerk or any person acting as such clerk or such collector shall in any year neglect to transmit such copies in compliance with this enactment he shall for every such neglect forfeit the sum of fifty pounds. An Act for granting to her Majesty an increased Rate of Duty on Profits aiising from Property, Professions, Trades, and Offices. 5. " And whereas by the said Act of the last session of parliament the clerk of the board of guardians of every poor law union in Ireland and the collector of general rates in the City of Dublin are respectively required, under a certain penalty for any neglect, to transmit to the Commissioners of Inland Revenue yearly within the period in the said Act mentioned true copies of the last rates made for the relief of the poor, and it is found by experience that the yearly transmission of such copies is for the most part unnecessary," be it enacted, that copies of the said rates shall be transmitted at such times only as they shall be required by the said Commissioners, and the penalty imposed by the said Act for any neglect to transmit such copies shall attach and be incurred only for any neglect to transmit the same in pursuance of any requisition of the said Commissioners. IRELAND. 307 The Income Tax Act, 1S53. 16 & 17 Viet. 13. The duties chargeable in Ireland under the respective Schedules ^ . (A.) and (B.) of this Act shall be charged and assessed by a poundage Schedules & rate upon the annual value of all tenements and rateable heredita- (A.) and (B.) ments, according to the respective surveys and valuations made or to in Ireland to be made and from time to time in force for the purposes of the rates be asse . ssed for the relief of the poor in Ireland ; and the assessment of the said the^Sic^s duties in Ireland chargeable under the said Schedule (A.) shall be under the made upon the landlord or immediate lessor of such tenements or Poor Relief rateable hereditaments, or if it shall appear to the Commissioners for -A- * 8 - Special Purposes to be necessary or proper, the said assessment shall On whom be made upon such person as the rate for the relief of the poor shall assessments be made upon in respect of any such property under the provisions of c e made< the Acts in that behalf ; and the assessment of the said duties charge- able under the said Schedule (B.) shall be made upon the occupier of such property : Provided always, that if upon the appeal, as herein- after mentioned (a), of any person deeming himself aggrieved by any such assessment, it shall be proved to the satisfaction of the Commis- sioners, assistant barrister, chairman, or recorder, by whom such appeal shall be heard or re-heard, as the case may be, that such assessment is made upon an amount or value exceeding the annual rent at which the property in respect whereof such assessment is made is worth to be let from year to year, the person hearing or re-hearing such appeal shall give relief by reducing and abating such assessment, and charging the duties on the amount of such annual value as afore- said, notwithstanding that the same may be less than the annual value of the premises according to any such survey or valuation as aforesaid; and if such annual value at which such property is worth to be let as aforesaid shall exceed the actual rent payable yearly by the tenant or occupier of such premises, the landlord or immediate lessor shall be assessed under Schedule (A.) upon the amount of such actual rent only, and the tenant or occupier shall be assessed under the said Schedule (A.) on the difference between that amount and the amount of such last-mentioned annual value, subject nevertheless to any claim for exemption which the parties respectively may be entitled to : Provided also, that where any person receiving rent in respect of any Persons re- hereditament in Ireland exempt from being rated to the relief of the ceiving rent poor is liable to be rated in respect of such rent to the extent of one ^ f re ." iin i , -i i i j T i j i_ ditaments in half the poundage of any poor rate, the said duties in Ireland charge- i re i an( j able under the said Schedule (A.) shall be charged and assessed upon exempt from such person by a poundage rate upon the full amount of such rent. poor rates to be assessed to (a) See sects. 21, 22, post, p. 310. full amount of rent. 14. Provided also, that if in any case it appear to the Commissioners 16 & 17 Viet, of Inland Eevenue that any such valuation as aforesaid for the time c - 34 14 - being in force is not correct (having reference to the principles accord- Commis- ing to which the same ought by law to have been made), with respect |**f2. o o / i i i i j j_"ijj iumi .tvtJv UU.U.O to all or any of the tenements or rateable hereditaments included may direct therein, it shall be lawful for such Commissioners to direct the Com- re-valuations missioner of Valuation to make or cause to be made a re- valuation of where exist- the tenements or hereditaments with respect to which the said valuation f 7~?* ~ . f -f T , .. -L n o iv. 'it, -4.1* are incorrect, is incorrect, and such Commissioner of Valuation shall forthwith, with all convenient speed, make or cause to be made such re-valuation accordingly, and sign the same and transmit it to the Commissioners of Inland Eevenue ; and such re-valuation shall be made according to the principles or rules according to which, such incorrect valuation x2 308 APPENDIX IV. 16 & 17 Viet. c. 34, s. 15. Allowance for poor rates chargeable on the landlord's rent in Ire- land. 16 & 17 Viet, c. 34, s. 16. By whom assessments under Sche- dules (A.) and (B.) in Ireland are to be made and collected. 16 & 17 Viet. c. 34, s. 17. How assess- ments in Ire- land under Schedules (A.) and (B.) are to be collected, levied, and recovered. ought by law to have been made, and the duties chargeable under the said Schedules (A.) aud (B.) shall, after such re-valuation, be charged and assessed according thereto : Provided that if any person assessed to the last-mentioned duties according to such re-valuation deem himself aggrieved thereby, it shall be lawful for him to appeal against such assessment on the ground of the incorrectness of such re-valuation, and upon such appeal it shall be lawful for the Commissioners, assistant barrister, chairman, or recorder hearing or re-hearing such appeal to alter as well such re-valuation as the assessment thereon, and make such order in relation thereto as they or he may think fit. 15. In assessing in Ireland the duties chargeable under Schedule (A.) of this Act on the landlord or immediate lessor, in every case where the amount or annual value on which the assessment is made on him is not less than the annual rent reserved or payable to him for the premises in respect of which the assessment is made, an allowance or abatement of a proportionate part of the duty shall be made in respect of the amount of the poor rates which such landlord or lessor shall have paid or borne for the same premises in the year preceding ; and if the amount or annual value on which such assessment as afore- said is made shall be less than the said rent, then such allowance or abatement as aforesaid shall be made only in respect of so much as the amount of the said poor rate added to the sum on which the assessment is made shall exceed the actual rent. 16. All assessments of the said duties under the said Schedules (A.) and (B.), in Ireland, shall be made by surveyors of taxes or other officers of Inland Revenue acting in that behalf under the directions of the Commissioners of Inland Revenue ; and every such assessment shall be made for and comprise the respective premises situate within a union, or an electoral division, or such other district as the said last- mentioned Commissioners shall direct : and the same shall be signed by two of the Commissioners for Special Purposes, who shall cause duplicates thereof, together with their warrants for the collecting and levying of the sums thereby assessed, to be delivered to such person or persons as they shall appoint to be collectors of such assessments. 17. Every such assessment in Ireland of the duties under the said Schedules (A.) and (B.) of this Act may be collected, levied, and recovered by distress by the person appointed in manner aforesaid to be the collector thereof from the person assessed, or from the occupier of the property assessed, or may be levied upon the particular premises in respect of which the assessment is made ; and all goods and chattels, to whomsoever the same shall belong, found on such premises in respect of which any assessment is made of the said duties under this Act, shall be liable to be distrained and sold for the recovery of the said duties ; or such duties as aforesaid, or any arrears thereof, may be levied and recovered in the same manner as other duties assessed in Ireland under this Act may be levied and recovered : Provided always, that the duty assessed under the said Schedule (A.) upon or in respect of any tenement or hereditament may be collected, recovered, and levied by the said collector from the landlord or immediate lessor of the premises assessed, whether he be named in the assessment or not ; and to that end such collector is hereby authorized and empowered to use, exercise, and put in force against such landlord or immediate lessor all or any of the remedies, ways, and means provided by an Act of the first and second years of her Majesty, chapter fifty- six, and an Act of the sixth and seventh years of her Majesty, chapter ninety-two, IRELAND. 309 or either of the said Acts, by which any rate made for the relief of the destitute poor in Ireland may be collected, recovered, or levied from any immediate lessor primarily liable to the payment of rates for premises the occupier of which is exempted from such payment : Provided also, that where any proceeding for the recovery of any such rate is by law required to be had or taken in the name of the guardians of a poor law union, or by the direction or with the consent of such guardians or of the Poor Law Commissioners, or by or with any other direction or consent, the like proceeding for the recovery of the said duties under this Act may be had and taken by and in the name of such collector as aforesaid, and without any such direction or consent ; provided that where any assessment under the said Schedule (A.) shall have been made upon the tenant or occupier of the premises assessed, the landlord or immediate lessor shall be liable to be proceeded against in manner aforesaid only in default of payment of such assessment by the said tenant or occupier, and for the recovery of so much only of the duty assessed as shall be chargeable in respect of the rent payable yearly to such landlord or immediate lessor for the premises assessed. 18. When any landlord or immediate lessor of any tenement or 16 & 17 Viet, hereditament in Ireland assessed to the duty chargeable under Sche- c - 34 > 8 - 18 - dule (A.) of this Act shall have paid such duty, and shall afterwards Landlords prove to the satisfaction of the Commissioners for Special Purposes ^ I^nd that the rent due or payable to him in respect of such tenement or ckim return hereditament for the period for which the said duty was assessed, or O f duty paid any portion of such rent, has been wholly and irrecoverably lost by by them in reason of the bankruptcy, insolvency, or absconding of the tenant or J" 68 ?^ of occupier by whom such rent was payable, or by the fraudulent assign- ^^ os ,^ ment or removal of his goods, or by reason of such tenement or here- absconding ditament being left waste and unoccupied, then and in such case the of tenant, said landlord or lessor shall be entitled to be repaid such proportion of the said duty as he shall have paid in respect of the rent so lost ; and the said Commissioners shall order and direct the repayment of such proportion of duty in like manner as by the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, they are authorized to order and direct the repayment of duty in other cases, provided that such landlord or lessor shall make his claim for such repayment to the said Commissioners within the period of six calendar months after the expiration of the year for which the said duty was assessed. 19. Every person having in his custody or possession any survey or 16 & 17 Viet, valuation on which the rates for any union or electoral division shall c. 34, s. 19. be assessed or made, or any rate or assessment made under the pro- Persons V " 4-V* visions of the Acts for the relief of the poor in Ireland, or any of them, nayin & tft e shall, at the request of any inspector, surveyor, or other officer acting valuations in the execution of this Act in Ireland, produce and show every such under the survey, valuation, rate, and assessment to such inspector, surveyor, or Poor Relief other officer, and permit him to inspect the same, and to take copies ^- c * s in ^ re ~ thereof or extracts therefrom without paying anything for the same ; ^ e * m ^ and in case the person having the custody or possession of any such to officers survey, valuation, rate, or assessment shall, on any such request as under this aforesaid, refuse to produce the same to such inspector, surveyor, or Act, and to other officer, or to permit him to inspect the same, or to take copies F 6 ^ 011 * copies ,1 i .1 i .0. x -i it. * i_ to be taken, thereof, or such extracts as he may think fit to take therefrom, such . , person shall, for every such refusal, forfeit the sum of fifty pounds. refusal^ &c. 20. The assessments of the duties chargeable in Ireland under the 16 & 17 Viet, several Schedules (D.) and (E.) of this Act shall be made by such c - 34 > 8 - 20 - surveyors of taxes, or other officers of Inland Eevenue as the Commis- B 7 whom J assessments 310 APPENDIX IV. under Sche- sioners of Inland Revenue shall appoint in that behalf ; and such du ^ e ^^-) assessments shall be allowed and signed by the Commissioners for be made in Special Purposes, who shall also appoint the times and places for hearing Ireland. appeals against the same as hereinafter mentioned, and shall also cause due notice of every such assessment, and of the amount thereof, and of the time and place appointed for hearing any appeal against the same, to be given by some officer of Inland Revenue to every person 16 & 17 Viet, c. 34, s. 21. Appeals in Ireland to be heard and determined by the Com- missioners for Special Purposes. 16 & 17 Viet. c. 34, B. 22. Persons assessed aggrieved by- determina- tion of Com- missioners may require appeal to be re-heard by an assistant barrister, &c. 21. All appeals against assessments under this Act in Ireland shall be heard and determined by the said Commissioners for Special Pur- poses, or any two of them, whose determination on any such appeal shall be final and conclusive, unless the person charged by the assess- ment shall think himself aggrieved by such determination, and shall require that such appeal shall be re-heard as hereinafter provided ; and where any person charged by any such assessment as aforesaid, and to whom notice thereof and .of the time and place appointed for hearing any appeal against the same shall be given as hereinbefore directed, shall neglect to appeal accordingly, such assessment shall also be conclusive, and such person shall be precluded from afterwards disputing or questioning the-same. 22. If any person charged by an assessment in Ireland shall think himself aggrieved by the determination of the said Commissioners for Special Purposes in any such appeal as aforesaid, it shall be lawful for him, on giving notice in writing to the inspector or surveyor within ten days after such determination, to require that such appeal shall be re-heard by the assistant barrister for the county or riding where such person shall have been assessed, or in case he shall have been assessed in the county of Dublin, by the chairman of the sessions of the peace of such county, or in case such person shall have been assessed in the city of Dublin, by the recorder of such city, or in case such person shall have been assessed in the borough of Cork, by the recorder of such borough ; and where any such appeal shall be so required to be re-heard, any statement or schedule in the possession of the said Commissioners for Special Purposes, returned to them for the purpose of such appeal, shall be transmitted by them to the assistant barrister, chairman, or recorder (as the case may require) ; and such assistant barrister, chairman, or recorder shall with all convenient speed re-hear and determine such appeal, and shall take the oath or affirmation required to be taken by a Commissioner for Special Purposes (a), and shall and may have and exercise the same powers and authorities in relation to the assessment appealed against, and the determination of the matter thereof and in relation to all matters consequent thereon, as any two or more Commissioners for Special Purposes might have and exercise, and his determination thereon shall be final and con- clusive. (a) See ante, p. 37. 16 & 17 Viet. c. 34, B. 23. After hearing appeals in Ireland, Com- missioners to cause dupli- cates of as- sessments to be delivered 23. After the respective times for hearing appeals against such assessments as aforesaid in Ireland, then as to all assessments against which appeals shall have been heard and determined, leaving any sum assessed or charged by any such assessment, and as to all assess- ments against which no appeal shall have been made, the Commis- sioners for Special Purposes shall cause duplicates thereof, together with warrants under the hands and seals of two of the said last- mentioned Commissioners, to be delivered to such officers of Inland IRELAND. 311 Revenue or other persons as shall be named in such warrants respec- to collectors tively, appointing such persons to be collectors of the duties and sums '"^ warrants of money assessed and charged in such duplicates respectively, and ^J requiring and empowering such collectors respectively to collect, demand, levy, and recover all such duties and sums of money. 24. The Commissioners for Special Purposes acting in the execution 16 & 17 Viet. of this Act in Ireland in relation to the allowing or signing of any c- 34, s. 24. such assessment as aforesaid, and to the hearing and determining of Commis- any appeal against the same, and to the making and signing of any ^ on ^ n ? * or duplicate thereof and any warrant for collecting and levying the p^Ljgea duties and sums of money charged or assessed thereby, and also all inspectors inspectors and surveyors of taxes, and other officers of Inland Revenue and surveyors acting in Ireland in relation to the making of any such assessment or * taxes, and to the assessing or charging of any person therein or therebv, and ? tlier ce y? i 11 j ' i. a t~ J.T- -J /-i j. i. to exercise the also all persons named or appointed by the said Oommissioners to be ]^ e powers in respectively collectors of the said duties and sums of money in relation executing to the collecting, levying, distraining for, or otherwise recovering of this Act in the same, shall respectively be, and are hereby invested with, and ^ e ^ u ^- ** shall have, use, and exercise all such and the like powers and autho- " r* i* 1 i olOllciOj rities as any Commissioners, either for general or special purposes, or inspectors, any additional Commissioners, and as any inspectors, surveyors, col- or officers lectors, or other officers respectively have or are invested with, or can a y exercise or may use or exercise in England in relation to the making or allow- " ing of any assessment of duties under this Act, or to the assessing or England. charging of any person to such duties, or to the hearing or deter- mining of any appeal against any such assessment, or to the collecting, levying, distraining for, or otherwise recovering of any such duties, so far as such powers and authorities or any of them are applicable or may be adapted to the performance of similar acts, matters, and things in Ireland. 25. Nothing herein contained shall be construed to make any union, 16 & 17 Viet. electoral division, or place in Ireland in which any assessment of any c - 34 8 - 25 - duties granted under this Act shall be made, answerable for the Unions, &c. amount of duties charged in such place, nor for any neglect or default ^ t ^ ^ re _ of the collector in demanding or collecting same, nor shall any re- sensible for assessment be made in Ireland upon any such place for any arrears or neglect or loss occasioned by any such neglect or default. default of collectors. 28 ..... and in Ireland the income arising from the occupation of lands, tenements, or hereditaments, by any person claiming such ex- emption or relief as aforesaid, shall be deemed to be one third of the annual value on which the same shall be chargeable under Schedule (B.) of this Act ; . . . . 29. Provided always, that in computing the income of any person 16 & 17 yict. for the purposes of this Act, such computation, so far as regards any c. 34, B. 29. rent derived from tenements or hereditaments in Ireland chargeable under Schedule (A.), shall be made after allowing for the amount of poor rates chargeable on such rent by way of deduction or otherwise. 31. In Ireland aU claims of exemption by reason of the income of 16 & 17 Viet. an v person being under one hundred pounds a year, and all claims **-* 1 ' for relief or reduction of assessment on the ground of such income being under one hundred and fifty pounds a year, and all claims for or return or repayment of any duties on either of the grounds aforesaid, O f assessment or under any other of the provisions of this Act or of the Acts herein or repayment 312 APPENDIX IV. of duty in Ireland to be made to the Commis- sioners for Special Purposes. 16 & 17 Viet. c. 34, s. 33. Allowances to be made in respect of certain burdens on tithe rent- charges in Ireland. 16 & 17 Viet. c. 34, s. 41. Deductions to be made from the net payment after allowing for poor rate in Ireland. 16 & 17 Viet. c. 34, s. 43. No action of ejectment in Ireland to be de- feated on ground of deductions reducing the amount due tinder a year's rent. mentioned or referred to, shall be made in such manner and form as the Commissioners of Inland Revenue shall direct and provide in that behalf; and all such claims shall be made to and shall be adjudicated and finally determined by the Commissioners for Special Purposes, or any two of them ; provided that there shall be a like appeal as regards claims for exemptions in Ireland to the assistant barrister, chairman, or recorder (as the case may require) as is hereinbefore contained (a) in reference to persons charged by an assessment and feeling aggrieved thereby. (a] See sect. 22, ante, p. 310. 33. And whereas tithe rentcharge belonging to or held by eccle- siastical persons or bodies in Ireland is liable, in many cases, to heavy charges in respect of the tax payable to the Ecclesiastical Commis- sioners for Ireland, poor rates, the repayment of instalments for the building or repairing of glebe houses, or other charges : And whereas the deductions in respect of income tax under the provisions of this Act or the before-recited Act of the fifth and sixth years of her Majesty's reign, chapter thirty- five, made by any person paying tithe rentcharge to any ecclesiastical person or body entitled to receive the same, would, under the provisions of this and the said Act, be the income tax upon the gross amount of such rentcharge ; and it is expedient and just that such ecclesiastical persons or bodies should have the benefit of the allowances hereinafter mentioned out of such gross income, and of a proportionate remission of income tax : It shall be lawful for any ecclesiastical person or body to make application to the Commissioners for Special Purposes, setting forth the deductions or charges to which his income has been subjected during the pre- ceding year in respect of the ecclesiastical tax aforesaid, poor rates, and the other charges and matters of the like nature and description as those in respect of which the Ecclesiastical Commissioners are directed to make allowances or deductions in estimating the value of a benefice or other ecclesiastical property, with a view to its taxation, under the provisions of an Act passed in the third and fourth years of King William the fourth, chapter thirty-seven ; and such person or body, on proof to the satisfaction of the Commissioners for Special Purposes that the income of such ecclesiastical person or body has been actually subjected to such charges or deductions, shall be entitled to have repaid to him by the Commissioners of Inland Revenue the difference between the amount of income tax calculated on the gross income of such ecclesiastical person or body and the amount to which such person or body would have been liable supposing the income tax to have been assessed upon his income after deducting such charges as aforesaid. 41. Provided always, that whenever any person liable to the said duties chargeable in Ireland under the said Schedule (A.) shall be entitled to retain a proportionate amount of such duties from any annual payment from which he is now by law entitled to deduct any sum on account of poor rates, he shall be entitled to retain such pro- portionate amount only upon the net sum payable by him after the allowance for poor rates. 43. No action of ejectment for non-payment of rent in Ireland shall be defeated on the ground that the person liable to pay such rent is entitled, under the provisions of this Act or any Act incorporated therewith, to a deduction which would reduce the amount due by him under a year's rent. IRELAND. 313 58. The several collectors of the duties granted by this Act in 16 & 17 Viet. Ireland shall have and receive such rate of poundage on the money of c - 34 > 8 - 58 - the said duties which they shall respectively collect and pay to the Collectors in proper officer for receipt, or such other reasonable remuneration for ^ve u h* their service, pains, and labour respectively in executing this Act, as poundage or the Treasury shall by any warrant from time to time order and other remu- direct in that behalf. neration as the Treasury may order. The Taxes Management Act, 1880 43 & 44 Viet. c 19 s 24 Administration of Oaths in Ireland. 24. In Ireland any one of her Majesty's justices of the peace may Justices in administer all oaths or affirmations required or allowed to be taken by Ireland may this Act or by the Income Tax Acts before a Commissioner or justice ar by any officer or person, in any matter touching the execution of this Act or the said Acts. 314 APPENDIX Y. THE INCOME TAX ACT, 1842 (5 & 6 YICT. c. 35). An Act for granting to her Majesty Duties on Profits arising from Property, Professions, Trades, and Offices [^ until the 6th day of April, 1845]. [22nd June, 1842.] Most gracious Sovereign, WE, your Majesty's most dutiful and loyal subjects, the commons of the United Kingdom of Great Britain and Ireland in Parliament assembled, towards raising the necessary supplies to defray your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto your Majesty the several rates and duties hereinafter mentioned ; and do therefore most humbly beseech your Majesty that it may be enacted ; and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, That 2 from and after the 5th day of April, 1842, there shall be charged, raised, levied, collected, and paid, unto and for the use of her Majesty, her heirs and successors, during the term hereinafter limited, the several rates and duties mentioned in the several Schedules contained in this Act, and marked respec- tively (A.), (B.), (C.), (D.), and (E.) ; (that is to say,) SCHEDULE (A.) Schedule (A.). For all lands, tenements, and hereditaments, or heritages in Great Britain there shall be charged yearly, in respect of the property thereof, for every twenty shillings of the annual value thereof, the sum of sevenpence : SCHEDULE (B.) Schedule (B.). Eor all lands, tenements, and hereditaments in England there shall be charged yearly, in respect of the occupation thereof, for every twenty shillings of the annual value thereof, the sum of threepence half- penny : For all lands, tenements, and heritages in Scotland there shall be charged yearly, in respect of the occupation thereof, for every twenty shillings of the annual value thereof, the sum of twopence halfpenny : Duties to be levied under this Act. 1 The words in brackets are repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Sect. 1 is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. o. 96). THE INCOME TAX ACT, 1842. 315 SCHEDULE (C.) Upon all profits arising from annuities, dividends and shares of Schedule (C.) annuities, payable to any person, body politic or corporate, com- pany or society, whether corporate or not corporate, out of any public revenue, there shall be charged yearly, for every twenty shillings of the annual amount thereof, the sum of sevenpence, without deduction : SCHEDULE (D.) Upon the annual profits or gains arising or accruing to any person Schedule (D.) residing in Great Britain from any kind of property whatever, whether situate in Great Britain or elsewhere, there shall be charged yearly, for every twenty shillings of the amount of such profits or gains, the sum of sevenpence ; and upon the annual profits or gains arising or accruing to any person residing in Great Britain, from any profession, trade, employment, or vocation, whether the same shall be respectively carried on in Great Britain or elsewhere, there shall be charged yearly, for every twenty shillings of the amount of such profits or gains, the sum of "sevenpence : And upon the annual profits or gains arising or accruing to any person whatever, whether a subject of her Majesty or not, although not resident within Great Britain, from any property whatever in Great Britain, or any profession, trade, employment, or vocation exercised within Great Britain, there shall be charged yearly, for every twenty shillings of the amount of such profits or gains, the sum of sevenpence : SCHEDULE (E.) Upon every public office or employment of profit, and upon every Schedule (E.) annuity, pension, or stipend payable by her Majesty or out of the public revenue of the United Kingdom, except annuities before charged to the duties in Schedule (0.), for every twenty shillings of the annual amount thereof respectively, there shall be charged yearly the sum of sevenpence. 2. 1 And be it enacted, that upon every fractional part of twenty Duties on shillings of the annual profits or gains aforesaid the like proportion of fractional duty, at the rate before directed, shall be charged ; provided no rate P arts - or duty shall be charged of a lower denomination than one penny. 3. [ 2 And be it enacted, that the duties by this Act granted shall be The duties to under the direction and management of the Commissioners of Stamps be under the and Taxes for the time being, who are hereby empowered to employ ^ a ^, a Q meilt all such officers or other persons, and to do all such other acts and m i ss i oners of things, as may be deemed necessary or expedient for the raising, Stamps and collecting, receiving and accounting for the said duties, and for putting Taxes, and to this Act into execution, in the like and in as full and ample a manner be assessed as they are authorized to do with relation to any other duties under ^^^ their care and management ;] and that the said duties hereby granted regulations arising in England 3 shall be assessed, raised, levied, and collected of the Acts under the regulations of [ 3 an Act passed in the forty-third year of the relating to reign of King George the third, intituled "An Act for consolidating sse - 1 Sect. 2 is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 3 The part in brackets is replaced by the Taxes Management Act, 1880 (43-4 V. c. 19), by sect. 7 of that Act, and the word "England" becomes "the United Kingdom," Ireland being added by Income Tax Act, 1853 (16-7 V. c. 34). 43 G. 3, c. 99. 316 APPENDIX V. 43 G. 3,c.l50. Powers and provisions of recited Acts and other Acts to be applied to the duties hereby granted. 48G. 3,c. 141. Commis- sioners of Land Tax at district meetings to certain of the provisions contained in any Act or Acts relating to the Duties under the Management of the Commissioners for the affairs of Taxes, and for amending the same," and other Acts relating thereto, or for explaining, altering, or amending the same ; and the said duties arising in Scotland shall be assessed, raised, levied, and collected under the regulations of an Act passed in the same session of Parlia- ment, intituled "An Act for consolidating certain of the Provisions contained in any Act or Acts relating to the Duties under the Manage- ment of the Commissioners for the affairs of Taxes, and for amending the said Acts, so far as the same relate to that part of Great Britain called Scotland," and other Acts relating thereto, or for explaining, altering, or amending the same ;] and all the powers, authorities, methods, rules, directions, penalties, clauses, matters, and things now in force, contained in or enacted by the ['several Acts before recited or referred to] or any other Acts relating to the duties of assessed taxes, ['and also all the powers, authorities, rules, regulations, direc- tions, penalties, clauses, matters, and things contained in or enacted by two several Acts of Parliament, passed respectively in the forty- eighth and fiftieth years of the reign of King George the third, and intituled, respectively, "An Act to amend the Acts relating to the Duties of Assessed Taxes, and of the Tax upon the Profits of Property, Pro- fessions, Trades, and Offices, and to regulate the Assessment and Collection of the same," and " An Act to regulate the manner of making Surcharges of the Duties of Assessed Taxes, and of the Tax upon Profits arising from Property, Professions, Trades, and Offices, and for amending the Acts relating to the said Duties respectively," whether such last-mentioned powers, authorities, rules, regulations, directions, penalties, clauses, matters, and things shall be in force at the time of the passing of this Act or not, and notwithstanding that the same or any part thereof may have expired or been repealed] shall severally and respectively be and become in full force and effect with respect to the duties hereby granted, and shall be severally and respectively duly observed, applied, practised and put in execution throughout the respective parts of Great Britain, 2 for raising, levying, collecting, receiving, accounting for, and securing of the said duties hereby granted, and for auditing the accounts thereof, and otherwise relating thereto, [ 3 so far as the same shall not be superseded by and shall be consistent with the express provisions of this Act,] as fully and effectually, to all intents and purposes, as if the same powers, autho- rities, methods, rules, directions, penalties, clauses, matters, and things were particularly repeated and re-enacted in the body of this Act with reference to the said duties hereby granted, and respectively applied to such parts of Great Britain 2 as aforesaid ; and all and every the regulations of such Acts (except as aforesaid) shall be applied, con- strued, deemed, and taken to refer to this Act, and to the duties hereby granted, in like manner as if the same had been enacted therein. 4. And whereas it is expedient to appoint Commissioners for the General Purposes of this Act from and amongst the persons appointed Commissioners for the execution of an Act passed in the thirty-eighth year of the reign of King George the third, intituled "An Act for 1 The part in brackets is replaced by the Taxes Management Act, 1880 (43-4 V. c. 19), by sect. 7 of that Act. 2 Now the United Kingdom, Ireland being added by the Income Tax Act, 1853 (16-7 V. c. 34). 3 The part in brackets is probably obsolete, see p. 40. THE INCOME TAX ACT, 1842. 317 granting an Aid to,his Majesty by a Land Tax, to be raised in Great appoint Corn- Britain for the Service of the year one thousand seven hundred and 'uissioner.s f or ninety-eight," or from and amongst the persons appointed Commis- p^.^^ 1 "*! sioners for the execution of the said Act by any subsequent Act of this Act. Parliament passed or to be passed, to act in the execution of this Act, so far as relates to the powers hereby vested in such Commissioners ; be it enacted, that the several persons appointed or to be appointed 38 G. 3, c. 5. Commissioners for putting in execution the said Land Tax Act in the respective parts of Great Britain 1 therein mentioned, being respectively qualified to act as Commissioners in the execution of the said Land Tax Act, shall meet within the county, riding, shire, or stewartry, or within each hundred, rape, lathe, or wapentake of the county, riding, shire, or stewartry for which they are or shall be respectively appointed Commissioners of the said Land Tax Act, or within such other division of the said county, riding, shire, or stewartry as the Commissioners of [ 2 Stamps and Taxes] shall direct, and also within 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 said Land Tax Act within the same, which meeting shall be convened from time to time by the Commissioners of [ 3 Stamps and Taxes] when and as they shall deem necessary, by notice inserted in the "London Gazette" and "Edinburgh Gazette " for England and Scotland respectively, and shall be held at such time and place as shall be appointed by such notice ; and at every such meeting Manner of the said Commissioners of the Land Tax Act, or the major part of choosing them then present, shall choose and set down in writing the names of 9 omm * s ~ such of the Commissioners appointed as aforesaid who shall respec- S1 tively be qualified as hereinafter is required, and who shall be fit and proper to act as Commissioners for the General Purposes of this Act in such county, riding, shire, or stewartry aforesaid, and in each and every district within each respective hundred, rape, lathe, wapentake, or other division aforesaid, and within each city, borough, cinque port, liberty, franchise, town, and place aforesaid, observing always in the execution of this Act the same limits which shall have been or may be settled for the districts under the Acts relating to the duties of assessed taxes ; and the names of such persons who shall be so chosen shall be set down in the order in which the major part of the Commissioners then present shall judge fit they should respectively be appointed Commissioners in their respective districts ; and any seven, or any less number than seven, not being in any case less than three, of the persons so set down, and in the order in which they shall be so set down in such list, shall be Commissioners for the General Purposes of this Act, and of the duties granted as aforesaid, and they are hereby required to take upon themselves the execution of this Act, and of the said duties, as such Commissioners for General Purposes ; and any and supplying seven, or any less number than seven, not being in any case less than vacancies, three, of the persons so set down next in order in the list of names before mentioned, shall be Commissioners to supply vacancies as the same may arise in the manner hereinafter mentioned : Provided In want of always, that if at any such meeting as aforesaid the Commissioners ^ an n ^ t mentioned), unless such person be seised or possessed of an estate of e f ore men . 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). R. V tioned. 322 APPENDIX V. Qualification for shires or stewartries in Scotland ; for cities or boroughs in Scotland . Qualification in lands need not be in the county. Proof of qualification. Qualification not required for certain officers acting as Com- missioners, nor for Special Com- missioners. the like nature and of four fifths of the value required for the estate of a Commissioner acting for a district or division of a county at large in England as aforesaid, or unless such person be the eldest son of some person who shall be seised or possessed of some estate of thrice the value required as the qualification of a Commissioner, in right of his own estate, for the same county, city, borough, cinque port, liberty, franchise, town, or place. 12. ['And be it enacted, that] no person hereby required to be qualified in respect of estate shall be capable of acting as a Commis- sioner for General Purposes in execution of this Act for any shire [ 2 or stewartry] in Scotland unless such person be enfeoft in superiority or property, or possessed as proprietor or life renter, of lands in Scotland to the extent of one hundred and fifty pounds Scots per annum valued rent, or unless such person be possessed of personal estate of the value of five thousand pounds, or of personal estate, or an interest therein, producing an annual income of two hundred pounds sterling, or be enfeoft or possessed as aforesaid of lands and personal estate, or an interest therein, being together of the annual value of two hundred pounds sterling, estimating in every such case one hundred pounds personal estate as equivalent to four pounds per annum, and an interest from personal estate of four pounds per annum, as equivalent to one hundred pounds personal estate, or unless such person be the eldest son of some person who shall be enfeoft or possessed of a like estate of twice the value required as the qualification of a Commissioner, in right of his own estate, for such shire [ 2 or stewartry]. 13. ['And be it enacted, that] no person herein required to be qualified in respect of estate shall be capable of acting as a Com- missioner for General Purposes in execution of this Act for any city or borough in Scotland unless such person be enfeoft or possessed of an estate of the like nature and of three fifths of the value required for the estate of a Commissioner acting for any shire [ 2 or stewartry] in Scotland, or unless such person be the eldest son of some person enfeoft or possessed of some estate of thrice the value required as the qualification of a Commissioner, in right of his own estate, for the same city or borough. 14. Provided always, ['and be it enacted,] that no estate consisting of lands or tenements, as the qualification of a Commissioner, shall be required to be situate in the county, riding, division, [ 2 shire, or stewartry] for which any person shall be a Commissioner : Provided also, that the proof of qualification where required shall lie on the person acting in the execution of this Act, in such manner as is by law directed with respect to Commissioners acting in the execution of the said Land Tax Act. 15. Provided also, ['and be it enacted,] that nothing herein contained shall be construed to require any qualification of a Commissioner in the district of the palaces of Whitehall and Saint James Westminster, for any officer who shall have heretofore acted or may hereafter act as a Commissioner for putting in execution the said Land Tax Act in the said district, other than the possession of their respective offices ; nor in any shire [ 2 or stewartry] in Scotland, for any provost, baillie, dean 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 The part in brackets is repealed by the Statute Law Eevision (No. 2) Act, 1890 (53-4 V. c. 51). THE INCOME TAX ACT, 1842. 323 of guild, treasurer, master of the merchants company, or deacon con- venor of the trades for the time being of any royal burgh in Scotland, nor any baillie for the time being of any borough of regality or barony of Scotland, nor the factors for the time being on the several forfeited estates annexed to the Crown by an Act passed in the twenty-fifth year of the reign of King George the second, who shall be respectively appointed Commissioners for executing the said Land Tax Act in any shire [ ] or stewartry] in Scotland ; nor for any Commissioner for Special Purposes acting in the execution of any of the powers or provisions of this Act. 16. [ 3 And be it enacted, that] whenever it shall be deemed by the For choosing Commissioners for the General Purposes of this Act to be expedient additional that certain of the powers herein contained shall be executed by c . omim ^ Commissioners other than and in addition to the persons to be chosen or appointed as aforesaid, such additional Commissioners shall be chosen by the Commissioners for General Purposes acting in the same district ; for which purpose the said Commissioners, being duly qualified as required by this Act, shall, with the consent of the major part of them assembled at any meeting to be held for that purpose, set down in writing lists of the names of such persons residing within their respective districts as shall in the opinion of such Commissioners be fit and proper persons to act as such additional Commissioners, "which lists shall contain the names of so many of those persons as the said Commissioners shall in their discretion, after taking into conside- ration the size of each district, and the number of persons to be assessed therein, think requisite for the due execution of this Act ; which lists, being respectively signed by such Commissioners, shall be a sufficient authority for such additional Commissioners being respec- tively qualified as hereinafter is mentioned, and they are hereby authorized to take upon themselves the execution of the several powers of this Act according to the provisions thereof : Provided always, that the persons appointed to supply vacancies in any district may be chosen and act as additional Commissioners until their services shall be required as Commissioners for General Purposes : Provided also, that no person their quali- shall be capable of acting as such additional Commissioner who shall fiction, not be seised or enf eof t or possessed of an estate of the like nature, and of one half the value, herein required for the estate of a Commissioner for General Purposes in the same district : Provided also, that where In default no additional Commissioners shall be named and appointed in any f naming district the Commissioners appointed for General Purposes shall execute ~ this Act in such district in all matters and things hereby authorized to 8 i oners . " be done by additional Commissioners. 17. Provided always, [ 2 and be it enacted,] that if in any city, Appointment liberty, franchise, cinque port, town, or place, for which separate * Commis- Commissioners have been appointed to act in execution of the said piacesTnot Land Tax Act, there shall not be found a sufficient number of persons, having per- qualified as directed by this Act, and willing to act as Commissioners sons qualified, for General Purposes, or as additional Commissioners, it shall be lawful to appoint, as such Commissioners or additional Commissioners, any persons residing in such city, liberty, franchise, cinque port, town, or place, who shall be liable to 'be assessed under the provisions contained 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). Y2 324 APPENDIX V. Newly appointed Commis- sioners may assess and levy for former years. Notice to be given to additional Commis- sioners to take upon themselves the execution of this Act. The oath to be adminis- tered to them. Clerk. Dividing additional Commis- sioners into committees. Number of additional Commis- sioners in each com- mittee or district. in this Act for annual profits, however arising, to the amount of two hundred pounds or upwards. 18. [*And be it enacted, that] whenever a new appointment of Commissioners shall take place they shall execute this Act as well with respect to the duties which shall not but which ought to have been assessed in any former year, and with respect to arrears of duties assessed in any former year under this Act, as to the assessments to be made in such year in which they shall be appointed, and shall have the like powers to assess, levy, and collect such duties and arrears as they have to assess, levy, and collect the duties assessed by them ; for all which acts such appointment shall be a sufficient authority, subject to the regulations of this Act. 19. [*And be it enacted, that] whenever the said Commissioners for General Purposes shall have named such additional Commissioners as aforesaid, they shall cause notice thereof in writing, signed by two or more of them, to be delivered to the said additional Commissioners by the assessors of the respective parishes or places where they reside, naming the day and place appointed by the Commissioners for General Purposes for the first meeting of the said additional Commissioners, and which meeting shall be appointed to be held not later than ten days after the date of such notice ; and the said respective assessors shall, without delay, cause the respective persons so named to be summoned, by notice in writing, either given personally or left at their respective places of abode, to assemble, at the time and place mentioned in such notice, for the purpose of qualifying themselves to act in the execution of the powers vested in them by this Act ; and the said Com- missioners for General Purposes shall administer the oath to such additional Commissioners required by this Act to be taken by them, and shall then and there appoint a day for the said additional Com- missioners to bring in their certificates of assessment in the manner herein directed ; and the clerk to the Commissioners in each district, or his assistant, shall also be appointed clerk to the additional Com- missioners appointed for the same district, and shall attend the said additional Commissioners at their meetings as their clerk. 20. ['And be it enacted, that] it shall be lawful for the Commissioners for General Purposes, whenever in their judgment the same shall be requisite, to divide such additional Commissioners into district com- mittees, and to allot to each committee distinct parishes, wards, or places in which such committees shall separately act in the execution of this Act, but so that the meetings of such committee shall be appointed at such times as that the clerk to such Commissioners may attend every meeting : Provided always, that not more than seven persons shall act together as additional Commissioners for the same district not being formed into several divisions as aforesaid, nor any greater number act together in the same committee ; and that where more than seven persons shall attend as such additional Commissioners at any meeting, either for the whole of any district or for any division thereof, the seven persons first in their order on the list signed by the Commissioners for General Purposes then present shall act, and the rest shall withdraw from such meeting : Provided also, that not less than two additional Commissioners shall be competent to form any meeting either for any district or division thereof, and that any two 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 325 of them, or the major part of them then present, shall be competent to do any act authorized by this Act. 21. Provided always, ['and be it enacted,] that if it shall appear to For appoint- the Commissioners for General Purposes, whether they shall have been in g a greater chosen as aforesaid or shall act by virtue of their appointment of Com- ?, umbe . r of missioners for executing the said Land Tax Act, to be expedient that ^S^far a greater number than seven Commissioners for General Purposes, General Pur- possessing the qualification required for such Commissioners, should poses instead be appointed for any district, instead of appointing Commissioners of additional possessing only the qualification required for additional Commissioners as before mentioned, it shall be lawful for them to appoint such greater number, not in any case exceeding the number of seven, observing, with regard to such appointments, the same rules as in the first appointment of Commissioners for General Purposes, but never- theless, without adding thereto any persons to supply their vacancies ; and in every case, of appointing such increased number of Commis- Two of them sioners for General Purposes it shall be lawful for the said Commis- * execute sioners, at their first meeting after such appointment, and they are th _e office of T_ -I j , -, T fp ,1 i i , i P ,1 additional nereby required, to choose indmerently by lot such number of their Commis- own body, not less than two or more than seven, to execute the office sioners. vested in additional Commissioners by this Act, and the persons so chosen shall be additional Commissioners for executing this Act and the powers hereby vested in additional Commissioners, and they are hereby required to execute this Act accordingly, and the remaining Commissioners not so chosen by lot shall execute the powers vested in the Commissioners for General Purposes ; provided also, that where "Where none no such additional Commissioners shall have been appointed specially su ?h a ^ e a P" to execute the powers vested in additional Commissioners, the Com- co^_ missioners acting in the execution of the powers of this Act, whether S i ners for chosen as aforesaid or not, shall divide themselves in such manner that General two Commissioners at the least shall be appointed to execute the Purposes powers vested in additional Commissioners by this Act ; and if in ma J r act- such case there shall not be two remaining persons at least qualified ^ not s uffi- to act as Commissioners for General Purposes in such district, then VP ' ^ , r* t i f l _C 1 A A. OLUtriO UictV UO the persons qualified to act in the execution ot the powers 01 this Act taken out of as Commissioners for General Purposes in any adjoining district of the the adjoining same county, riding, division, shire, or stewartry, or such number of district, them as shall be requisite, shall execute this Act and the powers hereby vested in Commissioners for General Purposes in and for such first-mentioned district. 22. ['And be it enacted, that] the Commissioners for General Pur- Commis- poses shall execute this Act in all matters and things relating to the sioners for duties in Schedules (A.) and (B.) of this Act, except such allowances pJJJ^ to in respect thereof as are directed to be made in Number YI. of exe ^u t e all Schedule (A.) by other Commissioners for Special Purposes as herein- matters with after mentioned, and also all matters and things relating to the duties respect to in Schedule (D.) of this Act, except in cases where such matters and J^^f^ things are herein directed to be done by the said Commissioners for "^^1^ Special Purposes, or by the additional Commissioners, or persons except such as acting as such ; and the said Commissioners for General Purposes are directed shall also execute this Act in all matters and things relating to the to be executed duties in Schedule (E.) not executed by the Commissioners authorized missioners. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 326 APPENDIX V. Commis- sioners for Special Purposes. Functions of Special Com- missioners. Their pro- ceedings to be by affidavit without vivg, voce exami- nation. to be appointed for those duties: Provided always, that nothing herein contained shall be construed to preclude any person chosen a Commis- sioner for General Purposes from acting as such by reason of his acting or having acted as an additional Commissioner, except only in the hearing and determining of appeals against or relating to such parti- cular assessments wherein he shall have made an assessment as such additional Commissioner. 23. [*And be it enacted, that] the Commissioners of [ 2 Stamps and Taxes] for the time being, together with such persons as shall be appointed Commissioners for Special Purposes as next hereinafter mentioned, shall be Commissioners for the Special Purposes of this Act ; and it shall be lawful for the [ 3 Commissioners of her Majesty's] Treasury [ 3 of the United Kingdom of Great Britain and Ireland,] by warrant [ 3 under their hands and seals,] from time to time to appoint such and so many other persons to be Commissioners for such Special Purposes as they respectively shall think expedient ; which said Com- missioners of [ 2 Stamps and Taxes,] and Commissioners so to be ap- pointed as last aforesaid, without other qualification being reqiiired than the possession of their respective offices, shall have full authority to execute the several powers given by this Act to Commissioners for Special Purposes, either in relation to the allowances specified in Number VI. Schedule (A.) of this Act, or in relation to the special exemptions granted from the duties mentioned in Schedule (C.) of this Act, or to the charging and assessing the profits arising from annuities, dividends, and shares of annuities paid in Great Britain 4 out of the revenues of any foreign state, as herein mentioned, and also in relation to the examining, auditing, checking, and clearing the books and accounts of dividends delivered to the Commissioners of [ 2 Stamps and Taxes] under the authority of this Act, and shall also have full authority to do any other act, matter, or thing hereby directed or required to be done by Commissioners for Special Purposes ; and all powers, provisions, clauses, matters, and things contained in this Act for ascertaining the amount of any duty, exemption, or allowance mentioned in this Act shall be used, practised, and put in execution by the said Commissioners for Special Purposes in ascertaining the amount of duty or any exemption or allowance placed under their cognizance or jurisdiction: Provided always, that it shall not be lawful for the said Commissioners for Special Purposes (except when acting in the execution of this Act in the place of Commissioners for General Purposes, or on any appeal in the cases authorized by this Act,) to summon any person to be examined before them, but all inquiries by or before the said Commissioners for Special Purposes (except in the several cases aforesaid) shall be answered by affidavit, to be taken before one of the Commissioners for General Purposes in their respec- tive districts ; and such Commissioners for Special Purposes shall have authority to use, exercise, and apply all the powers of this Act as effectually as any other Commissioners are hereby authorized to use, exercise, or apply the same, so far as the same powers relate to the jurisdiction given to the said Commissioners for Special Purposes ; and the said Commissioners for Special Purposes shall and may be 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1 888 (51-2 V. c. 57). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34, a. 9). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 4 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 327 allowed such salary for their pains and trouble, and such incidental expenses, as the P said Commissioners of her Majesty's] Treasury shall direct to be paid to them : Provided always, that the [*said Commis- Appointments sioners of her Majesty's] Treasury shall cause an account of all of Commis- appointments of Commissioners for Special Purposes with salaries !^ ne - rs T 1 ^ to be laid before each House of Parliament within twenty days after Sid^efore & their appointment respectively, if Parliament shall then be sitting, and Parliament, if Parliament shall not be sitting then within twenty days after the next meeting of Parliament. 24. [ 2 And be it enacted, that] the governor and directors of the Governor and Company of the Bank of England shall be Commissioners for exe- directors of cuting this Act, for the purpose of assessing and charging the duties S 16 ? ank , of , , . f ft .,- & 1 i , & & . i England to hereby granted in respect 01 all annuities payable to the said company ^ e commis- at the receipt of the exchequer, and the profits attached to the same, sioners for and divided amongst the several proprietors, and in respect of all assessing annuities, dividends, and shares of annuities payable out of the duties p n all A . i -r-r- .. T TT- T . annuities, revenue 01 the United Kingdom to any persons, corporations, or com- Dividends panies whatever, and which shall have been intrusted to the said pensions,' governor and company for such payment, and in respect of all other salaries, &c. annuities, dividends, and shares of annuities which shall have been payable by intrusted to the said governor and company for payment as aforesaid, t e , a ,, . , . * 11 B *.. j s .-i J .? J vi and on their and in respect or all profits and gains of the said company chargeable profits. under Schedule (D.) of this Act, and in respect of all other dividends, annuities, pensions, and salaries payable by the said company, and also in respect of all other profits chargeable with duty under this Act, and arising within any office or department under the manage- ment or control of the said governor and company ; and the said Com- missioners shall have authority to use, exercise, and apply all the powers of this Act as fully and effectually as the Commissioners for the General Purposes of this Act are authorized to use, exercise, or apply the same, so far as the same relate to the said duties to be assessed and charged by the said governor and directors, and shall make their assessments of the said duties under and subject to the rules, regulations, and exemptions contained in the several schedules of this Act under which such duties are respectively chargeable. 25 3 . And be it enacted, that the governor and directors of the Governor, &c. company of the Bank of Ireland shall be Commissioners for executing of the Bank this Act, and with the like powers as aforesaid, for the purpose of e [jJJJJjJJ assessing and charging the duties hereby granted in respect of all s i oners f or annuities, dividends, and shares of annuities payable by the governor assessing and company of the Bank of Ireland out of the public revenue of the duties on United Kingdom, to or for the use or benefit of any persons not ^a^to resident in Ireland ; and the said last-mentioned Commissioners shall persons not make their assessments of the said duties, under and subject to the resident in rules, regulations, and exemptions contained in Schedule (C.) of Ireland, this Act. 26 3 . And be it enacted, that the governors and directors of the Governors, South Sea Company shall be Commissioners for executing this Act, gc^of the with the like powers as aforesaid, for the purpose of assessing and c ^ panv to charging the duties hereby granted in respect of all annuities payable be Commis- 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 3 This section is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 328 APPENDIX V. sioners for assessing duties on all annuities, dividends, pensions, salaries, &c. payable by them. Directors of the East India Com- pany to be Commis- sioners for assessing duties on interest, dividends, annuities, pensions, salaries, &c. payable by them. Commis- sioners for reduction of national debt to assess the duties on all annuities paid by them, and on salaries and pensions. Commis- sioners for charging foreign dividends. Appointment of Commis- sioners for the duties to tlie 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 pay- able out of the revenue of the United Kingdom to any persons, cor- porations, or companies whatever, and which shall have been entrusted to the said company for such payment, and in respect of all other dividends, annuities, pensions, and salaries payable by the said com- pany, and also in respect of all other profits chargeable with duty under this Act, and arising within any office or department under the management or control of the said governors and company ; and the said Commissioners shall make their assessments of the said duties under and subject to the rules, regulations, and exemptions contained in the several schedules of this Act under which such duties are respectively chargeable. 27. ['And be it enacted, that] the directors of the East India Com- pany shall be Commissioners for executing this Act, and with the like powers as aforesaid, for the purpose of assessing and charging the duties hereby granted in respect of the interest payable on the bonds of the said company, and in respect of all dividends, annuities, pen- sions, and salaries payable by the said company, and also in respect of all other profits and gains chargeable with duty under this Act, and arising within any office or department under the management or con- trol of the said company, which assessments shall be made under and subject to the rules, regulations, and exemptions contained in the several schedules under which the said duties are respectively chargeable. 28. ['And be it enacted, that] the Commissioners for the Reduction of the National Debt shall be Commissioners for executing this Act, and with the like powers as aforesaid, for the purpose of assessing and charging the duties hereby granted in respect of all annuities payable by them out of the revenue of the United Kingdom, and in respect of all salaries and pensions payable in any office or depart- ment under their management or control ; and the said Commissioners shall make their assessments of the said duties under and subject to the rules, regulations, and exemptions contained in the several sche- dules under which the said duties are respectively chargeable. 29. ['And be it enacted, that] the said Commissioners for Special Purposes shall be Commissioners under the regulations of this Act, and with the like powers as aforesaid, for the purpose of assessing and charging the duties hereby made payable on all dividends and shares of annuities payable out of the revenue of any foreign State to any persons, corporations, companies, or societies in Great Britain, 2 which shall have been or shall be intrusted for such payment to any person, corporation, company, or society whatever in Great Britain, 2 other than and except the several companies aforesaid, which assess- ments shall be made under and subject to the rules, regulations, and exemptions contained in Schedule (C.) of this Act. 30. And for the ordering, raising, levying, and paying of the said sums of money hereby made payable on offices and employments of profit, be it enacted, that the Lord High Chancellor, the judges, and 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 329 the principal officer or officers of each Court or public department of on offices in office under her Majesty throughout Great Britain, 1 whether the same the ourt8 shall be civil, judicial, or criminal, ecclesiastical or commissary, mili- departments tary or naval, shall respectively have authority to appoint Commis- sioners from and amongst the officers of each Court or department of office respectively ; and the persons so appointed, or any three or more of them, not in any case exceeding seven, shall be Commissioners for executing this Act in relation to the offices in each such Court or department respectively : Provided always, that in relation to each Power re- department of office, not being one of her Majesty's Courts, civil, served to the judicial, or criminal, or an ecclesiastical or commissary Court, the Tr ff sur y [^Commissioners of her Majesty's] Treasury shall, whenever they may ^theassess- think it expedient, settle and determine in what particular depart- ing of public ments Commissioners shall not be appointed, and in such case shall departments, settle and determine in what other department of office the officers of that department wherein Commissioners shall not be appointed shall be assessed; and also whenever there shall be any default in the offices of any department, or in any Court aforesaid, in appointing Commissioners, the [ 2 said Commissioners of her Majesty's] Treasury shall, within the time herein limited, appoint fit and proper persons to be Commissioners for executing this Act in the several Courts or departments of offices aforesaid for which they shall be appointed from and amongst the officers in the several departments respectively, uniting for the purposes of this Act, in cases requiring the same, two or more offices under the same Commissioners, but nevertheless with distinct officers from each office so united for assessing and collecting the duties, as directed by this Act ; and where any dispute shall arise touching the department in which any office is executed, the [ 2 said Commis- sioners of her Majesty's] Treasury shall determine the same : Provided also, that where the Commissioners of one department shall execute this Act in relation to any other department, the assessors and collectors for such other department shall be appointed from the officers of such other department, with all the powers and privileges appertaining to such appointments : Provided also, that where no appointment shall be made of Commissioners before the expiration of the time limited by this Act, the Commissioners for executing this Act in relation to the duties on lands and tenements shall, on due notice in the manner herein directed, execute this Act in their several districts in relation to the said duties on offices and employments of profit exercised within the same districts respectively ; and the appointment of such Commis- sioners for offices and employments of profit shall be notified to the Commissioners of [ 3 Stamps and Taxes] ; and the want of such notifica- tion in due time shall be deemed full proof of default in making such appointment. 31. [ 4 And be it enacted, that] the speaker and the principal clerk of Commis- either House of Parliament, the principal or other officers in the several sioners for counties palatine, and the Duchy of Cornwall, or in any ecclesiastical ^^ ?* court, or in any inferior court of justice, whether of law or equity, or Houses of criminal or justiciary, or under any ecclesiastical body or corporation, Parliament, 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34, s. 9). 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 330 APPENDIX V. counties palatine, inferior courts, and under eccle- siastical bodies. Commis- sioners for the duties on offices in cities and boroughs, and all other offices not under the Crown, in counties, riding's, &c. whether aggregate or sole, throughout Great Britain, 1 shall appoint Commissioners from and 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 or more of them, not in any case exceeding seven, shall be Commissioners for executing this Act, in relation to the places, offices, and employments of profit in each House of Parliament, and in each such department respectively ; which appointments shall be made, and the names of the Commissioners shall be transmitted to the Commissioners of [ 2 Stamps and Taxes] within the time herein limited, or in default thereof such appointments shall be made by the [ 3 Commissioners of her Majesty's] Treasury : Pro- vided always, that where no such appointment as last mentioned shall be made before the expiration of the time limited by this Act, the Commissioners for executing this Act in relation to the duties on lands and tenements shall, in their several districts, on due notice of such default in the manner herein directed, also execute this Act in relation to the duties on such offices or employments of profit exercised within the same districts respectively ; and the want of notification of any such appointment to the Commissioners of [ 2 Stamps and Taxes] in due time shall be deemed full proof of default in making such appoint- ment. 32. [ 4 And be it enacted, that] the mayor, aldermen, and common council, or the principal officers or members, by whatever name they shall be called, of every corporate city, borough, town, or place, and of every cinque port, throughout Great Britain, 1 or any three or more of them, not in any case exceeding seven, shall be Commissioners for executing this Act, and the powers herein contained, 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 corporate or not corporate, within such city, corporation, or cinque port; and that for all offices or employments of profit (not being public offices or employments of profit under her Majesty) in any county, riding, [ 3 shire, stewartry,] city, liberty, franchise, town, or place, whether in the appointment of the lieutenant, custos rotulorum, or the justices or magistrates, or Commissioners for aids or taxes, or sheriff of such county, riding, [ 3 shire, stewartry,] city, liberty, franchise, town, or place, or of any trustees or guardians of any trust or fund in such county, riding, [ 3 shire, stewartry,] city, town, or place, and for all parochial offices in such county, riding, [ 3 shire, stewartry,] city, town, or place, (except corporate offices in cities, corporate towns, boroughs, or places, or offices in cinque ports as aforesaid,) the Com- missioners for executing this Act in relation to the duties on lands and tenements shall, in their several districts, also execute this Act in relation to the said duties on offices in such county, riding, [ 3 shire, stewartry,] city, liberty, franchise, town, or place ; and such respective Commissioners shall and may exercise any of the powers contained in this Act, in relation to any of the duties herein mentioned, for causing due returns to be made from the respective officers within their respec- tive jurisdictions, and for compelling the assessors to make their assess- ments, and return the same, and for the due collection of and accounting for the said duties, and may act therein in all respects as fully and 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 67). THE INCOME TAX ACT, 1842. 331 effectually as any other Commissioners are hereby empowered to act in relation to the said other duties ; provided the moneys collected of the said duties, under the respective Commissioners acting for such offices in corporate cities, boroughs, towns, or places aforesaid, or in the cinque ports, or in the. several counties, ridings, divisions, ['shires, stewartries,] cities, liberties, franchises, towns, and places, shall be paid to the proper officer for receipt for the county, riding, ['shire, or stewartry,] and not otherwise, and that the like duplicates shall be delivered of such last mentioned duties as in other cases where the same are directed to be paid in like manner. 33. [ 2 And be it enacted, that] the appointment of Commissioners Appointment for executing this Act in relation to the duties on offices and employ- of Commis- ments of profit as aforesaid shall be notified to the Commissioners of sioners to *>e [ 3 Stamps and Taxes,] within one calendar month after the passing of e ^ the this Act, with respect to the first assessment under the same, and tax offices within one calendar month after the 5th day of April in any future in default of year ; and in default thereof the appointment of such Commissioners 8UCQ notifica- shall devolve on the [ J Commissioners of her Majesty's] Treasury, and tlon . t^ e ap- on the Commissioners of the district, in succession as aforesaid : Pro- devolved the vided always, that such appointment by the ['Commissioners of her Treasury, Majesty's] Treasury shall take place within one calendar month after and the Com- the notification of such default as aforesaid from the Commissioners of nusskmera O f [ 3 Stamps and Taxes] ; and in case of no appointment as last aforesaid, ^execute notified to the Commissioners of [ 3 Stamps and Taxes] in like manner, the Act. the execution of this Act shall devolve on the Commissioners appointed for the district in relation to the duties on lands, tenements, and here- ditaments ; and every such appointment shall be until other Commis- sioners shall be appointed, and may be renewed annually on or before the 5th day of April in each year during the continuance of this Act : Provided always, that the Commissioners so to be appointed may con- Commis- tinue to act from year to year, so long as they are respectively willing sioners to act, without any new appointment, unless it shall be deemed expe- dient under the powers of this Act that any department for which Commissioners have been appointed should be assessed under the Commissioners of any other department. 34. [ 2 And be it enacted, that] for the better execution of this Act, Commis- so far as the same relates to the duties hereby granted on pensions or ?j n *; re , - for stipends payable by her Majesty, or out of the public revenue, con- ^ -pensions tained in Schedule (E.), and for the ordering, raising, levying, and a nd stipends paying off the duties hereby made payable thereon, in cases not other- payable by wise provided for by this Act, the paymasters of civil services, and her Majesty, such other persons as the ['Commissioners of her Majesty's] Treasury shall appoint, shall be Commissioners for executing this Act, and all the powers herein contained, in relation to the said last-mentioned duties, or shall respectively appoint Commissioners from and amongst the officers of those departments for such purposes. 35. [ 2 And be it enacted, that] every person acting as a Commissioner Commis- as aforesaid in the execution of this Act shall on request be entitled 6ione unto a certificate thereof under the hands of the Commissioners of ^ificates [ 3 Stamps and Taxes], which certificate shall continue in force so long exempting 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), a. 9. 332 APPENDIX V. them from parish and ward offices and serving on juries. Appointment of assessors and collectors. Officers for receipt of land tax and assessed taxes, and the inspectors and surveyors of assessed taxes, to act in the execution of this Act ; and to have the like powers as under the taxes. only as such, person shall continue to act as such Commissioner, and shall be revocable by the [' Commissioners of her Majesty's] Treasury, by any instrument in writing [ J under their hands], when it shall appear to them that such person hath neglected to perform his duty as such Commissioner ; and the person to whom such, certificate shall have been granted shall, during the continuance thereof in force, be discharged of and from all parish and ward offices within the parish or ward wherein such person shall dwell, [ s and from serving on juries in the county wherein such person shall dwell,] which said certificate shall be enrolled by the clerk of the peace of the county or city in which the same shall be granted, for which enrolment the said clerk of the peace shall have for his fee the sum of one shilling, and no more ; and the said clerk of the peace shall cause every certificate revoked in manner aforesaid to be taken off the roll on notice thereof to be given to him by the Commissioners of [ 3 Stamps and Taxes]. 36. [ 4 And be it enacted, that] in England the Commissioners for General Purposes may appoint assessors and collectors for the duties granted by this Act in like manner as assessors and collectors may be appointed under the [ 6 said Acts relating to the duties of assessed taxes] ; and in Scotland the said Commissioners for General Purposes may in like manner appoint assessors for the said duties hereby granted ; and the same persons who now are or may be appointed collectors or officers for collecting and receiving the land tax and assessed taxes in Scotland under the authority of the Act in that behalf made, and none other, shall be collectors and receivers of the duties granted by this Act. 37. [ 4 And be it enacted, that] the officers for receipt of the land tax and assessed taxes appointed or to be appointed by the [^Commis- sioners of her Majesty's] Treasury, or by the Commissioners of [ 3 Stamps and Taxes], and the inspectors and surveyors appointed or to be appointed in like manner for the duties of assessed taxes, shall be respectively officers for receipt and inspectors and surveyors of the duties granted by this Act; and the said Commissioners for General Purposes, and the said additional Commissioners acting in the execu- tion of this Act, and the said assessors and collectors, to be appointed as herein mentioned, and the said officers for receipt, and inspectors and surveyors respectively, shall be and they are hereby respectively empowered and required to do all things necessary for putting this Act in execution, with relation to the said duties hereby granted, in the like and in as full and ample a manner as any Commissioners, assessors, collectors, officers for receipt, surveyors, or inspectors are authorized to put in execution the said Acts relating to the said duties of assessed taxes, or any matter or thing therein contained, as well with respect to all acts, matters, and things to be done by, under, or before the said additional Commissioners, or by, under, or before the Commissioners for General Purposes in their respective districts or 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 5 For these Acts the Taxes Management Act, 1880 (43-4 V. c. 19), is now substituted. See sect. 7 of that Act. THE INCOME TAX ACT, 1842. 333 departments, as by, under, and before the said Commissioners for Special Purposes. 38. ^And be it enacted, that] every person appointed a Commis- Commis- sioner either for General or Special Purposes, or an additional Com- 8ion ere and missioner, or an assessor or collector, or a clerk or clerk's assistant to ^^oatlw^a 16 the said respective Commissioners, and every inspector, surveyor, and Schedule (F.). officer for receipt, shall, before he shall begin to act in the execution of this Act, so far as relates to the duties contained in Schedule (D.), take the oath prescribed by this Act, and contained in the Schedule marked (F.) applicable to such officers respectively ; which oath any one of the persons appointed a Commissioner, either for General or Special Purposes as aforesaid, or an additional Commissioner, is hereby authorized to administer, (except that every such oath so to be administered to any Commissioner for General or Special Purposes as aforesaid, or to an additional Commissioner, shall be administered by a Commissioner for such General or Special Purposes, and not other- wise, ) and which oath so taken shall be subscribed by the party taking the same ; and if any person shall act as a Commissioner in relation to the duties in Schedule (D.), except in administering the oath herein mentioned, or shall act as a clerk or clerk's assistant, or an assessor, collector, inspector, surveyor, or officer for receipt, in relation to the duties contained in the said Schedule (D.), before he shall have taken the oath herein required to be taken by such officer respectively, he shall forfeit the sum of one hundred pounds. 39. ['And be it enacted, that] any subject of her Majesty whose Temporary ordinary residence shall have been in Great Britain, 2 and who shall absentees to have departed from Great Britain 2 and gone into any parts beyond the seas, for the purpose only of occasional residence, at the time of the execution of this Act, shall be deemed, notwithstanding such temporary absence, a person chargeable to the duties granted by this Act as a person actually residing in Great Britain, 2 and shall be assessed and charged accordingly (in manner hereinafter directed) upon the whole amount of his profits or gains, whether the same shall arise from property in Great Britain 2 or elsewhere, or from any allowance, annuity, or stipend, (except as herein is excepted,)or from any pro- fession, employment, trade, or vocation, in Great Britain 2 or elsewhere: Provided always, that no person who shall on or after the passing of Temporary this Act actually be in Great Britain 2 for some temporary purpose P 3 ^ 611 ^^ only, and not with any view or intent of establishing his residence aft^)^; therein, and who shall not actually have resided in Great Britain 2 at months - one time or several times for a period equal in the whole to six months residence, in any one year, shall be charged with the said duties mentioned in Schedule (D.), as a person residing in Great Britain, 2 in respect of the profits or gains received from or out of any possessions in [ 3 Ireland, or] any other of her Majesty's dominions, or any foreign possession, or from securities in [ 3 Ireland, or] any other of her Majesty's dominions, or foreign securities ; but nevertheless every such person shall, after such residence in Great Britain 2 for such space of time as aforesaid, be chargeable to the said duties for the year commencing on the sixth day of April preceding : Provided also, that any person who shall Persons de- depart from Great Britain 2 after claiming such exemption, and shall ff^^f a 1 The part in brackets is repealed by the Statnte Law Revision (No. 2) Act, 1888 (51-2 V. c. .57). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 334 APPENDIX V. exemption, again return to Great Britain 1 on or before the fifth day of April next after such claim made, shall be chargeable to the said duties as a person residing in Great Britain J for the whole of the year in which such claim shall have been made. 40. [ 2 And be it enacted, that] all bodies politic, corporate, or collegiate, companies, fraternities, fellowships, or societies of persons, whether corporate or not corporate, shall be chargeable with such and the like duties as any person will under and by virtue of this Act be chargeable with, and that the chamberlain or other officer acting as treasurer, auditor, or receiver for the time being of every such corpo- ration, company, fraternity, fellowship, or society shall be answerable for doing all such acts, matters, and things as shall be required to be done by virtue of this Act, in order to the assessing such bodies corpo- rate, companies, fraternities, fellowships, or societies to the duties granted by this Act, and paying the same. 41. [ 2 And be it enacted, that] the trustee, guardian, tutor, curator, or committee of any person, being an infant, or married woman, lunatic, idiot, or insane, and having the direction, control, or manage- ment of the property or concern of such infant, married woman, lunatic, idiot, or insane person, whether such infant, married woman, lunatic, idiot, or insane person shall reside in Great Britain 1 or not, shall be chargeable to the said duties in like manner and to the same amount as would be charged if such infant were of full age, or such married woman were sole, or such lunatic, idiot, or insane person were capable of acting for himself ; and any person not resident in Great Britain, 1 whether a subject of her Majesty or not, shall be chargeable in the name of such trustee, guardian, tutor, curator, or committee, or of any factor, agent, or receiver, having the receipt of any profits or gains arising as herein mentioned, and belonging to such person, in the like manner and to the like amount as would be charged if such person were resident in Great Britain, 1 and in the actual receipt thereof ; and every such trustee, guardian, tutor, curator, committee, agent, or receiver shall be answerable for the doing of all such acts, matters, and things as shall be required to be done by virtue of this Act, in order to the assessing of any such person to the duties granted by this Act, and paying the same. 42. Provided always, [ 2 and be it enacted,] that no trustee who shall have authorized the receipt of the profits arising from trust property by the person entitled thereunto, or by the agent of such last-mentioned person, and which person shall actually receive the same under such authority, nor any agent or receiver of any person being of full age, and resident in Great Britain, 1 (other than a married woman, lunatic, idiot, and insane person,) who shall return a list in the manner herein- after required of the name and residence of such person, shall be required to do any other act for the purpose of assessing such person, unless the Commissioners acting in the execution of this Act in respect of the assessment to be made on such person shall require the testi- mony of such trustee, agent, or receiver in pursuance of the powers and authorities by this Act given. Receivers of 43. [ 2 And be it enacted, that] the receiver appointed by the Court trust property o f Chancery, or by any other court in Great Britain, 1 having the 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). within the year, to be charged. Corporations and societies to be charged with duties, and their officers to do all acts requisite for assessment. Trustees and guardians of incapacitated persons to be charged. Non-residents to be charged in the names of their factors oi- Trustees or agents of persons of full age, resident in Great Britain, not required to do more than deliver lists of names and residences of such persons. THE INCOME TAX ACT, 1842. 335 direction and control of any property in respect whereof a duty is appointed by charged by this Act, whether the title to such property shall be the Court of uncertain or not, or subject to any contingency or not, or be depending otter'courts or be not ascertained by reason of any dispute or other cause, shall be chargeable, chargeable to the said duties in like manner and to the like amount as would be charged if the said property was not under the direction and control of such court, and the title thereto was certain, and not subject to any contingency whatever ; and every such receiver shall be answerable for doing all such matters and things as shall be required to be done by virtue of this Act, in order to the assessing of the duties granted by this Act, and paying the same. 44. ['And be it enacted, that] where any person, being trustee, Trustees, agent, factor, or receiver, guardian, tutor, curator, or committee of or a o ent 3, re- for any person, shall be assessed under this Act in respect of such C 2j vers ' a person, or where any chamberlain, treasurer, clerk, or other officer of re tain the any corporation, company, fraternity, or society shall be so assessed duties in respect of such corporation, company, fraternity, or society as afore- charged upon said, it shall be lawful for every such person who shall be so assessed, them out of by and out of the money which shall come to his hands as such trustee, agent, factor, or receiver, guardian, tutor, committee, or curator as aforesaid, or as such chamberlain, treasurer, clerk, or other officer, to retain so much and such part thereof from time to time as shall be sufficient to pay such assessment; and every such trustee, agent, factor, or receiver, guardian, tutor, committee, or curator, chamberlain, treasurer, clerk, or other officer, shall be and is hereby indemnified against every person, corporation, company, fraternity, or society whatsoever, for all payments which he shall make in pursuance and by virtue of this Act. 45. ['And be it enacted, that] any married woman acting as a sole Married trader by the custom of any city or place, or otherwise, or having or women sole being entitled to any property or profits to her sole or separate use, traders, or shall be chargeable to such and the like duties, and in like manner, s f^^ e pro . except as hereinafter is mentioned, as if she were actually sole and perty, how unmarried : Provided always, that the profits of any married woman chargeable, living with her husband shall be deemed the profits of the husband, and the same shall be charged in the name of the husband, and not in her name, or of her trustee : Provided also, that any married woman living in Great Britain 2 , separate from her husband, whether such husband shall be temporarily absent from, her or from. Great Britain 2 , or otherwise, who shall receive any allowance or remittance from property out of Great Britain 2 , shall be charged as a feme sole if entitled thereto in her own right, and as the agent of the husband if she receive the same from or through him, or from his property or on his credit. 46. [ : And be it enacted, that] for the ordering, raising, and levying Commis- the said duties the respective Commissioners for General Purposes at the first meeting to be held under this Act, or at a meeting to be appointed for that purpose, shall direct their precepts to such persons as shall have been appointed assessors for the execution of this Act, or in case no such appointment shall have been made, then to the assessors for the land tax or the duties of assessed taxes in their respective 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). summon assessors 336 APPENDIX V. to administer oaths to them : and deliver to them their instructions. Assessors to serve notices and precepts. Assessors to fix general notices on church doors requiring persons to deliver lists. Assessors to deliver notices at the houses of persons chargeable, who are to deliver statements. districts, requiring them to appear before the said Commissioners at such time and place as they shall appoint ; and on the appearance of i such assessors the said Commissioners shall administer to them the oath required by this Act to be taken by them, and issue to them their warrants of appointment as assessors in the execution of this Act, signed by such Commissioners, together with such instructions duly filled up as shall be necessary for carrying this Act into execution ; and the said assessors shall duly serve and deliver, in the respective parishes or places for which they may be appointed, as well the notices hereinafter particularly directed to be served by them, as also all other notices and precepts, by whomsoever signed, which are or may be directed or required to be given by or in pursuance of this Act ; and the said assessors shall duly verify the service of all such notices and precepts. 47. ['And be it enacted, that] the assessors to be appointed to execute this Act shall, within the time and in the manner directed by the precept of the Commissioners for General Purposes, cause general notices to be affixed on or near to the door of the church or chapel and market house or cross (if any) of the city, town, parish, or place for which such assessors act ; and if such city, town, parish, or place shall not have a church or chapel, or market house or cross, then on the church or chapel nearest to such city, town, parish, or place, requiring all persons who are by this Act required to make out and deliver any list, declaration, or statement to make out and deliver to the respective assessors or Commissioners, or to their clerk, at their respective offices to be described in such notice, and as therein directed, all such lists, declarations, and statements accordingly, within such time as shall be limited by such precept, and which shall not in any case be later than twenty-one days from the date of such precept ; and such general notices shall, when the same shall be affixed as aforesaid, be deemed sufficient notice to all persons resident in such city, town, parish, or place, and the affixing of the same in manner aforesaid shall be deemed good service of such notice ; and the said respective assessors shall cause the said notices to be from time to time replaced, if necessary, for the space of ten days before the time required for the delivery of such lists, declarations, and statements as aforesaid ; and every person wilfully tearing, defacing, or obliterating any such notice so affixed shall forfeit any sum not exceeding twenty pounds. 48. Provided always, [ : and be it enacted,] that the said assessors shall, within the time directed by the precept of the said Commissioners, give notice to every person chargeable to the said duties in respect of any property or profits situate or arising within the limits of the said places where such assessors shall act, or leave such notice at his dwelling house or place of residence, or on the premises to be charged by such assessment within such limits, requiring every such person to prepare and deliver, in manner directed by this Act, all such lists, declarations, and statements as they are respectively required to do by this Act, within such time as shall be limited by such precept ; and if any person residing within any parish or place at the time such general notice as aforesaid shall be given, or to whom such notice shall be personally given, or at whose dwelling house or place of residence the same shall be left, or if any person occupying any property or engaged in any concern within such limits, on whom such notice shall be served 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 337 in manner aforesaid, or for whom such notice shall be left on the premises to be charged as aforesaid, after notice thereof, shaU refuse or neglect to make out such lists, declarations, or statements as may be applicable to such person, and as the case may require, and deliver the same in manner directed by this Act, within the time limited in such notice, then such Commissioners shall forthwith issue a summons under their hands to such person making default as aforesaid, in order that the penalty for such refusal or neglect may be duly levied ; and the said Commissioners shall moreover proceed to assess or cause to be assessed every person making such default in the manner herein directed. 49. ['And be it enacted, that] every such list, declaration, or state- Lists and ment of the profits to be charged as aforesaid shall be delivered to the statements, assessor of the same parish or place, except statements containing the J here to **> amount of profits chargeable under Schedule (D.) of this Act, in such dehvered - cases where the Commissioners acting for such parish or place shall have caused to be inserted in the notice that an office is opened for the receipt of statements of profits, and a proper person appointed to receive the same, and the time and place of attendance, in which cases the delivery of such statements to be charged under the said Sche- dule (D.) shall be made at such office to the person there appointed to receive the same : Provided always, that in cases where the parties to be charged under the said Schedule (D.) shall give notice of their desire to be assessed for the said duties by the Commissioners for Special Purposes, such statements of profits chargeable under the said Schedule (D.) shall be delivered, together with such notice, to such assessor as aforesaid, to be by him transmitted to the inspector or surveyor of the district. 50. ['And be it enacted, that] every person, when required so to do Persons to by any notice given in pursuance of this Act, shall, within the period deliver in lists to be mentioned in such notice, prepare and deliver to the assessor of ! "ifj 1 * 111168 the parish or place where such person shall reside a list in writing, jumatfs and containing to the best of his belief the proper name of every lodger or others, inmate resident in his dwelling house, and of other persons chiefly employed in his service, whether resident in such dwelling house or not, and the place of residence of such of them as are not resident in such dwelling house, and also of any such lodger or inmate who shall have any ordinary place of residence elsewhere at which he is entitled, under the regulations of this Act, to be assessed, who shall be desirous of being so assessed at such place of ordinary residence ; which lists shall be signed by the respective parties delivering the same, and shall severally be made out in such form as shall be directed under the authority of this Act : Provided always, that no person required by Omission of this Act to deliver a list of lodgers, inmates, or other persons aforesaid persons not shall be liable to the penalties hereinafter mentioned, or either of them, tnT^dwe for any omission of the name or residence of any person in his service houses, if or employ, and not resident in his dwelling house, if it shall appear to exempted the Commissioners for executing this Act, on inquiry before them, that from duty, such person is entitled to be exempted from the payment of all and ^-^^ every the duties hereby granted. penalty. 51. ['And be it enacted, that] every person who shall be in the Persons act- receipt of any money or value, or the profits or gains arising from any 8 for others 1 The part in brackets is repealed by the Statute La^v Revision (No. 2) Act, 1888 (ol-2V. c. 57). R. * 338 APPENDIX V. to deliver in lists in order to the duty being duly charged. Statements to be delivered of the annual value of property and amounts of profits. Trustees and agents of persons incapacitated or not resi- dent in Great Britain to be charged. of the sources mentioned in this Act, of or belonging to any other person, in whatever character the same shall be received, for which such other person is chargeable under the regulations of this Act, or would be so chargeable if he were resident in Great Britain, 1 shall within the like period prepare and deliver, in manner before directed, a list in writing, in such form as this Act requires, signed by him, containing a true and correct statement of all such money, value, profits, or gains, and the name and place of abode of every person to whom the same shall belong, together with a declaration 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 hereby charged on her the husband is not accountable by this Act, or resident in Great Britain, 1 or an infant, idiot, lunatic, or insane person, in order that such person, according to a statement, to be delivered as herein men- tioned, may be charged either in the name of the person delivering such list, if the same shall be so chargeable, or in the name of the person to whom such property shall belong, if of full age, and resident in Great Britain, 1 and the same be so chargeable by this Act ; and every person acting in such character jointly with any other person shall deliver a list of the names and places of abode of every person joined with him at the time of delivering such list, and to the same person to whom such list shall be delivered. 52. [ 2 And be it enacted, that] every person chargeable under this Act shall, when required so to do, whether by any general or par- ticular notice given in pursuance of this Act, within the period to be mentioned in such notice as aforesaid, prepare and deliver to the person appointed to receive the same, and to whom the same ought to be delivered, a true and correct statement in writing in such form as this Act requires, and signed by the person delivering the same, con- taining the annual value of all lands and tenements in his occupation, whether the same be situate in one or more parish or parishes, and the amount of the profits or gains arising to such person from all and every the sources chargeable under this Act, according to the respec- tive schedules thereof, which amount shall be estimated for the period and according to the respective rules contained in the respective sche- dules of this Act ; to which statement shall be added a declaration, that the same is estimated on all the sources contained in the said several schedules, describing the same, after setting against or deduct- ing from such profits or gains such sums, and no other, as are allowed by this Act ; and every such statement shall be made exclusive of the profits and gains accrued or accruing from interest of money, or other annual payment arising out of the property of any other person, for which such other person ought to be charged by virtue of this Act. 53. [ 2 And be it enacted, that] every person who shall act in any character as aforesaid for any other person, who by reason of any such incapacity as aforesaid, or by reason of his not being resident in Great Britain, 1 cannot be personally charged by virtue of this Act, shall also, within the like period, deliver to the person appointed to receive the same under this Act, and to whom the same ought to be delivered, and in the same district in which the person delivering such list ought to be charged on his own account, a true and correct state- ment in writing, signed by him, and to be made in such form as this 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 188S (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 339 Act requires, of the amount of the profits and gains to be charged on him on account of such other person, estimated during the period and according to the rules contained in the said respective schedules, together with such declaration of the manner of estimating the same as aforesaid : Provided always, that where two or more such persons shall be^liable to be charged for the same person, one return only shall be required, and such return shall be made by them jointly, or by one or more of them on behalf of himself or themselves and the rest of the persons so liable, and it shall be lawful for them to give notice in writing to the Commissioners acting in each district where they shall be called upon for such statement, in what parish or place, or parishes or places, they are respectively chargeable by this Act on their own account, and in which of the said parishes or places they are desirous of being so charged on the behalf of such other person for whom they so act in any of the characters before mentioned, and they shall be assessed accordingly by one assessment in such parish or place, provided any one of such persons shall be liable to be charged on his own account in such parish or place; and if more than one assessment shall be made on such persons, or any of them, on the same account, relief shall be granted from such double assessment by like applications to the Commissioners as are allowed in other cases by this Act. 54. ['And be it enacted, that] every such officer before described Officers of of any corporation, fraternity, fellowship, company, or society shall corporations also, within the like period, prepare and deliver in like form and to P re P are , . , statements manner a true and correct statement of the profits and gains to be O f pro fits charged on such corporation, fraternity, fellowship, company, or and gains to * society, computed according to the directions of this Act, together be charged, with such declaration of the manner of estimating the same as afore- estimated on said ; and such estimate shall be made on the amount of the annual profitTbSore profits and gains of such corporation, fraternity, fellowship, company, dividend or society before any dividend shall have been made thereof to any made, other persons, corporations, or companies having any share, right, or title in or to such profits or gains ; and all such other persons, and corporations or companies, shall allow out of such dividends a proportionate deduction in respect of the duty so charged : Provided always, that nothing hereinbefore contained shall be construed to require in such statement the inclusion of salaries, wages, or profits of any officer of such corporation, fraternity, fellowship, company, or society, otherwise chargeable under this Act: [ 2 Provided also, Proviso for that the statements of the several companies of the East India and ^EtStSdia South Sea shall be made exclusive of the dividends and the profits and gouth gea attached thereto, and to be divided amongst the proprietors of the Companies, respective stocks belonging to such companies.] 55. [ ! And be it enacted, that] if any person who ought by this Penalty on Act to deliver any list, declaration, or statement as aforesaid shall P^^ refuse or neglect so to do within the time limited in such notice, or to deliverin shall under any pretence wilfully delay the delivery thereof, and if iis te ; information thereof shall be given, and the proceedings thereupon shall be had, before the Commissioners acting in the execution of this Act, every such person shall forfeit any sum not exceeding if on informa- tion before 1 The part in brackets is repealed by the Statute Law Kevision (No. 2) Act, 1888 (51-2 V. c. 57). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 340 APPENDIX V. Commis- sioners, 201. and treble duty; if on infor- mation in a court of law, 501. Persons to whom notices have not been delivered not liable to penalty if exempt. Assessors to make out a list of the persons on whom notices have been served. Inspector or surveyor may serve notice on persons omitted. Assessors to verify the delivery of notices, and the affixing of general notices. twenty pounds, and treble the duty at which such person ought to be charged by virtue of this Act, such penalty to be recovered as any penalty contained in this Act is by law recoverable, and the increased duty to be added to the assessment, but, nevertheless, subject to such stay of prosecution or other proceedings by a subsequent delivery of such list, declaration, or statement in the case following ; (that is to say), if any trustee, agent, or receiver, or other person hereby required to deliver such list, declaration, or statement on behalf of any other person, shall deliver an imperfect list, declaration, or statement, declaring himself unable to give a more perfect list, declaration, or statement, with the reasons for such inability, and the said Commissioners shall be satisfied therewith, the said trustee, agent, or receiver, or other person as aforesaid, shall not be liable to such penalty in case the Commissioners shall grant further time for the delivery thereof ; and such trustee, agent, receiver, or other person shall, within the time so granted, deliver a list, declaration, or schedule, as perfect as the nature of the case will enable him to prepare and deliver ; and every person who shall be prosecuted for any such offence by action or information in any of her Majesty's courts, and who shall not have been assessed in treble the duty as aforesaid, shall forfeit the sum of fifty pounds. 56. Provided always ['and be it enacted] that no person to or on whom the assessor shall not have delivered or served a particular notice as aforesaid shall be liable to the penalties before mentioned, or either of them, for not delivering such statement as before required, if it shall appear to the Commissioners for executing this Act, on inquiry before them, that such person is entitled to be exempted from the payment of all and every the duties hereby granted. 57. ['And be it enacted, that] the assessor shall make out an alphabetical list, and deliver the same to the inspector or surveyor of the district, containing the names of all persons to or on whom such notices have been delivered or served in pursuance of this Act, and the names of all persons having property or profits chargeable under this Act, within the limits of such assessor, distinguishing the persons who have duly made their returns, and the persons who have omitted to make such returns, and the persons who have given notice to be assessed by the Commissioners for Special Purposes, and also the persons who shall have been returned as lodgers or inmates within such limits, or as chargeable within but having a residence out of such limits ; and if such assessor shall have neglected to give notice to any person to whom the same ought to be delivered, the inspector or surveyor may at any time afterwards cause such notice to be delivered to or served on such person, and may also from time to time cause the like notice to be delivered to or served on any person coming to reside in any parish or place after the expiration of such notices. 58. ['And be it enacted, that] the assessor for every parish or place shall personally appear before the said Commissioners at such meeting as the said assessor shall be appointed to attend, and shall then and there make oath before the said Commissioners that the several notices required to be delivered to householders and occupiers, and also to lodgers and inmates, by this Act, have been duly served in the manner 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 67). THE INCOME TAX ACT, 1842. 341 required by this Act, to the best of his knowledge, and that general notices to the effect mentioned in this Act have been duly affixed, in the manner hereby required, on such proper places within the city, town, or place for which such assessor shall act, as by this Act is required, and that the list delivered by him to the inspector or sur- veyor contains the name of every person to or on whom such notices ought to be delivered or served according to the directions of this Act, within the knowledge of such assessor ; and every assessor who shall neglect to appear before such Commissioners, or refuse to make such oath, or who shall have omitted or neglected to return to such inspector or surveyor the name of any person whose name ought to be included Penalty, 20J. in any such list as by this Act is required, shall forfeit any sum not exceeding twenty pounds. 59. ['And be it enacted, that] the clerks to the said respective Com- Abstract to missioners shall with all convenient speed abstract the returns of state- *>e made by ments delivered to such Commissioners by the assessors, or at their tla clerk ^ of office by the respective parties, into books to be provided for that statements purpose, and according to such forms as shall be transmitted to them delivered to from the Head 3 Office for Stamps and Taxes, such abstracts to contain Commis- the names of the persons making such returns, and the several amounts 81oners - of profits returned by them respectively, to be laid before and delivered to the said Commissioners ; and all such returns shall be numbered and filed in the office of the said Commissioners, and carefully kept so long as the accounts of the said duties for such district, or any part thereof, shall remain unpaid to her Majesty ; to all which books any Inspectors inspector or surveyor who shall have taken the oath herein prescribed may have before the Commissioners acting for the same districts respectively acc ss to an< l shall have free access at all seasonable times, and shall take such f,.,-,^ ^] copies thereof, or of such parts thereof, or extracts from the same, as containing he shall deem necessary in order to the due execution of this Act. such abstracts. 60. PAnd be it enacted, that! the duties hereby granted and con- -p..,. L . -i <-. i -i -I ri/i\iiii T 11 i -Unties m tamed in the said Schedule marked (A.) shall be assessed and charged Schedule (A.) under the following rules, which rules shall be deemed and construed to be charged to be a part of this Act, and to refer to the said duties, as if the same under the had been inserted under a special enactment. SCHEDULE (A.). No. I. General Rule for estimating Lands, Tenements, Hereditaments, or Heritages mentioned in Schedule (-<4.). The annual value of lands, tenements, hereditaments, or heritages Annual charged under Schedule (A.) shall be understood to be the rent *^? ne *| by the year at which the same are let at rack rent, if the amount bt^j^^e of such rent shall have been fixed by agreement commencing except as within the period of seven years preceding the fifth day of April after stated. next before the time of making the assessment, but if the same are not so let at rack rent, then at the rack rent at which the same are worth to be let by the year ; which rule shall be con- strued to extend to all lands, tenements, and hereditaments, or heritages, capable of actual occupation, of whatever nature, and for whatever purpose occupied or enjoyed, and of whatever value, except the properties mentioned in No. II. and No. III. of this Schedule. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the Chief Office of Inland Revenue. 342 APPENDIX V. Manner of charging certain pro- perties, &c. Tithes in kind. Ecclesiastical dues. Tithes com- pounded. Manors. Fines. Other profits from lande. No. II. Rules for estimating the Lands, Tenements, Hereditaments, or Heritages herein mentioned which are not to be charged according to the preceding General Rule. The annual value of all the properties hereinafter described shall be understood to be the full amount for one year, or the average amount for one year, of the profits received therefrom within the respective times herein limited : First. Of all tithes, if taken in kind, on an average of the three preceding years : Second. Of all dues and money payments in right of the church or by endowment, or in lieu of tithes (not being tithes arising from lands), and of all teinds in Scotland, on the like average : Third. Of all tithes arising from lands, if compounded for, and of all rents and other money payments in lieu of tithes arising from lands (except rentcharges confirmed under the Act passed for the commutation of tithes), on the amount of such composition, rent, or payment for one year preceding : The said duty in each case to be charged on the person entitled to such tithes or payments, or his lessee or tenant, agent or factor, except in the cases mentioned in the Fourth Rule of No. IV. of Schedule (A.) : Fourth. Of manors and other royalties, including all dues and other services, or other casual profits, (not being rents or other annual payments reserved or charged,) on an average of the seven preceding years, to be charged on the lord of such manor or royalty, or person renting the same : Fifth. Of all fines received in consideration of any demise of lands or tenements (not being parcel of a manor or royalty demisable by the custom thereof) on the amount so received within the year preceding by or on account of the party ; provided that in case the party chargeable shall prove, to the satisfaction of the Com- missioners for General Purposes in 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 under this Act, for the year in which the assessment shall be made, it shall be lawful for the said Commissioners to discharge the amount so applied from the profits liable to assessment under this rule : Sixth. Of all other profits arising from lands, tenements, heredita- ments, or heritages not in the actual possession or occupation of the party to be charged, and not before enumerated, on a fair and just average of such number of years as the said Commissioners shall, on the statement of the party to be charged, judge proper, (except such profits as may be liable to deduction in pursuance of the ninth or tenth rule in Number IV. hereinafter mentioned,) to be charged on the receivers of such profits, or the persons entitled thereto. Manner of charging certain other properties. Quarries. No. III. Rules for estimating the Lands, Tenements, Hereditaments, or Heritages hereinafter mentioned which are not to be charged accord- ing to the preceding General Rule. The annual value of all the properties hereinafter described shall be understood to be the full amount for one year, or the average amount for one year, of the profits received therefrom within the respective times herein limited : First. Of quarries of stone, slate, limestone, or chalk, on the amount of profits in the preceding year : THE INCOME TAX ACT, 1842. 343 Second. Of mines of coal, tin, lead, copper, mundic, iron, and other Mines, mines, on an average of the five preceding years, subject to the provisions concerning mines contained in this Act : Third. Of ironworks, gasworks, salt springs or works, alum mines Ironworks, or works, waterworks, streams of water, canals, inland navigations, &c - docks, drains, and levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries, and other concerns of the like nature, from or arising out of any lands, tenements, here- ditaments, or heritages, on the profits of the year preceding : The duty in each of the last three rules to be charged on the Duty in last person, corporation, company, or society of persons, whether cor- three rules, porate or not corporate, carrying on the concern, or on their respec- now to ** tive agents, treasurers, or other officers having the direction or cnar & ed - management thereof, or being in the receipt of the profits thereof, on the amount of the produce or value thereof, and before paying, rendering, or distributing the produce or the value, either between the different persons or members of the corporation, company, or society engaged in the concern, or to the owner of the soil or pro- perty, or to any creditor or other person whatever having a claim on or out of the said profits ; and all such persons, corporations, companies, and societies respectively shall allow out of such pro- duce or value a proportionate deduction of the duty so charged, and the said charge shall be made on the said profits exclusively of any lands used or occupied in or about the concern : The computation of duty arising in respect of any such mine Duty on carried on by a company of adventurers shall be made and stated -i nes * t> jointly in one sum ; provided that if any adventurer shall declare ^e^m "an his proportion or share in such concern, in order to a separate jointly, but assessment, it shall be lawful to charge such adventurer separately, any adven- and nothing herein contained shall be construed to restrain any turer may adventurer so separately assessed from deducting or setting against ^T 11 ? * _i his profits acquired in one or more of such concerns his loss sus- separately tained in any other of the said concerns, over and above the profits in order to' thereof, provided that such loss shall not exceed the proportion of set off his such adventurer which shall have been duly proved by the com- ^ OS8 * n one pany in their computation of duty, and shall have been allowed by against his the respective Commissioners, and in every such case one assess- profits in ment only shall be made on the balance of such profit and loss of another, the adventurer so separating his account in the parish or place where such adventurer shall be chargeable to the greatest amount, and the amount of each person's share so proved and allowed shall be deducted from the general assessment of the company or com- panies to which such adventurer shall belong, and the respective Commissioners shall cause the assessments on the said companies to be rectified as the case may require ; and the certificate of the Commissioners making such separate assessment shall be an authority to the Commissioners acting in another district to cause the assessments on the respective companies to which such assess- ment shall belong to be rectified ; and in case such loss shall arise in a different district than where such separate assessment shall be to be made, the certificate of the Commissioners acting for such other district of the amount of such loss, and the proportion of such adventurer therein, shall be proof of the deduction to be made by the Commissioners making such assessment. 344 APPENDIX V. To be charged in the parish : Except canals, rail- ways, &c., which are to be charged where the general accounts are made up. Duties may be deducted from interest payable to creditors. Manors ex- tending into different parishes, and fines, where to be charged. Lands in the same occu- pation to be charged ac- cording to the parishes. Proportions in each parish, and belonging to distinct owners, to be stated. Lands in different parishes to be charged in either where the proportions cannot be ascertained. Houses under 101. charged on landlords. No. IV. Rules and Regulations respecting the said Duties. First. All properties chargeable to the duties in Schedule (A.) shall be charged in the parish or place where the same are situate, and not elsewhere, except as hereinafter is excepted : Provided that the profits arising from canals, inland naviga- tions, streams of water, drains, or levels, or from any railways or other roads or ways of a public nature, and belonging to or vested in any company of proprietors or trustees, whether corporate or not corporate, may be stated in one account, and charged in the city, town, or place at or nearest to the place where the general accounts of such concern shall have been usually made up ; and it shall be lawful for the said proprietors or trustees, having paid the duties so chargeable, either to deduct a just proportion thereof from the interest payable to the creditors of the said properties, or any of them, or to pay such interest in full, without making any such deduction ; and it shall be lawful for the said creditors to receive such interest in full, and they shall not be liable there- upon to the penalty hereinafter contained : Provided also, that the profits arising from any manor or royalty which shall extend into different parishes may be assessed in one account in the parish where the court for such manor or royalty shall have been usually held: Provided also, that the profits arising from all fines received by the same person, body politic or corporate, or company, may be assessed in one account, where the person to be charged under the regulations of this Act shall reside : Second. All lands occupied by the same person shall be brought into every account thereof required to be delivered by such person under this Act, whether the same shall be occupied by such person as owner or tenant, or as tenant under distinct owners, or shall be situate in the same or in different parishes or districts, but the charge thereon shall be in each parish or district in proportion to the value of the property situate therein, of which proportions the occupier shall be required to deliver an account in each parish wherein any part of such lands is situate, and a separate estimate shall be given of lands in the same occupation belonging to dis- tinct owners ; and if any occupier of lands situate in different parishes or places shall wilfully omit to deliver an account of the lands so occupied in each parish or place, although such occupier may not reside in one or more of such parishes or places, he shall be charged for the lands so omitted at treble the rate contained in this Act, over and above the penalty herein imposed : Provided always, that lands held under the same demise, or in the occupation of the same person as owner, although situate in different parishes, but wholly in the same district of Commis- sioners, may be charged in either parish, at the discretion of the said Commissioners, if they shall be satisfied that the proportion in each parish, either in respect of quantity, rent, or value of the said lands, cannot be ascertained ; and if the said lands extend into different districts of Commissioners, then the assessment shall be made in that district where the occupier of such lands doth reside : Third. For any dwelling house in the occupation of a tenant which, with the buildings or offices belonging thereto and the land occupied therewith, shall be under the annual value of ten pounds, and for all lands and tenements let to any tenant for a less THE INCOME TAX ACT, 1842. 345 period than one year, the assessment thereupon shall be made on the landlord, but so as not to impeach the remedy of recovery of the duty from the occupier, in default of payment by the i 11 i * A / / landlord : Fourth. For any compositions, rents, or other payments in lieu of Tithes may tithes, the assessment thereupon may, if the Commissioners think ^e charged fit, be made on the respective occupiers of the lands from which on cc up ier s such tithes arise, or on the respective persons liable to the pay- ment of such compositions, rents, or other payments ; and the said Commissioners may direct notices to be delivered to such persons respectively, for the purpose of obtaining returns of the value of such compositions, rents, and payments, subject to the like penalties and under the regulations of this Act for returns of the annual value of lands : Fifth. If any mine, enumerated in the Fifth Rule, No. III., of this Mines failing, Schedule, has, from some unavoidable cause, been decreased and how to be is decreasing in the annual value thereof, so that the average of five years will not give a fair and just estimate of the annual value thereof, it shall be lawful, after due proof before the Commissioners for General Purposes in the district where such mine shall be situate, to compute such annual value on the actual amount of such profits and gains in the preceding year ending as aforesaid, subject to such abatement on account of diminution of duty within the current year as is herein provided in other cases ; and If failed, the if any such mine shall, from some unavoidable cause, have wholly assessment failed, it shall be lawful for the said Commissioners, on due proof ? a V >e (re j thereof, wholly to discharge any assessment made thereon : Provided always, that whenever any such mine shall be situate, Mines to be or the produce thereof shall be manufactured, in any place other charged than where the produce thereof shall be sold, the profits arising where situate therefrom shall be assessed and charged in the parish and district ma nuf ac . where the said mine is situate, or where the produce thereof is tured. manufactured, and not elsewhere : Sixth. If in estimating the value of any of the properties enumerated Duties in in No. II. or No. III. of this Schedule, as before mentioned, it shall cer ^ in c ? ses appear that the account required by the said rules cannot be made ^ ^^fweori- out by reason of the possession or interest of the party to be i n g to profits charged thereon having commenced within the time for which accrued since the account is directed to be made out, the profits of one year commence- shall be estimated in proportion to the profits received within the ment f . . it- f, r L e i_ possession. time elapsed since the commencement oi such possession or interest : Seventh. The duty to be charged under this schedule, in respect of Houses of any house or tenement occupied by any accredited minister from foreign any foreign prince or state, shall be charged and paid by the ^ I ^a 8 on landlord or person immediately entitled to the rent of the said i an( u ora> house or tenement : Eighth. The duty to be charged in respect of any house, tenement, Official houses or apartment belonging to her Majesty, in the occupation of any charged on officer of her Majesty, in right of his office or otherwise, (except the occupiers, apartments in her Majesty's Royal Palaces,) shall be charged on and paid by the occupier of such house, tenement, or apartment, upon the annual value thereof : Ninth. The occupier of any lands, tenements, hereditaments, or Occupiers to heritages, being tenant of the same, and paj-ing the said duties, recover from shall deduct so much thereof in respect of the rent payable to fording to the landlord for the time being (all sums aUowed by the Com- the rate> by 346 APPENDIX V. deducting the duty out of the rent. Landlords may recover from others having interest at the like rate. Mortgagees in possession liable. missioners being first deducted) as a rate of seven-pence for every twenty shillings thereof would by a just proportion amount unto, which deduction shall be made out of the first payment thereafter to be made on account of rent ; and the receivers of her Majesty, and all landlords, both mediate and immediate, their respective heirs, executors, administrators, and assigns, according to their respective interests, and their respective receivers or agents, shall allow such deduction upon receipt of the residue of the rent, under the penalty herein contained ; and the tenant paying the said assessment shall be acquitted and discharged of so much money as if the same had actually been paid unto the person to or for whom his rent shall have been due and payable ; and the occupier of lands charged on the amount of any composition, rent, or payment for tithes arising therefrom, and paying the said duties, shall be entitled to make the like deduction from such composition, rent, or payment, on paying the same : Tenth. Where any such lands, tenements, or hereditaments are subject or liable to the payment of any rent-charge, whether under the Act passed for the commutation of tithes, or otherwise, or any annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, stipends to licensed curates, or other rent or annual pay- ment thereupon reserved or charged, the landlord, owner, or proprietor by whom any deduction shall have been allowed as aforesaid, and the owner or proprietor being also occupier and charged to the said duties, shall deduct and retain out of every such rent-charge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, stipend, or other rent or annual payment aforesaid, so much of the said duties or payments on account of the same, (the just proportion of the sums allowed by the Com- missioners in the cases authorized by this Act being first deducted,) as a like rate of seven-pence for every twenty shillings on such rent-charge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, or stipend, or other rent or annual payment aforesaid, respectively, shall by a just proportion amount unto ; and the receivers of her Majesty, and all persons who shall be any ways entitled unto such rents, duties, stipends, or annual payments, their receivers, deputies, or agents, are hereby required to allow such deduction, upon the receipt of the residue of such moneys as shall be due and payable for such rents, duties, or annual pay- ments, without any fee or charge for such allowance, and under the penalty herein contained ; and the landlord, owner, proprietor, and occupier respectively, being charged as aforesaid, or having allowed such deduction, shall be acquitted and discharged of so much money as if the same had actually been paid unto such person to whom such rent-charge, annuity, fee-farm rent, rent service, quit rent, feu duty, teind duty, stipend, or other rent or annual payment aforesaid, shall have been due and payable : Eleventh. Where any mortgagee or creditor in any heritable bond or wadset shall be in the possession of the lands, tenements, hereditaments, or heritages mortgaged or secured, such mort- gagee or creditor shall be chargeable as occupier when in the actual occupation of the same, and when not in the actual occupation of the same shall be liable to such deduction as any other landlord would be ; and upon the settlement of accounts between such mortgagee or other creditor as aforesaid, and the mortgagor or debtor, the duty payable in respect of the amount of the interest payable upon such mortgage or other debt as THE INCOME TAX ACT, 1842. 347 aforesaid shall be taken and allowed as so mucli money received by such mortgagee or other creditor as aforesaid on account of such interest : Twelfth. Where any lands, tenements, hereditaments, or heritages Owner dying, shall be occupied by the owner at the time the assessment shall how the duty be made, who shall die before payment of the duty, the heirs, ^ to be V 3 *^- executors, administrators, or assigns, or other person who on such death may become entitled to the rents and profits thereof, shall be liable to the payment of all arrears of the said duty due at the time of such death, and to all subsequent instalments for that year, according to their respective interests, without any new assessment : Thirteenth. Where any house shall be divided into distinct pro- Houses perties, and occupied by distinct owners or their respective tenants, divided into such properties shall be charged distinct on the respective occu- di 8 * 6 * piers: properties. Fourteenth. No deduction from the estimate or assessment on any Deductions lands, tenements, hereditaments, or heritages shall be allowed not to be in any case not authorized by this Act, nor unless an account in allowed, writing, signed by the occupier thereof, or by the party claiming ^ e ^^ ai ^ " such deduction, stating the nature and amount thereof, shall have Act, and an been delivered to the assessor within the time and pursuant to account the notice delivered by such assessor ; and if any such deduction thereof shall be made or allowed contrary to this Act, or without such delivered, to account in writing as aforesaid, it shall be lawful for the surveyor Jor " or inspector to surcharge the assessment, and to charge therein a sum equal to the amount of duty by which the assessment shall have been diminished on occasion of such deduction, which surcharge shall not be annulled or vacated under any pretence whatever, but shall stand part of the assessment. No. Y. Particular Deductions and Allowances in respect of the Duties Deductions. under Schedule (-4.)- First. For the amount of the tenths and first fruits, duties, and fees Tenths, &c. on presentations paid by any ecclesiastical person within the year preceding that in which the assessment shall be made : Second. For procurations and synodals paid by ecclesiastical persons Procurations, on an average of seven years preceding that in which the assess- & c - ment shall be made : Third. For repairs of collegiate churches and chapels, and chancels Repairs of of churches or of any college or hall in any of the universities of chancels. Great Britain, 1 by any ecclesiastical or collegiate body, rector, vicar, or other person bound to repair the same, on an average of twenty-one years preceding as aforesaid, or as nearly thereto as can be produced : Fourth. For the parochial rates, taxes, and assessments charged Parochial upon or in respect of any rent-charge confirmed under the Act rates on passed for the commutation of tithes, on the amount paid in the rent-charge r t ' i ,-< L i TI -L j i r tithes. year in which the assessment shall be made : Fifth. For the amount of the land tax charged on lands, tenements, Land tax. hereditaments, or heritages under the said Act passed in the thirty-eighth year of the reign of King George the third, where the charge thereon shall not have been redeemed : Sixth. For the amount charged on lands, tenements, hereditaments, Drainage, &c. 1 Now the United Kingdom, see the Income Tax Act, 18-53 (16-7 V. c. 34). 348 APPENDIX V. Rate of deduction. Allowances to ecclesiastical bodies, &c., how to be made. Mode of proceeding in order to the payment of certain allowances granted under No. V., Schedule (A.). Allowances for colleges and halls in universities : or heritages by a public rate or assessment in respect of draining, fencing, or embanking the same : In all which cases there shall be allowed (unless such payments, or any part thereof, shall be made by a tenant,) such sum of money as a like rate of seven-pence for every twenty shillings of the sums paid would by a just proportion amount unto ; and the sum so allowed shall be deducted from the assessment to be made on the property charged with such payments, except in the cases hereinafter otherwise provided for ; (that is to say,) Provided always, that the allowances to be granted in pursu- ance of the first, second, or third case may be granted to the ecclesiastical or collegiate body, rector, vicar, or other person aforesaid liable to the charges therein mentioned, in one sum, either by deducting the same from the assessment upon him (if any), or by certificate ; provided that no abatement or deduction shall be made from any assessment for the allowances granted in pursuance of any of the cases mentioned in this rule in respect of any such charges or payments as aforesaid, payable out of any rent-charge confirmed under the Act passed for the commutation of tithes, but such allowances shall be granted by certificate in the manner hereinafter directed. 61. [*And be it enacted, that] the person entitled to any of the allowances mentioned in the next preceding rule, which are directed or authorized to be made by certificate, and which shall not have been made by deduction or abatement from the assessment, shall claim such allowance at any time after the expiration of the year of assessment, before the Commissioners for General Purposes of the district in which the property charged with the payments and charges mentioned in the said rule shall be situate; and the said Com- missioners, upon due proof before them that the claimant is entitled to such allowance, shall certify the particulars and amount thereof to the Commissioners for Special Purposes at the Head 2 Office for Stamps and Taxes in England, and thereupon the said last-mentioned Commissioners shall grant an order for the payment of such allowance, directed to the Receiver General of [ 3 Stamps and Taxes], or to an officer for receipt or collector of the duties granted by this Act, or to a distributor or sub-distributor of stamps, as may be most con- venient for the party entitled to such allowance, and such receiver general or officer as aforesaid is hereby required, on production and delivery to him of such order, to pay the amount of such allowance to the party entitled thereto out of any money in the hands of such receiver general or officer arising from any duties placed under the management of the Commissioners of [ 3 Stamps and Taxes], taking the receipt of the party entitled to such allowance for the same, by endorsement on such order. No. VI. Allowances to be made in respect of the said Duties in Schedule {A.} For the duties charged on any college or hall in any of the universities of Great Britain, 4 in respect of the public buildings and offices belonging to such college or hall, and not occupied 1 The words in brackets are repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the Chief Office of Inland Revenue. 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 4 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 349 by any individual member thereof, or by any person paying rent for the same, and for the repairs of the public buildings and offices of such college or hall, and the gardens, walks, and grounds for recreation repaired and maintained by the funds of such college or hall : Or on any hospital, public school, or alinshouse, in respect of the hospitals, public buildings, offices, and premises belonging to such hospital, public schools, public school, or almshouse, and not occupied by any individual a^Uterarv officer or the master thereof, whose whole income, however institutions, arising, estimated according to the rules and directions of this Act, shall amount to or exceed one hundred and fifty pounds per annum, or by any person paying rent for the same, and for the repairs of such hospital, public school, or almshouse, and offices belonging thereto, and of the gardens, walks, and grounds for the sustenance or recreation of the hospitallers, scholars, and almsmen, repaired and maintained by the funds of such hospital, school, or almshouse, or on any building the property of any literary or scientific institution, used solely for the purposes of such institution, and in which no payment is made or demanded for any instruction there afforded, by lectures or otherwise ; provided also, that the said building be not occupied by any officer of such institution, nor by any person paying rent for the same : The said allowances to be granted by the Commissioners for General Purposes in their respective districts : Or on the rents and profits of lands, tenements, hereditaments, or Rents of lands heritages belonging to any hospital, public school, or almshouse, belonging to or vested in trustees for charitable purposes, so far as the same hospitals, are applied to charitable purposes : pl h' li l 8 a The said last-mentioned allowances to be granted on proof almsnouses before the Commissioners for Special Purposes of the due applica- or vested in tion of the said rents and profits to charitable purposes only, and trustees for in so far as the same shall be applied to charitable purposes only : charitable The said last-mentioned allowances to be claimed and proved P 111 ? 0868 ' by any steward, agent, or factor acting for such school, hospital, or almshouse, or other trust for charitable purposes, or by any trustee of the same, by affidavit to be taken before any Commis- sioner for executing this Act in the district where such person shall reside, stating the amount of the duties chargeable, and the application thereof, and to be carried into effect by the Commis- sioners for Special Purposes, and according to the powers vested in such Commissioners, without vacating, altering, or impeaching the assessments on or in respect of such properties ; which assessments shall be in force and levied notwithstanding such allowances. 62. ['And be it enacted, that] where any allowance mentioned in Special Corn- Number VI. of the said Schedule (A.) shall be granted by the missioners Commissioners for Special Purposes, under the authority of this Act, * cei they shall give a certificate thereof, together with an order for pay- Canted un- ment of the same, directed to the Receiver General of [ 2 Stamps and der No. VI., Taxes], or to an officer for receipt or collector of the duties granted Schedule (A.), by this Act, or to a distributor or sub-distributor of stamps in the and order pay- ment thereof. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 350 APPENDIX V. and rules deemed part of the Act. manner herein provided with respect to allowances to be granted under Number V. of the said Schedule, and such allowance shall in like manner be paid to the party entitled thereto. Duties in 63. [ J And be enacted, that] the duties hereby granted, contained Schedule (B.) j n the Schedule marked (B.), shall be assessed and charged under the following rules, which rules shall be deemed and construed to be a part of this Act, and to refer to the said last-mentioned duties as if the same had been inserted under a special enactment. SCHEDULE (B.). No. VII. Rules for assessing and charging the Properties under Schedule (-5.). The duties last before mentioned shall be charged in addition to the duties to be charged under Schedule (A.) on all the properties in this Act directed to be charged to the said duties, according to the general rule in Number I. Schedule (A.) before mentioned, on the full amount of the annual value thereof estimated as by this Act is directed (except a dwelling house, and the domestic offices thereunto belonging, and which dwelling house and offices shall not be occupied, by virtue of one and the same demise, with a farm of lands for the purpose of farming such lands, or with a farm of tithes for the purpose of farming the same ; and except warehouses or other buildings occupied for the purpose of carrying on a trade or profession) ; provided that in all cases where lands are subject to a rent-charge in lieu of tithes, under the Act passed for the commutation of tithes, and in all other cases where lands in England are not subject to tithes, or to any modus or compo- sition real in lieu thereof, there shall be deducted out of the duties contained in this schedule a sum not exceeding one eighth part thereof ; and in all cases where such lands are subject to a modus or composition real, and not subject to any tithes, there shall be deducted out of such duties so much thereof as, together with the like rate on such modus or composition real, shall not ex-ceed one eighth part of such duties as aforesaid ; and in all cases where such lands are subject to a modus or composition real in lieu of certain specific tithes, and also are subject to certain other specific tithes, or where such lands are free of 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 this schedule, 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, as in cases of tithe-free lands : Provided also, that any person being lessee and occupier of tithes or teinds taken in kind, or being the occupier of the lands from whence such tithes or teinds shall arise, and compounding for the same, shall be charged in respect of the occupation at the rate of two-pence for every twenty shillings of the annual value thereof, estimated as aforesaid : Provided also, that the several properties hereinafter described in Number VIII. shall be assessed and charged in manner therein mentioned. To he charged in addition to Schedule (A.) on the same properties, except for dwelling houses dis- tinct from farms, and for buildings occupied for trade or professions. One eighth to be deducted from rent of tithe-free lands in England. Lessees and occupiers of tithes to pay two-pence for every twenty shillings. 1 The part in brackets is repealed by the Statute Law Eevision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 351 No. VIII. Rules for estimating the Properties hereinafter next mentioned under Schedule (-5.). The profits arising from lands occupied as nurseries or gardens for Nurseries, the sale of the produce, and lands occupied for the growth of mar k e * hops, shall be estimated according to the rules contained in Sche- dule (D.), and the duty shall be charged at the rate contained in the said schedule ; and when the said duty shall have been so ascertained, the same shall be charged under Schedule (B.) as profits arising from the occupation of lands, except where the lands so occupied for the growth of hops shall be part of a farm held under one demise, or by the same person as owner, and shall not exceed one tenth part of such farm, in which case the duty thereon under this schedule shall be charged together in one sum as for a farm by the said general rule in Schedule (A.) mentioned. No. IX. Rides for charging the said Duties under Schedules (A.} and (B.}. First. The said duties, except where other provisions are made as To be paid by aforesaid for estimating particular properties, shall be estimated tne occupier, according to the general rule contained in Schedule (A.), and shall be charged on and paid by the occupier for the time being, his executors, administrators, and assigns : Second. Every person having the use of any lands or tenements Who sliall shall be taken and considered, for the purposes of this Act, as the ^ e deemed occupier of such lands or tenements : occupiers. Third. The said several duties shall on each assessment thereof be Assessments levied on the occupier for the time being without any new assess- to be levied on ment, notwithstanding any change in the occupation thereof: tlie OCGU P ier - Provided that every tenant on quitting the occupation shall be How paid on liable for the arrears at the time of so quitting, and for such change of further portion of time as shall then have elapsed, to be settled OGCU P ation - and levied by the respective Commissioners, and repaid to the occupier by whom the same shall have been paid ; and the execu- tors or administrators of any tenant who shall die before the payment of such assessment shall be liable in like manner as the testator or intestate would have been if living: Provided also, that every tenant quitting before the time of making the assess- ment shall be liable for such portion of the year as shall have elapsed at the 'time of his so quitting, to be adjusted and settled by the respective Commissioners. No. X. Rules for estimating the annual Value of Properties before described in Schedules (^f.) and (5.) or either of them. First. Where any landlord shall be subject to any covenant or Tenant's agreement to pay or satisfy, out of the rent reserved on any lands rates an 4 or tenements, any parochial rates, taxes, or assessments which * axe spaid ' . ., . by landlord by law are a charge on the occupier, or any composition for to be deducted tithes; or where any rector, vicar, or other person entitled to from the rent, any rent or other annual payment to be made in lieu of tithes, (except a rent-charge confirmed under the Act passed for the commutation of tithes,) or any composition for tithes, shall pay or satisfy out of the amount thereof any such parochial rates, taxes, or assessments charged on such tithes, rent, com- position, or other annual payment aforesaid, then and in every such case the annual value shall be estimated for the purposes of this Act exclusive of such rates, taxes, or assessments, and 352 APPENDIX V. Landlord's rates and taxes paid by tenant to be added to the rent. Amount of rent depend- ing on price of corn or grain, how to be ascer- tained. of such composition for tithes, to be computed on the amount thereof bond Jide paid by such landlord or other person aforesaid in and for the year preceding the year of assessment ; or where the owner shall be also occupier of such lands or tenements, and shall have paid any parochial rates, taxes, or assessments charged on the same, or any composition for tithes thereon, then the said annual value shall be also estimated exclusive of such rates, taxes, and assessments and composition for tithes, to be computed in like manner as aforesaid : Second. Where any tenant of lands or tenements shall be subject to any covenant or agreement to pay or satisfy any aids, taxes, rates, or assessments by law chargeable on or payable by the landlord, the amount thereof which shall have been bond Jide paid by such tenant in and for the year preceding the year of assessment shall, in making the estimate for the purpose of charging the duty in respect of occupation, be added to the rent reserved, in case the same shall have been let within the period of seven preceding years, and if not so let, the estimate shall be made according to the general rule in Schedule (A.), with the like addition thereto of the amount of such payment : Third. Where the amount of rent of lands or tenements reserved in money shall depend in the whole or in part on the price of corn or grain, the estimate for the purpose of charging the duties in Schedule (A.) shall be made on the amount payable according to the average prices or fiars fixed in the year preceding the year appointed for payment of the duty, and in the same manner by which such rents have usually been ascertained between the land- lords and tenants ; but where the whole or a part of the rent shall be reserved in corn or grain, then the said estimate shall be made on the like average price or fiar computed on the quantity of corn or grain delivered or to be delivered in the year appointed for payment of the duty ; or where such computation cannot be made, the estimate aforesaid may be made on the annual value of such lands estimated according to the said general rule : Fourth. Where the amount of rent reserved on lands or tenements shall depend on the actual produce thereof, either in respect of the price or quantity of such produce, the estimate for the purpose of charging the duties in Schedule (A.) 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 prices fixed and according to the quantity produced in that year, by the same rules and in the same manner by which such rents have usually been ascertained between the proprietors and their lessees or tenants, and where the prices or fiars shall vary in the two years of assessment, or the amount of produce shall vary in those years, the assessment shall, on appeal or surcharge, be rectified accordingly : Fifth. Every estimate of such property in Scotland shall be made without reference to the cess or tax roll or valued rents hereto- fore used in Scotland, or any stent thereon, and shall be made according to the general rule contained in Schedule (A.) to the best of the belief and judgment of the Commissioners, assessors, and others employed in charging the said several duties. Assessment 64. [*And be it enacted, that] upon every account of the annual Amount of rent de- pending on produce. In Scotland the estimate to be made according to the general rule in Schedule (A.). 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 67). THE INCOME TAX ACT, 1842. 353 value of the several properties aforesaid, to be charged under Sche- of lands and dules (A.) and (B.) delivered in manner before directed to the tenements, assessor, he shall make an assessment of the said property on the on wnat amount of the sum ascertained by such account, if he shall be satisfied ^fnmde by with such amount ; but if he shall not be satisfied therewith, or if no the assessor. such account shall have been returned, or if the occupier or other person aforesaid shall not be resident within the limits of the district of such assessor, and no such return shall have been made, then the said assessor shall estimate, to the best of his judgment, the annual value of the said property of which no sufficient account shall have been delivered, and make an assessment of the same accordingly ; and Where the in doing so it shall be lawful for such assessor in every case relating annual value to lands or tenements to be estimated according to the said general Ci ^ not .' :)e rule by the annual value thereof, where such annual value cannot be ascer t a ined. otherwise ascertained, and he is hereby required in every such case, to make such assessment according to the following rules ; (videlicet,} No. XI. First. Where the last rate made for the relief of the poor in any To be made parish or place shall be made throughout by a pound rate on on the same the annual value, as the same would be estimated according to f um ^ ^ rated Schedule (A.), the assessment thereon to be made under this Act ^ shall be made on the same sums respectively as in such rate : Second. Where the said rate shall be made throughout by such To be in- pound rate on any proportionate part of the annual value as crease( l to aforesaid, the proportion thereof shall be observed as in the said Rvalue rate, but the assessment thereon to be made under this Act shall proportionate be made at the same sums respectively as they would have been sums. estimated at if the said rate had been made on the full amount of such annual value : Third. Where properties of different kinds shall be rated in the If in different said rate according to different proportions of the value thereof proportions, as aforesaid, or shall be rated therein at different rates of such j )he d ra e value, but nevertheless the properties of the same kind shall be rated in a due proportion to each other, both as to the value and throughout. rate of charge, in every such case the rule of rating lands, both as to the value and the rate of charge, shall, in making the assess- ment under this Act, be observed throughout, as well with respect to such lands as to the other properties therein rated, so far as relates to such rates as shall be made either on the full value of the properties or on any proportionate part thereof : Fourth. In all cases not falling within the three preceding rules, Where the but nevertheless where the properties shall appear to the assessor proportions to be rated in the said rate in the same proportion to each other, ^ k e though the proportion of such rate to the value of the property rated be not known, and the assessor is able to ascertain the rackrent of all or any of the properties which shall have been so let within the period of seven years preceding within the limits of the parish or place where the said assessors shall act, he shall make an estimate of such properties on the amount of such rents respectively, and the amount contained in the estimates so made shall form the basis on which the estimates of other properties, of which the rackrent shall not have been so ascertained, shall be made, and he shall make his estimate of all other property in a sum bearing the same proportion, as near as the same can be computed, to the amount of such first estimates, as the sums at which all such other properties of which the rent has been so R. A A 354 APPENDIX V. Assessor allowed to estimate dwelling houses, &c. under 101. without a return. make their assessments of lands on the produc- tion of the lease by the tenant, ac- cording to the reserved rent. If such lease shall be bond fide at rack- rent. ascertained are valued at in such, rate bear to the sum charged in the said rate on the said properties first estimated ; and he shall apportion the sum so estimated on such other properties in the same proportion, as near as the same can be computed, as they are respectively rated at in such rate, and shall make his assess- ment under this Act accordingly ; and in cases where the same rule of proportion shall not have been observed in rating different kinds of property, then the assessor shall make an estimate as above directed upon each of such kinds of property for the purpose of forming a basis on which the estimates of other properties of the same kind may be made. 65. Provided always, [*and be it enacted,] that where any dwelling house or tenement, together with the offices, gardens, and lands occupied therewith, or any lands separately occupied, shall be under the annual value of ten pounds, and the assessor shall be able to estimate the said value, either by the rules before mentioned, or from his own knowledge, or otherwise, it shall be lawful for him to estimate such property accordingly, to the best of his judgment, and to make an assessment thereon, without requiring a return of the annual value as aforesaid, unless the surveyor or inspector shall object to such. estimate, and shall require a notice for that purpose to be delivered ; and if any assessor, not having given such notice, shall neglect to estimate the true annual value of the said properties, and to assess the same according to this Act, he shall forfeit any sum not exceeding ten pounds. 66. ['And be it enacted, that] in case any tenant at rackrent shall produce to the assessor the lease or agreement in writing under which he immediately holds any premises to be charged as aforesaid accord- ing to the general rule, the production of which lease or agreement every such assessor is hereby authorized to demand whenever the same shall appear to him necessary ; and in case it shall appear by such lease or agreement that the same premises shall have been let within the period of seven preceding years, and no other consideration in money than the rent reserved shall be contained in such lease or agreement, it shall be lawful for such assessor to make his assessment according to such rent, anything before contained to the contrary not- withstanding ; but such assessment shall not be binding, in case it shall appear to the Commissioners that the said lease or agreement doth not express the full consideration, whether in money or value, for the demise, or the rent bond fide paid for the same, or that the rent reserved is less than the rackrent on occasion of repairs or improve- ments done or to be done by the lessee or assigns, or is made in any other respect with intent to conceal the annual value of such premises, or to diminish the estimate to be made thereon, or hath been assigned to such tenant, or any former tenant, for any consideration in money or value paid or agreed to be paid : Provided always, that regard shall be had to the cases before mentioned, where the amount of the reserved rent shall be increased by reason of any covenant or agreement by the landlord to discharge the tenant's taxes, rates, assessments, or duties before mentioned, or where the same shall be decreased by reason of any covenant or agreement by the tenant to discharge the landlord's taxes, rates, or assessments, or on occasion of any expenses incurred or to be incurred by the lessee or assigns, whether mentioned or not 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 355 mentioned in such lease or agreement, and to the deductions to be made on account of any aid or public rate or assessment before described : Provided also, that upon every demise for years of lands Rules to be made or to be made in consideration of a rent reserved, and also in observed^ consideration of certain improvements to be made in the lands demised ^^^^^^ at the proper cost and charge of the lessee or tenant, if it shall be ren t, and for proved to the satisfaction of the Commissioners for General Purposes improvement, acting for the division where such lands are situate that the rent reserved hath been settled on the estimate of the medium annual value of the said lands, computed on an average for the whole term granted in expectation of the progressive improvement of the said farm at the cost and charge of the said lessee or tenant, and the said annual rent is fixed and made payable to the same amount in each year on the said average, whereby the said rent so estimated and made payable did or doth exceed the just annual value of the said lands as the same were or are worth to be let at rackrent at the commencement of the term granted by the said demise, then and in such case the estimate of the annual value of the said lands, and the assessment thereupon, shall be made and computed according to the following rules ; (that is to say,) in regard that the rent reserved hath been settled on a fair average of the annual value of the said lands, computed on the whole of the term so granted, the said Commissioners, on due proof of the circumstances before mentioned, shall cause the said duty payable in respect of the property in the said lands to be computed and charged on the amount of the rent so reserved and made payable as aforesaid, for each year of assessment, without variation, during the said term, subject nevertheless to such deduc- tions as by this Act are allowed ; and the said Commissioners shall also cause the said duty payable in respect of the occupation of the said lands to be computed and charged on the full and just value of the said lands, to be ascertained at the times and in manner herein- after mentioned ; (that is to say,) on all such demises made before the passing of this Act, the annual value of the said lands shall be the rackrent at which the same are worth to be let by the year, to be ascertained at the commencement of the first year of assessment after the passing of this Act, by a valuation to be made thereof under the powers and according to the directions herein contained, and to the satisfaction of the said Commissioners, which valuation shall be in force for the term limited for the continuance of this Act, if the said demise shall not sooner expire ; and the amount ascertained by such valuation shall be deemed to be the rackrent at which the said lands are worth to be let for the said term, if the said demise shall not sooner expire, and the assessment thereupon shall in each year of the said term be made on the said valuation ; and on all such demises to be made after the passing of this Act the annual value of the said lands shall be the rackrent at which the same are worth to be let by the year, to be ascer- tained at the commencement of the said demise, by a like valuation to be made thereof in manner aforesaid. 67. pAnd be it enacted, that] in case any tenant at rackrent under Tenants at any parol demise from year to year, within the period mentioned in ra^ the said general rule, or any tenant who, by reason of any mortgage ^ m |^ or other contract, shall not have the custody or possession of or the a bie to' pro- power over any lease or agreement in writing under which he holds cure leases, the premises demised within the said period, and who shall give to deliver an. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). AA2 356 APPENDIX V. account of the value. Lands held under a tenancy from year to year, or at will, to be rated by value, unless the rent be fixed on a de- mise within seven years. Penalty on tenants de- livering false accounts of the value of the premises, or concealing the true value thereof. Tenants in Scotland to produce their leases on notice ; reasonable proof to the Commissioners why he is unable to produce the same, shall deliver to the assessor an account in writing signed by such tenant of the actual amount of the annual rent reserved on such demise, such account so delivered shall be deemed a compliance with this Act, in all cases where he may be called upon under the authority of this Act to produce such lease or agreement ; and it shall be lawful for such assessor to make his assessment according to such rent, any- thing before contained to the contrary notwithstanding ; but such assessment shall not be binding in case it shall appear to the said Commissioners that the said account doth not express the full conside- ration for such demise, or the rent bond fide paid for the same, or that the rent reserved is less than the rackrent on occasion of any payments as aforesaid made or to be made by such tenant, or is made in any other respect with intent to conceal the annual value of the premises held under such demise, or to diminish the assessment to be made thereon : Provided always, that lands held for a longer period than seven years by any tenant under a demise from year to year, or at will, shall be estimated and assessed at the annual value thereof, unless the tenant shall show and prove to the satisfaction of the said Commissioners that the same lands are held under a demise which commenced by agreement made and a rent fixed within the period of seven years, on the determination of the former demise thereof, by due notice within the said period. 68. ['And be it enacted, that] every person who shall wilfully deliver any such account as aforesaid which shall be false, or who shall wilfully refuse, neglect, or omit to produce any lease or agreement with intent to conceal the annual value of the premises therein comprised, or to diminish the estimate to be made thereon, shall forfeit the sum of twenty pounds, and shall be liable to be charged in treble the duty hereby directed to be charged as aforesaid, computed on the annual value of the premises held under such demise, estimated according to this Act ; and the inspector and surveyor are hereby respectively required to surcharge the same, and the Commissioners are required to make an assessment accordingly. 69. [*And be it enacted, that] every tenant of lands, tenements, or heritages in Scotland shall, within ten days after the assessor shall have left at his usual place of abode, or at any dwelling house or other place on the premises to be charged with the assessment, a note in writing requiring the same, produce to such assessor the tack or lease or other agreement or articles in writing under which such tenant holds such lands or tenements, or where the same shall not be in the power, custody, or possession of such tenant, or there shall be no such tack, lease, or agreement or articles, then he shall leave with such assessor, or at his dwelling house, within the time before mentioned, a note in writing of the actual rent annually reserved and payable, and of any other valuable consideration given or to be given to the landlord of such lands and tenements as a further consideration for such tenancy, under the penalty of treble the duty hereby chargeable thereon, in case of any wilful neglect to comply with such notice ; and it shall be lawful for such assessor to make his assessment on the production of such lease or agreement or articles, according to the rent therein reserved and made payable ; and in case of non-production of such lease or agreement or articles in writing, then upon the rent reserved or made payable, according to the account thereof delivered 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act. 1888 (51-2 V. c. 67), THE INCOME TAX ACT, 1842. 357 as aforesaid, if he shall be satisfied that the said lands, tenements, or heritages have been bondjide let at the reserved rent notified to him as aforesaid, without other valuable consideration ; but in case such assessor shall not be satisfied with the notification given to him, or in case no such notification shall be given, then such assessor shall make the assessment as directed in the foregoing rules : Provided always, or leave that if the farm occupied by such tenant shall be distant more than ten t^em W1 *j fl a miles from the dwelling house of such assessor, it shall be competent i^ce^or to such tenant to lodge his lease or note in writing of the rent with the clergyman nearest justice of the peace, or with the clergyman of the parish where in a certain the farm is situated; and the said justice of the peace or clergyman case - respectively shall be obliged to show the said lease or note of the rent to the said assessor when required. 70. ['And be it enacted, that] the said several duties shall be assessed All proper- on all lands, tenements, and hereditaments, whether occupied at the *^ es to ^ e time of assessment or not ; and so far as respects the duties chargeable as v e !i. under Schedule (A.), in case any lands charged to the said duties shall occupied be unoccupied, and no distress can be found on the same at the time or not. such duties shall be payable, it shall be lawful for the collector of the parish or place where the said lands are situate for the time being, at any time after, to enter upon the said lands when there shall be any distress thereupon to be found, and the distress to seize and sell, under the like powers as he might have distrained on the same lands if in the occupation of such person at the time the duties became due : Provided Assessments always, that the said duties, or either of them, shall not be levied on on k. ou f es * any house which shall be or become unoccupied for such year, or foVthe enod portion of the year, as the same shall be unoccupied, but the assess- they a^e un ment thereupon for such year, or portion of the year, as aforesaid, occupied, shall, upon appeal, be discharged or diminished by the Commissioners, on due proof of the time during which such house remained un- occupied. 71. ['And be it enacted, that] where by any assessment the duties Mode of shall be charged on tithes or teinds, and the same shall not be paid levying the within the respective times limited by this Act, it shall be lawful for the collector and officer respectively to distrain upon such tithes or teinds, or any other goods or chattels of the owner of such tithes or teinds, wherever the same can be found, and to seize, take, and sell so much thereof as shall be sufficient for levying the said assessment, under and subject to the like powers granted by the said Acts relating to the duties of assessed taxes in other cases. 72. [ 'And be it enacted, that] when any assessment shall be charged Mode of on any composition for tithes or teinds, or any rent or payment in lieu levying the thereof, the occupier of the lands and premises charged with such com- ^ ut ' es . n . position, rent, or payment shall be answerable for the duties so charged, fotithesor and may deduct the same out of the next payment on account thereof ; on manors or and where any assessment shall be charged on the profits of manors royalties, or royalties, or of markets or fairs, or on tolls, fisheries, or any other markets, annual or casual profits not distrainable, the owner or occupier, or S^ 8 '* receiver of the profits thereof, shall be answerable for the duties charged thereon, and may retain and deduct the same out of such profits; and in every such case the collector shall distrain upon such persons respectively by any of the ways and means prescribed by the said Acts relating to the duties of assessed taxes. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 358 APPENDIX V. Contracts between landlords and tenants or other per- sons not to be binding contrary to this Act. Assessors to make their assessments, and deliver them with the returns to the Com- missioners. Assessors to apply to Commis- sioners and surveyors for instructions. Assessors, on bringing 1 in their assessments shall if re- quired, give notice to overseers of the poor to produce the rate books. Commis- sioners may examine as- sessors and overseers touching the making of the assessments. 73. Provided always ['and belt enacted], that no contract, covenant, or agreement between landlord and tenant, or any other persons, touch- ing the payment of taxes and assessments to be charged on their respective premises, shall be deemed or construed to extend to the duties charged thereon under this Act, nor to be binding contrary to the intent and meaning of this Act ; but that all such duties shall be charged upon and paid by the respective occupiers, subject to such deductions and repayments as are by this Act authorized and allowed ; and all such deductions and repayments shall be made and allowed accordingly, notwithstanding such contracts, covenants, or agreements. 74. [ J And be it enacted, that] the respective assessors shall make their assessments on all lands, tenements, and hereditaments, or heritages, within the limits of those places for which they are to act, and shall set down therein the full and just annual value of all such lands and premises estimated in each particular case, according to the directions of this Act, together with the names and surnames of the occupiers and proprietors thereof, and shall deliver the same, together with all returns which shall have been made to them, as well of such annual value as of any deduction claimed to be made therefrom, to the said Commissioners for General Purposes, such returns being first progressively numbered ; and whenever the said assessors shall not be able to make their assessments according to the provisions of this Act, or shall be obstructed therein, it shall be lawful for them to make application to the said Commissioners, or to any inspector or surveyor, who shall severally instruct such assessor in making his assessments, and assist him in the execution of this Act, according to the powers and authorities hereby vested in them respectively. 75. ['And be it enacted, that] the assessors to be appointed for the said duties in England shall, at the time of bringing in their assess- ments if required so to do by any surveyor or inspector of the said duties, or by the respective Commissioners, give notice to the overseers of the poor of the parish or place where they shall act, to produce or cause to be produced to the said Commissioners the book or books, or a true copy thereof, in which shall have been entered the rates made for the relief of the poor of such parish or place, and also a true copy of the last rate made for the relief of the poor in such parish or place, and such overseers shall without fail produce such book or books to the said Commissioners, or deliver the same to the said inspector or surveyor, for their use, and the said assessors shall declare in writing, signed by them, whether the said rates are made on the full value of the properties therein, or on any and what proportionate part thereof, to the best of their knowledge and belief ; and the said Commissioners shall, in case the said surveyor or inspector shall allege and show to the satisfaction of the said Commissioners that the said assessments or any of them have not been made according to the directions of this Act, examine the said assessors, and also the overseers of the poor for the same parish or place, or any of them, being duly summoned for that purpose, on their oaths, touching the proportions between the said rates and the value of the properties charged therein, and whether the properties, or any and which of them, have been valued therein at the amount or at any and what proportion of the annual value thereof respectively, and what ought to be the just proportion between the rates on the different properties therein charged, if the amount 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 Viet. c. 57). THE INCOME TAX ACT, 1842. 359 of the values thereof, and the same proportion between the rates, had been observed throughout the rate, and also what property shall haVe been omitted to be rated, and which of the properties in the parish or place shall be entitled to be assessed on the profits or on an average of the profits according to this Act ; and the said inspector or surveyor Inspector or shall carefully examine the assessments made by the same assessors surveyor with the last rate made for the relief of the poor, in order that he may the better ascertain whether the said assessments have been made on all the properties situate in each parish, and according to the directions made. prescribed by this Act, and from the result of the said inquiries may rectify the same in any particulars which in his judgment may be requisite before the Commissioners allow and sign such assessment as herein directed ; and in so doing may pursue, if he think fit, the rules in Number XI. of this Act before mentioned, relating to the said rates for relief of the poor. 76. [ J And be it enacted, that] the several Commissioners, inspectors, Commis- surveyors, and assessors acting respectively in the execution of this sioners and Act, or any person authorized by them respectively, shall have liberty, ? cer ^ ma y from time to time and at all seasonable times, to inspect and take jj c ^^ copies of or extracts from any book kept by any parish officer or other books, and person of or concerning the rates made for the relief of the poor, or take copies any other public taxes, rates, or assessments, in any place within the or ex fr ac ts. limits for which they shall be appointed, without the payment of any fee whatever ; and if any person in whose custody or power any' of the Penalty for said books shall be shall refuse or neglect to permit the said inspec- refusal to tion, or the copies or extracts to be made as aforesaid, or to attend the P ernut 8ucl1 said Commissioners with any such book when required so to do in pursuance of this Act, such person so offending shall forfeit any sum not exceeding twenty pounds nor less than five pounds. 77. ['And be it enacted, that] it shall be lawful for the assessors in Assessors in each parish or place in Scotland, and they are hereby required, to take Scotland to to their assistance the schoolmaster in such parish or place, for the be assisted by purpose of making such assessments of the lands and other premises mas t e rs and within their respective limits ; and at the time of bringing in their to be ex- assessments they shall make oath of the truth of the same, and that amined con- such assessments are made according to the best of their skill and cemin g their judgment, and shall submit to be examined on oath before the said ai ismen 8 - Commissioners in all matters and things concerning the said assess- ments which the said Commissioners shall require for their information. 78. ['And be it enacted, that] in cases where the occupier or other Assessors person chargeable shall, upon due notice under this Act, omit to pro- an d other duce an account in writing as aforesaid of the amount of the annual ^^nd* value of the property in his occupation, estimated according to the 8urve y lands general rule in Schedule (A.), or such other rules in the said schedule by order of as are applicable to such property, or shall have delivered an account the Commis- with which the Commissioners shall be dissatisfied, the several assessors, 810ners - inspectors, and surveyors, having first obtained an order in that behalf, signed by the said Commissioners, and taking to their assistance such person or persons of skill as shall be named in such order, shall, after two days notice to the occupier, have full power, at all seasonable times in the daytime, to view and examine any lands or other property chargeable, in order to make a survey thereof, or otherwise to ascer- 1 The part in brackets is repealed by the Statute La-w Kevision (No. 2) Act, 1888 (51-2 V. c. 57). 360 APPENDIX V. Commis- sioners to allow and sign assess- ments not objected to and made to their satis- faction. On objec- tion taken, the Commis- sioners may rectify as- sessments. Amount of assessments and day of appeal to be notified. The value of lands may be ascertained by actual valuation by order of the Commis- sioners. By whom the costs of such valuation are to be paid. tain the annual value at which, the same ought to be charged by virtue of this Act, and for so doing shall have liberty to enter upon any lands or grounds, whether inclosed or not, and to value the same, and to measure and survey the same if they cannot otherwise ascertain the annual value thereof. 79. ['And be it enacted, that] within a reasonable time after the respective surveyors and inspectors shall have had the examination of the assessments delivered by the assessors, the Commissioners shall proceed to take the same into consideration, and in case the surveyor or inspector shall not have objected thereto, and the said Commis- sioners shall be satisfied that the said assessments have been made truly and without fraud, and so as to charge the several properties contained therein with the full duty which ought to be charged upon them respectively, the said Commissioners shall allow and sign such assessments : Provided always, that in case the surveyor or inspector shall object to any such assessment, and shall apply for a revision thereof, suggesting in writing to the Commissioners any error, mistake, or fraud in making the same, it shall be lawful for the said Commis- sioners, according to the best of their judgment, to rectify such assess- ment, so that the duty may be fully charged according to the intent and meaning of this Act. 80. ['And be it enacted, that] so soon as the assessments for any parish or place under Schedules (A.) and (B.) shall be allowed and signed as aforesaid the Commissioners shall cause notice thereof and of the day for hearing appeals therefrom to be given in such manner as they shall judge expedient, which notice may be given either by delivering a copy of such assessment to the assessor of such parish or place, for the inspection of the parties charged thereby, together with 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 deliver- ing to each party charged the amount of his assessment, together with a note of the day of appeal, and such notices shall be made and given at least fourteen days before the day of appeal so fixed. 81. ['And be it enacted, that] if upon appeal any dispute shall arise touching the annual value of any lands, tenements, heredita- ments, or heritages, and the Commissioners shall deem it necessary that a valuation thereof should be taken and made by any person of skill, it shall be lawful for them to direct the appellant to cause such valuation to be made by any person to be named by the said Commis- sioners, the costs and charges whereof shall abide the final determina- tion of the said Commissioners, and it shall be lawful for them to make an assessment according to such valuation, and to require the same to be verified on the oath of the person making the same ; but in case the appellant shall not proceed with effect to cause such valuation to be made as aforesaid, the said Commissioners shall make an assessment according to the best of their judgment : Provided always, that it shall be competent to the said Commissioners, in every such case where the valuation so made shall exceed the value put upon the same lands, tenements, hereditaments, or heritages by the appellant, to direct the costs and charges attending the same to be paid by him ; but if they sljall be of opinion that such costs and charges have not been incurred through any default of the said appellant, they shall direct the same 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 361 to be paid by the collector of tlie parish or place, who, on the certifi- cate of the Commissioners present at the time of the determination, shall pay the same, and the sum so paid shall be allowed to such collector in his accounts with the proper officer for receipt, on deliver- ing to him such certificate, together with the receipt and voucher for such payment. 82. Provided always, [*and be it enacted,] that if on appeal the In case of occupier of any premises held under a demise at rackrent shall produce appeal, oc- and show to the Commissioners the lease, tack, or agreement in cu P ier ' writing, or shall prove by any lawful evidence to be produced on his jf nolease, 01 ' part, in case there shall be no such lease, tack, or agreement in proving his writing, the annual amount of the rent at which such premises are let, annual rent, it shall be lawful for the said Commissioners, in case such rent hath *^ e Comnus- been fixed by agreement commencing within the period of seven years mentioned in the said general rule, and they shall be satisfied that such lease, tack, or agreement doth express the full consideration for the demise under which such occupier shall hold the same, or that the rent bond, fide paid by such occupier for the same hath been duly shown to them in evidence, and that such demise is made wholly in con- sideration of such reserved rent, without any intention to conceal or diminish the annual value of such premises, or other fraudulent inten- tion whatever, to abate and deduct from such assessment so much as in their judgment will reduce the rate to a just rate on such rent : Provided always, that if it shall appear to the said Commissioners that Where lands any lands, tenements, hereditaments, or heritages shall have been a j-eassessec assessed at an annual value less than the actual rent at which the tne va i ue the same shall be let, or (if not let) at less than the rent at which the assessment same might be let, it shall be lawful for the said Commissioners to may be enlarge and increase such assessment to such sum as a like rate on rectified, such rent would amount unto, as well with respect to the rate on the property as the rate on the occupation of such lands, tenements, hereditaments, or heritages. 83. [*And be it enacted, that] whenever by any flood or tempest Relief to be loss shall be sustained on the growing crops, or on the stock on lands occupiers given, or contracted for in lieu of a reserved rent, or any part thereof, f or losses demised to a tenant at a reserved rent, without fine or other sum paid, , t t* i ft -i . i <*uci Owners or the said lands, or any part thereof, shall by such flood or tempest caused by be rendered incapable of cultivation for any year, and it shall be noo< l or proved on oath to the satisfaction of the Commissioners for General tempest. Purposes acting for the division where the said lands are situate that the owner of the said lands hath in consideration of such loss abated or agreed to abate to his tenant the whole or any proportion of the rent reserved or payable by such tenant for any year of such demise, it shall be lawful for the said Commissioners to abate in the assess- ment made in respect of the property in the said lands for the same year for which such rent hath been abated, and to discharge therefrom the whole or the like proportion of duty as the said owner shall appear on such proof as aforesaid to have abated of or from the rent reserved and made payable to him on such demise ; and it shall also be lawful for the said Commissioners in every such case to abate in the assess- ment made in respect of the occupation of the said lands for the same year and to discharge therefrom the like proportion of duty as shall 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 362 APPENDIX V. The like re- lief extended to occupiers and owners where the owners are incapable of consenting to abatement of rent. Abatement of assessment in case of losses on lands in the occupation of owners. Penalty for making false claim for such abatement. First assess- ment under Schedules (A.) and (B.) to remain in force for three years ; have been abated or discharged from the assessment made in respect of the property on the said lands for the cause aforesaid. 84. ['And be it enacted, that] whenever from the cause aforesaid the like loss sh"all be sustained on the lands of any infant, idiot, lunatic, or other proprietor incapable of consenting to any abatement in the rent as aforesaid, being in the occupation of any such tenant as afore- said, and the same shall be proved on oath before the said Commis- sioners to their satisfaction, it shall be lawful for them to abate in the assessment made in respect of the occupation of the said lands, and to discharge the whole or any part of the said duty, and in proportion to the loss so sustained, and to the amount which the said Commissioners shall be of opinion would or ought to have been abated as aforesaid if the said lands had belonged to a proprietor of full age and of sound mind, and capable of such consent as aforesaid. 85. ['And be it enacted, that] whenever from the cause aforesaid the like loss shall be sustained on lands in the occupation of the owner, and the same shall be proved on oath before the said Commis- sioners to their satisfaction, it shall be lawful for them to abate in the several assessments made in respect of the property in or occupation of the said lands, and to discharge the whole or any part of the said respective duties, and in proportion to the loss so sustained, and to the amount which the said Commissioners shall be of opinion would or ought to have been abated as aforesaid if the said lands had been demised to a tenant, and a proportionate abatement had been made to such tenant under the circumstances of the said loss. 86. ['And be it enacted, that] if any person shall be guilty of making any false claim for such abatement as aforesaid, or shall be guilty of any fraud or contrivance in making such claim, or in obtain- ing any such abatement, or shall fraudulently or untruly declare the amount or value of such loss, or the amount or value of any abatement made or agreed to be made in the rent of the lands in his occupation, on account of such loss, with intent fraudulently to obtain any such abatement, he shall forfeit the sum of fifty pounds and treble the amount of duty charged on him in respect of the said lands ; and if the owner of any such lands, or any other person whatever, shall aid, abet, or assist any person charged to the said duties in making such false or fraudulent claim, or shall fraudulently or untruly declare the amount or value of any abatement made or agreed to be made in the rent of the said lands or the amount of such loss, with intent fraudu- lently to obtain for himself, or for his tenant, or for the owner or tenant of the said lands, any such abatement as aforesaid, every such owner or other person aforesaid shall forfeit the sum of one hundred pounds. 87. ['And be it enacted, that] the first assessment to be made after the fifth day of April one thousand eight hundred and forty-two, of the duties chargeable under either of the Schedules marked (A.) or (B.) of this Act, shall be and remain in force for the space of three years, without requiring returns from the parties charged therein for the second or third year of such assessment, and without altering the names of the parties charged, notwithstanding a change in the occupation or interest of or in the premises charged in such assess- ment may have happened ; and the like sums shall be levied thereon 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 363 for the second and third years respectively as shall or ought to have been levied thereon for the first year, and the assessment shall be subject to the like exemptions and allowances for the second and third years respectively as were granted for the first year ; and the amount charged in such assessment shall be paid by four instalments in each year, on the days and times herein specified for payment of such instalments, subject, nevertheless, to be varied and altered in the following cases ; (videlicet,'} First. If the inspector or surveyor shall find or discover that any unless the person hath been under-rated in such assessment or omitted to be P art 7 be charged therein for the first year, or hath obtained an exemption un "i^ or allowance for the first year which ought not to be allowed for or nave ' the second or third year, it shall be lawful for such inspector or obtained an surveyor to surcharge such assessment for the second or third exemption to year in like manner in all respects as he is authorized to surcharge the assessment under the like circumstances for the first year of assessment, provided that such surcharge shall be made in the single duty, and no increase shall be made thereon above the rate of duty hereby granted, unless the Commissioners shall be of opinion that the assessment for the first year was, in the parti- cular surcharged, deficient through the wilful default or neglect of the party to be charged : Second. If any person not chargeable in the first year of assess- or a person ment shall become chargeable in the second or third year it shall n t ^arge- be lawful for the assessor, inspector, or surveyor to require the ^.^ ^ eax e like returns, and to proceed to the assessment of such person in become so like manner for the second or third year, as if the whole assess- subsequently ; ment of the parish, place, or district had commenced in that year : Third. If any person shall find himself aggrieved by the con- or in case of tinuance of such assessment for the second or third year, by appeal, occasion of his being over-rated therein, he may appeal from the same in that year on delivering ten days notice of such his inten- tion to the inspector or surveyor, together with a true and perfect schedule of the annual value of the property charged on him for that year, in like manner as he might have appealed against the same assessment under the like circumstances for the first year, and no payment on such assessment for the first or second year shall be construed to preclude such appeal ; provided that for any vexatious appeal without reasonable cause it shall be lawful for the Commissioners to award reasonable costs for the attendance of the inspector, surveyor, or assessor to be added to the assess- ment and levied therewith for the use of such inspector, surveyor, or assessor, and which shall be paid to them respectively in like manner as any other payments under this Act may be made to them : Fourth. It shall be lawful for the respective collectors to levy and Assessment gather the assessment for the second and third years respectively ma 7,]^ C( uf on the occupiers for the time being by the same rate or book secondhand & which shall have been delivered to them for the first year, unless third year the Commissioners shall revoke the appointment of the said col- by the book lectors, or shall alter or vary the assessments, and deliver to them delivered for a new rate or book for the second or third year : year. Fifth. The duplicates of the Commissioners shall be made for each Commis- year, and delivered to the proper officer for receipt, and at the sioners' Head 1 Office for Stamps and Taxes, containing the like particulars duplicates to each year. 1 Now the Chief Office of Inland Revenue. 364 APPENDIX V. Duties in Schedule (C.) and rules deemed part of this Act. By whom to be paid. To what stock the duty extends. Stock of friendly societies exempted. for the second and third years respectively as are herein required for the first year of assessment, varying only the amounts therein to be specified if the case shall require the same ; and all the powers, regulations, matters, and things contained in this Act for rectifying any assessment, or increasing or diminishing the duty according to circumstances, or for levying the same, shall be in force for the second and third years respectively, in respect of the sums to be levied in those respective years, and shall be applied in those respective years, as fully and effectually as if the assessment had been made for those years respectively under the directions and regulations of this Act. 88. pAnd be it enacted, that] the duties hereby granted, contained in the Schedule marked (C.), shall be assessed and charged under the following rules, which rules shall be deemed and construed a part of this Act, and to refer to the said last-mentioned duties, as if the same had been inserted under a special enactment. SCHEDULE (C.). Rules for assessing and charging the Duties under Schedule (C*.). The said last-mentioned duties shall be paid by the persons and cor- porations respectively intrusted with the payment of the annuities, dividends, and shares of annuities, therein charged on behalf of the persons, corporations, companies, or societies entitled thereto, their executors, administrators, successors, or assigns, and shall be assessed by the Commissioners hereby authorized or appointed for those purposes ; and shall extend to all public annuities what- ever payable in Great Britain 2 out of any public revenue in Great Britain 2 or elsewhere, [ 3 and to all annuities payable in Ireland out of the revenue of the United Kingdom, to or for the use or benefit of any person not resident in Ireland,] and also to all dividends and shares of such annuities respectively which shall become payable after the fifth day of April one thousand eight hundred and forty-two, except in the following cases of exemption from the said duties ; viz. First. The stock, dividends, or interest of any friendly society legally established under any Act of Parliament relating to friendly societies ; provided it shall appear by the rules of any such society deposited or to be deposited with the Commissioners for the Eeduction of the National Debt, or with the trustees of any savings bank, that the sums assured by any such society to any individual, or to any person nominated by or to claim under him, shall not exceed the sum of two hundred pounds, or the amount of any annuity or annuities granted or to be granted by any such society to any individual, or to any person nominated by or to claim under him, shall not exceed the sum of thirty pounds per annum : Provided also, that when any property belonging to any such society shall be invested in the public securities in the Bank of England, the said last-mentioned property shall be duly claimed and proved by any trustee or treasurer of any such society, or by any member thereof, before the said Commissioners for Special Purposes : 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 8 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 3 The words in brackets are repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). THE INCOME TAX ACT, 1842. 365 Second. The stock or dividends of any savings bank established or Stock of to be established under the provisions of an Act passed in the savings banks ninth year of the reign of King George the fourth, intituled " An ex 6 ? 1 ** 1 - Act to consolidate and amend the Laws relating to Savings Banks," arising from investments with the Commissioners for the Reduction of the National Debt ; and also the dividends or interest payable by the trustees of any savings bank upon any funds therein deposited belonging to any depositor or to any charitable institution : Third. The stock or dividends of any corporation, fraternity, or Stock of society of persons, or of any trust established for charitable pur- charitable poses only, or -which, according to the rules or regulations esta- "^ l ^ n8 blished by Act of Parliament, charter, decree, deed of trust, or e will, shall be applicable by the said corporation, fraternity, or society, or by any trustee, to charitable purposes only, and in so far as the same shall be applied to charitable purposes only ; or 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 purpose of divine worship, and in so far as the same shall be applied to such purposes, provided the application thereof to such purposes shall be duly proved before the said Commissioners for Special Purposes by any agent or factor on the behalf of any such corporation, fraternity, or society, or by any of the members or trustees : Fourth. The stock or dividends transferred to the accounts in the Stock in the books of the Bank of England in the name or under the descrip- name of the tion of the ['Lord High Treasurer of England or of the Commis- Treasury or sioners of her Majesty's] Treasury, or the Commissioners for the ^sionersVor Reduction of the National Debt, in pursuance of any Act or Acts Reduction of of Parliament ; provided that ['the governor and company of] the the National Bank of England shall from time to time cause to be transmitted Debt, to the said Commissioners for Special Purposes an account of the total amount of stock which shall have been transferred to the said respective accounts, also the payments to be made by the Commissioners for the Reduction of the National Debt on account of the Waterloo Subscription Funds : Fifth. The stock or dividends belonging to her Majesty, in what- Stock belong- ever name the same may stand in the books of the Bank of England, S . to her and also the stocks or dividends of any accredited minister of any to ^credited foreign state resident in [ 2 Great Britain,] provided the property ministers, thereof shall, if standing in the name of any trustee, be duly proved before the said Commissioners for Special Purposes by such trustee. 89. And for the assessing and charging of the said annuities payable The Bank of to ['the company of] the Bank of England [ 3 and to the South Sea England and Company respectively] at the receipt of the exchequer as aforesaid, South Sea and the profits attached thereto respectively, and also for the assessing an}^ c^ ra _ and charging of all annuities payable by the Commissioners for m issioners O f Reduction of the National Debt, and the dividends and shares of all the National other annuities payable out of any public revenue, which are or shall Debt to be intrusted for payment to the companies of the Bank of England deliver 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 3 The part in brackets ia in effect repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 366 APPENDIX V. the annuities payable to and by them respectively to the Com- missioners for assessing the same. Persons receiving annuities or dividends pavable at the Bank of Ireland on behalf of non- residents to deliver a declaration. [ 1 and South Sea respectively,] be it enacted, that the respective companies, corporations, and Commissioners, having the distribution or payment of the said several annuities, dividends, and shares shall from time to time, as often as the payments thereon shall become due, deliver to the respective Commissioners, appointed for the pur- pose of assessing the duties thereon as aforesaid, true and faithful accounts, in writing, in books to be provided for that purpose, of the several amounts of such annuities and profits attached to the same, which shall be paid to the said companies respectively, in respect of their corporate stock, and of such dividends and shares of annuities as shall be intrusted to any of such companies, corporations, or Commis- sioners, for payment to the persons, corporations, and companies entitled thereto, and the amount of duty chargeable thereon at the rate before directed, without deduction on any pretence whatever, except as herein is allowed, distinguishing therein the separate account of each person, corporation, company, and society entitled unto any part, dividend, or share of such annuities respectively, as the same shall stand in the books of the said respective companies, or at the said exchequer, in such manner as that the part, dividend, and share of each person, corpora- tion, company, and society of or to such annuities respectively may be distinctly charged and assessed to the said duty ; and the said respective Commissioners shall from time to time make an assessment of the duty which shall appear to be chargeable on the accounts so delivered to tie best of their judgment and belief, and shall from time to time deliver the said books of assessments, signed by them respectively, to the said Commissioners for Special Purposes ; and the said Commis- sioners for Special Purposes shall forthwith cause two certificates on parchment to be made out, under their hands and seals containing the total amounts of duty, and of the annuities, dividends, and shares whereon the said duty shall have been charged contained in each assessment, together with the proper title or description of the corpora- tion, company, or persons having the distribution or intrusted with the payment of such annuities, dividends, and shares respectively ; and they shall transmit one of such certificates to the respective Com- missioners for making such assessments, and the other certificate to the Head 2 Office for Stamps and Taxes in England. 90. 3 And for the assessing and charging of the annuities, dividends, and shares of annuities payable by the governor and company of the Bank of Ireland out of the public revenue of the United Kingdom to persons not resident in Ireland, be it enacted, that in every case in which payment of any such annuities, dividends, and shares of annuities as last aforesaid shall be demanded or applied for by any attorney, agent, trustee, or other person for or on the behalf or for the use or benefit of any person not resident in Ireland, the person demanding or applying for the payment of such annuities, dividends, or shares of annuities, before receiving the same, shall (whether he shall be required to do so by the said governor and directors of the said bank or not) deliver to the cashier of the said bank a declaration, signed by such applicant, containing a statement of the amount and description of the stock in respect of which such annuities, dividends, or shares are payable, and the name and place of abode of every person for 1 The -words in brackets are in effect repealed by the Statute Law Bevision (No. 2) Act, 1874 (37-8 V. c. 96). 2 Now the Chief Office of Inland Revenue. 3 Sect. 90 is repealed by Statute Law Beviaon (No. 2) Act, ISU (37-8 V. c. 96). THE INCOME TAX ACT, 1842. 367 or on whose behalf or for whose use or benefit such applicant requires the payment thereof, and declaring whether or not such k mentioned person was resident in Ireland, within the intent and mean- ing of this Act, at the time when such annuities, dividends, and shares respectively became payable ; and in every case in which payment of Bank to any such annuities, dividends, or shares of annuities shall be demanded require a or applied for by any person for or on the behalf of any other person, d ^ laration under or by virtue of any letter or power of attorney, or other delegated annoitiga authority, the said governor and directors, or the cashier or other &c. are re- officer of the said bank, having the payment of any such annuities, ceivable under dividends, or shares of annuities, shall, before paying the same, require a P wer * such declaration and statement to be made and delivered as herein- a before directed; and if the person demanding or applying for such On refusal, payment shall refuse to make or sign and deliver such declaration and parties statement on being required to make and deliver the same as afore- entltl . e< ? to said, the person for whom or on whose behalf he shall demand or ^ ^^j^^ apply for such payment shall be deemed to be not resident in Ireland, not resident and such annuities, dividends, or shares of annuities shall be charged in Ireland, accordingly with the duties granted by this Act : Provided always, Proviso, that no person (other than a member of either House of Parliament entitled to be exempted from the duties of assessed taxes under the provisions in that behalf contained in the Acts relating to the said last-mentioned duties) shall be deemed to be resident in Ireland, within the intent and meaning of this Act, who shall have been absent from Ireland at one time or several times for a period equal in the whole to six months or more during the space of one year immediately pre- ceding the day on which such annuities, dividends, and shares shall respectively have become payable. 91. 1 And be it enacted, that whenever it shall appear by any such Commis- declaration or statement as aforesaid that any such annuities, dividends, Boners to or shares of annuities are payable by the said governor and company n ^ a ^ es of the Bank of Ireland, to or for the use or benefit of any person not duties on resident in Ireland, and also whenever any person applying for pay- annuities and ment of any such annuities, dividends, or shares of annuities shall dividends refuse to make or sign and deliver such declaration and statement, on Pv^B^tf'f being required to make and deliver the same as aforesaid, the Com- irei^d to missioners herein-before appointed for that purpose shall assess and persona not charge the duties hereby granted upon and in respect of all such resident in annuities, dividends, and shares of annuities, and shall make out and transmit their certificates of such assessments in like manner as is herein- before provided with respect to the assessments to be made by the Commissioners appointed for assessing and charging the duties on annuities payable out of the revenue of the United Kingdom in England ; and in all other cases where any such annuities, dividends, or shares of annuities shall be payable by the said governor and company to or for the use or benefit of any person not resident in Ireland, but which shall not be assessed and charged by the said Commissioners in the manner herein-before directed, by reason of the fact of such non- residence not having been made to appear to them in manner afore- said, such annuities, dividends, and shares, which have been received or become payable in the preceding year shall be accounted for in Great Britain by the person entitled thereto, or beneficially interested therein, and shall be charged and assessed under the rules and regula- tions of Schedule (D.) of this Act, whether the same shall be received in Great Britain or not. 1 Sect. 91 is repealed by Statute Law Revision (No. 2) Act, 1874 (3T-8 V. c. 96). 368 APPENDIX V. Penalty for omitting to make a declaration on receiving annuities or dividends in Ireland on behalf of persons not resident there. Penalty for fraudulent declaration or device to evade the duty. Companies to set apart and retain sums Monies set apart to be paid into the bank. 92. 1 And be it enacted, that if any person shall receive of the governor and company of the Bank of Ireland any annuity, dividend, or share of annuity payable out of the public revenue of the United Kingdom, for or on the behalf of or for the use or benefit of any person not resident in Ireland, without previously delivering to the cashier of the said bank the declaration and statement by this Act directed to be delivered in such case, or if any person shall make, sign, or deliver any declaration or statement which shall not truly set forth the name and place of residence of the person, and of every person for whom or on whose behalf or for whose use or benefit he shall apply for pay- ment of any such annuity, dividend, or share of annuity as aforesaid, the person who shall neglect or omit to deliver such declaration and statement as aforesaid, or who shall make, sign, or deliver any untrue declaration or statement, shall be liable to the payment to her Majesty of treble the amount of the duty chargeable on such annuity, dividend, or share of annuity ; and if any person shall wilfully and fraudulently omit to deliver such declaration and statement, or shall wilfully make, sign, or deliver any false declaration or statement, or shall make or practise any fraudulent contrivance or device whatever, with intent to defraud her Majesty of the duty chargeable under this Act on any such annuity, dividend, or share of annuity as aforesaid, he shall forfeit the sum of one hundred pounds over and above treble the amount of the said duty. 93. [ 2 And be it enacted, that] the respective corporations, companies, and persons entitled unto such annuities and profits attached thereto, or intrusted with the payment of the annuities, dividends, or shares of such public annuities as are hereinbefore described, shall, on notice of the amount of each assessment, from time to time to be made as afore- said, (which notice shall be given from time to time as and when the annuities, dividends, and shares aforesaid shall become payable, and before payment thereof,) set apart and retain the amount of duty so assessed for the purposes of this Act ; and every such setting apart and retaining of the said duties shall be deemed a payment thereof by and on the behalf of the persons, corporations, and companies entitled unto the said annuities, dividends, and shares respectively; and all persons, corporations, and companies entitled to such annuities or profits attached thereto or to any part thereof, or to such dividends or shares of annuities as aforesaid, are hereby required, on receipt of the residue of the said annuities, profits, dividends, and shares, over and above the duty so assessed, to allow such payments in respect of the said assessments ; and the corporations and persons having the distri- bution of such annuities, or intrusted with such payments, shall be and are hereby acquitted and discharged of so much money, as if the same had actually been paid unto the persons to whom such annuities, profits, dividends, and shares did or might belong, or were by law payable. 94. [ 2 And be it enacted, that] all monies so set apart at the Bank of England, [ 3 the Bank of Ireland, and the South Sea House respec- tively,] and by the Commissioners for the Reduction of the National Debt, as before directed, shall be paid from time to time into the account to be kept at the Bank of England with the Receiver General 1 Sect. 92 is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). THE INCOME TAX ACT, 1842. 369 of [ ! Stamps and Taxes] as hereinafter directed, accompanied with a certificate of the amount of the assessment under which the same shall be so paid, under the hands of two or more of the Commissioners making such assessment ; and the governor and company of the Bank of England shall also cause the amount of such assessment as shall from . time to time be charged on the trading profits of the said company to be paid into the said account. 95. Provided always, [ 2 and be it enacted,] that in respect of any of How small the annuities, dividends, and shares of annuities chargeable under Schedule (C.) by the respective Commissioners for those purposes, it shall not be required of them to make an assessment for any amount or payment where the half-yearly payment on such annuities, divi- dends, or shares shall not amount to fifty shillings, but that the annuities, dividends, and shares whereof the half-yearly payment shall not amount to fifty shillings shall be accounted for and charged under the Third Case of Schedule (D.) by which profits of an uncertain annual value are directed to be charged : Provided also, that no person shall be required to return any statement of the profits of such annuities, dividends, or shares, the half-yearly payment whereof shall amount to fifty shillings or more, and which are hereinbefore directed to be assessed in manner aforesaid, or be liable to any penalty for not returning the same, but all such dividends, and shares whereof the half-yearly payment shall not amount to fifty shillings, and which shall be paid without such assessment, shall be duly returned in the manner before directed, under the penalty before contained. 96. [ 2 And be it enacted, that] every person (other than the governor Persons in- and company of the Bank of England, the directors of the East India trusted with Company, and the Commissioners for the Reduction of the National ^^iJ^^ 1 Debt,) intrusted with the payment of annuities, or any dividends or annuities shares of annuities, payable out of the public revenue of any colony shall deliver or settlement belonging to the Crown of the United Kingdom, to any accounts persons, corporations, or companies in Great Britain, 3 or acting therein tnereo *- as agent or in any other character before described, shall, without further notice or demand thereof, deliver or cause to be delivered into the Head 4 Office for Stamps and Taxes in England an account in writing containing their names and residences, and a description of the annuities, dividends, and shares intrusted to them for payment, within one calendar month after the same shall have been required by public notice in the London Gazette, and shall also, on demand by the inspector authorized for that purpose by the Commissioners of [^Stamps and Taxes,] deliver or cause to be delivered to him, for the use of the said Commissioners for Special Purposes, true and perfect accounts of the amount of annuities, dividends, and shares payable by them respec- tively ; and the said Commissioners for Special Purposes shall make Commis- an assessment thereon under Schedule (C.) at the rate before pre- sionersfor scribed, subiect to diminution on occasion of any exemptions to be SP 6013 ; 1 Pur - ,' , A i /-N i T, J * > poses to make allowed by the said Commissioners for Special Purposes, giving notice assessments of the amount thereof to the respective persons intrusted with such thereon, last-mentioned payments, who shall respectively pay the duty on the said annuities, dividends, and shares on behalf of the persons, cor- 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 3 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 4 Now the Chief Office of Inland Revenue. R. B B 370 APPENDIX V. Securities issued at the exchequer or other public office, and India bonds, to be charged under Sche- dule (0.). porations, and companies entitled unto the same, out of the moneys in their hands; and they shall be acquitted of such payments in like manner, and the like proceedings in all respects shall be had under the said Commissioners for Special Purposes, as are before directed in respect of annuities payable out of the public revenue of the United Kingdom : Provided always, that the persons intrusted with such payment shall from time to time pay the duty so assessed thereon into the Bank of England, to the account to be kept at the Bank of England, as aforesaid with the Receiver General of [* Stamps and Taxes,] and shall be answerable for such payment, and which duty so assessed shall, in default of such payment, be recoverable against the persons respectively intrusted with such payments as other duties charged on the parties may be recovered against them ; and if any person intrusted with the payment of any such last-mentioned annuities, or any dividends or shares thereof, in the manner herein mentioned, or acting therein as agent, or in any other character herein described, shall neglect or refuse to .deliver an account of his name and residence in the manner herein directed, or, after demand, shall neglect or refuse to deliver an account as aforesaid of the amount of such annuities, dividends, and shares as he is intrusted with the payment of, or in the payment of which he shall act as agent, or in any other character herein described, he shall forfeit the sum of one hundred pounds over and above the duty chargeable on such annuities, shares, or dividends. 97. [ 2 And be it enacted, that] any interest payable out of the public revenue on securities issued or to be issued at the exchequer or other public office, by whatever names such securities shall be called, shall be charged to the said duties under the rules contained in Schedule (C.) by the Commissioners for assessing the profits of .offices in the said exchequer or other office aforesaid at which the same shall be made payable, and the interest payable by the East India Company on the bonds issued or to be issued by them shall be charged to the said duties under the like rules by the Commissioners hereinbefore appointed for that purpose, which said Commissioners respectively shall execute this Act in relation to the profits arising from such securities and bonds as aforesaid, in like manner as the Commissioners appointed by this Act are empowered to assess the profits arising from annuities payable out of the public revenue in other cases ; and the said Commissioners respectively hereby authorized to execute this Act in relation to such securities and bonds as aforesaid shall appoint assessors and collectors of the said duties arising from such securities and bonds from and amongst the officers intrusted with the payment or discharge of such securities and bonds, who shall respectively at the time of payment or discharge thereof compute the duty thereon, and after such compu- tation shall 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 and bonds, which officer is hereby empowered to stop and detain the said duty, and to pay the same into the Bank of England to the credit of the Receiver- General of (^Stamps and Taxes] in discharge of such assessment ; and every person receiving or pur- chasing any such security or bond in circulation, with current interest thereon, shall be entitled and is hereby empowered to deduct from such interest the proportion of duty which will become chargeable 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 371 thereon, in like manner and under the like powers and penalties as may be done in other cases of payment of interest, and as if such current interest were then due and charged to the said duty ; and the like computation and assessment shall be made whenever a new security or bond shall be issued in discharge of any former security or bond, with interest, or in discharge of interest due on any former security or bond ; and the person receiving such new security or bond in exchange for any former security or bond, with interest, or for such, interest, shall pay to the proper officer at the time of receiving such new security or bond the full duty computed on the interest payable on the said former security or bond. 98. Provided always, ['and be it enacted,] that all claims of exemp- Claims of tion under any of the rules contained in Schedule (C.) from the said exemption duties on annuities, dividends, and shares of annuities, payable out of thYcom- the revenue of the United Kingdom, shall be made to the Commissioners missioners for Special Purposes at the Head 2 Office for Stamps and Taxes in for Special England, according to the following rules ; videlicet, Purposes First. Every claim shall be made in writing, in such form as the fo{^^ g to Commissioners of [ 3 Stamps and Taxes] shall direct, and the said ^^ mg Commissioners for Special Purposes shall require the same to be verified on the affidavit of every such person as they shall think necessary, such affidavit to be made as before directed in all cases cognizable before the said Commissioners, and they shall have authority to demand and require, from every such person as they shall think proper to be examined touching such claim, true answers upon oath, to be made as before directed, to all such questions as they shall think material in such claim : Second. Whenever the Commissioners for Special Purposes shall have allowed any such exemption, they shall give an order for payment of the sums retained for the duties on such annuities, dividends, and shares, in respect of which they shall have allowed such exemption, to the respective claimants, or to the attornies or agents who shall have been authorized to receive the said an- nuities, dividends, and shares, on behalf of the said claimants ; and such payment shall be made in like manner as is herein- before provided with respect to allowances to be granted under Number V. of Schedule (A.) of this Act. 99. ['And be it enacted, that] if any person shall, with intent to Penalty for defraud her Maiesty, falsely or fraudulently make any claim to be fraudulently j. j --i i i_ -i ij! J.T- j- J.T- j i claiming exempted, either in his own behalf or any other, from the duty exemptions charged on such annuities, or any dividends or shares thereof, con- O f stock, trary to the intent of this Act, every such person shall forfeit the sum of one hundred pounds, and if such claim shall be made by any person in his own behalf he shall moreover be liable to be assessed in treble the duty to be charged on the said annuities and shares. 100. ['And be it enacted, that] the duties hereby granted, contained Duties in in the Schedule marked (D.) shall be assessed and charged under the Schedule (D.) following rules, which rules shall be deemed and construed to be a deemed^art part of this Act, and to refer to the said last-mentioned duties, as if O f the Act. the same had been inserted under a special enactment. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the Chief Office of Inland Revenue. 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. BB2 372 APPENDIX V. To what the duty extends, and by whom to be paid. Rules for ascertaining the duties. Computation of duty on trade. To whom the duty extends. Deductions not to be allowed. SCHEDULE (D.). The said last-mentioned duties shall extend to every description of property or profits which, shall not be contained in either of the said Schedules (A.), (B.), or (C.), and to every description of employment of profit not contained in Schedule (E.), and not specially exempted from the said respective duties, and shall be charged annually on and paid by the persons, bodies politic or corporate, fraternities, fellowships, companies, or societies, whether corporate or not corporate, receiving or entitled unto the same, their executors, administrators, successors, and assigns respectively. Rules for ascertaining the said last-mentioned Duties in the particular Cases herein mentioned. First Case. Duties to be charged in respect of any trade, manufacture, adventure, or concern in the nature of trade, not contained in any other schedule of this Act. RULES. First. The duty to be charged in respect thereof shall be computed on a sum not less than the full amount of the balance of the profits or gains of such trade, manufacture, adventure, or con- cern upon a fair and just average of three years, ending on such day of the year immediately preceding the year of assessment on which the accounts of the said trade, manufacture, adventure, or concern shall have been usually made up, or on the fifth day of April preceding the year of assessment, and shall be assessed, charged, and paid without other deduction than is hereinafter allowed : Provided always, that in cases where the trade, manu- facture, adventure, or concern shall have been set up and com- menced within the said period of three years, the computation shall be made for one year on the average of the balance of the profits and gains from the period of first setting up the same : Provided also, that in cases where the trade, manufacture, ad- venture, or concern shall have been set up and commenced within the year of assessment, the computation shall be made according to the rule in the Sixth Case of this schedule : Second. The said duty shall extend to every person, body politic or corporate, fraternity, fellowship, company, or society, and to every art, mystery, adventure, or concern carried on by them respectively, in Great Britain 1 or elsewhere, as aforesaid ; except always such adventures or concerns on or about lands, tenements, hereditaments, or heritages as are mentioned in Schedule (A.), and directed to be therein charged : Third. In estimating the balance of profits and gains chargeable under Schedule (D.), or for the purpose of assessing the duty thereon, no sum shall be set against or deducted from, or allowed to be set against or deducted from, such profits or gains on account of any sum expended for repairs of premises occupied for the purpose of such trade, manufacture, adventure, or concern, nor for any sum expended for the supply or repairs or alterations of any implements, utensils, or articles employed for the purpose of such trade, manufacture, adventure, or concern beyond the sum usually expended for such purposes according to an average of Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 373 three years preceding the year in which such assessment shall be made ; nor on account of loss not connected with or arising out of such trade, manufacture, adventure, or concern ; nor on account of any capital withdrawn therefrom ; nor for any sum employed or intended to be employed as capital in such trade, manufacture, adventure, or concern ; nor for any capital employed in improve- ment of premises occupied for the purposes of such trade, manu- facture, adventure, or concern ; nor on account or under pretence of any interest which might have been made on such sums if laid out at interest ; nor for any debts, except bad debts proved to be such to the satisfaction of the Commissioners respectively : nor for any average loss beyond the actual amount of loss after adjustment ; nor for any sum recoverable under an insurance or contract of indemnity : Fourth. In estimating the amount of the profits and gains arising No deduction as aforesaid no deduction shall be made on account of any annual for annual interest, or any annuity or other annual payment, payable out of i Qteres t- such profits or gains. Second Case. The duty to be charged in respect of professions, employments, or vocations, not contained in any other schedule of this Act. RULES. First. The said duty on employments shall be construed to extend To what the to every employment by retainer in any character whatever, duty s ^ au whether such retainer shall be annual, or for a longer or shorter exten<1 - period ; and to all profits and earnings of whatever value, subject only to such exemptions as are hereinafter granted : Second. The duty to be charged shall be computed at a sum not Computation less than the full amount of the balance of the profits, gains, and of duty on emoluments of such professions, employments, or vocations (after professions. making such deductions, and no other, as by this Act are allowed,) within the preceding year, ending as in the first case, to be paid on the actual amount of such profits or gains, without any deduc- tion, subject to the like provisions as are made in the first case in respect of the period of average, in the cases of setting up and commencing such profession, employment, or vocation within the period herein limited : Third. The third and fourth rules in the first case shall also Certain rules extend to the profits arising under the second case, as far as they of tne *"** are applicable. Rules applying to both the preceding Cases. First. In estimating the balance of the profits or gains to be charged Deductions according to either of the first or second cases, no sum shall be n t toj* 3 set against or deducted from, or allowed to be set against or fo t w a e nd n deducted from such profits or gains, for any disbursements or second cases. expenses whatever, not being money wholly and exclusively laid out or expended for the purposes of such trade, manufacture, adventure, or concern, or of such profession, employment, or vocation ; nor for any disbursements, or expenses of maintenance of the parties, their families or establishments ; nor for the rent or value of any dwelling house or domestic offices, or any part of such dwelling house or domestic offices, except such part thereof as may be used for the purposes of such trade or concern, not exceeding the proportion of the said rent or value hereinafter 374 APPENDIX V. Duty on trade to be computed exclusive of the profits of lands. Duty on trade carried on by two or more persons, how to te charged. In case of change of partners the mentioned ; nor for any sum expended in any other domestic or private purposes, distinct from the purposes of such trade, manu- facture, adventure, or concern, or of such profession, employment, or vocation : Second. The computation of the duty to be charged in respect of any trade, manufacture, adventure, or concern, or any profession, whether carried on by any person singly or by any one or more persons jointly, or by any corporation, company, fraternity, or society, shall be made exclusive of the profits or gains arising from lands, tenements, or hereditaments occupied for the purpose of such profession, trade, manufacture, adventure, or concern : Third. The computation of duty arising in respect of any trade, manufacture, adventure, or concern, or any profession carried on by two or more persons jointly, shall be made and stated jointly and in one sum, and separately and distinctly from any other duty chargeable on the same persons, or either or any of them; and the return of the partner who shall be first named in the deed, in- strument, or other agreement of copartnership (or where there shall be no such deed, instrument, or agreement, then of the partner who shall be named singly, or with precedence to the other partner or partners, in the usual name, style, or firm of such copartnership, or where such precedent partner shall not be an acting partner, then of the precedent acting partner,) and who shall be resident in Great Britain, 1 (and who is hereby required, under the penalty herein contained for default in making any return required by this Act, to make such return on behalf of himself and the other partner or partners whose names and resi- dences shall also be declared in such return,) shall be sufficient authority to charge such partners jointly : Provided always, that where no such partner shall be resident in Great Britain 1 , then the statement shall be prepared and delivered by their agent, manager, or factor resident in Great Britain 1 , jointly for such partners, and such joint assessment shall be made in the partnership name, style, firm, or description ; and no separate statement shall be allowed in any case of partnership, except for the purpose of the partners separately claiming an exemption as herein directed, or of accounting for separate concerns ; provided that if any partner being entitled to exemption shall declare the proportion of his share in such partnership, trade, profession, or concern, in order to a separate assessment for the above purpose, it shall be lawful to charge such partner separately ; but if no such claim be made, then such assessment shall be made jointly, according to the amount of the profits and gains of such partnership : Provided also, that any joint partner in such trade, profession, or concern, which shall have been already returned by such precedent partner as aforesaid, may return his name and place of abode, and that he is such partner, without returning the amount of duty payable in respect thereof, unless the Commissioners re- spectively shall think proper to require a further return, in which case it shall be lawful for such Commissioners to require from every such partner the like return, and the like information and evidence, as they are hereby entitled to require from the precedent partner : Fourth. If amongst any persons engaged in any trade, manufacture, adventure, or concern, or in any profession, in partnership together, 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 375 any change shall take place in any such partnership, either by duty to be death, or dissolution of partnership as to all or any of the partners, charged on or by admitting any other partner therein, before the time of making the assessment, or within the period for which the assess- ment ought to be made under this Act, or if any person shall have succeeded to any trade, manufacture, adventure, or concern, or any profession, within such respective periods as aforesaid, the duty payable in respect of such partnership, or any of such partners, or any person succeeding to such profession, trade, manufacture, adventure, or concern, shall be computed and ascer- tained according to the profits and gains of such business derived during the respective periods herein mentioned, notwithstanding such change therein or succession to such business as aforesaid, unless such partners, or such person succeeding to such business as aforesaid, shall prove, to the satisfaction of the respective Com- missioners, that the profits and gains of such business have fallen short or will fall short from some specific cause, to be alleged to them, since such change or succession took place, or by reason thereof : Fifth. Every statement of profits to be charged under this schedule Duties to be shall include every source so chargeable on the person delivering charged in the same on his own account, or on account of any other person, one d"" 15 * 011 * and every person shall be chargeable in respect of the whole of t ^ e ^ me such duties in one and the same division, and by the same Com- person is missioners, (except in cases where the same person shall be engaged engaged in in different partnerships, or the same person shall be engaged in differarf _ J./T. i , ' j r P ' j- i concerns in different concerns relating to trade or manufacture in divers places, ^^ ^ ^ vera in each of which cases a separate assessment shall be made in places, respect of each concern at the place where such concern if singly carried on ought to be charged as herein directed,) and every such statement on the behalf of any other person for which such person shall be chargeable as acting in any of the characters before described, or on the behalf of any corporation, fellowship, fraternity, company, or society, shall include every source charge- able as last aforesaid, and shall be delivered in that division where such person, corporation, fellowship, fraternity, company, or society would be chargeable if acting on his or their own behalf. Third Case. The duty to be charged in respect of profits of an uncertain annual value not charged in Schedule (A.). First. The duty to be charged in respect thereof shall be computed Computation at a sum not less than the full amount of the profits or gains of duty on arising therefrom within the preceding year, ending as in the first unce ftain case, to be paid on the actual amount of such profits or gains, pro without any deduction : Second. The .profits on all securities bearing interest payable out On interest, of the public revenue (except securities before directed to be not being charged under the rules of Schedule (C.), and on all discounts, annu al- and on all interest of money, not being annual interest, payable or paid by any person whatever, shall be charged according to the preceding rule in this case : Third. Whenever the Commissioners shall, on examination, find On dealers that any lands occupied by a dealer in cattle, or by a dealer in in cattle and or seller of milk, (which lands shall have been estimated and charged on the rent or annual value,) are not sufficient for the APPENDIX V, Computation of duty from securities in Ireland, in the colonies, &c., and foreign securities. Computation of duty from Eossessions in reland, the colonies, &c. Computation of duty on undescribed profits. keep and sustenance of the cattle brought on the said lands so that the rent or annual value of the said lands cannot afford a just estimate of the profits of such dealer, it shall be lawful for the said Commissioners to require a return of such profits, and to charge such further sum thereon as, together with the charge in respect of the occupation of the said lands, shall make up the full sum wherewith such trader ought to be charged in respect of the like amount of profits charged according to the first rule in this case. Fourth Case. The duty to be charged in respect of interest arising from securities [' in Ireland, or] in the British planta- tions in America, or in any other of her Majesty's dominions out of Great Britain 2 , and foreign securities, except such annuities, dividends, and shares as are directed to be charged under Schedule (C.) of this Act. The duty to be charged in respect thereof shall be computed on a sum not less than the full amount of the sums (so far as the same can be computed) which have been or will be received in Great Britain 2 in the current year, without any deduction or abatement. Fifth Case. The duty to be charged in respect of possessions pin Ireland, or] in the British plantations in America, or in any other of her Majesty's dominions out of Great Britain,* and foreign possessions. The duty to be charged in respect thereof shall be computed on a sum not less than the full amount of the actual sums annually received in Great Britain, 2 either for remittances from thence payable in Great Britain, 2 or from property imported from thence into Great Britain, 2 or from money or value received in Great Britain, 2 and arising from property which shall not have been imported into Great Britain, 2 or from money or value so received on credit or on account in respect of such remittances, property, money, or value brought or to be brought into Great Britain, 2 computing the same on an average of the three preceding years, as directed in the first case, without other deduction or abatement than is hereinbefore allowed in such case. Sixth Case. The duty to be charged in respect of any annual profits or gains not falling under any of the foregoing rules, and not charged by virtue of any of the other schedules con- tained in this Act. The nature of such profits or gains, and the grounds on which the amount thereof shall have been computed, and the average taken thereon (if any), shall be stated to the Commissioners, and the computation shall be made either on the amount of the full 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 directed by the said Commissioners ; and such statement and computation shall be made to the best of the knowledge and belief of the person in receipt of the same or entitled thereto. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 377 101. Provided always, [*and be it enacted,] that nothing herein con- Persons tained shall be construed to restrain any person carrying on, either carrying on solely or in partnership, two or more distinct trades, manufactures, two or more adventures, or concerns in the nature of trade, the profits whereof ^tteloss* 3 '' are made chargeable under the rules of Schedule (D.), from deduct- sustained in ing or setting against the profits acquired in one or more of the said one against concerns the excess of the loss sustained in any other of the said the profits concerns over and above the profits thereof, in such manner as may be fu qui t r ^ d "* done under this Act where a loss shall be deducted from the profits of contra the same concern, or to restrain any of such persons from making , separate statements thereof, or to restrain any such person renting a dwelling house, part whereof shall be used by him for the purposes of any trade or concern or any profession hereby charged, from deduct- ing or setting off from the profits of such trade, concern, or profession such sum not exceeding two third parts of the rent bond fide paid for such dwelling house, with the appurtenances, as the said respective Commissioners shall on due consideration allow ; and the respective Commissioners shall have authority to allow such deductions as in other cases, and to assess such person accordingly. 102. ['And be it enacted, that] upon all annuities, yearly interest Charging of money, or other annual payments, whether such payments shall be with duty payable within or out of Great Britain, 2 either as a charge on any all annual property of the person paying the same by virtue of any deed or will otherwise or otherwise, or as a reservation thereout, or as a personal debt or charged, obligation by virtue of any contract, or whether the same shall be received and payable half-yearly or at any shorter or more distant periods, there shall be charged for every twenty shillings of the annual amount thereof the sum of seven-pence without deduction, according to and under and subject to the provisions by which the duty in the Third Case of Schedule (D.) may be charged ; provided Interest that in every case where the same shall be payable out of profits or * m P^^ te gains brought into charge by virtue of this Act no assessment shall ^ ^S be made upon the person entitled to such annuity, interest, or other annual payment, but the whole of such profits or gains shall be charged with duty on the person liable to such annual payment, without distinguishing such annual payment, and the person so liable to make such annual payment, whether out of the profits or gains charged with duty, or out of any annual payment liable to deduction, or from which a deduction hath been made, shall be authorized to deduct out of such annual payment at the rate of seven-pence for every twenty shillings of the amount thereof, and the person to whom such payment liable to deduction is to be made shall allow such deduction, at the full rate of duty hereby directed to be charged, upon the receipt of the residue of such money, and under the penalty herein- after contained, and the person charged to the said duties having made such deduction shall be acquitted and discharged of so much money as such deduction shall amount unto, as if the amount thereof had actually been paid unto the person to whom such payment shall have been due and payable ; but in every case where any annual payment All other as aforesaid shall, by reason of the same being charged on any interest to property or security [ 3 in Ireland, or] in the British plantations, or in be charged dule (D.). 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 378 APPENDIX V. Interest sectlred on rates to be charged on the officer managing the accounts. Penalty on refusing to allow deduc- tions. Deductions on payment of interest of money, and other pay- ments from profits charged under Sche- dule (D.), to be made by virtue of a certificate. any other of her Majesty's dominions, or on any foreign property or foreign security, or otherwise, be received or receivable without any such deduction as aforesaid, and in every case where any such payment shall be made from profits or gains not charged by this Act, or where any interest of money shall not be reserved or charged or payable for the period of one year, then and in every such case there shall be charged upon such interest, annuity, or other annual payment as aforesaid the duty before mentioned, according to and under and subject to the several and respective provisions by which the duty in the Third Case of Schedule (D.) may be charged : Provided always, that where any creditor on any rates or assessments not chargeable by this Act as profits shall be entitled to such interest, it shall be lawful to charge the proper officer having the management of the accounts with the duty payable on such interest, and every such officer shall be answerable for doing all acts, matters, and things necessary to a due assessment of the said duties, and payment thereof, as if such rates or assessments were profits chargeable under this Act, and such officer shall be in like manner indemnified for all such Acts, as if the said rates and assessments were chargeable. 103. ['And be it enacted, that] if any person shall refuse to allow any deduction authorized to be made by this Act out of any payment of annual interest of money lent, or other debt bearing annual interest, whether the same be secured by mortgage or otherwise, he shall for- feit for every such offence treble the value of such principal money or debt ; and if any person shall refuse to allow any deduction autho- rized to be made by this Act out of any rent or other annual payment mentioned in the ninth and tenth rules of No. IV. Schedule (A.), or out of any annuity or annual payment mentioned in Schedules (0.) or (E.), or in the next preceding clause, save such annual interest as aforesaid, every such person shall forfeit the sum of fifty pounds ; and all contracts, covenants, and agreements made or entered into, or to be made or entered into, for payment of any interest, rent, or other annual payment aforesaid, in full, without allowing such deduction as afore- said, shall be utterly void. 104. [ ! And be it enacted, that] whenever it shall be proved, to the satisfaction of the said respective Commissioners acting in the district where any person making the application shall reside, that any interest of money, annuity, or other annual payment shall be annually paid out of the profits and gains bond fide accounted for and charged by virtue of this Act at the rate and according to the rules specified in Schedule (D.)> without any deduction on account thereof, it shall be lawful for such Commissioners to grant a certificate thereof, under the hands of any two of them, in such form as shall be provided under the authority of this Act, which certificate shall entitle the person so assessed, upon payment of such interest, annuity, or other annual payment, to abate and deduct so much thereof as a like rate on such interest, annuity, or other annual payment would amount unto ; and every person to whom such interest, annuity, or other annual payment shall be paid shall allow such deductions and payments, upon receipt of the residue of such interest, annuity, or other annual payment, and the person paying the same shall be acquitted and discharged of so much money as a like rate thereon would amount unto, as if the same had actually been paid unto the person to whom such interest, annuity, 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 379 or other annual payment shall have been due and payable ; provided no such certificate shall be required where such payments are to be made out of the profits or gains arising from lands, tenements, here- ditaments, or heritages, as before mentioned, or of any office or employment of profit, or out of any annuity, pension, stipend, or any dividend or share in such public annuities as are herein mentioned, but such deductions may be made without having obtained such cer- tificate. 105. Provided always, ['and be it enacted,] that any corporation, Charitable fraternity, or society of persons, and any trustee for charitable pur- institutions poses only, shall be entitled to the same exemption in respect of any f^^^ yearly interest or other annual payment chargeable under Schedule (D.) duties on of this Act, in so far as the same shall be applied to charitable pur- interest poses only, as is hereinbefore granted to such corporation, fraternity, chargeable society, and trustee respectively in respect of any stock or dividends ^ T^ chargeable under Schedule (C.) of this Act, and applied to the like purposes ; and such exemption shall be allowed by the Commissioners for Special Purposes, on due proof before them, and the amount of the duties which shall have been paid by such corporation, fraternity, society, or trustee in respect of such interest or yearly payment, either by deduction from the same or otherwise, shall be repaid, under the order of the said Commissioners for Special Purposes, in the manner hereinbefore provided for the repayment of sums allowed by them, in pursuance of any exemption contained in the said Sche- dule (C.). 106. ['And be it enacted, that] every person being a householder In what dis- (except persons engaged in any trade, manufacture, adventure, or con- tricts the cern, or any profession, employment, or vocation,) shall be charged to r^ f 8 ar fj the said duties contained in Schedule (D.)by Commissioners acting for the parish or place where his dwelling house shall be situate ; and every person engaged in any trade, manufacture, adventure, or con- cern, or any profession, employment, or vocation, shall be chargeable by the respective Commissioners acting for the parish or place where such trade, manufacture, adventure, or concern shall be carried on, or where such profession, employment, or vocation shall be exercised, whether such trade, manufacture, adventure, or concern shall be carried on, or such profession, employment, or vocation shall be exercised, wholly or in part only in Great Britain, 2 or whether such person shall be engaged in one only or more of such concerns, except where the same person shall be engaged in different concerns, and a loss from one concern shall be set off or deducted from the profits of another concern ; and every person not being a householder, nor engaged in any trade, manufacture, adventure, or concern, nor in any profession, employment, or vocation, who shall have any place of ordinary resi- dence, shall be charged by the Commissioners acting for the parish or place where he shall ordinarily reside ; and every person not herein- before described shall be charged by the Commissioners acting for the parish or place where such person shall reside at the time of beginning to execute this Act in each year by giving such general notices as are herein mentioned, or shall first come to reside after the time for giving such general notices ; and every such charge made in such parish or place shall be valid and effectual, notwithstanding the subsequent 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the United Kingdom, see the Income Tax Act, 1853 (1G-7 V. c. 34). 380 APPENDIX V. Declaration to be deli- vered of the place where party is chargeable. In cases of persons not engaged in. trade having two residences, where the duties to be charged. Profits aris- ing from possessions in Ireland, where to be Persons holding offices in Ireland, &c. resident in Great Britain, as such to be chargeable as subjects resident out of Great Britain. Duties on profits of foreign or removal of the person so charged from the parish or place ; and in order that the place where the said last-mentioned duties are to be charged may be ascertained, every person is hereby required, on the delivery of any list or statement as aforesaid, at the same time to deliver a declaration in writing signed by him declaring in what place he is chargeable, and whether he is engaged in any trade, manufacture, adventure, or concern, or in any profession, employment, or vocation, or not, and if he shall be so engaged in any trade, manufacture, adven- ture, or concern, or any profession, employment, or vocation, also declaring the place where the same shall be carried on or exercised, and every particular concern, profession, or employment in which he shall be engaged in such place in Great Britain, 1 whether wholly in Great Britain, 1 or in part only, as aforesaid ; provided that where any trade shall be carried on in Great Britain, 1 by the manufacture of goods, wares, or merchandise, the assessment thereon shall be at the place of manufacture, although the sales of such goods, wares, or merchandise shall be elsewhere : Provided always, that every person not being engaged in any trade, manufacture, adventure, or concern, or in any profession, employment, or vocation, having two or more houses or places at which he shall be ordinarily resident, shall be charged at such of the parishes or places wherein the dwelling house is situate in which he shall be ordinarily resident at the time of begin- ning to execute this Act in each year in manner aforesaid, or in which he shall first come ordinarily to reside after giving such general notices as aforesaid : [ 2 Provided always, that the duty to be assessed by virtue of this Act, in respect of the profits or gains arising from possessions or securities in Ireland, upon any person resident in Great Britain as aforesaid, may be stated to and assessed by the respective Commis- sioners acting for the respective places where the persons receiving or entitled unto the same shall reside ; and if the same shall be received by any agent, attorney, or factor, such agent, attorney, or factor shall make such return of the name and place of abode of the person entitled thereto as is herein required to be made of other persons of full age resident in Great Britain, and if the person entitled thereto shall not be of full age, or not resident in Great Britain, such agent, attorney, or factor shall be answerable for doing all acts, matters, and things required by this Act to be done in order to the assessing such profits to the said last-mentioned duties, and paying the same]. 107. 3 Provided always, and be [it enacted, that persons holding offices in Ireland, and residing in Great Britain, and persons usually residing in Ireland, and serving in Parliament who shall or may be exempted from the duties of assessed taxes under the provisions in that behalf contained in the Acts relating to the said last-mentioned duties, shall, under the like circumstances under which such exemp- tions are to be claimed, be chargeable to the duties under this Act in like manner only as subjects of her Majesty residing out of Great Britain. 108. [ 4 And be it enacted, that] the duty to be assessed by virtue of this Act in respect of the profits or gains arising from foreign possessions or foreign securities, or in the British plantations in 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 3 Sect. 107 is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. America, or in any other of her Majesty's dominions, may be stated colonial to and assessed by the respective Commissioners acting for the respec- possessions tive places hereinafter mentioned, videlicet, London, Bristol, Liver- pool, and Glasgow, according to the regulations hereinafter mentioned, as if such duty had been assessed upon the profits or gains arising from trade or manufacture carried on in such places respectively ; and such duty shall be stated to and assessed and charged by the Commissioners acting for such of the said places at or nearest to which such property shall have been first imported into Great Britain, 1 or at or nearest to which the person who shall have received such remittances, money, or value from thence, and arising from property not imported as aforesaid, shall reside ; and in default of the owner or proprietor thereof being charged, the trustee, agent, or receiver of such profits or gains shall be charged for the same, and shall be answerable for the doing all such acts, matters, and things as shall be required by this Act to be done, in order to the assessing such profits to the duties granted by this Act, and paying the same, whether the person to whom the said profits belong shall be resident in Great Britain 1 or not : Provided always, that whenever the produce or the profits or gains arising from such possessions or securities as last aforesaid shall have been imported partly into the Port of London, and partly into any of the outports of Bristol, Liverpool, or Glasgow, or shall have been received by any person partly in the City of London and partly in any of the said outports, within the period of making up the account on which the duty is chargeable by this Act according to the rules herein contained, the whole of the duty chargeable in respect of such produce, profits, or gains so imported or received shall be assessed and charged by the Commissioners acting for the said City of London, and not elsewhere, and as if the whole of the said produce or the said profits or gains arising within the said period had been imported into or received in London ; and whenever such produce or profits or gains arising as aforesaid shall have been within such period wholly imported into or received at the said outports of Bristol, Liver- pool, and Glasgow, and different parts thereof shall have been imported into or received at two or more of such outports, the duty chargeable thereon shall be assessed and charged at one of such places only, and in one account, and at such of the said places at which the major part in value of such produce or profits or gains shall have been so imported or received ; provided that the statements of such produce, profits, or gains shall be delivered to the Commissioners acting for each place at which any part of the said produce or profits or gains shall have been so imported or received, and transmitted by the respective Commis- sioners to the Head 2 Office for Stamps and Taxes in England, and the Commissioners of [ 3 Stamps and Taxes] shall cause all such statements to be sent to the Commissioners acting for the place where the duty thereon shall appear by such statements to be chargeable according to this Act, who shall accordingly assess the same in one sum. 109. [ 4 And be it enacted, that] the profits arising from the docks London and called the London Docks, the East and West India Docks, and Saint East and Katherine Dock respectively, situate in the county of Middlesex, shall 3^ e ^ ^- n( ^ a be assessed by the Commissioners acting for the City of London. g t Catherine . Dock to be 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). London. 2 Now the Chief Office of Inland Revenue. s Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), a. 9. 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 382 APPENDIX V. Statements to be delivered at each place of residence. Statements of profits under Schedule (D.) may be de- livered under seal. Additional Commis- sioners to consider statements, and make assessments on such as are satisfactory. Where the surveyor is dissatisfied with an assessment, he may re- quire a case to be stated for the opinion of the General Commis- When no statement or no sufficient statement is returned, the additional 110. ['And be it enacted, that] every person having two residences, or carrying on any trade or exercising any profession in different parishes, places, or in any place different from the place of his ordinary residence, shall, if required by the respective Commissioners, deliver at each such parish or place the like lists, declarations, and statements as he is hereby required to deliver in the parish or place where such person ought to be charged, but shall not be liable to any double charge by reason thereof ; and all lists, declarations, and statements containing the amount of profits chargeable under Schedule (D.) may be delivered to the respective persons and in manner herein directed, sealed up, if superscribed with the name and place of abode of, or place of exercising the profession or carrying on trade by, the person by whom the same shall have been made. 111. ['And be it enacted, that] all statements of profits and gains described in Schedule (D.) (except statements whereon assessments are to be made by the Commissioners for Special Purposes, as herein- after authorized,) shall be laid before the additional Commissioners, or the Commissioners for General Purposes acting as additional Com- missioners in their respective districts, who shall appoint meetings for taking all statements then and from time to time to be delivered to them into consideration, within a reasonable time after the inspector or surveyor shall have had the examination of such statements ; and in case the said additional Commissioners respectively shall be satisfied that any such statements have been bond fide made according to the provisions of this Act, and so as to enable the Commissioners to charge the respective persons returning the same with the full duties with which they ought respectively to be charged on account thereof, and in case no information shall be given to the said Commissioners of the insufficiency thereof, or no objection shall be made thereto by the inspector or surveyor, which he is hereby empowered to make for sufficient cause, the said Commissioners shall direct an assessment to be made of the duties chargeable on such statement by virtue of this Act. 112. Provided always, ['and be it enacted,] that where the surveyor or inspector shall apprehend the determination made by the said Commissioners to be contrary to the true intent and meaning of this Act, and shall then declare himself dissatisfied with such determina- tion, it shall be lawful for him to require the said Commissioners to state specially and sign the case upon which the question arose, together with their determination thereupon, which case the said Commissioners are hereby required to state and sign accordingly, and to deliver to the said inspector or surveyor, to be by him transmitted to the Commissioners for General Purposes for the same district, who shall with all convenient speed return an answer to the case so trans- mitted, with their opinion thereon subscribed ; and according to such opinion the assessment which shall have been the cause of such appeal shall be altered or confirmed. 113. ['And be it enacted, that] in every instance in which any person shall have made default in the delivery of any statement, such person not having been otherwise charged to the said last-mentioned duties, or if the said additional Commissioners shall not be satisfied with the statement delivered by any person, or any objection shall be 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 383 made thereto by the inspector or surveyor, (which he is hereby autho- Commis- rized and required to make in writing, setting forth the cause thereof, sioners to whenever he shall see sufficient cause,) or the said Commissioners " gg s ^ nt shall have received any information of the insufficiency of any state- according to ment, the said Commissioners shall make an assessment on such the best of person in such sum as, according to the best of their judgment, ought their judg- to be charged on him by virtue of this Act, which assessment shall m en*- be subject to an appeal, according to the directions hereinafter con- tained. 114. [ ! And be it enacted, that] whenever the additional Commis- Additional sioners shall think it proper to refer any statement to the Commis- Commis- sioners for General Purposes without making any assessment thereon, ^fg^Jj^f^ it shall be lawful for them so to do on delivering to the last-mentioned men t s to Commissioners the case in writing relative to such statement, as the Commis- same shall appear to the said additional Commissioners, with any sioners for matter in question between them, either as to law or fact ; and the General said Commissioners for General Purposes shall proceed to inquire into ur P ses - the merits of such statement, in like manner as they would have been hereby authorized to do in case the said additional Commissioners had made an assessment on such statement, and the party charged had appealed against the same, and thereupon an assessment shall be made according to the determination of the said Commissioners for General Purposes. 115. ['And be it enacted, that] the inspector or surveyor, being Inspector sworn as aforesaid, shall and may at all seasonable times inspect and an( l surveyor examine any assessment which shall be made by the additional Com- ma y exa mine missioners, before the delivery thereof to the Commissioners for an( j en^e^ General Purposes, and in case he shall discover any error in the same assessments which in his judgment shall require amendment, he shall certify the may be same to the said additional Commissioners by whom the assessment amended on shall have been made, and the said additional Commissioners, upon hg""^ 61 sufficient cause being shown to them, shall amend the same as in their judgment the case shall require. 116. [ ! And be it enacted, that] in every case where the inspector or Inspector surveyor shall object to the amount of the duty charged by any assess- or surveyor ment made by the additional Commissioners, which he is hereby *v- 8ta ^ ^ a . empowered to do in any case upon sufficient cause, he shall state such assessments objection in writing to the said additional Commissioners, who shall in writing, ' thereupon certify the same, together with the reasons for making such and to give assessment, and any information they shall have obtained respecting n ti ce to the same, to the Commissioners for General Purposes ; and the said party- inspector or surveyor shall also give such notice thereof to the party assessed as he is required to do by the [ 2 said several Acts relating to the duties of assessed taxes] in cases of surcharge, in order that the party so charged may be at liberty to appear before the said Commis- sioners for General Purposes in support of such assessment. 117. [ J And be it enacted, that] the said additional Commissioners Additional shall cause certificates of assessments to be duly made out, from time Commis- to time as the same shall be completed, distinguishing the ward, goners to parish, or place within their respective districts for which each such tificates^f" assessments. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 For these Acts the Taxes Management Act (43-4 V. c. 19) is now substituted, (see sect. 7 of that Act). 384 APPENDIX V. Persons aggrieved may appeal. For fixing the time for hearing appeals. Notice to be given of the time limited for hearing assessment shall be made,"which shall contain the names and surnames of the parties charged, and the sums which they respectively ought to pay by virtue of this Act, and shall cause such certificates to be entered in books provided for that purpose, according to such forms as shall be transmitted to them by the Commissioners of [ J Stamps and Taxes] ; and the said additional Commissioners shall sign such assessments, and from time to time deliver the same, so entered and signed, to the Commissioners for General Purposes, under cover sealed up, and shall also cause the statements returned to them by the parties so assessed, or by the assessors relating to such assessments, to be delivered at the same time, sealed up in the like manner, to the said Commissioners for General Purposes ; provided that no assessment made by additional Commissioners, or persons acting as such, shall be delivered to the respective parties until the expiration of fourteen days after the assessment, so signed as aforesaid, shall have been delivered to the Commissioners for General Purposes, or the persons acting as such, and the inspector or surveyor shall have had notice thereof. 118. [ 2 And be it enacted, that] if any person shall think himself aggrieved by an assessment made by the said additional Commisioners, or by any objection to such assessment made by any surveyor or inspector as aforesaid, it shall be lawful for him, on giving ten days notice thereof in writing to the inspector or surveyor, to appeal to the Commissioners for General Purposes in the same district where such assessment was made, who shall hear and determine such appeal ; and the Commissioners for General Purposes shall from time to time appoint days for hearing appeals as soon after any assessments shall be returned to them by the additional Commissioners as conveniently can be done, and the assessors shall cause notice of the days so appointed to be given to the respective appellants, and the meetings of the Commis- sioners for the purpose of hearing appeals shall be held from time to time, within the time limited by the said Commissioners, with or with- out adjournment; and no appeal shall be received after the time so limited, except on the ground of diminution of income, as herein mentioned : Provided always, that if any person shall be prevented, by absence, sickness, or other reasonable cause, to be allowed by the said Commissioners, for making or proceeding upon his appeal within the time so limited, it shall be lawful for the said Commissioners to give further time for that purpose, or to admit the same to be made by any agent, clerk, or servant on the behalf of such appellant. 119. [ 2 And be it enacted, that] in order that all appeals upon such assessments may be determined in due time, the Commissioners for General Purposes shall cause a general notice to be fixed up in their office or left with their clerk, and also to be affixed on or near to the door of the church or chapel of such parish or place, or of some adjoin- ing parish or place, in cases requiring the same by reason of any such place having no church or chapel, limiting the time for hearing all appeals, and which appeals shall be limited to be heard within a reasonable time after the cause thereof shall have arisen ; and no appeal shall be heard after the time limited in such notice, unless the appeal shall be made on behalf of any person who shall be absent out of the realm, or prevented by sickness from attending in person within the time so limited, in which cases it shall be lawful for the said Com- 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 385 missioners to postpone any such, appeal from time to time, or to admit other proof than the oath of the party of the truth of the several matters required by this Act to be proved by his oath. 120. ['And be it enacted, that] upon receiving notice of appeal On appeal, against any assessment made as last aforesaid, and also in every case an ? w .hen where the Commissioners for General Purposes shall see cause to allow ^ C i? n t }, the objection of such inspector or surveyor to such assessment, the said surveyor is Commissioners shall direct their precept to the person appealing to allowed, the return to them, within the time limited therein, a schedule containing Commis- such particulars as the said Commissioners shall demand, under the 81one . rs to authority of this Act, for their information, respecting the property of such person, or the trade, manufacture, adventure, or concern in the nature of trade, or the profession, employment, or vocation respectively carried on or exercised by such person, and the amount of the balance of his profits and gains, distinguishing the particular amounts derived from each separate source before mentioned, or respecting the parti- culars of the deductions from any of such profits or gains made in such statements or schedules, and which the said Commissioners are hereby empowered and required to demand, at their discretion, whenever the same shall appear to them necessary for the purposes mentioned in this Act, and so from time to time until a complete schedule, to the satisfaction of the said Commissioners, of all the particulars required by them, shall be delivered ; and every such precept, being delivered to or left at the last or usual place of abode of the person to whom the same shall be directed, shall be binding upon him according to the exigency thereof ; or in case such person shall have removed from the jurisdiction of the said Commissioners, or cannot be found, or his place of abode shall not be known, then, upon fixing such precept on or near to the door of the church or chapel of the place where the Commis- sioners shall meet in the execution of this Act, such precept shall also be binding upon such person according to the exigency thereof, and such person shall make the return required by the said Commissioners within the time limited in such precept, under the penalty in this Act contained, and subject to such charge as the said Commissioners are hereby authorized to make in such case ; to which schedule any inspector or surveyor sworn as aforesaid shall have free access at all reasonable times, and shall take such copies thereof or of any parts thereof or extracts from the same, as he shall think necessary for the due execution of this Act. 121. ['And be it enacted, that] it shall be lawful for the inspector or Inspector or surveyor, sworn as aforesaid, within a reasonable time to be allowed surveyor may by the said Commissioners for General Purposes, after he shall have g^^^. ^ had the examination of such schedules, to object to the same or any 8C h e( i u i e part thereof, and to state such objections in writing, and the cause giving notice thereof, to the best of his knowledge or information ; and the said to the party, inspector or surveyor shall, in every case of objecting to any such schedule, deliver a notice in writing of such objection to the party to be charged, or leave the same at his last or usual place of abode, under cover sealed up and directed to such party, in order that he may, if he shall think fit, appeal from the same to the said Commissioners : Pro- vided always, that no assessment shall be confirmed, nor any alteration therein be made, until the appeal upon such objection or assessment shall be heard and determined. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). R. C C 386 APPENDIX V. Commis- Bioners over- ruling 1 ob- jection, or satisfied with, the assess- ment or schedule, may confirm or alter the assessment accordingly. Commis- sioners may put questions in writing touching any assessment or schedules, and receive answers. 122. ['And be it enacted, that] if, upon receiving the objection of such inspector or surveyor to any schedule, the said Commissioners for General Purposes shall see cause to disallow such objection, or if, upon the hearing of any such appeal as aforesaid, the said Commissioners shall be satisfied with the assessment made by the additional Commis- sioners, or after delivery of a schedule they shall be satisfied therewith, and shall have received no information of the insufficiency thereof, the said Commissioners for General Purposes shall direct such assessment to be confirmed or altered according to such schedule, as the case may require ; provided that in every case where they shall think proper that the said statement on which the additional Commissioners made their assessment, or the schedule delivered to the Commissioners for General Purposes, should be verified, they shall direct the assessor to give notice to the person to be charged with the said duties to appeal- before them to verify the said statement or schedule in the manner hereinafter mentioned ; and every such person is hereby required to appear accordingly before the said Commissioners, and, on oath as aforesaid, to verify the contents of his statement or schedule, and to sign and subscribe the same with his proper name ; and such oath shall be, that the contents of such statement or schedule are true to the best of his judgment or belief, and that the same contains the just balance of the profits and gains arising from the source or sources therein con- tained, after making such reductions as are therein stated, and that no deduction whatever than such as is therein stated, and to such amount only as is therein stated, hath been made from the profits or gains accounted for ; provided always, that such person shall be at liberty to amend his said statement or schedule before he shall be required to take such oath ; and after such oath, and in every case where such statement or schedule shall not have been objected to as aforesaid, and the said Commissioners shall be satisfied therewith, they shall make an assessment according thereto, on the amount therein stated, at which the duty shall have been computed ; and every such assess- ment, made after verification of such statement or schedule, shall be final and conclusive as to the matters contained in such statement or schedule. 123. [ J And be it enacted, that] whenever the Commissioners for General Purposes shall be dissatisfied with any assessment returned by the additional Commissioners to them, or with any schedule delivered to them, or shall require further information respecting the same, it shall be lawful for the said Commissioners for General Purposes to put any question in writing touching such assessment, or the contents of such schedule, or touching any of the matters which ought to be contained therein, or any sums which shall have been set against or deducted from the profits or gains to be estimated in such assessment or schedule, and the particulars thereof, and to demand an answer in writing accordingly from and signed by the person to be charged, and so from time to time whenever the said Commissioners shall think the same necessary, and the said Commis- sioners for General Purposes shall from time to time issue their precept, requiring true and particular answers to be given to such questions within seven days after the service of such precept ; and every such person shall make true and particular answers, in writing, signed by him, to such questions, within the time limited by such 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 387 precept, or shall within the like period tender himself before the said Commissioners for General Purposes to be examined by them viva voce to such matters ; and ever}* person required to make such answers, or appearing before the said Commissioners to be examined as a party, or as the clerk, agent, or servant of such party, as herein is mentioned, shall be permitted to give his answers, either in writing as aforesaid or viva voce, without having taken any oath, and shall be at liberty to object to any question, and peremptorily to refuse answering the same; and the substance of such answers as he shall give viva voce shall, in his presence, be reduced into writing and read to him, and he shall be at liberty to alter any part thereof, and also to alter or amend any particular contained in his answers in writing, or in any schedule or declaration, before he shall be called upon to verify the same in the manner herein directed ; and every such schedule shall be altered or amended as shall seem requisite, after such inquiry or examination. 124. ['And be it enacted, that] it shall be lawful for the Commis- jCommis- sioners for General Purposes, in every such case as aforesaid, whenever 6 i ners f r they shall think the same necessary, to require the person upon whom ^ eneral " ur ~ ,1,11 11,1 ii-,. i r-, 1 .1 poses may any assessment ham been made by the additional Commissioners, with au U pon the which the said Commissioners for General Purposes are dissatisfied, or party to from whom such schedule or answers in writing as aforesaid have verify their been received, with which the said Commissioners are dissatisfied, to answ eraon i'j>,i i ,1 01 examination, appear and verity the same, and, upon the appearance of such person, upon oa th . to permit him to alter or amend such schedule or answers, and there- upon to administer to such person the oath, hereinafter mentioned, and also to require any person who shall have been examined viva voce before them to verify his examination on oath, which any one of the said Commissioners is hereby empowered to administer, and such oath shall be, that the contents of the said statements or schedules are true to the best of his knowledge and belief and contain a full and true account of the balance of all the profits and gains of the deponent chargeable by this Act, to the best of his knowledge and belief, and a full and true account of every deduction made from his profits or gains in adjusting such balance, or that the contents of all such answers in writing as shall have been returned to the said Commissioners by him as the same are then stated or that the contents of his examination, as the same have been reduced into writing, are true ; and every such oath shall be subscribed by the party taking the same. 125. ['And be it enacted, that] it shall be lawful for the Commis- may summon sioners for General Purposes to summon in like manner any person, "witnesses, whom they shall think able to give evidence or testimony respecting f? e3 the assessment made or to be made on any other person, to appear O ath. before them to be examined, and to examine every such person, who shall so appear before them on oath (except the clerk, agent, or servant of the person to be charged, or other person confidentially intrusted or employed in the affairs of such party to be charged, and who shall respectively be examined in the same manner and subject to the same restrictions as are hereinbefore provided for the viva voce examination of any party touching the assessments to be charged on him), which oath any one of the said Commissioners is hereby empowered to administer ; and such oath shall be, that the testimony or evidence to be given by such person shall contain the whole truth, and nothing but the truth, in respect of the matter in 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). cc2 388 APPENDIX V. Penalty for refusing to attend or to be examined. Commis- sioners agree- ing to make an assessment on the sche- dule may do so ; but in certain cases Commis- sioners may make an assessment according to their judg- ment, which shall be final. Where an assessment shall be in- creased, the Commis- sioners may charge the party with the penalty, question concerning which such evidence or testimony is to be given, and every such oath shall be subscribed by the person taking the same ; and if any person, being duly summoned as aforesaid, shall refuse or neglect to appear before the said Commissioners at the time and place to be appointed for that purpose, or if any person, other than such clerk, agent, servant, or person confidentially intrusted or employed as aforesaid, being summoned, shall appear before the said Commissioners, but shall refuse to be sworn, or to subscribe such oath as aforesaid, or, having taken and subscribed such oath, shall refuse to answer any lawful question touching the matter depending before the said Commissioners, every person so offending shall forfeit any sum not exceeding twenty pounds. 126. [*And be it enacted, that] if the Commissioners for General Purposes, or the major part of them present, after hearing all such appeals as shall be depending before them, or upon any objection made by the inspector or surveyor to any such assessment or schedule, whether such inquiry or examination as aforesaid shall have taken place or not, shall agree to make an assessment according to the state- ment contained in the said schedule, as the same shall have been returned, or altered or amended upon appeal as aforesaid, they shall direct an assessment to be made of the duties chargeable on the statement contained in the said schedule at the rate contained in this Act ; and if the said Commissioners shall think proper to require a verification of the said schedule, they shall give notice in manner aforesaid to the party to appear before them to verify the same, and such verification shall be made by the party in such manner, and such assessment thereupon shall be made, as hereinbefore directed, which assessment shall be final and conclusive ; but nevertheless, in every instance where any person shall have neglected or refused to return such schedule according to the exigency of the precept of the said Commissioners, or if any clerk, agent, or servant of such party as aforesaid, being summoned, shall have neglected or refused to appear before the Commissioners to be examined, or if such party, or his clerk, agent, or servant, as aforesaid shall have declined to answer any ques- tion put to him by the said Commissioners in writing or v ivd voce, or where the schedule delivered shall have been objected to as aforesaid, and such objection shall not have been appealed against within such reasonable time as is directed by this Act, or where any person, being required, so to do, shall have neglected or refused to verify his state- ment or schedule, or his answers or examination in writing, or where the Commissioners shall agree as aforesaid to allow the objections, or any of them, made by such inspector or surveyor, it shall be lawful for the said Commissioners, and they are hereby required, in every such case, according to the best of their judgment, to settle and ascertain in what sums such person ought to be charged, and to make an assess- ment accordingly, which assessment shall be final and conclusive. 127. [ J And be it enacted, that] in every case where the Commis- sioners for General Purposes shall have made any increased assessment upon the amount contained in the statement or schedule of the party to be charged, or shall at any time during the continuance of this Act discover that any increase ought to be made, whether upon the sur- charge of the inspector or surveyor, or from his information, or other- wise, it shall be lawful for them to charge such person in a sum not 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 389 exceeding treble the amount by which the duties shall have been not exceeding increased; (that is to say,) where the party shall have refused or treb e the neglected to deliver any statement or schedule, then in a sum not duty 1 " 1 exceeding treble the amount of the sum which, according to the rate prescribed in Schedule (D.), such person, in the judgment of the said Commissioners, ought to be charged at, to be added to the assessment, and applied as directed by this Act in other cases of increased assessments, and in case a statement or schedule shall have been so delivered, then in a sum not exceeding treble the amount beyond the amount contained in such statement or schedule, unless such person shall in every such case make it appear to the satisfaction of the said Commissioners that the omission complained of did not pro- ceed from any fraud, covin, art, or contrivance, or any gross or wilful neglect. 128. ['And be it enacted, that] if any person required by the Com- Penalty on missioners for General Purposes to make out and deliver any schedule P erson s to the person to whom the same ought to be delivered in pursuance of delirersch ^ this Act shall refuse or neglect so to do, or shall refuse or neglect to diiies, or appear before the said Commissioners, or to verify upon oath before attend sum- them any statement or schedule by him delivered, within the time mon s of Corn- limited by such Commissioners, in pursuance of this Act, every such missioners - person so offending shall forfeit any sum not exceeding twenty pounds, and treble the duty at which he ought to be assessed. 129. Provided always, ['and be it enacted,] that if any person who Schedules shall have delivered a statement or schedule shall discover any omis- ma 7 be sion or wrong statement therein, it shall be lawful for him to deliver a an additional statement or schedule rectifjdng such omission or wrong statement, and such person shall not afterwards be subject to any proceeding by reason of such omission or wrong statement ; and if any person shall not have delivered a statement or schedule within the time limited by the Commissioners for that purpose, it shall be lawful for him to deliver a statement or schedule, in manner herein directed, at any time before a proceeding shall be had to recover the penalty herein mentioned, and no proceeding shall be afterwards had for recovering such penalty ; and if any proceeding shall have been actually had before the Commissioners for recovering such penalty, it shall be lawful for the same Commissioners, on due proof to their satisfaction that no fraud or evasion whatever was intended, to stay such proceed- ings, either on the terms of paying or without paying the costs then incurred, as the Commissioners shall think fit ; and if any proceeding shall have been commenced in any Court, it shall be lawful for the Commissioners to certify, that in their judgment, no fraud or evasion was intended by the party making such omission, and it shall be lawful for any judge of such Court, on a summary application, to stay such proceedings on such terms as he shall think fit ; or if such person shall have delivered an imperfect statement or schedule, and shall give to the Commissioners a sufficient reason why a perfect statement or schedule cannot be delivered, the said Commissioners, being satisfied therewith, shall give further time, and so from time to time, for the delivery of such statement or schedule ; and such person shall not be liable to any penalty for not having delivered such statement or schedule within the time before limited, in case such person shall have delivered as perfect a statement or schedule as from the nature of the 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 390 APPENDIX V. case lie was enabled to give, and so from time to time as long as the Commissioners shall grant further time as aforesaid. Parties 130. Provided always, ['and be it enacted,] that in any case in assessed or -^hidi an appeal is allowed to be made to the Commissioners for r^th duties General Purposes against any assessment of the duties contained in in Schedule Schedule (D.) of this Act, or against any objection of the inspector or (D.) may surveyor to such assessment, or against any surcharge of the said appeal to duties, it shall be lawful for the person assessed or charged, if he shall Special Com- think fit, instead of appealing to the said Commissioners for General missioners. -,-, -. *.* , fP . . * a i T> Purposes, to appeal to the Commissioners tor Special Purposes, upon giving notice thereof in writing to the inspector or surveyor within the time limited for notices of appeal to the Commissioners for General Purposes in similar cases, and thereupon every such appeal shall be heard and determined by two or more of the Commissioners for Special Purposes who shall be directed by the Commissioners of [ 2 Stamps and Taxes] to hear appeals in the district in which such appellant shall be chargeable, and the determination of the said Commissioners for Claims of Special Purposes shall be final and conclusive in the matter : Provided exemption always, that no person who shall claim the exemption hereinafter beino- less granted to persons whose annual income is less than one hundred and thani507. to fifty pounds shall be allowed to appeal to the said Commissioners for be determined Special Purposes, but that every such claim shall be determined by by General ^h e Commissioners for General Purposes as hereinafter directed. Commis- sioners. 131, p rOT ided also, ['and be it enacted,] that it shall be lawful for Persons any person chargeable to the duties contained in the said Schedule (D.), chargeable an( j w lio g^all not claim the said exemption hereinafter granted, to dule^D ) mav rec l u i re > ^ h e shall think fit, that all proceedings in order to an assess- require the ment upon him, in respect of profits and gains chargeable under the proceedings said schedule, shall be had and taken before the Commissioners for in order to Special Purposes in the manner hereinafter directed, instead of the ^Ixflf^r 11 additional Commissioners or the Commissioners for General Purposes, before Special provided he shall deliver a notice of such request, together with the Commis- list, declaration, and statement of such profits and gains, to the assessor sioners. of the parish or place, to be by him transmitted to the inspector or surveyor of the district in which the same shall be chargeable, within the time to be limited by the general notice hereinbefore directed to be given for delivery of all such lists and statements as aforesaid ; and thereupon the said inspector or surveyor shall examine the said list and statement, and shall compute and assess the duties which, accord- ing to his judgment, shall be chargeable upon the party under the said Schedule (D.), and shall make a certificate of such assessment, and deliver the same, together with the said list, declaration, and statement, to the Commissioners for Special Purposes, who shall examine the same, and make or sign and allow such an assessment of the said duties as shall appear to them to be just and proper, subject to an appeal by the party to be charged, or by the inspector or surveyor objecting to such assessment, in like manner and under the like rules and regulations as in cases of appeal against assessments made by the said additional Commissioners ; and every such appeal shall be heard and determined by the Commissioners for Special Purposes directed by the Commissioners of [ 2 Stamps and Taxes] to hear appeals in such district ; provided that if either the party to be charged, or the inspector 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), B. 9. THE INCOME TAX ACT, 1842. or surveyor, shall apprehend the determination of the said Commis- sioners for Special Purposes on such appeal to be erroneous in any particular, and shall then express himself dissatisfied therewith, the said Commissioners, if required by him, shall state specially and sign the case on which the question arose, together with their determination thereon, and transmit the same to the Commissioners of ['Stamps and Taxes] for their opinion ; and the said last-mentioned Commissioners shall, with all convenient speed, state and subscribe their opinion on the case so transmitted, and according to such opinion the assessment which shall have been the subject of appeal shall be altered or con- firmed, and the decision of the Commissioners of [ J Stamps and Taxes] shall be final and conclusive in the matter ; and in every case in which an assessment shall be made by the said Commissioners for Special Purposes they shall notify the amount thereof to the party assessed, who shall cause the same to be paid to the Receiver General of ['Stamps and Taxes] or the proper officer for receipt in England or Scotland, 2 at such time or times and in such manner as the said Commissioners shall direct ; and in default of such payment the said Commissioners shall make a duplicate of such assessment, and deliver the same, together with their warrant for levying the amount thereof, to the collector of the duties appointed by the Commissioners for General Purposes for the parish or place in which the party assessed shall reside, and such collector is hereby authorized and required to levy and raise the duties so assessed according to the exigency of such warrant. 132. [ 3 And be it enacted, that] whenever by this Act authority is Powers and given to the Commissioners for Special Purposes to make, sign, or Authorities of n , j i General Corn- allow any assessment, or to hear any appeal, then and in every such m i ss i onerg case all the powers and authorities, rules and regulations, which under may be or by virtue of this or any other Act may be exercised or put in force exercised by by the said additional Commissioners or the said Commissioners for Special Corn- General Purposes, or by or under their warrant, order, or direction respectively, with relation to the making, signing, or allowing of any assessment, or to the proceedings on any appeal before them, or to the collecting, levying, and receiving of any of the duties hereby granted, shall and may lawfully be exercised and put in force by the said Com- missioners for Special Purposes, or by or under their warrant, order, or direction, with reference to any assessment to be made, signed, or allowed by such last-mentioned Commissioners, or any appeal to be heard or determined by them. 133. [ 3 And be it enacted, that] if within or at the end of the year Abatement on current at the time of making any assessment under this Act, or at the account of end of any year when such assessment ought to have been made, any Diminution of person charged to the duties contained in Schedule (D.), whether he to be allowed, shall have computed his profits or gains arising as last aforesaid on the amount thereof in the preceding or current year, or on an average of years, shall find, and shall prove to the satisfaction of the Com- missioners by whom the assessment was made, that his profits and gains during such year for which the computation was made fell short of the sum so computed in respect of the same source of profit on which the computation was made, it shall be lawful for the said Commis- sioners to cause the assessment made for such current year to be 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), a. 9. 2 Ireland is now added, see the Income Tax Act, 1853 (16-7 V. c. 34). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 392 APPENDIX V. Abatement to be allowed when persons shall cease to exercise any trade or shall die before the end of the year. Commis- sioners to be assessed to duties under Schedule (D.) as other persons. Not to be present dur- ing the con- sideration of their state- ments. amended in respect of such source of profit, as the case shall require, and in case the sum assessed shall have been paid, to certify under their hands to the Commissioners for Special Purposes at the Head 1 Office for Stamps and Taxes in England the amount of the sum overpaid upon such first assessment, and thereupon the said last- mentioned Commissioners shall issue an order for the repayment of such sum as shall have been so overpaid, and such order shall be directed to the Receiver General of [ 2 Stamps and Taxes,] or to an officer for receipt or collector of the duties granted by this Act, or to a distributor or sub -distributor of stamps, and shall authorize and require the repayment of the said sum so overpaid as aforesaid, in like manner as is hereinbefore provided with respect to the allowances to be granted under No. V. of Schedule (A.) of this Act. 134. [ 3 And be it enacted, that] in case any person charged to the said duties under Schedule (D.), whether the computation thereon shall have been made on the profits of one year or on an average, as herein allowed, shall cease to exercise the profession, or to carry on the trade, employment, or vocation, in respect whereof such assessment was made, or shall die, or become bankrupt or insolvent, before the end of the year for making such assessment, or shall from any other specific cause be deprived of or lose the profits or gains on which the computation of duty charged in such assessment was made, it shall be lawful for such person, or his executors or administrators, to make application to the Commissioners for General Purposes of the district, within three calendar months after the end of such year, and on due proof thereof to their satisfaction the said Commissioners shall cause the assessment to be amended, as the case may require, and give such relief to the party charged, or his executors or administrators, as shall be just, and in cases requiring the same the said Commissioners shall direct, in manner before mentioned, repayment to' be made of such sum as shall have been overpaid on the assessment amended or vacated : Provided always, that where any person shall have succeeded to the trade or business of the party charged, no such abatement shall be made, unless it shall be proved to the satisfaction of the said Com- missioners that the profits and gains of such trade or business have fallen short from some specific cause, to be alleged to them and proved, since such change or succession took place, or by reason thereof, but such person so succeeding to the same shall be liable to the payment of the full duties thereon without any new assessment. 135. [ 3 And be it enacted, that] the persons acting as Commissioners in the execution of this Act shall be charged and assessed to the duties contained in Schedule (I).), if liable thereto, in like manner as any other person may be charged and assessed to the said duties: Provided always, that any Commissioners whose statement or schedule shall be under consideration, or shall be concerned or interested therein, either for himself or for any other person, in any character before described, shall have no voice, and shall not be present, except upon an appeal, for the purpose of being examined vivd voce by the Commissioners then having his assessment or schedule under consideration, but shall withdraw during the consideration and determination thereof. 1 Now the Chief Office of Inland Revenue. 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), 8. 9. 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 136. ['And be it enacted, that] the Commissioners for General Commis- Purposes acting in relation to the duties contained in Schedule (D.) sl o ner * to . shall, in their respective books of assessment, enter and cause to be asges8m ents entered the several amounts of the sums assessed by them ; and they i n books, shall from time to time make out, and transmit to the Commissioners and send of [ 2 Stamps and Taxes,] accounts of the amount of duty assessed by ?f co ^ 8to them, distinguishing the amount charged on each person, which O f < g tam < ^g accounts shall severally be made out, with the particulars required by an( j Taxes, this Act ; and they shall also from time to time make out, and transmit to the said Commissioners of [ 2 Stamps and Taxes,] lists containing the name, description, and place of residence of every person assessed by them respectively, as soon as the same conveniently can be done, which lists shall be made out according to an alphabetical arrangement of the respective parishes or places of residence in their respective districts. 137. ['And be it enacted, that] all assessments upon profits or Assessments gains under Schedule (D.) made by the Commissioners for General ^ n f e ^ c A e " Purposes shall be entered in books, with the names and descriptions i^ e ntere( j of the persons, corporations, companies, or societies to be charged an( j certifi- therewith, and their respective places of abode set opposite thereto, cates of the and which entries shall respectively be numbered progressively, or amount to lettered, or distinguished by numbers or letters, as the said Commis- . e deuver f d sioners shall think proper ; and that when and as soon as the said ^letter Commissioners shall have caused to be made any such entry in such -without the book, in case the person charged by such assessment shall have name of the declared his intention to pay the duty to the proper officer for receipt parties, where within the time limited by this Act for payment thereof, and in case pa^^^to the said Commissioners shall be satisfied with such declaration, they the officer shall deliver to such person, or to such other person as shall be there for receipt, attending on his behalf, a certificate under the hands of two or more of such Commissioners, specifying the amount of the sums to be paid within one year upon such assessment ; and every such certificate shall be numbered or lettered with the same number or letter as the entry in the book of the said Commissioners to which such certificate shall relate shall be marked and numbered or lettered, without naming or otherwise describing the person charged thereby ; which certificate shall, on production thereof, be a sufficient authority to the said officer for receipt from time to time to receive from any person bearing and producing such certificate the amount of the sums therein contained, in such proportions thereof as by this Act are made payable by instal- ments, and at the times by this Act appointed for payment thereof, or in advance ; and on the payment of the sums contained in any such certificate, or any proportion thereof, the said officer for receipt shall give certificates for the same acknowledging the receipt of the sum paid on account of the certificate of the said respective Commissioners by the number or letter marked thereon as before directed. 138. ['And be it enacted, that] in all cases where the Commissioners C'ommis- shall not have received a declaration of the intended payment to the s i ners to officer for receipt as aforesaid of the duty to be charged under Sche- dellver dule (D.)' or shall not be satisfied with such declaration, they shall collectors, deliver a duplicate of the assessments to the collector, with the names except where and descriptions of the parties charged therewith, together with their parties are warrants for collecting the same, in such form and under the like assesse ^- by a number - or letter. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 394 APPENDIX V. Duplicates to be delivered to officers for receipt, and where assessments are made under a number or letter, with, warrants for receiving the duties. Persons charged to pay the duties to the proper officer for receipt before the days ap- pointed by the Act ; and in default the duties may be levied. Duties may be paid in advance, subject to discount. powers as they are authorized to collect the duty under any of the other schedules contained in this Act ; and if after the receipt of any such declaration the duties shall not be duly satisfied and paid accord- ingly, the said Commissioners shall cause the names of the defaulters, and the amount of duty assessed on each, to be inserted from time to time in the duplicate of such collector ; and the warrant for collect- ing the same shall be of the like force and effect as if such names and sums had been inserted therein at the time of issuing such warrant. 139. [*And be it enacted, that] it shall be lawful for the respective Commissioners for General Purposes to issue out and deliver to the respective officers for receipt duplicates of the assessments made by them, containing the sums assessed on every person to whom a cer- tificate hath been delivered by letter or number, together with the number or letter set opposite thereto in their respective books before mentioned, without naming such persons, with their warrants for receiving the duties charged by such Commissioners respectively when the same shall become payable as aforesaid ; and all such sums shall be paid to the respective officers for receipt, and such part thereof as shall not be so paid to them may be levied and collected as herein is mentioned ; and if not so paid, levied, or collected, the same shall be recoverable as a debt to the Queen's Majesty, with full costs of suit, and all charges and expenses attending the same. 140. [*And be it enacted, that] the duties payable on such last- mentioned assessments shall be paid to the proper officer for receipt, by such instalments as by this Act is directed, before the respective days appointed for such payments, according to the regulations of this Act, or by three or two instalments, or in one sum in full, as the parties shall choose ; and the certificates hereby required to be given on such payments shall be delivered to the respective Commissioners, or to one or more of them, or to their clerk, at their office, before the times when the same are hereby made payable, taking his or their receipt for the same, which receipt shall be a sufficient discharge for the money so paid in satisfaction of so much of the assessment as shall be mentioned in such certificate to be so paid ; and if any person shall neglect to pay such duties at the time and in the manner hereby directed for payment thereof, or, having paid the same, shall neglect to deliver the certifi- cate required to be given on such payment as hereinbefore directed, it shall be lawful for the Commissioners for General Purposes, and they are hereby required, to deliver a duplicate of all sums assessed on any person who shall have made default in paying or accounting for the payment of the same, together with their warrant, to such collector as they shall appoint to levy the sum in arrear and unpaid, and such duplicate shall be made out, and such sums shall be levied, according to the regulations of the [ 2 said Acts relating to the duties of assessed taxes], 141. [ l And be it enacted, that] it shall be lawful for any person to pay in advance to the Receiver General of [ 3 Stamps and Taxes,] or to the proper officer for receipt, any sum of money charged as aforesaid, and to require a certificate acknowledging such payment ; and it shall 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (-51-2 V.c. 57). - For these Acts the Taxes Management Act (43-4 V. c. 19), is now sub- stituted. See sect. 7 of that Act. 3 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. THE INCOME TAX ACT, 1842. 395 be lawful for the said Eeceiver General or officer for receipt, on pro- duction of the notice or certificate of such assessment at the time of payment of the said duty in advance (the sum so paid not in any case to be less than the sum \vhich appears by such certificate to be payable by two instalments), to make an allowance, at the rate 1 of four pounds per centum per annum, out of the sum so paid in advance, calculated upon such sum for the period by which the same shall be paid sooner than the period prescribed by this Act for the payment thereof ; and in every such case the said Eeceiver General or officer for receipt shall give the person paying the same a certificate of such payment, specify- ing therein the number of instalments thereby discharged, and the amount of the allowance for such prompt payment, and referring thereby to the notice or certificate of assessment then produced, and the name, number, or letter therein mentioned ; and all such allow- ances shall be made at the time of paying the said duties ; and such certificates as aforesaid, being delivered at the respective offices of the Commissioners for executing this Act, shall be received by them as cash in discharge of the assessments, and shall be allowed to them in their accounts. 142. [ 2 And be it enacted, that] upon the payment of any such sum One certifi- of money as aforesaid the said Eeceiver General or officer for receipt cate or sepa- shall give such certificate as aforesaid for the whole of the sum so paid, r! or separate certificates in like form for such portions thereof as shall e given' as be required, which certificates shall severally be cut off iudentwise from required for the counter-cheques thereof, which counter-cheques are to remain with the duties so the said Eeceiver General or officer for receipt ; and every such certi- P^- ficate shall be denominated in the body thereof to be on account of payments made in discharge of the duties assessed by virtue of this Act ; and upon the delivery of any such certificate as last aforesaid to On delivery the said Commissioners for General Purposes, or at their office, in dis- of certificates charge of the whole or any part of the said duties assessed or charged to.*^ 6 Com- ,-< j i- J J ,./. . j r* imssioners, upon the person delivering such, certificate, the said Commissioners or t ^ e c i eT ^ ^ their clerk shall, if required, indorse in writing on the back of the give a receipt, certificate to be given by them or him in such case the amount of the which shall number of instalments of the said duties to be discharged by such *> e a discharge payments, which receipts of the said Commissioners or their clerks as ( aforesaid shall be received, without further proof, as evidence of such payments, in all Courts and places and before all persons whatever. 143. 3 And whereas it is expedient to relieve persons who may be After assess- willing to compound on the terms hereinafter mentioned for the duties ent . "j 1 ^ 6 bv on the profits and gains described in the said Schedule (D.) from ^ssioners^f making any further return of such profits and gains chargeable in the duties under second and third years of the term limited for the continuance of this Schedule (D.) Act ; be it enacted, that every person desirous of compounding for the parties may said duties shall deliver the list and statement of his profits and gains m oui l (i chargeable under the said Schedule (D.) in the first year of this Act to threevearL the assessor of the parish or place in which such profits are charge- able, in order to an assessment of the duties thereon being made by the said Commissioners for Special Purposes, and such person shall at the same time also deliver to the said assessor a notice signed by such 1 The rate is now 1\ per cent, instead of 4 per cent., The Revenue Act, 1889 (52-3 V. c. 42), s. 10. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 3 Section 143 is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 396 APPENDIX V. Terms of composition. Not necessary to deliver statements in subsequent years. On refusal to sign contract, assessment to be collected in the usual course. Form and requisites of contract of composition. person of his desire to compound for the duties thereon in the manner allowed by this Act ; and when such assessment shall have been made by the said Commissioners (any appeal allowed by .this Act and made against the same having been first determined) it shall be lawful for the said Commissioners for Special Purposes to contract and agree with such person for a composition for the said duties, on the terms hereinafter mentioned, for the period of three years, limited for the continuance of this Act, provided such person shall enter into and sign a contract of composition within the space of one calendar month next after the making of such assessment shall have been notified to him, and his appeal against the same (if any) shall have been determined ; and the terms of such composition shall be, the payment in each and every year of the said term of the amount of the said assessment so made as aforesaid, together with an addition thereto at and after the rate of one shilling for every twenty shillings of the sum assessed as aforesaid, which addition shall be made by the said Commissioners to the said assessment so made for the first year of the said term, and in each subsequent year thereof the assessment of the said duties under Schedule (D.), upon the person who shall have entered into such contract of composition, shall be made by the Commissioners for Special Purposes in a sum equal to the aggregate amount of the said first year's assessment, with the said additional rate thereon ; and it shall not be necessary for such person to deliver any further list, declaration, or statement of profits described in the said Schedule (D.), during the said term of composition : Provided always, that if the person upon whom such assessment as aforesaid shall have been made shall neglect or refuse to enter into and sign such contract of compo- sition within the time herein limited for that purpose, the assessment so made, without the said additional rate, shall be collected, levied, and recovered in like manner as any other assessment made by the Commissioners executing this Act. 144. ' And be it enacted, that the contract of composition may be made in the following form ; videlicet, "WHEREAS an assessment of the duties on profits and gains charge- able under Schedule (D.) of an Act passed in the year of Queen Victoria, intituled an Act [set forth the title of this Act], hath been duly made by two of the Commissioners for Special Purposes acting in the execution of the said Act, upon A.B. of, &c., in the sum of for the year ending on the fifth day of April one thousand eight hundred and forty-three, and the said A.B. is desirous of compounding for the said duties, as allowed by the said Act, for the term hereinafter mentioned : We, the undersigned, two of the Commissioners for Special Pur- poses acting in the execution of the said Act, have, by virtue and in pursuance of the power and authority thereby given to us in this behalf, contracted and agreed with the said A.B. for a composition for the said duties, chargeable or which may become chargeable upon him under the said Schedule (D.) during the term of three years, to be computed from the fifth day of April one thousand eight hundred and forty- two, and the following are the terms of such composition ; (that is to say,) The said A.B., his heirs, executors, or administrators, shall well and truly pay to for the use of her Majesty, in each and every year of the said term, the sum of (being the 1 Section 144 is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). THE INCOME TAX ACT, 1842. 397 amount of the said assessment, together with an addition thereto at and after the rate of one shilling for every twenty shillings of the sum assessed as aforesaid) by four equal quarterly instalments ; (videlicet ;) First instalment, on or before the twentieth day of June ; Second instalment, on or before the twentieth day of September ; Third instalment, on or before the twentieth day of De- cember ; Fourth instalment, on or before the twentieth day of March ; in each and every year of the term aforesaid : Provided always, that the instalments now due and payable according to the tenor of this contract shall be paid, together with the instalment, on or before the day of now next ensuing. Dated this day of /a- i\ ( Commissioners for Special Purposes (*); ( under the Act Viet. c Witness to the signing hereof ) by the said A.B, ) A.B. the party hereto. Inspector [or Surveyor] of Taxes." And every such contract of composition shall be made in two parts, which shall be severally signed by two Commissioners for Special Purposes, and by the person compounding, the signing whereof by such person shall be witnessed and attested by the inspector or surveyor of the district in which such person shall reside, or be charge- able for the said duties, and one of such parts of the said contract so signed shall be delivered to the person compounding, and the other part shall be transmitted to the Head Office for Stamps and Taxes in England or Scotland, as the case may be ; and every such contract The contract shall be an authority for the Commissioners for Special Purposes to to be an make an assessment on the party compounding for each respective ^ Ut " or j_ t 7^ year of the said term of composition in the sum specified in such an annua i contract as the annual amount to be paid for such composition, and to assessment cause the same to be collected, levied, and paid over at such times and on the parby in such manner, and by all or any of such ways and means, as are oom po u n and the annual amount to be paid by the party compounding, and the accordingly, several instalments thereof when and as they respectively become pay- able according to the tenor and effect of such contract, shall be a debt due to the Queen's Majesty from the said party compounding, his heirs, executors, and administrators, and shall be recoverable by all or any of the ways or means by which any such debt may be recovered together with full costs of suit, and all charges and expenses attending the same : Provided also, that if any person who shall have com- Composition pounded as aforesaid shall die, or become bankrupt or insolvent, before to cease on the expiration of the said term of three years, his contract of composition ^ 1 April shall cease and determine on the 5th day of April next after his death, th* death* bankruptcy, or insolvency, save and except as to any instalment of bankruptcy duty which before the said day shall have become payable and shall or insolvency then remain unpaid. * com " pounder. 398 APPENDIX V. Penalty for fraud in compounding, Duties in Schedule (E.) and Rules, part of this Act ; to be charged for all salaries, fees, or profits ; after deduct- ing duties chargeable on the same by Act of Parliament. Provision respecting arrears on quitting office or dying. 145. l And be it enacted, that if any person who shall propose to compound for the duties chargeable under Schedule (D.) of this Act shall wilfully make or deliver any false list, declaration, or statement of profits or gains described in the said schedule, or wilfully conceal or omit to state any of such his profits or gains, or any part or portion thereof, or any other matter or thing required by this Act to be stated in such list, declaration, or statement, or if any person shall by any fraudulent means procure an assessment to be made upon him for a less amount of the said duties than he shall be chargeable with, in order to compound thereon, or if any person shall by any fraudulent means whatever cause or procure a contract of composition to be made or entered into with him for a less amount of duty than he ought to be charged with, every person so offending in any of the cases afore- said shall forfeit the sum of fifty pounds, and the contract of composi- tion, if any shall have been made with such person, shall be void and of no effect, and the party shall be charged and assessed as if no such contract had been made : Provided nevertheless, that any sum of money which may have been paid under or in pursuance of such con- tract shall be forfeited to her Majesty. 146. [ 2 And be it enacted, that] the duties hereby granted contained in the Schedule marked (E.) shall be assessed and charged under the following rules, which rules shall be deemed and construed a part of this Act, and to refer to the said last-mentioned duties, as if the same had been inserted under a special enactment. SCHEDULE (E.) Rules for charging the said Duties. First. The said duties shall be annually charged on the persons respectively having, using, or exercising the offices or employ- ments of profit mentioned in the said Schedule (E.), or to whom the annuities, pensions, or stipends mentioned in the same schedule shall be payable, for all salaries, fees, wages, perquisites, or pro- fits whatsoever accruing by reason of such offices, employments, or pensions, after deducting the amount -of duties or other sums payable or chargeable on the same by virtue of any Act of Parliament, where the same have been really and bond fide paid and borne by the party to be charged ; and each assessment in respect of such offices or employments shall be in force for one whole year, and shall be levied for such year without any new assessment, notwithstanding a change may have taken place in any such office or employment, on the person for the time having or exercising the same ; provided that the person quitting such office or employment, or dying within the year, or his executors or administrators, shall be liable for the arrears due before or at the time of his so quitting such office or employment, or dying, and for such further portion of time as shall then have elapsed, to be settled by the respective Commissioners, and his successor shall be repaid such sums as he shall have paid on account of such portion of the year, as aforesaid ; and each assessment in respect of such annuity, pension, or stipend shall be in force for one whole year, unless the same shall cease or expire within the year, by lapse, death, or otherwise, from which period the assessment thereon shall be discharged : 1 Section 145 is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act. 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 399 Second. The said duties to be assessed by the respective Commis- Duties to be sioners for all the offices in each department in the place where assessed for the said Commissioners shall execute their offices, although certain the "place m of the offices in the same department may be executed elsewhere, -where the and shall be due and payable from the respective officers, and Commis- their respective successors, for the time being : sioners exe- Third. The said duties shall be paid on all public offices and employments of profit of the description hereinafter mentioned within Great Britain 1 ; (videlicet,*} any office belonging to either House of Parliament, or to any court of justice, whether of law ^ charged or equity, in England or Scotland, 2 Wales, the Duchy of Lancaster, the Duchy of Cornwall, or any criminal or justiciary or ecclesias- tical Court, or Court of Admiralty, or Commissary Court, or court martial ; any public office held under the civil government of her Majesty, or in any county palatine, or the Duchy of Cornwall ; any commissioned officer serving on the staff, or belonging to her Majesty's army, in any regiment of artillery, cavalry, infantry, royal marines, royal garrison battalions, or corps of engineers or royal artificers ; any officer in the navy, or in the militia or volunteers ; any office or employment of profit held under any ecclesiastical body, whether aggregate or sole, or under any public corporation, or under any company or society, whether corporate or not corporate ; any office or employment of profit under any public institution, or on any public foundation, of whatever nature or for whatever purpose the same may be established ; any office or employment of profit in any county, riding, or division, shire, or stewartry, or in any city, borough, town corporate, or place, or under any trusts or guardians of any fund, tolls, or duties to be exercised in such county, riding, division, shire, or stewartry, city, borough, town corporate, or place ; and every other public office or employment of profit of a public nature : Fourth. The perquisites to be assessed under this Act shall be Fees or other deemed to be such profits of offices and employments as arise emoluments from fees or other emoluments, and payable either by the Crown may V 6 est !" or the subject, in the course of executing such offices or employ- ^ofits ofth 6 ments, and may be estimated either on the profits of the preceding preceding year, or of the fair and just average of one year of the amount of year, or on the profits thereof in the three years preceding ; such years in an average of each case respectively ending on the fifth day of April in each tnree 7 ears - year, or such other day of each year on which the accounts of such profits have been usually made up : Fifth. In all cases where any salaries, fees, wages, or other per- The duties quisites or profits, or any annuities, pensions, or stipends, shall be on salaries, payable at any public office, or by any officer of her Majesty's f 68 ' Pt n " household, or by any of her Majesty's receivers or paymasters, payable "at or by any agent employed in that behalf, the duties chargeable any public under this Act in respect of such salaries, fees, wages, perquisites, office to be or profits, or in respect of such annuities, pensions, or stipends, *!PP* in shall be detained and stopped out of the same or out of any money which shall be payable upon such salaries, fees, wages, per- quisites, or profits, or upon such annuities, pensions, or stipends, or for the arrears thereof, whenever the same shall happen, and be applied to the satisfaction of the duties on such offices or employments, or on such annuities, pensions, or stipends, respec- 1 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). 2 Ireland is now added, see the Income Tax Act, 1853. 400 APPENDIX V. Duties on salaries, &c. not arising from offices mentioned in the foregoing rule to be stopped by persons paying such salaries, fees, &c. Such portion of the duties as are charged with sums payable to any other persons to be deducted out of such sums. Duty paid by the principal in an office upon salary paid to his deputy or clerk to be deducted out of such salary. Payments on receipt of salaries, &c. or in passing accounts, or upon the re- ceipt of pen- sions, to be deducted. Pensions pay- able out of a branch of revenue to be charged by the Commis- sioners there. Persons assessed for offices to be tively, (not being otherwise paid,) in the manner directed by this Act ; and whenever the same so payable shall be assessed by the Commissioners for General Purposes in their respective districts, they shall transmit an account of the amount of the duty assessed to the office where the same are payable, in order that the amount so assessed may be there stopped or detained : Sixth. In all cases where the salaries, fees, wages, allowances, or profits of any officer chargeable to the said duties shall not arise out of any of the offices mentioned in the foregoing rule, but shall arise from any other office or employment of profit chargeable to the said duties, and the salaries, fees, wages, perquisites, or profits shall be payable at such office by any officer thereof, or by any receiver of the same respectively, or by any agent employed in that behalf, the duties chargeable under this Act in respect of such salaries, fees, wages, perqui- sites, or profits shall be detained and stopped out of the same, or out of any money which shall be paid upon such salaries, fees, wages, perquisites, or profits, or for arrears thereof, whenever the same shall happen, and be applied to the satisfaction of the duties (not otherwise paid) in the manner directed by this Act : Seventh. Such portion of the said duties on offices or employments of profit, or on annuities, pensions, or stipends, as are charged with any sum of money payable to any other person, shall be deducted out of the sum payable to such other person, as a like rate on such sum would amount unto ; and all such persons, their agents and receivers, shall allow such deductions and payments upon receipt of the residue of such sums : Eighth. Such portion of the said 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 the salary, fees, wages, perquisites, or profits of such principal, shall be deducted out of the salary or wages so payable as a like rate on such salary or wages would amount unto ; and all such deputies, clerks, and other persons so employed shall allow to their respective principals such deductions and payments upon the receipt of the residue of such salaries or wages : Ninth. In estimating the duty payable for any such office or em- ployment of profit, or any pension, annuity, or stipend, all official deductions and payments made upon the 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, shall be allowed to be deducted, provided a due account thereof be rendered to the said Commis- sioners, and proved to their satisfaction : Tenth. In all cases where any annuity or pension shall be payable out of any particular branch of the public revenue, and at the office of that branch of revenue, the Commissioners acting for that department shall have authority to assess and levy the same as a salary or wages payable thereout. 147. ['And be it enacted, that] every person to be assessed for his office or employment shall be deemed to have exercised the same at the head office of the department under which such office or employ - 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 401 merit shall be held, and shall be rated for such office or employment deemed to as if exercised at such head office, although the duties of such office or h . av * er ~ employment shall be performed, or the profits or any part thereof g a ^ e ^ n,, arising from such office or employment shall be payable elsewhere, head office, within or out of Great Britain ; l and all assessments made on any inferior officer, wherever he shall exercise his office or employment, shall be rated accordingly in the same district where such head office shall be established ; and every office shall be deemed to belong to and to be assessed by or under the principal officers of that depart- ment by or under whom the appointment to such office was made, provided that where such appointment shall be made by any inferior officer in any department, then such office shall be assessed by the same Commissioners by whom such inferior officer shall be chargeable for his office : Provided that where any such appointment shall be held under the Great Seal or Privy Seal either of England or Scotland, or shall be made under the Royal Sign Manual, or where any such appointment shall be under the hands or seals of the ^Commissioners of her Majesty's] Treasury, and the same shall not be exercised in the department of the Treasury, then the officer holding the same shall be assessed in that department where the office shall have been executed ; Provided also, that nothing herein contained shall be construed to limit the right hereinbefore given to Commissioners of the district of assess- ing offices before described within their respective jurisdictions, although such offices, or any of them, may not be held under their appointment, or the profits of such offices may not be payable by them or their order. 148. 3 Provided always, and be it enacted, that nothing herein con- Duties not tained shall extend or be construed to extend to charge any person to extend resident in Ireland with the duties contained in the said Schedule (E.) ^^^rily in respect of any public office or employment the duties whereof are executed in necessarily and permanently performed in Ireland. Ireland. 149. Provided always, [ 4 and be it enacted,] that the like allowances Certain al- shall be granted to the trustees of the British Museum in respect of lowances to any charge under Schedule (A.) to be made on the lands and tene- B^tish 8 ' ments vested in such trustees, as are granted to colleges and other Museum, and properties mentioned in No. VI. of that Schedule ; and the like the like ex- exemptions shall be allowed in respect of any dividends of stock emptions as vested in such trustees, or any of them, or in any other for their use, n ow_ allowed ,1. i -, i i ,-,,- i ,1 ,. j i to charitable as are granted to charitable institutions by this Act ; and no salary institutions or payment made or to be made out of her Majesty's Exchequer to such trustees for the use of such institutions shall be charged at the said exchequer, provided all salaries of officers or persons employed under the said trustees shall be charged on the said officers respec- tively. 150. [ 4 And be it enacted, that] the several Commissioners autho- Commis- rized to act in the execution of this Act in relation to the duties on Burners on rr* ,, .,. -, . , j omces to take offices or employments of profit, and on pensions or stipends, as soon ^ e 0& ^ s after their appointment respectively as conveniently can be done in prescribed, their respective departments, shall meet in some convenient place, in and to have 1 Now the United Kingdom, see the Income Tax Act, 1850 (16-7 V. c. 34). 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 3 Section 148 is repealed by Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 4 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). E. D D 402 APPENDIX V. power to ap- point clerks, assessors, and collectors from the officers in their depart- ments. order to qualify themselves by taking the oaths prescribed by the [ ! said recited Acts relating to the duties of assessed taxes,] and shall have power to elect a clerk and assessors, and in cases where the duties cannot be stopped and detained at the department of office of the said Commissioners, or for which the said respective Commissioners shall act, collectors of the said duties to be assessed by them from and amongst the officers in their respective departments, and separate assessors and collectors in each such department, under the cognizance of the same Commissioners, which assessors shall, within a time to be fixed by the respective Commissioners, deliver to them their certificates of assessment, in writing under their hands, to be verified upon their oaths, of the full and just annual value of all offices and employments of profit chargeable under this Act in the department for which they shall be appointed assessors, and of all pensions and stipends, esti- mated according to this Act, with the names and surnames of the several officers and persons entitled to pensions or stipends, and the several sums of money they ought to pay by virtue of this Act, at the rate of sevenpence for every twenty shillings of such value, with- out abatement or deduction, and without concealment or favour, upon pain of forfeiture for every neglect in the premises of any sum not exceeding one hundred pounds nor less than twenty pounds, which said assessors are hereby strictly enjoined and required, with all care and diligence, to charge and assess themselves, and all other officers, clerks, and persons employed in their respective departments of office, and with respect to the duty on pensions or stipends to charge and assess all persons entitled unto any such pensions or stipends, and respectively to make their assessments according to the provisions of this Act ; and every such assessor shall have free access to all docu- ments and papers whatever in their respective offices touching the salaries, fees, wages, perquisites, and profits of any officer, clerk, or person aforesaid, belonging to their respective offices, and touching the amount of the respective pensions or stipends, and shall be at liberty, whenever the same may be necessary, to require returns from the parties themselves, according to the provisions of this Act, that they may be enabled to make a true assessment in pursuance thereof. 151. Provided always, [ 2 and be it enacted,] that no person shall, in respect of the profits arising from offices or from pensions or stipends, chargeable before the respective Commissioners appointed for those purposes in their respective departments of office as afore- said, be liable to the penalty herein contained for not returning a statement of the profits, arising from such office, pension, or stipend, in pursuance of any general notice hereinbefore directed, nor in any case except where the assessor for those profits respectively shall have required a return thereof in pursuance of the next preceding clause. The full value 152. [ 2 And be it enacted, that] in every case where any person of offices to holding such offices or employments, or being entitled unto any pension or stipend as aforesaid, shall claim to be exempt from such assessment, the Commissioners shall nevertheless set down in such assessment the names of such persons, and the full and just annual value of such offices, employments, pensions, or stipends ; and the All such assessors to have access to documents, and may re- quire returns. Statements of profits arising from offices not required under a gene- ral notice. be stated, although exemptions are claimed. 1 These Acts are replaced by the Taxes Management Act, 1880 (43-4 V. c. 19). See sect. 7 of that Act. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 403 claim to such exemption shall he preferred and examined ; and the merits thereof shall be heard and determined, under the regulations of this Act with respect to other assessments. 153. [ : And be it enacted that] where any office or employment of Deputies to profit chargeable by this Act is or shall be executed by deputy, such pay for prin- deputy shall, in all cases where he shall be in the receipt of the profits c ip als where thereof, be answerable for and shall pay such assessment as shall be thePrecdirt of charged thereon, and deduct the same out of the profits of such office the profits. or employment ; and where the salaries, fees, wages, emoluments, or officers re- profits of any officer or officers in any such office shall be receivable by ceiving sala- any one or more of the said officers for the use of such officer, or as a ries or fees to fund to be divided amongst such officers in certain proportions, the *> e answerable officer or officers receiving such salaries, fees, wages, perquisites, or duties- profits shall be answerable for the duties charged thereon, and shall pay the same, and deduct the same out of the funds provided for such respective offices or employments, before any division or apportionment thereof, and in case of refusal or non-payment thereof shall be liable to such distress as by this Act is prescribed against any person having the office or employment, and to all other remedies and penalties re- spectively herein contained. 154. [ : And be it enacted, that] the proper officers, or their respective Assessors to deputies, and the receivers and paymasters in every public department be furnished of office, and in every other office for which Commissioners are hereby with accounts intended to be appointed for raising the duties hereby charged on such fcc^n^ublic offices respectively, and any agent by whom any salaries, fees, wages, departments ; perquisites, or profits shall be payable, shall, upon request to him and may re- made by the assessors of the said duties, deliver gratis true lists or quire returns accounts of all such salaries, fees, wages, perquisites, and profits ^1* rfit received by him, and belonging to such officers respectively, and of all O f offices, pensions and stipends payable to them respectively, for the better guidance of the said assessors in charging the same, and if the said assessors shall be dissatisfied with such accounts, it shall be lawful for them to require any officer whose office shall not be truly valued in such account to prepare and produce to them, within the like period of time as is limited for the returns of other accounts by this Act, a list or account of the salaries, fees, wages, perquisites, and profits of the office exercised by him, which returns such officer shall be obliged to make under the penalties and forfeitures contained in this Act for not making other returns hereby required ; and from the documents and papers To make up in their respective offices the said assessors shall make their assessment their assess- upon the persons holding such offices, or entitled unto such pensions ents from respectively, according to the annual value thereof, and shall in like i n their U ffi ei V manner as is before directed with respect to assessors for any parish or an( j deliver "' place bring in their said assessments to the respective Commissioners for them to the their allowance, who shall forthwith set their hands to the same, which Commis- assessments shall be in force for one year, commencing and payable at Sloners - the like periods as the assessments in parishes are made payable ; and the said respective Commissioners for the duties on offices shall, in all cases where collectors are authorized to be appointed, cause the like duplicates to be made thereof, and delivered to collectors, with like warrants to collect the said duties, as are before directed to be given to collectors for any parish or place ; and the said collectors of the said duties on offices shall have the like authority to demand and levy the 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). DD2 404 APPENDIX V. Duties on offices which cannot be stopped to be certified in case of nonpayment to the Com- missioners of the district where the parties reside, who shall issue their warrants for levying the same. No qualifi- cation to be required of Commis- sioners on offices and public annuities. said duties as is herein given to collectors of any parish or place : Pro- vided always, that in all cases where the duties, and any salaries, fees, wages, perquisites, or profits of any public office shall be detained and stopped out of the same, or out of any moneys which shall be paid thereupon, the respective Commissioners shall cause the like duplicates to be delivered to the proper officers in the respective offices, who shall keep true accounts of all moneys stopped and detained under the authority of this Act, and shall be answerable for the same ; and the money so detained of the duty on annuities, pensions, or stipends shall be accounted for and paid in the manner herein-after directed. 155. ['And be it enacted, that] where any person having, using, or exercising any office or employment of profit which shall be charged to the duties by this Act granted thereon, and the said duties cannot be detained and stopped in the hands of the proper officer, or in the hands of any agent employed to pay the moneys due in respect of the said office or employment, or the same moneys shall have been paid over to the person having, using or exercising the said office or em- ployment, and such person shall refuse or neglect to pay the sum of money charged upon him, the Commissioners for raising the duties on the said offices shall and may, by writing under their hands and seals, certify such neglect or refusal, and the sum payable by virtue of this Act, to the Commissioners for executing this Act in relation to lands, tenements, and hereditaments, in the parish or place where such officer shall reside ; and such last-mentioned Commissioners are hereby autho- rized and required, upon receipt of such certificate, by warrant under their hands and seals, to authorize and empower the respective collectors of the said duties or the collectors of the parish or place where such officer shall reside, to levy the same, by such ways and means as they are authorized to levy the duties charged by them respectively in pursuance of this Act ; and such collectors are hereby required to execute such warrant accordingly, and which shall be executed under the like powers and in like manner as is hereinafter directed, and as if such officer were charged to the said duties in such parish or place ; and the moneys arising thereby shall be paid to the collectors charged to the said duties on such office or employment. 156. Provided always, ['and be it enacted,] that no qualification shall be required of any of the officers or persons herein described to be Commissioners for the duties on offices, or on employments of profit, or on pensions, stipends, annuities, interests, or dividends, con- tained in the said several schedules, who shall act as such Commis- sioners by virtue of their several offices, other than such offices respectively, anything herein contained to the contrary notwith- standing. Officers act- 157. ['And be it enacted, that] the respective assessors and collectors ing in raising appointed to raise and assess, or levy, collect, and pay, the sums of J? v e ?, on money to be charged on offices or employments of profit, or on annui- omces liable ,. J *?. j T_I -L i ir , i . n.i- ., to penalties * ies > P ensions > r stipends payable by her Majesty by virtue oi this Act, for default. and also the inspectors and surveyors acting in relation to the said duties, shall respectively be subject to the penalties and forfeitures for refusing or neglecting the performance of their duty, or for being guilty of any fraud or abuse in executing the same, as are inflicted 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 405 on such officers respectively for the like offences by the [ J said Acts relating to the duties of assessed taxes]. 158. Provided always [ 2 and be it enacted,] that such of the said When duties duties granted by this Act which may be detained or stopped and are ^ be deducted out of the sums in respect whereof they shall be charged or detamed - deducted shall be respectively detained at such times in each year as the said sums shall be payable to the person entitled thereto. 159. [ 2 And be it enacted, that] in the computation of duty to be What made under this Act in any of the cases before mentioned, either by deductions the party making or delivering any list or statement required as afore- sh , a11 n fc . be said, or by the respective assessors or Commissioners, it shall not be com putmo- lawful to make any other deductions therefrom than such as are the duties' expressly enumerated in this Act, nor to make any deduction on to be charged account of any annual interest, annuity, or other annual payment to under this be paid to any person out of any profits or gains chargeable by this c ' Act, in regard that a proportionate part of the duty so to be charged is allowed to be deducted on making such payments, nor to make any deduction from the profits or gains arising from any property herein described, or from any office or employment of profit, on account of diminution of capital employed or of loss sustained in any trade, manufacture, adventure, or concern, or in any profession, employment, or vocation. 160. [ 2 And be it enacted, that] if any difference shall arise between Commis- tenant and landlord, or any other persons to whom any interest, rent, siouers rentcharge, annuity, fee-farm rent, rent service, quitrent, feu duty, or * settle other rent or annual payment shall be payable, touching the sums to respecting be deducted thereout on account of the duties hereby charged having deductions been paid, or between the occupier for the time being and any former to be made occupier of any lands, tenements, hereditaments, or heritages, his n account of executors, administrators, or assigns, touching the proportion of duty to be paid or allowed by either party, the respective Commissioners for General Purposes in their several districts shall have authority, and the}- are hereby required to settle the proportions of such pay- ments and deductions as shall be according to the directions of this Act, and in default of payment to levy the same respectively under the like powers as they might have levied the same if the assessment had been made in the same proportions, and to pay over the same to the collector or party, as the case may require ; and the judgment and determination of such Commissioners shall be final. 161. [ 2 And be it enacted, that] the several inspectors and surveyors Inspectors appointed or to be appointed shall be and they are- hereby empowered and surveyors respectively to inspect and examine all and every the returns made by * returns ami any person under the directions of this Act ; and in case any of them assessments shall be dissatisfied either with the returns so made, or the estimate with liberty 'to of the assessor thereon, or shall discover any error or omission in such amend them estimate, or that any deduction hath been allowed not authorized by this Act, they shall charge the same, according to the best of their judgment, in the full amount at which the same ought to be charged ; and the said inspectors and surveyors shall also be at liberty respec- 1 These Acts are replaced by the Taxes Management Act, 1880 (43-4 V. c. 19). See sect. 7 of that Act. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 406 APPENDIX V. Surcharges, if confirmed, to be in treble duty in certain cases. Upon appeal, the whole or a part of the treble duty may be remitted. tively to inspect and examine all and every the assessments of the said duties, or any of them, made under the authority of the respec- tive Commissioners before mentioned, as well before as after the Com- missioners shall have signed and allowed the said assessments, and before such allowance to correct and amend such assessments, if they shall respectively think fit ; and every person in whose custody such returns are is hereby required, upon the request of any such inspector or surveyor as aforesaid, to deliver the same into his custody for the purposes of this Act, taking his receipt for the same, and every person in whose custody any such assessments shall be is also hereby required, upon the request of such inspector or surveyor as aforesaid, to produce the same, and such inspector or surveyor is hereby autho- rized to take charge of the same until he shall have taken such copies of or extracts from the same as may be necessary for his better in- formation ; and every person wilfully obstructing such inspector or surveyor in the due performance of his duty as aforesaid shall forfeit the sum of fifty pounds ; and if any such inspector or surveyor shall find or discover, upon his survey or examination, or otherwise, that any person, corporation, company, or society who ought to be charged with the said duties or any of them, shall have been omitted to be charged therewith, or shall have been underrated in the assessment, or that any person, or the officer of any corporation, company, or society, liable to the said duties or any of them, being required so to do, hath neglected or refused to make a return according to the directions of this Act, or that the assessors have neglected to require a return in any case where a return ought to have been required from any person, corporation, company, or society according to the intent of this Act, so that such person, corporation, company, or society shall not have been fully charged to the said duties, then and in every such case the said surveyor or inspector shall certify the same in writing under his hand, together with an account of every default, and the full amount of the duty which ought to be paid by way of surcharge, to the said respective Commissioners for putting in execution this Act in relation to the duties on which such surcharge shall be made, in the manner and under and subject to the rules and regulations pre- scribed and contained in the ['said two several recited Acts of the forty-eighth and fiftieth years of the reign of King George the third, hereinbefore recited or referred to]. 162. [ 2 And be it enacted, that] upon every surcharge allowed upon appeal by the said Commissioners, upon the certificate of the inspector or surveyor, as directed by this Act, in cases where no such declaration shall have been delivered as in the said ['recited Act of the fiftieth year of the reign of King George the third] is required, or the Com- missioners shall be dissatisfied with the same, the assessment shall be made in treble the rate of duty prescribed in the said respective sche- dules of this Act on the amount of the duty surcharged : Provided always, that if upon appeal such declaration as aforesaid shall have been delivered, and if the said Commissioners shall be satisfied therewith, and shall be of opinion that there was any reasonable cause of controversy on the part of the appellant on the subject matter of appeal, and that the party hath not been guilty of any wilful default, 1 For these Acts the Taxes Management Act, 1880 (43-4 V. c. 19), is now substituted. See sect. 7 of that Act. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 407 neglect, or omission, nor wilfully done any act with intention to defraud the revenue, it shall be lawful for the said Commissioners who shall have determined the said appeal, although they shall confirm or allow the surcharge, or a part thereof only, at the same time to remit and strike off the whole or any part of the said treble duty ; and the over- Payment of plus of the sum so charged above the said rate or duty, and which overplus, shall not be so remitted or struck off as aforesaid, shall be paid to the officer for receipt, to the use of her Majesty ; which increase of duty, Increase of made by occasion of such surcharge, together with the overplus afore- duty, &c. by said above the said rate of duty, and all other increase of duty {^^f 6 -,* occasioned by the surcharge or information of any inspector or sur- t^ Commfs- veyor under this Act, the Commissioners for executing this Act who sionera of shall have confirmed such surcharge or made such increase shall at the Stamps and same meeting certify under their hands to the Commissioners of Taxes, who [ ] Stamps and Taxes] who shall have authority, under and subject to ^, -^ ve such rules and regulations as shall have been made by the [ 2 Commis- to* reward sioners of her Majesty's] Treasury in that behalf, to direct the said inspector or officer for receipt to pay to the said inspector or surveyor, out of the surveyor, increased duty and overplus aforesaid, such sum of money as shall appear to the said Commissioners of [ l Stamps and Taxes] to be an adequate reward for the labour and diligence of the said inspector or surveyor. 163. Provided always, [ 3 and be it enacted,] that any person charged Exemption of or chargeable to the duties granted by this Act, either by assessment, persons whose or by way of deduction from any rent, annuity, interest, or other IS 00 " 1 ! 6 '!) 8 / e * annual payment to which he may be entitled, who shall prove before per annuin . the Commissioners for General Purposes, in the manner hereinafter mentioned, that the aggregate annual amount of his income, estimated according to the several rules and directions of this Act, is less than one hundred and fifty pounds, shall be exempted from the said duties, and shall be entitled to be repaid the amount of all deductions or payments on account thereof in the manner hereinafter directed, except so much of such duties as the person claiming such exemption shall or may be entitled to charge against any other person, or to deduct or retain from or out of any payment to which such claimant may be or become liable ; and such exemption shall be claimed and proved, and the proceedings thereupon shall be had, before the Commissioners for General Purposes in the district where the claimant shall reside, pursuant to and under the powers and provisions by which the duties in Schedule (D.) are herein directed to be ascertained and charged, but nevertheless subject to the rules and directions hereinafter contained. 164. [ 3 And be it enacted, that] every person claiming to be entitled Mode of to such exemption as last aforesaid, shall, within the time to be limited claiming as herein-before directed for delivering in the lists, declarations, and ex e m P tl0 statements required by this Act (or within such further time as the Ce 1 e di n j ) on" said Commissioners shall for special cause assigned allow), deliver or 8uc h claim, cause to be delivered to the assessor of the parish or place where such claimant shall reside a notice of his claim for such exemption, together with a declaration and statement, signed by such claimant, and in such form as may be provided under the authority of this Act, declaring and 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), a. 9. - The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1890 (53-4 V. c. 51). 3 The part in brackets is repealed by the Statute Law Revision (No. 2) A?t, 1888 (51-2 V. c. 57). 408 APPENDIX V. If inspector or surveyor object to the claim the same to be determined by the Com- missioners for General Purposes. On proof that persons entitled to exemption have been charged duties by deduction from any annuity, setting forth therein all the particular sources from whence the income of such claimant shall arise, and the particular amount arising from each source, and also every sum of annual interest or other annual payment reserved or charged thereon, whereby the income shall or may be diminished, and also every sum which such claimant may have charged or may be entitled to charge against any other person for or on account of the duty made payable by this Act, or which he may have deducted or retained, or may be entitled to deduct or retain, under the authority of this Act, from or out of any payment to which he may be or become liable ; which declaration and statement every inspector or surveyor shall be at liberty to peruse and examine, and to take copies of or extracts from, under the like powers as in other cases ; and in every case where such claim for exemption shall be made in manner aforesaid the assessor shall transmit such notice, declaration, and statement to the said Commissioners ; and if the inspector or surveyor shall not object to such declaration within forty days after such transmission, or within such further time as the Com- missioners, on just cause, shall allow to him to make such objection, it shall be lawful for the said Commissioners to allow such claim of exemption, and to discharge the assessment made upon any property or profits of such person, either in his own name or in the name of his lessee or tenant, within the district of the said Commissioners ; and if it shall appear that any property or profits of such person is or are assessed or liable to be assessed in any other district, the said Commis- sioners shall certify to the Commissioners of ['Stamps and Taxes], in such form as shall be provided under the authority of this Act, the allowance of such exemption ; and the said last-mentioned Commis- sioners shall direct the assessment made upon any property or profits of such claimant, either in his own name or in the name of his lessee or tenant, in any other district, to be discharged, and the same shall be discharged accordingly : Provided always, that in case the inspector or surveyor shall object to any such claim as aforesaid in writing, sug- gesting to the said additional Commissioners that he hath reason to believe that the income of such claimant, or any other particular required by this Act to be declared or set forth in such declaration and statement as aforesaid, is not truly or fully declared or set forth therein in any specified particular, then and in such case the merits of such claim for exemption shall be heard and determined upon appeal before the Commissioners for General Purposes, under and subject to such rules, regulations, and penalties as other appeals under this Act are directed to be heard and determined, and if such claim shall be allowed on appeal as aforesaid the said Commissioners for General Purposes shall grant and issue all necessary certificates consequent thereon. 165. Provided always, [ 2 and be it enacted,] that if it shall be proved to the satisfaction of the Commissioners for General Purposes that any person whose claim for exemption has been allowed in manner aforesaid has been charged to and has paid any of the duties hereby granted, by way of deduction from any rent, annuity, interest, or other annual payment to which he may be entitled, and from which a deduction is authorized to be made by this Act, or that such person has been assessed and has paid such duties in respect of any annuity, 1 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), 8. 9. 2 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). THE INCOME TAX ACT, 1842. 409 dividend, pension, or stipend payable to him out of the public revenue dividend, of the United Kingdom, then and in such case it shall be lawful for rent . & c -> the said Commissioners for General Purposes to certify what shall have c .ommis- been so proved before them to the Commissioners for Special Purposes ^-ant a at the Head 1 Office for Stamps and Taxes in England, by a certificate, certificate in such form as shall be provided under the authority of this Act, thereof, specif ving and describing the amount and the particular nature of the wn i c h ?^ a ^ j e i i J.L-L i T f -L i * J-L authorize the payment out of which and the name and place of abode of the person collator or by whom, such deduction as aforesaid shall have been made, and speci- receiver to fying also the amount and description of the annuity, dividend, pension, repay the or stipend in respect of which such claimant has been assessed, and the amount of duties whereon he has paid ; and thereupon the said last- mentioned B duties. Commissioners shall issue to such claimant an order for the repay- ment to him of the amount of the duties certified to have been paid as aforesaid, and such order shall be directed to the Receiver General of [ 2 Stamps and Taxes,] or to an officer for receipt or collector of the duties granted by this Act, or to a Distributor or sub-distributor of stamps, and shall authorize and require the repayment of the said duties in like manner as is hereinbefore provided with respect to the allowances to be granted under No. V. of Schedule (A.) of this Act. 166. [ 3 And be it enacted, that] if any person shall be guilty of any Penalty for fraud or contrivance in making any such claim, or in obtaining any making such exemption or any such certificate as aforesaid, or shall fraudulently fraudulent conceal or untruly declare any income or amount of income, or any sum exem pti n which he may have charged or been entitled under the authority of this Act to charge against any other person, or which he may have deducted or retained, or have been or be entitled as aforesaid to deduct or retain, from or out of any payment to which such person claiming exemption as aforesaid may be or become liable, or if any such person shall fraudulently make a second claim for the same cause, every such person so offending in any of the cases aforesaid shall forfeit the sum of twenty pounds, and treble the duty chargeable in respect of all the sources of his income, and as if such claim had not been allowed ; and if any person shall knowingly and wilfully aid, abet, or assist any such person in committing any such fraud as aforesaid, the person so aiding, abetting, or assisting shall forfeit the sum of fifty pounds. 167. [ 3 And be it enacted, that] the annual value of lands, tenements, Income hereditaments, or heritages belonging to or in the occupation of any arising from person claiming the said exemption shall be estimated, for the purpose | an ** s > no . w of ascertaining his title to such exemption, according to the rules and ma ted with directions contained in the said several Schedules (A.) and (B.) respec- reference to tively ; and that the income arising from the occupation by such claims for claimant of lands, tenements, hereditaments, or heritages chargeable exemption, under the said Schedule (B.) shall be deemed for the purpose afore- said to be equal in England to one-half and in Scotland to one-third of the full annual value thereof, estimated according to the said rules and directions ; and where such claimant shall be the proprietor as well as the occupier of any such lands, tenements, hereditaments, or heritages, the amount deemed by this Act as aforesaid to be the income 1 Now the Chief Office of Inland Revenue. 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34), s. 9. 3 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 410 APPENDIX V. Joint tenant?, &c. may severally claim abate- ments. Exceptions. Claim to be made where the claimant resides, or in the case of offices, pen- sions, and stipends, before the Commis- sioners of the department. Persons out of Great Britain may claim by affidavit. Claims may be made by agents or trustees on account of others. arising from the occupation of such, lands, tenements, hereditaments, or heritages shall be added to the amount of the full annual value thereof, and the aggregate amount shall be deemed for the purpose aforesaid to be the income of such claimant arising from the lands, tenements, hereditaments, or heritages of which he shall be the proprietor and occupier as aforesaid ; and the income arising from any lease of or composition for tithes shall be deemed, for the purpose aforesaid, to be equal to one fourth of the full annual value of such tithes, estimated in manner aforesaid. 168. pAnd be it enacted, that] coparceners, joint tenants, or tenants in common of the profits of any property whatever, and any joint tenants or tenants of lands or tenements in partnership, being in the actual and joint occupation thereof in partnership, and entitled to the profits thereof in shares, and personally labouring therein, or managing the same, and any partners carrying on trade or exercising any pro- fession together, and entitled to the profits thereof in shares, and per- sonally acting therein, may severally claim such exemption according to their respective shares and interests in the manner before directed ; and such claims, being duly proved to the satisfaction of the Commis- sioners to whom the same are made, may be proceeded upon as in the cases of several interests : Provided always, that the profits so arising shall not in any case be charged separately to the duty in respect of the occupation of lands where lands shall be let or underlet, without relinquishing the possession by the lessor, or where the lessee or tenant shall not be exclusively in the possession and occupation of the lands so let. 169. Provided always, [*and be it enacted,] that every such claim for exemption shall be made to the Commissioners of the district where the claimant shall reside, whether such claimant shall be personally charged in such district or not, except where the whole income of the claimant shall arise 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, in all which cases the claim may be made to and allowed by the Commissioners of such department wherein the said duties are cognizable under the regulations of this Act ; and if such claimant shall be out of Great Britain, 2 an affidavit, stating the several matters required by this Act, taken before any person having authority to administer an oath in the place where such claimant shall reside in any matter relating to any part of the public revenue of Great Britain, 3 may be received by the respective Commis- sioners for executing this Act in relation to the assessment on which such claim shall be founded. 170. [ ! And be it enacted, that] any such claim for exemption may be made by any guardian, trustee, attorney, agent, or factor, on account of others, in any case where satisfactory proof shall be made that the party claiming such exemption is unable to attend in person, or such claim may be made by the several persons acting in any of the characters herein-before described, in such manner as they may act for others, for the purpose of being assessed on their account in the first instance, as herein-before directed. 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now the United Kingdom, see the Income Tax Act, 1853 (16-7 V. c. 34). THE INCOME TAX ACT, 1842. 411 171. [*And be it enacted, that] whenever any person shall have Commis- been assessed to any of the duties granted by this Act, whether sioii ers to charged on him on his own account, or in any of the characters herein- ?**"* /,!Lwi Q , ,,,,,, i -IITI-L irom double before described on the behalt of any other person, and shall by any assessments. error or mistake be again assessed for the same cause, and on the same account, and for the same year, it shall be lawful for him to apply to the Commissioners for General Purposes acting for the division or place for which he shall have been so assessed by error or mistake as aforesaid, for the purpose of being relieved from such double assessment, and the said Commissioners, on due proof thereof to their satisfaction, shall cause such assessment, or such part thereof as shall be a double charge as aforesaid, to be vacated, and which proof may be either by a certificate of the assessment made on the party, under the hands of the Commissioners by whom he shall have been rightly assessed according to the directions of this Act for the matter or cause in question, certifying that such matter or cause is included in an assessment made by them on the same party, on the same account, and for the same year, or by other lawful evidence given of those facts on the oath of any credible witness ; and when- ever it shall be proved to the satisfaction of the Commissioners of ['-'Stamps and Taxes] that any such double assessment as aforesaid hath been made, and hath not been vacated, and that payment hath been made of both assessments, it shall be lawful for the said Com- missioners of [ 2 Stamps and Taxes] to order and direct the Receiver General of [ 2 Stamps and Taxes,] or any officer for receipt, to repay to the party the sum so erroneously and doubly assessed upon him, and paid as aforesaid. 172. ['And be it enacted, that] the respective Commissioners exe- Commis- cuting this Act in relation to any of the duties hereby granted shall, sioners to _ within one calendar month after the first day of hearing appeals, all issue ^P 11 ' appeals then made being first determined, issue out and deliver to the agse s.sments respective collectors duplicates of the assessments of the aforesaid to collectors duties charged at the respective rates mentioned in the respective with warrants Schedules of this Act, together with their warrants, as directed by the to co ^ ect the said P several Acts relating to the duties of assessed taxes] for the s< me ' speedy and effectual levying and collecting of the said duties assessed under this Act, as the same shall become payable, [ 4 by quarterly instalments, as herein directed,] distinguishing the amount charged under each of the said schedules : Provided always, that all such duties as shall be assessed or charged under any of the provisions of this Act, if not paid, levied, or collected according to the directions herein mentioned, shall be recoverable as a debt to the Queen's Majesty, with full costs of suit, and all charges and expences attend- ing the same : and when so recovered the said duties shall be paid to the proper officer for receipt, in aid of the parish or place answerable for the same. 173. [ : And be it enacted, that] where any person chargeable with Parents and the duties hereby made payable as aforesaid shall be under the age of guardians twenty-one years, or where any person so chargeable shall die, in f 1 * 1 " 6 f r 1 The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1888 (51-2 V. c. 57). 2 Now Inland Revenue, see the Income Tax Act, 1853 (16-7 V. c. 34, s. 9). 3 For these Acts the Taxes Management Act, 1880 (43-4 V. c. 19), is now substituted. See sect. 7 of that Act. * The part in brackets is repealed by the Statute Law Revision (No. 2) Act, 1874 (37-8 V. c. 96). 412 APPENDIX V. Parish to be answerable for collectors in England. Arrears to be re-assessed. executors for every such case the parents, guardians, or tutors of such infant, upon default of payment by him, and the executors and administrators of the persons so dying, shall be and are hereby made liable to and charged with the payments which the said infant ought to have made, or the person so dying was chargeable with; and if such parents, guardians, or tutors, or such executors or administrators, shall neglect or refuse to pay as aforesaid, it shall be lawful to pro- ceed against them in like manner as against any other person making default of payment of the said duties ; and all parents, guardians, or tutors making payment as aforesaid shall be allowed every sum paid for such infants in their accounts, and all executors and administrators shall be allowed to deduct all such payments out of the assets of the person so dying. 174. ['And be it enacted, that] in England the parish or place in which any assessment shall have been made of the duties granted by this Act under any of the schedules marked respectively (A.), (B.), or (D.) shall be answerable for the amount of the duties which shall have been so charged in such parish or place, and for the said duties being duly demanded of the respective persons charged therewith, according to the regulations contained in the [ 2 said Acts relating to the duties of assessed taxes,] by the collector appointed for such parish or place, and also for such collector duly paying the sums by him received to the proper officer for receipt of the said duties according to such regu- lations ; and any of the arrears of the said duties by this Act granted, caused by or arising from any neglect, default, or failure of any col- lector for which any parish or place shall be answerable as aforesaid, shall be assessed within or upon such parish or place as soon after such default shall be discovered as conveniently can be done, and shall be charged on the amount of the assessment which shall be made for the same duties in the year commencing from the 5th day of April preced- ing the time of making such re-assessment, by duly apportioning the amount of such arrear amongst the several persons assessed in that year in the assessment of the same duties on which such arrear shall have accrued, according to the amount of each person's assess- ment therein, as nearly as the case will admit, and by the like rules, methods, and directions by which the original assessment was made, to be raised and levied in such manner as any assessment may be by virtue of this Act raised and levied under the regulations of the said Acts respectively. 175. 3 And be it enacted, that if it shall happen that this Act shall not be executed previous to the time appointed for the payment of the first or any subsequent instalment of the said duties, or within the year of assessment, it shall be lawful for the Commissioners executing this Act who shall have made or allowed any assessment after the period appointed for any such payment, which they are hereby declared to be competent to do, from time to time, when and as the same shall be necessary, to settle and adjust at what time and in what proportions any instalment of which the time for payment shall then have elapsed shall be paid, in such manner as to them shall appear just and reason- able, regard being had to the number of days appointed for the pay- Commis- sioners to adjust times of payment, if the appointed days are elapsed ; and sums to be paid, not less than the amount of two instal- ments on each day. 1 The part in brackets is repealed by the Statute Law Eevision (No. 2) Act, 1888 (51-2 V. c. 57). 2 For these Acts the Taxes Management Act, 1880 (43-4 V. c. 19), is now substituted. See sect. 7 of that Act. 3 Sect. 175 is repealed by Statute Law Eevision (No. 2) Act, 1874 (37-8 V. c. 96). THE INCOME TAX ACT, 1842. 413 ment of instalments then to come (if any) in the year of making the assessment ; provided that on or before every quarterly day of payment as herein mentioned after the making of such assessment in the same or any subsequent year the said Commissioners shall direct at least the amount of two quarterly payments to be made, until all arrears, either for that or any former or subsequent year, shall have been completed. 176. [ L And be it enacted, that] every assessment to be made under Assessments this Act within the year appointed for making the same shall be to be for one deemed to be for the current year, and shall be in force for such year ; Tea f > P a 7 atle and every assessment made after the expiration of any year in which instalments, the same ought to have been made shall be deemed to be for the whole of the year current when the assessment ought to have been made, and such year shall commence [ 2 from the 5th day of April, 1842, for the first assessment, and] for every [* subsequent] assessment during the continuance of this Act from the 5th day of April in such year ; [ 3 and the said duties which shall be charged in England, except where the same shall be detained and stopped at the respective offices, shall be payable in each year by four quarterly instalments at the times follow- ing ; videlicet, on or before the 20th day of June for the first quarterly instalment, on or before the 20th day of September, for the second quarterly instalment, on or before the 20th day of December for the third quarterly instalment, and on or before the 20th day of March for the last quarterly instalment, in each year ; and in Scotland, the said duties shall be payable by two half-yearly instalments ; videlicet, on or before the 20th day of September for the first half-yearly instal- ment, and on or before the 20th day of March for the last half-yearly instalment ; the payment thereof for the first assessment to be regulated as to the proportion of the sums and times of payment by the respective Commissioners pursuant to the directions herein contained.] 177. ['And be it enacted, that] if any person shall come into any If persons parish or place wherein such person shall not have been before charged come to reside to the said duties contained in any of the said Schedules for the same } n an j P a ri sn year, the assessor or collector, or any inspector or surveyor, shall give ^^ e ^ e ^ or leave notice in writing to or for such person to make out and deliver, teen before within fourteen days next ensuing the day of giving such notice, a charged the declaration in writing, signed by him with his own proper name, which assessor to shall specify the name of the parish or place and county wherein such * 1 ^! person shall have been assessed as aforesaid for such year, and also to th April, paid yearly unto and for the use of her Majesty, her heirs and \ / ' c ^ rta ^ n successors, during the respective terms hereinafter limited, the several mentioned to rates and duties hereinafter mentioned ; (that is to say,) be charged on For and in respect of the property in any lands, tenements, or property, &c. hereditaments in the United Kingdom, and for and in respect of every annuity, pension, or stipend payable by her Majesty, or out of the public revenue of the United Kingdom, and for and in respect of all interest of money, annuities, dividends, and shares of annuities, payable to any person or persons, bodies politic or corporate, companies or societies, whether corporate or not corporate, and for and in respect of the annual profits or gains arising or accruing to any person or persons whatever resident in the United Kingdom, from any kind of property whatever, whether situate in the United Kingdom or else- where, or from any annuities, allowances, or stipends, or from any profession, trade, or vocation, whether the same shall be respectively exercised in the United Kingdom or elsewhere, and for and in respect of the annual profits or gains arising or accruing to any person or persons not resident within the United Kingdom from any property whatever in the United Kingdom, or from any trade, profession, or 1 The part in brackets is repealed by the Statute Law Revision Act, 1892 (55-6 V. c. 19). 3 Sect. 1 is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). 428 APPENDIX VI. Duties payable in respect of subjects described in schedules. vocation exercised in the United Kingdom, for every twenty shillings of the annual value or amount thereof, During the term of two years from the fifth day of April s. d. one thousand eight hundred and fifty-three, the yearly duty of - - 007 And during the further term of two years from the fifth day of April one thousand eight hundred and fifty-five, the yearly duty of - - 6 And during the further term of three years from the fifth day of April one thousand eight hundred and fifty-seven, the yearly duty of - - - 5 And for and in respect of the occupation of such lands, tenements, or hereditaments (other than a dwelling-house occupied by a tenant, distinct from a farm of lands), for every twenty shillings of the annual value thereof, T TJ, i , In Scotland In England. and Ireland> During the said first-mentioned tarm of two years, the yearly duty of - And during the said further term of two years, the yearly duty of - And during the said further term of three years, the yearly duty of - d. d. -003 2 2i 2. For the purpose of classifying and distinguishing the several properties, profits, and gains for and in respect of which the said duties are by this Act granted, and for the purposes of the provisions for assessing, raising, levying, and collecting such duties respectively, the said duties shall be deemed to be granted and made payable yearly for and in respect of the several properties, profits, and gains respectively described or comprised in the several schedules contained in this Act, and marked respectively (A.), (B.), (C.), (D.), and (E.), and to be charged under such respective schedules ; (that is to say,) SCHEDULE (A.) For and in respect of the property in all lands, tenements, here- ditaments, and heritages in the United Kingdom, and to be charged for every twenty shillings of the annual value thereof : SCHEDULE (B.) For and in respect of the occupation of all such lands, tenements, hereditaments, and heritages as aforesaid, and to be charged for every twenty shillings of the annual value thereof : SCHEDULE (C.) 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, and to be charged for every twenty shillings of the annual amount thereof : SCHEDULE (D.) 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 whatever, whether situate in the United Kingdom or else- where, and for and in respect of the annual profits or gains arising THE INCOME TAX ACT, 1853. 429 or accruing to any person residing in the United Kingdom from any profession, trade, employment, or vocation, whether the same shall be respectively carried on in the United Kingdom or elsewhere, and to be charged for every twenty shillings of the annual amount of such profits and gains : 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, and to be charged for every twenty shillings of the annual amount of such profits and gains : And for and in respect of all interest of money, annuities, and other annual profits and gains not charged by virtue of any of the other schedules contained in this Act, and to be charged for every twenty shillings of the annual amount thereof : SCHEDULE (E.) 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 annuities charged to the duties under the said Schedule (0.), and to be charged for every twenty shillings of the annual amount thereof. 3. Upon every fractional part of twenty shillings of the annual Duties on value or amount of the property, profits, and gains aforesaid, the like fractional proportion of duty at the respective rates aforesaid shall be charged ; P 31 "" 1 ' provided that no duty shall be charged of a lower denomination than one penny. 4. The duties by this Act granted shall be under the direction and Duties to be management of the Commissioners of Inland Revenue for the time under the being, who are hereby empowered to employ all such officers or other I ^ a t ^ a c ieilt persons, and to do all such other acts and things as may be deemed m issioners " necessary or expedient for the raising, collecting, receiving, and ac- of Inland counting for the said duties, and for putting this Act into execution in Revenue. and throughout the United Kingdom, in the like and in as full and ample a manner as they are authorized to do with relation to any other duties under their care and management. 5. The said duties hereby granted shall be assessed, raised, levied, Duties to be and collected under the regulations and provisions of the Act passed assessed and in the session of Parliament held in the fifth and sixth years of her f^ lsed . Majesty, chapter thirty-five, and of the several Acts therein mentioned O f recited or referred to, and also of any Act or Acts subsequently passed Acts. explaining, altering, amending, or continuing the said first-mentioned Act ; and for this purpose all the said several Acts shall be revived, and shall be deemed to have been and to be continued in force from the 5th day of April, 1853 ; and all such of the said regulations and provisions as have been enacted by the said Acts, or any of them, with reference to Great Britain or England, shall (so far as the same are or may be applicable consistently with the express provisions of this Act) be and the same are hereby extended to Ireland ; and all powers, authorities, rules, regulations, directions, penalties, clauses, matters, and things contained in or enacted by the said several Acts before recited or referred to, or any of them, shall, notwithstanding that the same may have expired, severally and respectively be and become in full force and effect with respect to the duties hereby granted, and 430 APPENDIX VI. Provisions of former Act not ta extend to exempt persons receiving profits from possessions or securities in Ireland, &c., or from foreign possessions or securities. Duties in respect of securities and possessions in Ireland to be charged in the same manner as securities and posses- sions of the like nature iu Great Britain are chargeable, except as modified by this Act. Persons holding offices in Ireland, and members of Parliament re- siding in Ireland, to be chargeable, notwithstanding certain provi- sions in 5 & 6 Viet. c. 35. shall in all cases not expressly provided for by this Act, and so far as the same are not superseded by and are consistent with the express provisions of this Act, severally and respectively be duly observed, applied, practised, and put in execution throughout the respective parts of the United Kingdom, for raising, levying, collecting, receiv- ing, accounting for, and securing the said duties hereby granted, and for auditing the accounts thereof, and otherwise relating thereto, as fully and effectually to all intents and purposes as if the same powers, authorities, rules, regulations, directions, penalties, clauses, matters, and things were particularly repeated and re-enacted in the body of this Act with reference to the said duties hereby granted, and respec- tively applied to the several parts of the United Kingdom as aforesaid ; and wherever in the said Acts, or any of them, the term "England " is used or mentioned, the same, in relation to the duties granted by this Act, shall be deemed to extend to and to mean also Ireland ; and in like manner the term " Great Britain " shall be read as and deemed and construed to mean the United Kingdom ; and where in the pro- visions of the said Acts her Majesty's Court of Exchequer at West- minster, or any of her Majesty's Courts of Record at Westminster, is or are mentioned or referred to, such provisions shall, with reference to the duties under this Act to be assessed in Ireland be construed and take effect as if her Majesty's Court of Exchequer at Dublin, or her Majesty's Superior Courts of Eecord at Dublin, were mentioned or referred to instead of the said respective Courts at Westminster, and the said Act of the fifth and sixth years of her Majesty, chapter thirty- five, and the Acts explaining, altering, amending, and continuing the same, and this Act, shall be construed and read together as one Act. 6. Provided always, that nothing in the said first-mentioned Act contained shall be deemed or construed to extend to exempt any person, although not resident in any part of the United Kingdom, from the duties granted by this Act in respect of the profits or gains received from or out of any possessions or securities in Ireland, or to exempt any person resident in any part of the United Kingdom from the said duties in respect of the profits or gains received from or out of any possessions or securities in any other of her Majesty's dominions, or any foreign possessions or securities. 7. Provided also, that the duties in respect of interest arising from securities in Ireland, and in respect of possessions in Ireland, which by the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, are directed to be charged and assessed respectively accord- ing to certain rules prescribed for charging the duties under the head respectively of "fourth case" and "fifth case" of Schedule (D.), and in section one hundred and six of the said Act, shall under this Act be charged and assessed in Ireland in the same manner and under the same schedules, rules, and regulations respectively as the duties on securities and possessions of the like nature in Great Britain are directed to be charged, except so far as such schedules, rules, and regulations are altered or modified in regard to the assessing or charging of duties in Ireland by the express provisions of this Act. 8. Provided also, that, notwithstanding anything in the said Act of the fifth and sixth years of her Majesty contained, persons holding offices in Ireland and residing in Great Britain, and persons usually residing in Ireland and serving in Parliament, shall be chargeable to the duties by this Act granted, without regard to any exemption from the duties of assessed taxes ; and that this Act shall extend to charge THE INCOME TAX ACT, 1853. 431 persons resident in Ireland with the duties under Schedule (E.) in respect of public offices or employments, although the duties thereof are necessarily and permanently performed in Ireland. 9. The several persons chosen or appointed under the provisions of Commis- the said first-mentioned Act to be respectively Commissioners for the sioners General Purposes of the said Act, and to be respectively additional or appointed other Commissioners, being respectively duly qualified in that behalf, Acts'to'be 11 and also the several persons appointed to be and who on the 5th day Commis- of April, 1853, were Commissioners for the Special Purposes of the sioners under said Act, shall, without any further or other election, nomination, or this Act. appointment respectively, be such Commissioners as aforesaid for the like purposes under this Act ; and wherever in the said Act, or in any Act relating to the duties thereby granted, mention is made of the Commissioners of Stamps and Taxes, the same in relation to the duties granted by this Act shall be construed and deemed to designate the Commissioners of Inland Eevenue : Provided that no persons shall be Commissioners to supply vacancies amongst the said Commissioners for General Purposes except such persons as shall after the passing of this Act be chosen for that purpose in the manner provided by the said first-mentioned Act. 10. The provision made by the Act passed in the said session of Persons in- the fifth and sixth years of her Majesty, chapter eighty, section two, trusted with for the assessing and charging the duties on dividends and shares of ^the^ited annuities payable out of the revenue of any foreign state, shall be Kingdom of and the same is hereby extended to the assessing and charging of the interest or duties granted by this Act, as well on such dividends and shares of dividends annuities as aforesaid as on all interest, dividends, or other annual * TOm rjJF* 11 payments payable out of or in respect of the stocks, funds, or shares too^S^cts of any foreign company, society, adventure, or concern, or in respect necessary in of any securities given by or on account of any such company, society, order to adventure, or concern, and which said interest, dividends, or annual assessments payments have been or shall be intrusted to any person in the United .f 111 :U. J , J * . . thereon in .Kingdom lor payment to any persons, corporations, companies, or manne r societies in the United Kingdom, and all persons intrusted with the directed by payment of any such interest, dividends, or other annual payments as 5 & 6 Viet, aforesaid in the United Kingdom, or acting therein as agents or in c - ^- any other character, shall and they are hereby required to do and perform all such acts, matters, and things, in order to the assessing and charging and paying of the said duties on all such interest, divi- dends, or other annual payments as aforesaid, and under and subject to the like penalty or other liability for any neglect, refusal, or default in that behalf, as by the said Act of the fifth and sixth years of her Majesty, chapter eighty, persons intrusted with the payment of annuities or any dividends or shares of annuities are required to do and perform, or are subject or liable to for any similar neglect, refusal, or default; and the assessments of the duties on all such interest, divi- dends, and other annual payments as aforesaid shall be made by the Commissioners for Special Purposes under Schedule (D.) of this Act, and the said Commissioners shall do and perform all such acts, matters, and things in relation to such assessments as by the said Act, chapter eighty, they are required to do or perform in relation to any assessment under the said last-mentioned Act. 11. The governor and directors [ ! of the company] of the Bank of Governor and 1 The part in brackets is repealed by the Statute Law Revision. Act, 1892 (55-6 V. c. 19). 432 APPENDIX VI. directors of the Bank of Ireland to be Commis- sioners for duties on annuities, dividends, pensions, and salaries payable by the bank, and on their profits. The clerks of the Boards of Guardians in Ireland to transmit to the Commis- sioners of Inland Revenue annually copies of the poor rates. Duties under Schedules (A.) and (B.) in Ireland to according to the valuations under the Poor Relief Acts. Ireland shall be Commissioners for executing this Act, for the purpose of assessing and charging the duties hereby granted in respect of all annuities, dividends and shares of annuities payable by [ ! the governor and company of] the Bank of Ireland out of the public revenue of the United Kingdom to any persons, corporations, or companies whatever, and in respect of all profits and gains of the said company chargeable under Schedule (D.) of this Act, and in respect of all other dividends, interests, annuities, pensions, and salaries payable by the said company, and also in respect of all other profits chargeable with duty under this Act and arising within any office or department under the manage- ment or control of the said governor and company ; and the said last- mentioned Commissioners shall have, use, and exercise all the powers and authorities of Commissioners for the General Purposes of this Act, so far as the same relate to the said duties to be assessed and charged by the said governor and directors, and shall make their assessments of the said duties, under and subject to the rules, regulations, and exemptions contained in the said first-mentioned Act in relation to the said duties respectively : Provided always, that the duties by this Act granted shall extend to and be payable upon all annuities, dividends, and share of annuities payable in Ireland out of the revenue of the United Kingdom to or for the use or benefit of any person, whether resident in Ireland or elsewhere. 12. In order to the assessing of the duties chargeable under the respective Schedules (A.) and (B.) of this Act in Ireland, the clerk of the board of guardians of every poor law union in Ireland, or the person acting as such clerk, shall, [ 2 within one month after the passing of this Act, and between the fifth day of April and the first day of June in every succeeding year,] transmit to the Commissioners of Inland Revenue, at their head office in Dublin, true copies of the last rates made by such guardians for the relief of the poor in such union, and in every electoral division thereof, and the Collector General of Rates in the City of Dublin shall, in like manner [ 2 and within the same period in each year,] transmit to the said Commissioners true copies of the last rates made for the relief of the destitute poor in the several electoral divisions or parts thereof in which he is by law authorized to make and declare such rates ; and the Commissioners of Inland Revenue shall pay to the said clerk and collector respectively the cost and expense of making all such copies, not exceeding the rate of two shillings and sixpence for every one hundred ratings ; and if any such clerk or any person acting as such clerk or such collector shall in any year neglect to transmit such copies in compliance with this enactment he shall for every such neglect forfeit the sum of fifty pounds. 13. The duties chargeable in Ireland under the respective Sche- dules (A.) and (B.) of this Act shall be charged and assessed by a poundage rate upon the annual value of all tenements and rateable hereditaments, according to the respective surveys and valuations made or to be made and from time to time in force for the purposes of the rates for the relief of the poor in Ireland ; and the assessment of the said duties in Ireland chargeable under the said Schedule (A.) shall be made upon the landlord or immediate lessor of such tenements or rateable hereditaments, or if it shall appear to the Commissioners 1 The part in brackets is repealed by the Statute Law Revision Act, 1892 (55-6 V. c. 19). 2 The part in brackets is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). THE INCOME TAX ACT, 1853. 433 for Special Purposes to be necessary or proper, the said assessment On whom shall be made upon such person as the rate for the relief of the poor assessments shall be made upon in respect of any such property under the pro- visions of the Acts in that behalf; and the assessment of the said duties chargeable under the said Schedule (B.) shall be made upon the occupier of such property : Provided always, that if upon the appeal, as hereinafter mentioned, of any person deeming himself aggrieved by any such assessment, it shall be proved to the satisfaction of the Com- missioners, assistant barrister, chairman, or recorder, by whom such appeal shall be heard or re-heard, as the case may be, that such assess- ment is made upon an amount or value exceeding the annual rent at which the property in respect whereof such assessment is made is worth to be let from year to year, the person hearing or re-hearing such appeal shall give relief by reducing and abating such assessment, and charging the duties on the amount of such annual value as afore- said, notwithstanding that the same may be less than the annual value of the premises according to any such survey or valuation as aforesaid ; and if such annual value at which such property is worth to be let as aforesaid shall exceed the actual rent payable yearly by the tenant or occupier of such premises, the landlord or immediate lessor shall be assessed under Schedule (A.) upon the amount of such actual rent only, and the tenant or occupier shall be assessed under the said Schedule (A.) on the difference between that amount and the amount of such last-mentioned annual value, subject nevertheless to any claim for exemption which the parties respectively may be entitled to : Pro- Persons re- vided also, that where any person receiving rent in respect of any ceiving rent hereditament in Ireland exempt from being rated to the relief of the ^ poor is liable to be rated in respect of such rent to the extent of Ireland* one half the poundage of any poor rate, the said duties in Ireland exempt from chargeable under the said Schedule (A.) shall be charged and assessed poor rates to upon such person by a poundage rate upon the full amount of such ^ assessed to rent. ' full amount of rent. 14. Provided also, that if in any case it appear to the Commissioners Commis- of Inland Revenue that any such valuation as aforesaid for the time sioners of In- being in force is not correct (having reference to the principles land Revenue according to which the same ought by law to have been made,) with ^valuTio respect to all or any of the tenements or rateable hereditaments where exist- included therein, it shall be lawful for such Commissioners to direct ing valuations the Commissioner of valuation to make or cause to be made a re-valua- are incorrect, tion of the tenements or hereditaments with respect to which the said valuation is incorrect, and such Commissioner of valuation shall forth- with, with all convenient speed, make or cause to be made such re-valuation accordingly, and sign the same and transmit it to the Commissioners of Inland Revenue ; and such re-valuation shall be made according to the principles or rules according to which such incorrect valuation ought by law to have been made, and the duties chargeable under the said Schedules (A.) and (B.) shall, after such re- valuation, be charged and assessed according thereto : Provided that if any person assessed to the last-mentioned duties according to such re-valuation deem himself aggrieved thereby, it shall be lawful for him to appeal against such assessment on the ground of the incor- rectness of such re-valuation, and upon such appeal it shall be lawful for the Commissioners, assistant barrister, chairman, or recorder hear- ing or re-hearing such appeal to alter as well such re- valuation as the assessment thereon, and make such order in relation thereto as they or he may think fit. R. F F 434 APPENDIX VI. rent in Ireland. Allowance for 15. In assessing in Ireland the duties chargeable under Schedule (A.) poor rates O f this Act on the landlord or immediate lessor, in every case where chargeable on ^e amoun t or annual value on which the assessment is made on him 3r s is not less than the annual rent reserved or payable to him for the premises in respect of which the assessment is made, an allowance or abatement of a proportionate part of the duty shall be made in respect of the amount of the poor rates which such landlord or lessor shall have paid or borne for the same premises in the year preceding ; and if the amount or annual value on which such assessment as aforesaid is made shall be less than the said rent, then such allowance or abate- ment as aforesaid shall be made only in respect of so much as the amount of the said poor rate added to the sum on which the assessment is made shall exceed the actual rent. By whom assessments under Sche- dules (A.) and (B.) in Ireland are to be made and collected. How assess- ments in Ire- land under Schedules (A.) and (B.) are to be collected, levied, and recovered. 16. All assessments of the said duties under the said Schedules (A.) and (B.) in Ireland, shall be made by surveyors of taxes or other officers of Inland Revenue acting in that behalf under the directions of the Commissioners of Inland Revenue ; and every such assessment shall be made for and comprise the respective premises situate within a union, or an electoral division, or such other district as the said last- mentioned Commissioners shall direct ; and the same shall be signed by two of the Commissioners for Special Purposes, who shall cause duplicates thereof, together with their warrants for the collecting and levying of the sums thereby assessed, to be delivered to such person or persons as they shall appoint to be collectors of such assessments. 17. Every such assessment in Ireland of the duties under the said Schedules (A.) and (B.) of this Act may be collected, levied, and recovered by distress by the person appointed in manner aforesaid to be the collector thereof from the person assessed, or from the occupier of the property assessed, or maybe levied upon the particular premises in respect of which the assessment is made ; and all goods and chattels, to whomsoever the same shall belong, found on such premises in respect of which any assessment is made of the said duties under this Act, shall be liable to be distrained and sold for the recovery of the said duties ; or such duties as aforesaid, or any arrears thereof, may be levied and recovered in the same manner as other duties assessed in Ireland under this Act may be levied and recovered : Pro- vided always, that the duty assessed under the said Schedule (A.) upon or in respect of any tenement or hereditament may be collected, recovered, and levied by the said collector from the landlord or immediate lessor of the premises assessed, whether he be named in the assessment or not ; and to that end such collector is hereby authorized and empowered to use, exercise, and put in force against such landlord or immediate lessor all or any of the remedies, ways, and means pro- vided by an Act of the first and second years of her Majesty, chapter fifty- six, and an Act of the sixth and seventh years of her Majesty, chapter ninety-two, or either of the said Acts, by which any rate made for the relief of the destitute poor in Ireland may be collected, recovered, or levied from any immediate lessor primarily liable to the payment of rates for premises the occupier of which is exempted from such pay- ment : Provided also, that where any proceeding for the recovery of any such rate is by law required to be had or taken in the name of the guardians of a poor law union, or by the direction or with the consent of such guardians or of the Poor Law Commissioners, or by or with any other direction or consent, the like proceeding for the recovery of the said duties under this Act may be had and taken by and in the THE INCOME TAX ACT, 1853. 435 name of such, collector as aforesaid, and without any such direction or consent ; provided that where any assessment under the said Sche- dule (A.) shall have been made upon the tenant or occupier of the premises assessed, the landlord or immediate lessor shall be liable to be proceeded against in manner aforesaid only in default of payment of such assessment by the said tenant or occupier, and for the recovery of so much only of the duty assessed as shall be chargeable in respect of the rent payable yearly to such landlord or immediate lessor for the premises assessed. 18. When any landlord or immediate lessor of any tenement or Landlords hereditament in Ireland assessed to the duty chargeable under Sche- ^ Ireland dule (A.) of this Act shall have paid such duty, and shall afterwards ent . ltled to prove to the satisfaction of the Commissioners for Special Purposes ^dut^paid that the rent due or payable to him in respect of such tenement or by them in hereditament for the period for which the said duty was assessed, or respect of any portion of such rent, has been wholly and irrecoverably lost by rent lost b 7 reason of the bankruptcy, insolvency, or absconding of the tenant or "^"k^P^y i, ui j i or absconding occupier by whom such rent was payable or by the fraudulent assign- O f tenant. ment or removal of his goods, or by reason of such tenement or here- ditament being left waste and unoccupied, then and in such case the said landlord or lessor shall be entitled to be repaid such proportion of the said duty as he shall have paid in respect of the rent so lost ; and the said Commissioners shall order and direct the repayment of such proportion of duty in like manner as by the said Act of the fifth and sixth years of her Majesty, chapter thirty -five, they are authorized to order and direct the repayment of duty in other cases, provided that such landlord or lessor shall make his claim for such repayment to the said Commissioners within the period of six calendar months after the expiration of the year for which the said duty was assessed. 19. Every person having in his custody or possession any survey or Persons valuation on which the rates for any union or electoral division shall having the be assessed or made, or any rate or assessment made under the pro- v^atfn visions of the Acts for the relief of the poor in Ireland, or any of them, un a er the shall, at the request of any inspector, surveyor, or other officer acting Poor Relief in the execution of this Act in Ireland, produce and show every such Acts in survey, valuation, rate, and assessment to such inspector, surveyor, or I re la n cl to other officer, and permit him to inspect the same, and to take copies to^fficers^ 1 thereof or extracts therefrom without paying anything for the same ; under this and in case the person having the custody or possession of any such Act, and to survey, valuation, rate, or assessment, shall, on any such request as permit copies aforesaid, refuse to produce the same to such inspector, surveyor, or taken, other officer, or to permit him to inspect the same, or to take copies Penalty for thereof or such extracts as he may think fit to take therefrom, such r< ' c " person shall, for every such refusal, forfeit the sum of fifty pounds. 20. The assessments of the duties chargeable in Ireland under the By whom several Schedules (D.) and (E.) of this Act shall be made by such assessments surveyors of taxes, or other officers of Inland Revenue as the Commis- ^f er /^ e ~ sioners of Inland Revenue shall appoint in that behalf ; and such ^ndffi 1 to assessments shall be allowed and signed by the Commissioners for be mado in Special Purposes, who shall also appoint the times and places for Ireland, hearing appeals against the same as hereinafter mentioned, and shall also cause due notice of every such assessment, and of the amount thereof, and of the time and place appointed for hearing any appeal against the same, to be given by some officer of Inland Revenue to every person so assessed. FF2 436 APPENDIX VI. Appeals in Ireland to be heard and determined by the Com- missioners for Special Purposes. Persons aggrieved by determination of Com- missioners may require appeal to be re-heard by an assistant barrister, &c. 21. All appeals against assessments under this Act in Ireland shall be heard and determined by the said Commissioners for Special Pur- poses, or any two of them, whose determination on any such appeal shall be final and conclusive, unless the person charged by the assess- ment shall think himself aggrieved by such determination, and shall require that such appeal shall be re-heard as hereinafter provided ; and where any person charged by any such assessment as aforesaid, and to whom notice thereof and of the time and place appointed for hearing any appeal against the same shall be given as hereinbefore directed, shall neglect to appeal accordingly, such assessment shall also be conclusive, and such person shall be precluded from afterwards disputing or questioning the same. 22. If any person charged by an assessment in Ireland shall think himself aggrieved by the determination of the said Commissioners for Special Purposes in any such appeal as aforesaid, it shall be lawful for him, on giving notice in writing to the inspector or surveyor within ten days after such determination, to require that such appeal shall be re-heard by the assistant barrister for the county or riding where such person shall have been assessed, or in case he shall have been assessed in the county of Dublin, by the chairman of the sessions of the peace of such county, or in case such person shall have been assessed in the city of Dublin, by the recorder of such city, or in case such person shall have been assessed in the borough of Cork, by the recorder of such borough ; and where any such appeal shall be so required to be re-heard, any statement or schedule in the pos- session of the said Commissioners for Special Purposes, returned to them for the purpose of such appeal, shall be transmitted by them to the assistant barrister, chairman, or recorder (as the case may require) ; and such assistant barrister, chairman, or recorder shall with all convenient speed re-hear and determine- such appeal, and shall take the oath or affirmation required to be taken by a Commis- sioner for Special Purposes, and shall and may have and exercise the same powers and authorities in relation to the assessment appealed against, and the determination of the matter thereof and in relation to all matters consequent thereon, as any two or more Commissioners for Special Purposes might have and exercise, and his determination thereon shall be final and conclusive. 23. After the respective times for hearing appeals against such assessments as aforesaid in Ireland, then as to all assessments against which appeals shall have been heard and determined, leaving any sum assessed or charged by any such assessment, and as to all assess- ments against which no appeal shall have been made, the Commis- sioners for Special Purposes shall cause duplicates thereof, together with warrants under the hands and seals of two of the said last- mentioned Commissioners, to be delivered to such officers of Inland Revenue or other persons as shall be named in such warrants respec- tively, appointing such persons to be collectors of the duties and sums of money assessed and charged in such duplicates respectively, and requiring and empowering such collectors respectively to collect, demand, levy, and recover all such duties and sums of money. Commis- 24. The Commissioners for Special Purposes acting in the execution sioners for o f this Act in Ireland in relation to the allowing or signing of any p pe( ' 1! such assessment as aforesaid, and to the hearing and determining of inspector's an J appeal against the same, and to the making and signing of any and surveyors duplicate thereof and any warrant for collecting and levying the After hearing appeals in Ireland, Com- missioners to cause dupli- cates of as- sessments to be delivered to collectors with warrants to collect the same. THE INCOME TAX ACT, 1853. 437 duties and sums of money charged or assessed thereby, and also all of taxes, and inspectors and surveyors of taxes, and other officers of Inland Revenue other officers acting in Ireland in relation to the making of any such assessment or Q exercise the T_ < j/i i like powers in to the assessing or charging of any person therein or thereby, and executing also all persons named or appointed by the said Commissioners to be this Act in respectively collectors of the said duties and sums of money in relation Ireland as to the collecting, levying, distraining for, or otherwise recovering of Commis- the same, shall respectively be, and are hereby invested with, and gators r shall have, use, and exercise all such and the like powers and autho- officers may rities as any Commissioners, either for General or Special Purposes, or exercise in any additional Commissioners, and as any inspectors, surveyors, col- similar cases lectors, or other officers respectively have or are invested with, or can m England, or may use or exercise in England in relation to the making or allow- ing of any assessment of duties under this Act, or to the assessing or charging of any person to such duties, or to the hearing or determin- ing of any appeal against any such assessment, or to the collecting, levying, distraining for, or otherwise recovering of any such duties, so far as such powers and authorities or any of them are applicable or may be adapted to the performance of similar acts, matters, and things in Ireland. 25. Nothing herein contained shall be construed to make any union, Unions, &c. electoral division, or place in Ireland in which any assessment of in Ireland any duties granted under this Act shall be made, answerable for the not to ^, amount of duties charged in such place, nor for any neglect or f or n e -lect default of the collector in demanding or collecting same, nor shall O r default of any re-assessment be made in Ireland upon any such place for any collectors, arrears or loss occasioned by any such neglect or default. 26. Where in any Court or department of office there shall not be a Who to sufficient number of officers proper to be appointed Commissioners be Com - for executing this Act in relation to the duties on offices and employ- nussioners ments of profit in such Court or department of office, it shall be lawful are not for the ['Commissioners of her Majesty's] Treasury to direct that the sufficient Commissioners for any other department shall execute this Act in officers in relation to the offices and employments of profit in any such Court or ^ n 7 Court or department as aforesaid ; and in default of a sufficient number of ^^ Commissioners being appointed in any such Court or department, and of such direction as aforesaid, the Commissioners for General Purposes in their respective districts in England and Scotland respectively, and the Commissioners for Special Purposes in Ireland, shall respectively put this Act in execution in relation to the duties on offices and em- p , ployments in any such Court or department as aforesaid ; and wherever Commis- in the said Act of the fifth and sixth years of her Majesty, chapter sioners for thirty- five, any power or direction is given to the Commissioners for General Pur- executing the said Act in relation to the duties on lands and tenements P oses M to to execute the same in their several districts in relation to the duties offi( !^g ^^ on offices and employments of profit, every such power and direction executed in shall, in relation to the duties on offices and employments of profit in Ireland by Ireland under this Act, be executed and carried out by the Commis- Commis- sioners for Special Purposes. SS Purposes. 27. 2 It shall be lawful for any person who shall be duly assessed by persons the Commissioners for Special Purposes for the duties on the profits assessed 1 The part in brackets is repealed by the Statute Law Revision Act, 1892 (55-6 V. c. 19). 2 Sect. 27 is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). 438 APPENDIX VI. under Sche- and gains described in Schedule (D.) of this Act, for the first year for dule (D.) may which the said duties are by this Act granted, to compound for the compound. charging of the rate of duty which shall from time to time be payable under this Act for each and every year up to the fifth day of April one thousand eight hundred and fifty-seven on the same amount of such profits and gains in which he shall have been so assessed ; and it shall also be lawful for any person who shall be duly assessed as aforesaid for the year commencing from the said last-mentioned day in like manner to compound for the charging of the rate of duty which shall then be payable for each and every remaining year of the period for which the said duties are by this Act granted, on the same amount of such profits and gains in which he shall have been so assessed as last aforesaid ; and the consideration for every such composition shall be the payment, in each and every year of the said composition, of an addition to the said duties at and after the rate of one shilling for every twenty shillings of the said duties ; and every such composition shall be entered into and made with the Commissioners for Special Purposes, under and subject to the conditions, rules, and regulations (mutatis mutandis) contained in the said Act of the fifth and sixth years of her Majesty, chapter thirty- five, in relation to compositions under the said last-mentioned Act, and the contract for the same shall be in such form as the Commissioners of Inland Revenue shall provide in that behalf. Exemption of persons whose income is under IQQL, and abate- ment to those whose income is under 1501. a year re- spectively. 28. pThe exemption granted by the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, to persons whose respective incomes are less than one hundred and fifty pounds a year shall bo limited and restricted under this Act to persons whose whole incomes from every source are less than one hundred pounds a year respec- tively :] [ 2 Provided always, that any person who shall be assessed or charged to any of the duties granted by this Act, or shall have paid the same either by deduction or otherwise, and who shall claim and prove, in the manner prescribed by the said Act, that his total income from every source, although amounting to one hundred pounds or upwards, is less than one hundred and fifty pounds a year for the year of the assessment of his profits or gains, shall be entitled to be relieved from so much of the said duties assessed upon or paid by him as shall exceed the rate of fivepence for every twenty shillings of his profits or gains, and such relief shall be given either by reduction or abatement of the assessment upon such person, or by the repayment to him of so much of the said excess as he shall have paid, or by both of those means, as the case may require ;] and in Ireland the income arising from the occupation of lands, tenements, or hereditaments, by any person claiming such exemption or relief as aforesaid, shall be deemed to be one third of the annual value on which the same shall be charge- able under Schedule (B.) of this Act ; and all the provisions, rules, and regulations contained in the said Act of the fifth and sixth years of her Majesty, chapter thirty- five, in relation to the exemption of persons whose incomes are less than one hundred and fifty pounds a year, and to the reduction or abatement of any assessment upon such persons, or to the repayment to them of any duties or sums of money, shall be observed and applied, so far as the same are applicable (mutatis mutandis), to the exemption of persons whose incomes are 1 The part in brackets is repealed by the Statute Law Revision Act, 1878 (41-2 V. c. 79). 3 The part in brackets is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). THE INCOME TAX ACT, 1853. 439 less than one hundred pounds a year, and to the claims for relief in the manner aforesaid to persons whose incomes are less than one hundred and fifty pounds a year. 29. Provided always, that in computing the income of any person In computing for the purposes of this Act, such computation, so far as regards income from any rent derived from tenements or hereditaments in Ireland charge- p 11 * in Ire " able under Schedule (A.), shall be made after allowing for the r ates^obe amount of poor rates chargeable on such rent by way of deduction or deducted, otherwise. 30. Where, on any application for relief, or abatement of assessment Persona in pursuance of the provisions contained respectively in section one claiming hundred and thirty-three and section one hundred and thirty-four of a the said Act of the fifth and sixth years of her Majesty, chapter thirty- an( j -proving five, and in the third section of an Act of the fourteenth year of her their incomes Majesty's reign, chapter twelve, it shall be proved to the satisfaction to be under of the Commissioners to whom such application shall be made that 10( ^- a y? ar , the total amount of the income from every source of the person claim- to tneTame 6 ' ing such relief or abatement for the year for which such assessment reue f as if was made was under one hundred pounds, 1 such person shall be they had entitled to the same relief and repayment respectively as by this Act claimed and the said first-mentioned Act is provided in the case of persons exemption on t . . T J.C.L-I- , i- i the ground ot claiming relief on the ground oi their respective annual incomes being their incomes less than one hundred pounds a year. being under that amount. 31. In Ireland all claims of exemption by reason of the income of . any person beingjunder one hundred pounds l a year, and all claims for exemption or relief or reduction of assessment on the ground of such income being for reduction under one hundred and fifty pounds a year, and all claims for return of assessment or repayment of any duties on either of the grounds aforesaid, or repayment under any other of the provisions of this Act or of the Acts herein jj.^^ to mentioned or referred to, shall be made in such manner and form as be made to the Commissioners of Inland Revenue shall direct and provide in that the Com- behalf ; and all such claims shall be made to and shall be adjudicated missioners and finally determined by the Commissioners for Special Purposes, or frmxiseT any two of them ; provided that there shall be a like appeal as regards claims for exemptions in Ireland to the assistant barrister, chairman, or recorder (as the case may require) as is hereinbefore contained in reference to persons charged by an assessment and feeling aggrieved thereby. 32. In assessing and charging the duties under Schedule (A.) of this The duties Act in respect of lands, tenements, or hereditaments, subject to any m respect of rentcharge under the Act for the commutation of tithes in England or ^^^011" any other rentcharge in lieu of tithe, it shall be lawful for the Com- re ntcharges missioners acting in the execution of this Act if they shall think fit. may be as- on a due return of such rentcharge being made by the owner thereof sessed on the in order to an assessment upon him, to charge and assess such owner owner8 ' in the assessment for the said parish with the duty under Schedule (A.) of this Act in respect of such rentcharge, deducting therefrom the amount of the parochial rates, taxes, and assessments charged upon or in respect of such rentcharge in the preceding year ; and in the case of such assessment being made upon the owner of the said rentcharge, the amount of such rentcharge shall be allowed as a deduction in the assessment of the lands, tenements, and heredita- 1 The sum is now 160?. : see the Finance Act, 1894, sect. 34, p. 294. 440 APPENDIX VI. Allowances to be made in respect of certain burdens on tithe rent- charges in Ireland. As to deduc- tions for the repairs of collegiate churches and chapels, chancels, &c. Tenants of lands who are called upon to pay arrears due from former occupiers may deduct the amount from their rent. ments on which the same is charged under the said Act for the com- mutation of tithes. 33. And whereas tithe rentcharge belonging to or held by eccle- siastical persons or bodies in Ireland is liable, in many cases, to heavy charges in respect of the tax payable to the Ecclesiastical Commis- sioners for Ireland, poor rates, the repayment of instalments for the building or repairing of glebe houses, or other charges : And whereas the deductions in respect of income tax under the provisions of this Act or the before-recited Act of the fifth and sixth years of her Majesty's reign, chapter thirty-five, made by any person paying tithe rentcharge to any ecclesiastical person or body entitled to receive the same, would, under the provisions of this and the said Act, be the income tax upon the gross amount of such rentcharge ; and it is expedient and just that such ecclesiastical persons or bodies should have the benefit of the allowances hereinafter mentioned out of such gross income, and of a proportionate remission of income tax : It shall be lawful for any ecclesiastical person or body to make application to the Commissioners for Special Purposes, setting forth the deductions or charges to which his income has been subjected during the preceding year in respect of the ecclesiastical tax aforesaid, poor rates, and the other charges and matters of the like nature and description as those in respect of which the Ecclesiastical Commissioners are directed to make allowances or deductions in estimating the value of a benefice or other ecclesiastical property, with a view to its taxation, under the provisions of an Act passed in the third and fourth years of King William the Fourth, chapter thirty-seven ; and such person or body, on proof to the satisfaction of the Commissioners for Special Purposes that the income of such ecclesiastical person or body has been actually subjected to such charges or deductions, shall be entitled to have repaid to him by the Commissioners of Inland Revenue the difference between the amount of income tax calculated on the gross income of such eccle- siastical person or body and the amount to which such person or body would have been liable supposing the income tax to have been assessed upon his income after deducting such charges as aforesaid. 34. Provided also, that the deduction allowed under Schedule (A.), No. V., of the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, for the repairs of collegiate churches and chapels and chancels of churches, or of any college or hall in any of the universities, by any ecclesiastical or collegiate body, rector, vicar, or other person bound to repair the same, shall, in respect of the duties under Schedule (A.) of this Act, be the amount of the sum so expended in the year preceding that in which the assessment is made, instead of an average of twenty-one years, as in the said Schedule (A.), No. V., is mentioned. 35. Where any occupier for the time being of any lands, tenements, or hereditaments, being tenant thereof, shall be called upon and required to pay, and shall have paid, any sum or sums assessed upon or in respect of such lands, tenements, or hereditaments under the said Schedule (A.) of this Act, and which said sum or sums, or any portion thereof, ought, under the rules for charging the duties under the said schedule, to have been paid or to be paid by any former tenant or occupier of the same lands, tenements, or hereditaments, or his executors or administrators, it shall be lawful for the said occupier for the time being to deduct and retain, from and out of any subsequent payment of rent to his landlord, the said sum or sums of money, or any portion thereof, which ought to have been or to be paid by such THE INCOME TAX ACT, 1853. 441 former tenant or occupier, or his executors or administrators as afore- said : Provided that nothing in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, or in this Act contained shall extend to authorize the levying upon any such occupier for the time being any arrear of duty assessed under Schedule (A.) or Schedule (B.) of this Act which ought to have been levied upon and ultimately paid and borne by any former occupier of the same lands, tenements, or hereditaments ; and provided also, that nothing herein contained shall be deemed or construed to alter, prejudice, or affect any remedy given by the said rules for the recovering and levying of any such sum or sums, or any portion thereof, from or upon such former tenant or occupier, or his executors or administrators. 36. Any house or building let in different apartments or tenements, Houses let and occupied by two or more persons severally, shall nevertheless be in several charged to the duty under this Act as one entire house or tenement, and the assessment thereof shall be made on the landlord ; but in default of payment by him the duty so charged and assessed may be levied on the occupier or occupiers respectively, and being paid by them or one of them shall be deducted and allowed out of the next or any subsequent payment on account of rent. 37. In charging the duty under Schedule (A.) of this Act in respect Deduction to of lands, an allowance and deduction shall be made for the amount be allowed expended by the landlord or owner thereof on an average of the ^der pche- ,. . ,, i . . e n dule (A.) for twenty-one preceding years in the making or repairing 01 sea walls or t ^ e e x penseg other embankments necessary for the preservation or protection of such O f making lands against the encroachment or overflowing of the sea or any tidal and repairing river, although the sums expended may not have been charged on such sea wa lls and lands by any public rate or assessment. 38. Where in any burgh in Scotland tolls commonly known by the Duties on name of customs are levied under the authority of any Act of Parlia- tolls called ment or charter, and are applied and expended in such burgh in or customs levied towards defraying the expenses of paving, lighting, or cleansing the ^ t ? r8 j 8 "j same, or of the police thereof, or in or towards discharging any other expended similar public burdens, the duty which may have been assessed and for public paid under this Act upon or in respect of such tolls shall, so far as purposes to regards so much of the said tolls as shall have been so expended as aforesaid, on due proof of all the necessary facts to the satisfaction of the Commissioners for Special Purposes, be allowed and repaid under an order of the said Commissioners, in like manner as in other cases where duties are allowed and repaid under the provisions in that behalf contained in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five. 39. Provided also, that notwithstanding anything in the said Act of Hop grounds the fifth and sixth years of her Majesty, chapter thirty-five, contained, * be charged all lands occupied for the growth of hops shall be charged to the ^f 6 ^^ 116 " duties under Schedule (B.) of this Act according to the general rules theVlands! contained in Schedule (B.) of the said first mentioned Act, and not by estimating the profits of such lands according to the rules contained in Schedule (D.) of the said Act. 40. Every person who shall be liable to the payment of any rent, or Deductions any yearly interest of money, or any annuity or other annual payment, of duty on either as a charge on any property or as a personal debt or obligation P a y m . ent f by virtue of any contract, whether the same shall be received or pay- ^ ' m ^ ' able half-yearly or at any shorter or more distant periods, shall be 442 APPENDIX VI. Deductions to be made from the net payment after allowing for poor rate in Ireland. Deduction of duty to be allowed on payment of rentcharges under the Drainage Advances Acts. No action of ejectment in Ireland to be defeated on ground of deductions reducing the amount due under a year's rent. Occupiers entitled and is hereby authorized, on making such payment, to deduct and retain thereout the amount of the rate of duty which at the time when such payment becomes due shall be payable ['under this Act, that is to say, seven-pence, six-pence, or five-pence, as the case may be], for every twenty shillings of such payment ; and the person liable to such payment shall be acquitted and discharged of so much money as such deduction shall amount unto, as if the amount thereof had actually been paid unto the person to whom such payment shall have been due and payable ; and the person to whom such payment as aforesaid is to be made shall allow such deduction upon the receipt of the residue of such money, under pain of forfeiting the sum of fifty pounds for any refusal so to do : Provided always, that no tenant or occupier of any property chargeable under Schedule (A.) of this Act shall be entitled to deduct or retain out of the rent thereof any greater sum than the amount of the duty which shall have been assessed and charged upon or in respect of such property, and actually paid by such tenant or occupier. 41. Provided always, that whenever any person liable to the said duties chargeable in Ireland under the said Schedule (A.) shall be entitled to retain a proportionate amount of such duties from any annual payment from which he is now by law entitled to deduct any sum on account of poor rates, he shall be entitled to retain such pro- portionate amount only upon the net sum payable by him after the allowance for poor rates. 42. And whereas under certain Acts of Parliament advances of public money to promote the improvement of lands have been made by way of loan, and in Ireland under an Act passed in the tenth year of her Majesty, chapter ten, and any Acts amending the same, and under an Act passed in the fifth and sixth years of her Majesty, chapter eighty-nine, for river drainage, and any Acts amending the same, and the repayment thereof has been secured by a rentcharge upon such lands to be paid for a term limited by the said Acts respec- tively, and by which the principal sums advanced will eventually be repaid with interest thereon, and it is just that provision should be made fqr deducting and allowing the duty charged by this Act in proportion to such interest on the payment of such rentcharge : It shall be lawful for any person paying any such rentcharge ffom time to time to deduct and retain thereout in respect of the duty chargeable under this Act one-third part of the sum which the rate of such duty computed on such rentcharge will amount to and no more, and the collectors and receivers of such rentcharges are hereby required to allow such deduction upon receipt of the residue of such rentcharge then due. 43. No action of ejectment for nonpayment of rent in Ireland shall be defeated on the ground that the person liable to pay such rent is entitled, under the provisions of this Act or any Act incorporated therewith, to a deduction which would reduce the amount due by him under a year's rent. 44. ] The occupiers of lands, tenements, and hereditaments who shall make true and correct statements and returns, as required by the said Acts, of the annual value of all such lands, tenements, and 1 The part in brackets is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). 1 Sect. 44 is repealed by the Statute Law Eevision Act, 1875 (38-9 V. c. 66). THE INCOME TAX ACT, 1853. 443 hereditaments in. their respective occupations, in order to an assess- of lands, ment of the duties chargeable thereon, under the respective Sche- & c - having dules (A.) and (B.) of this Act, for the year commencing from the 5th m ^ e tru ? day of April, 1853, shall not (unless they shall appeal against the their annual continuance of the same assessment for any subsequent year) be value not required to make any further statements or returns of such annual required to value in respect of the same premises until the year 1857 ; and in like ma ^ e further manner such occupiers as aforesaid who shall make true and correct g u t^uent statements and returns in order to an assessment of the said duties for years, the year commencing from the 5th day of April, 1857, shall not (unless they shall appeal against the continuance of such last-mentioned assessment) be required to make any further statements or returns in respect of the same premises for any subsequent year of the period for which the said duties are by this Act granted. 45. ' The assessments to be made for the year commencing from the Assessments 5th day of April, 1853, of the duties chargeable under the respective under Sche- Schedules (A.) and (B.) of this Act shall be and' remain in force, and du \ e ^ A '^ the several sums charged and assessed therein shall be collected and j"5 C o n ti n e d levied also, for the second year for which the same duties are by this in force for Act granted, without altering the names of the parties charged, not- subsequent withstanding any change in the occupation of the premises in respect years, of which any such assessment may be made ; and the same assess- ments reduced and abated in proportion to the reduced duties which will then be chargeable under this Act shall in like manner be collected and levied for the third and fourth years respectively ; and ' in like manner also the assessments to be made of the said duties for the year commencing from the fifth day of April one thousand eight hundred and fifty-seven shall be and remain in force, and the several sums charged and assessed therein for the said last-mentioned year shall also be collected and levied, for each and every remaining year of the period for which the said duties are by this Act granted : Provided always, that the continuance of any such assessment for the second or any subsequent year shall be subject to the conditions, rules, and regulations in that behalf contained in section eighty-seven of the said Act of the fifth and sixth years of her Majesty, chapter thirty -five, in relation to the continuance of assessments made under that Act. 46. The relief granted by the third section of the said Act of the Relief thirteenth and fourteenth years of her Majesty, chapter twelve, to granted by- persons occupying lands for the purposes of husbandry only, and 13 & 14 Viet, obtaining their livelihood principally from husbandry, shall be ex- ^ persons' tended and granted to every person occupying lands as tenant thereof occupying for the purposes of husbandry only, although he may not obtain his lands for the livelihood principally from husbandry, as well as to every person purposes of occupying lands for the purposes aforesaid, being the owner thereof, exfcmd^edui and obtaining his livelihood principally as aforesaid. t h e case 47. Whereas by the eighty-first section of the said Act of the fifth farmers, and sixth years of her Majesty, chapter thirty -five, if upon appeal Appellants any dispute shall arise touching the annual value of any lands, tene- ma y require ments, or hereditaments, the Commissioners are authorized, if they Commis- deem it necessary, to direct that a valuation thereof shall be taken sioners to and made by a person of skill to be named by the said Commissioners : a ^i pom L a It shall be lawful for the appellant, as well as the said Commissioners, Ta i ue lands upon any such appeal, to require that such valuation as aforesaid shall 1 Sect. 45 is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). 444 APPENDIX VI. Duty on pro- fessions to be charged on an average of the profits of three years. Friendly Societies legally established entitled to exemption under both Schedule (C.) and Schedule (D.) be made, and the said Commissioners, on being required so to do by the appellant, as well as in cases where they may deem it necessary, shall name a person of skill to make such valuation ; and upon such valua- tion being verified on the oath of the person making the same, the assessment shall be made according thereto. 48. The duty to be charged under Schedule (D.) in respect of pro- fessions, employments, or vocations not contained in any other schedule of this Act shall be computed on a sum not less than the full amount of the balance of the profits, gains, and emoluments of such profes- sions, employments, or vocations upon a fair and just average of three years, instead of the amount of such profits, gains and emoluments within the preceding year, as directed by the rules of Schedule (D.) in the said Act of the fifth and sixth years of her Majesty, chapter thirty-five, but subject in all other respects to the said last-mentioned rules. 49. Any friendly society legally established under any Act of Par- liament relating to friendly societies, and which does not assure or grant to any individual any sum or annuity to an amount which would debar such society from the benefit of the exemption granted to friendly societies by the said Act of the fifth and sixth years of her Majesty, chap'ter thirty-five, in respect of their stocks, dividends, and interests chargeable under Schedule (C.) of the said Act, shall be entitled to exemption under this Act, as well in respect of all their interest and other profits and gains chargeable under Schedule (D.) as in respect of their stocks, dividends, and interest chargeable under Schedule (C.) of this Act. In estimating 50. In ascertaining, estimating, or assessing the profits of any person E*? f^rn c ^ ar g >ea ^ ) l e under Schedule (D.) of this Act, either upon appeal or doubtfuf debts otnerwise > it; slia11 te lawful to estimate the value of all doubtful debts to be valued. d ue r owing to such person ; and in the case of the bankruptcy or insol- vency of the debtor, the amount of the dividend which may reasonably be expected to be received on any such debt shall be deemed to be the value thereof, and the duty chargeable under the said schedule shall be assessed and charged upon the estimated value of all such doubtful debts accordingly. 51. In assessing the duty chargeable under Schedule (E.) of this Act in respect of any public office or employment where the person exercising the same is necessarily obliged to incur and defray out of the salary, fees, or emoluments of such office or employment the expenses of travelling in the performance of the duties thereof, or of keeping and maintaining a horse to enable him to perform the same, or otherwise to lay out and expend money, wholly, exclusively, and necessarily in the performance of the duties of his office or employ- ment, it shall be lawful to deduct from the amount of the said salary, fees, and emoluments to be assessed under this Act the amount of all such expenses and disbursements necessarily incurred and defrayed in manner aforesaid. Expenses necessarily incurred in the perform- ance of the duties of a public office to be deducted from the amount of salary, &c. to be assessed. Abatement of duty to be made to clergymen for expenses incurred in performance of their duties. 52. In assessing the duty chargeable under any Schedule of this Act upon any clergyman or minister of any religious denomination in respect of any profits, fees, or emoluments of his profession or vocation, it shall be lawful to deduct from such profits, fees, or emoluments any sum or sums of money paid or expenses incurred by him wholly, exclu- sively, and necessarily in the performance of his duty or function as such clergyman or minister ; and if such sum or sums or expenses THE INCOME TAX ACT, 1853. 445 shall not have been deducted as aforesaid, then a proportionate part of the duty charged and paid by such clergyman or minister shall, on due proof to the Commissioners of such sum or sums having been expended as aforesaid, be repaid to such clergyman or minister. 53. Where any person who shall hold or exercise any public office Public officers or employment of profit shall at any time or times during or for or in becoming respect of any year of assessment become entitled to any additional incased salary, fees, or emoluments beyond the amount for which any assess- salaries, &c., ment may have been made upon him, or beyond the amount for which to be charged at the commencement of such year he may have been liable to be for tne same assessed, an additional or supplemental assessment shall from time to ty 8 !Ti ple ~ time, as often as the case shall require, be made upon such person for asses8inen t such additional salary, fees, or emoluments, so that he shall be assessed and charged for the full amount of the whole of the salary, fees, and emoluments which he shall receive or become entitled to at any time, and from time to time during or for or in respect of the said year of assessment. 54. Any person who shall have made insurance on his life or on the Persons who life of his wife, or shall have contracted for any deferred annuity on ^ ave ma( le his own life or on the life of his wife, in or with any insurance ^n^acTeVfor company which shall become registered under any Act to be passed in a deferred the present session of Parliament for that purpose, and which shall annuity on comply with the requirements of such Act, and any person who shall tn6 ^ves of under any Act of Parliament be liable to the payment of an annual tjl . ems elves or sum, or to have an annual sum deducted from his salary or stipend, in a ii owe d an order to secure a deferred annuity to his widow or a provision to his abatement children after his death, shall be entitled to deduct the amount of the of duty in annual premium paid by him for such insurance or contract, or the res P ec * of the annual sum paid by him or deducted from his salary or stipend as au - nu . , r n. - n i -i i i n i miums made, aforesaid, irom any profits or gams in respect of which he shall be liable to be assessed under either of the Schedules (D.) or (E.) of this Act, or to have any assessment which may be made upon him under either of the said Schedules reduced or abated by the deduction of the amount of the said annual premium from the amount of the profits or gains on which such assessment has been made ; or if such person shall be assessed to duties under any of the Schedules contained in this Act, and shall have paid such assessment, or shall have paid or been charged with any of the said duties by deduction or otherwise, such person, on claim made to the Commissioners for Special Purposes, and on production to them of the receipt for such annual payment, and on proof of the facts to the satisfaction of the said Commissioners, shall be entitled to have repaid to him such proportion of the said duties paid by such person as the amount of the said annual premium bears to the whole amount of his profits and gains on which he shall be chargeable under all or any of the Schedules of this Act : Provided always, that no such abatement, allowance, or repayment as aforesaid shall be made in respect of any such annual premium beyond one- sixth part of the whole amount of the profits and gains of such person so chargeable as aforesaid, nor shall any such deduction or abatement entitle any such person to claim total exemption or any relief from duty on the ground of his profits and gains being thereby reduced below one hundred or one hundred and fifty pounds, as the case may be. 55. Where any person assessed or charged to any of the duties Persons who under this Act shall have removed from the district within which the have removed before appeal- 446 APPENDIX VI. ing may be assessment or charge upon him was made without having appealed allowed to against such assessment or charge in such district, it shall be lawful yl to the for the Commissioners of Inland Revenue, if they shall think fit, on the ^ MU , U O j ^ application of such person, to authorize and empower the Commissioners district to of the district to which such person shall have removed as aforesaid to irhich they hear and determine his appeal against such assessment or charge, and fcweniMiii.il. in ever y such case the said last-mentioned Commissioners shall have full power and authority and they are hereby required to hear and determine such appeal accordingly, and any sum or sums from which such person may not be relieved on such appeal shall be recovered and levied in the same manner as if such appeal had been heard and determined by the Commissioners of the district in which such assess- ment or charge was made. P - -7 : r 56. If any person shall knowingly and wilfully aid, abet, or assist, or incite or induce, any other person to make or deliver any false or fraudulent account, statement, or declaration of or concerning any profits or gains chargeable under this Act, or of the yearly rent or profits or of value of any lands, tenements, or hereditaments, or of any matters or the Tahie of things affecting such rent or value, such person so offending shall for - - - every such offence forfeit the sum of fifty pounds. Allowances to 57. 1 In lieu of the allowances by the said Act of the fifth and ~ sixth years of her present Majesty directed to be granted to the clerk of the respective Commissioners for the due performance of the duties of his office, there shall be granted the following allowances respectively ; (that is to say,} the clerk of the respective Commissioners who shall duly perform the duties of his office within the respec times limited by law in that behalf, and shall have borne and sustained the incidental expenses mentioned in the said Act, shall, by warrant under the hands of the said Commissioners, have and receive from the respective officers for receipt twopence in the pound on the net amount of the sums assessed and charged in the duplicates of assessment, after all appeals heard and determined, and all just reductions, abatements, and discharges made from such assessments and duplicates respec- tively ; and the clerk who shall not have borne and sustained such incidental expenses shall by like warrant have and receive one penny in the pound of such net amount of the sums assessed and charged as aforesaid, after all such reductions, abatements, and discharges as aforesaid, provided he shall have duly performed the duties of his office in the manner mentioned in the said Act and not otherwise : Provided always, that it shall be lawful for the Commissioners of her Majesty's Treasury to cause such further allowance to be made to such clerk as aforesaid, who shall have faithfully performed his duty under this Act, and shall have borne and sustained such incidental expenses as afore- said, of any sum not exceeding one penny in the pound on the amount of such part of the grow assessment as shall have been discharged on occasion of claims for exemption or abatement made or allowed under this Act on the ground of income being below one hundred and fifty pounds and one hundred pounds a year respectively, as the said last- mentioned Commissioners shall, on consideration of the extent and population of the district and the number of such claims, think proper to direct ; and the certificate of the Commissioners of Inland Eevenue ball be an authority to the officers for receipt respectively to pay such farther allowance. Seek. $1 H repealed by the Statute Law Benakm Art, 1875 (38-9 V. c. 66). THE INCOME TAX ACT, 1853. 447 58. The several collectors of the duties granted by this Act in Ireland Collectors in shall have and receive such rate of poundage on the money of the said Ireland to duties which they shall respectively collect and pay to the proper officer ^^^ for receipt, or such other reasonable remuneration for their service, other remune- pains, and labour respectively in executing this Act, as the [ : Commis- ration as the sioners of her Majesty's] Treasury shall by any warrant from time to Treasury may time order and direct in that behalf. order. 59. 2 This Act shall commence and take effect from and after the 5th Commence- day of April, 1853, and together with the duties therein contained shall m ent and continuant of the Act. continue in force until the 6th day of April, 1860, and no longer : continuance Provided always, that this Act and the said duties shall not then cease with respect to any assessment which ought to have been made before the said last-mentioned day, but which shall not then have been made and completed, nor with respect to any of the said duties which shall have been assessed and shall then remain unpaid, nor with respect to any penalty before then incurred, nor with respect to any deduction of the said duties or any portion thereof authorized by law to be made out of any rent, interest, or other annual payment which shall become due or payable before the said last-mentioned day, nor with respect to any penalty for refusing to allow any such deduction, although such. refusal may be after the said last-mentioned day, nor shall the said duties cease in any case where the assessments for the preceding year shall not have been completed before the said 6th day of April, 1860, but all the powers and provisions of this Act shall continue in force for making and completing all such assessments as aforesaid, and for levying and recovering the duties so assessed or to be assessed, and all arrears of such duties, and also for re-assessing the same in default of payment in the manner herein directed, and for making and allowing such deduction as aforesaid, and for the suing for, adjudging, and recovering any penalty which shall have been or may be incurred. 1 The part in brackets is repealed by the Statute Law Revision Act, 1892 (55-6 V. c. 19). 1 Sect. 59 is repealed by the Statute Law Revision Act, 1875 (38-9 V. c. 66). 448 APPENDIX VII. TAXES MANAGEMENT ACT, 1880. (43 & 44 YICT. c. 19.) SCHEDULES. THE FIKST SCHEDULE. 1 Sections 5, 41, 47 80. ALLOWANCES AND REMUNERATION. The following allowances and remuneration shall be paid : 1 . To clerks to Commissioners of Income Tax and Inhabited House Duties For the careful writing and transcribing all the assessments, dupli- cates, warrants, certificates, and estreats in due time, and for the due executing all things directed to be done by or under the General Com- missioners and the Additional Commissioners, the clerk who shall do the same within the respective times limited by law in that behalf, shall, by warrant under the hands of the General 'Commissioners of each district respectively, receive from the Board the under-mentioned allowances, viz. : (a) As regards the income tax, the clerk having borne and sustained all incidental expenses attending the execution of the Income Tax Acts shall have twopence in the pound on so much of the net amount of the sums assessed and charged in the duplicates of assessment for the year after all appeals heard and deter- mined, and all just reductions, abatements, and discharges made from such assessments and duplicates respectively as will give to such clerk an allowance not exceeding five hundred pounds for any one year, and at the rate of one penny in the pound on the remainder (if any) of the said net amount : (b) As regards the duties on inhabited houses, if the total amount of such allowance for one year, calculated at the rate of one penny farthing in the pound, on the moneys assessed in that year, and paid over to the collector of inland revenue, shall amount to one hundred pounds or upwards, then such clerk shall not be entitled to receive any further or greater allow- ance than at the rate of one penny farthing in the pound of the said moneys so paid ; but if the total amount of the moneys of the said duties received by such collector of inland 1 The First Schedule is repealed by the Statute Law Revision Act, 1894 (57-8 V. c. 56). TAXES MANAGEMENT ACT, 1880. SCHEDULE I. 449 revenue for one year in any district of Commissioners shall exceed ninety-six thousand pounds, then the clerk of such district shall have an allowance at the rate of one penny farthing in respect of every pound of the said ninety-six thousand pounds, part thereof, and a further allowance at the rate of one half of one penny farthing for every pound of the said moneys exceeding ninety-six thousand pounds, and if the total amount of such allowance, calculated at the rate of one penny farthing in the pound on the said moneys, shall not amount to one hundred pounds, then such clerk shall be entitled to receive an allowance at the rate of three halfpence in the pound of the moneys so paid, so as that the allowance, calculated as last aforesaid, shall in no case be granted to any greater amount than one hundred pounds per annum. But the Treasury may (i.) Cause a further allowance to be made to any such clerk of any sum not exceeding one penny in the pound on the amount of such part of the gross assessment as shall have been dis- charged on occasion of claims for exemption or abatement made or allowed under the Income Tax Acts : (ii.) Direct the allowance and discharge of such actual expenses, or any part thereof, as shall be necessarily incurred by any clerk in the due execution of the Acts relating to the land tax and inhabited house duties where such allowance shall appear to the Board reasonable and proper to be made over and above the allowance by poundage made to any such clerk for the particular year of assessment to which such expenses shall relate : (iii.) Where the allowances to which any clerk is entitled by virtue of this Act, together with the allowance to which he is entitled by virtue of the Land Tax Acts, if he be also clerk to the Land Tax Commissioners, would exceed the sum of twelve hundred pounds, substitute for those allowances an amount not being less than the sum of twelve hundred pounds, exclusive of necessary office expenses, and the clerk shall be entitled to claim and receive in respect of such allowances such sum only as shall be specified in a certificate of the Board. 2. To assessors of income tax and inhabited house duties : (a) The assessor shall have an allowance of one penny halfpenny per pound for what money of the duties shall be paid over by the collector to the collector of inland revenue (i.) In respect of any assessment of the inhabited house duties, and of the duties under Schedules (A.), (B.), and (E.) of the Income Tax Acts made by every such assessor and allowed by the General Commissioners ; and also (ii.) In respect of any assessment under Schedule (D.) of the Income Tax Acts made by the Additional Commis- sioners and allowed by the General Commissioners for the particular parish or part of the parish for which such assessor may be appointed and shall act : (b) A surveyor acting as assessor shall not be entitled to any allow- ance in respect thereof over and above such allowance aa he may receive under the authority of the Treasury as surveyor. R. GO 450 APPENDIX vn. 3. To collectors of income tax and inhabited house duties (England) : (a) Each collector shall have an allowance of one penny halfpenny per pound for what money of the duties he shall pay to the collector of inland revenue. (b) The Board may, with the assent of the Treasury, grant to any collector such further allowance as they may deem necessary. Sections 5, 15. The SECOND SCHEDULE. FOEMS. [NOTE. These forms may be varied by the Board for use in regard to any of the duties or the land tax, where applicable, or other forms prescribed for such purposes.] 1 . ASSESSOES' CERTIFICATE OF ASSESSMENTS. County of , district of ASSESSMENTS of the duties under the respective Schedules (A.) and (B.) of the Act 16 & 17 Viet. c. 34, and of the duties on inhabited houses under the Act 14 & 15 Viet. c. 36, made upon the several persons chargeable with the said duties within the* of in the said district, for the year ending the 5th day of April, 1 8 , pur- suant to the Acts of Parliament relating to the said duties, duly certified upon [oath or affirmation, as the case may be], by the assessors, and allowed according to the directions of the said Acts by the Commis- sioners, whose names are signed at the end hereof. ' \_Herc folloiv particulars of assessment in such tabular form as the Board shall prescribe.'] We, the undersigned assessors of the duties on profits arising from property, professions, trades, and offices, and of the duties on inhabited dwelling-houses for the* of aforesaid, for the year ending the 5th day of April, 18 , do hereby certify the foregoing assessments of the duties payable under the respective Schedules (A.) and (B.) of the Act 16 & 17 Viet. c. 34, and under the Act 14 & 15 Viet. c. 36, for the aforesaid, and we do make [oath or affirmation, as the case may be], and declare that in the foregoing assessments we have charged and assessed ourselves, and all other persons who are chargeable with the said duties, or either of them, ivithin the said , and that we have made our said assessments conformably to the provisions of the laws now in force, according to the best of our knowledge and belief. As witness our hands this day of in the year of our Lord, 18 . | Assessors. NOTE. This certificate must be signed by both assessors. We, the undersigned Commissioners of the Income Tax and In- habited House Duties acting in and for the district of aforesaid, do hereby, in pursuance of the Acts of Parliament relating to the duties on profits arising from the said tax and duties respectively, sign and allow the foregoing assessments, the same having been duly verified TAXES MANAGEMENT ACT, 1880. SCHEDULE IT. 451 before us by the above-named assessors, as directed by the Acts of Parliament in that behalf made. Given under our hands and seals at , within the said district, this day of in the year of our Lord, 18 Commissioners of the Income Tax and Inhabited House Duties. * NOTE. Where parishes or places have been united for tax purposes all the names should be inserted and described as the " united parishes or places of." 2. COMMISSIONERS' CERTIFICATE OF FIRST ASSESSMENTS. Under Schedule (D.). County of , district of ASSESSMENTS of the duties, under Schedule (D.) of the Act 16 & 17 Viet. c. 34, made upon the several persons, corporations, companies, and societies chargeable with the said duties within the* of , in the said district, for the year ending the 5th day of April, 18 , pursuant to the Acts of Parliament relating to the said duties, by the Commissioners whose names are signed at the end hereof. \_Here follow particulars of assessment in such tabular form as the Board shall prescribe. ,] We, the undersigned Additional Commissioners of the Income Tax acting in and for the district of aforesaid, do hereby, in pursuance of the Acts relating to the duties on profits arising from property, pro- fessions, trades, and offices, certify the foregoing first assessments of the duties payable under Schedule (D.) of the Act 16 & 17 Yict. c. 34, for the* , of aforesaid, amounting to the sum of Given under our hands and seals at , within the said district, this day of in the year of our Lord, 1 8 . | Additional Commissioners of ] the Income Tax. The foregoing certificate of assessments having been presented to us, the undersigned Commissioners of the Income Tax acting in and for the district of aforesaid, and all appeals against the same having been heard and determined, we do hereby allow and confirm the said assessments. Given under our hands and seals at , within the said district, this day of in the year of our Lord, 18 . Commissioners of the Income Tax. * NOTE. Where parishes or places have been united for tax purposes all the names should be inserted and described as the " united parishes or places of." GG2 452 APPENDIX VII. 3. ASSESSORS' CERTIFICATE OF KE-ASSESSMENT. County of , district of A RE-ASSESSMENT of the duties chargeable under the respective Schedules (A.) and (B.) of the Act 16 & 17 Viet. c. 34, for granting to her Majesty duties on profits arising from property, professions, trades, and offices, and of the duties in respect of inhabited dwelling-houses, chargeable under the Act 14 & 15 Viet. c. 36, made upon the several persons chargeable with the said duties within the of in the said district, pursuant to the several Acts of Parliament in that behalf, for raising the sum of being the amount of an arrear of the said duties which has arisen within the said for the year ending the 5th day of April 18 , by the default of , collector of the said duties for the said for the said year ending as aforesaid, duly verified upon [oath or affirmation, as the case may be,^\ by the assessors, and allowed, according to the directions of the said Acts of Parliament, by the Commissioners of the Income Tax and Inhabited House Duties acting for the said district, whose names are signed at the end hereof. [Here follow particulars of re-assessment in such tabular form as the Board shall prescribed] We the undersigned assessors appointed for making the foregoing re-assessment of the duties chargeable under the respective Schedules (A.) and (B.) of the Act 16 & 17 Viet. c. 34, and of the duties upon inhabited dwelling-houses, chargeable under the Act 14 & 15 Viet. c. 36, for the of aforesaid, do hereby certify the foregoing re-assessment of the said duties, and do make [oath or affirmation, as the case may be,~] and declare that we have charged and assessed our- selves and all other persons who are chargeable with the said re- assessment, and that we have made our re-assessment conformably to the provisions of the laws now in force, according to the best of our knowledge and belief. Witness our hands this day of in the year of our Lord 18 We, the undersigned Commissioners of the Income Tax and Inhabited House Duties acting in and for the district of aforesaid, do hereby sign and allow the foregoing re-assessment of the duties chargeable under the respective Schedules (A.) and (B.) of the Act 16 & 17 Viet. c. 34, and in respect of inhabited dwelling-houses, under the Act 14 & 15 Viet. c. 36, amounting to the sum of , the same having been duly verified before us by the above-named assessors. Given under our hands and seals at , within the said district, this day of in the year of our Lord 18 . Commissioners of the Income Tax and Inhabited House Duties. TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 453 4. COMMISSIONERS' CERTIFICATE OF RE- ASSESSMENT. (SCHEDULE D.) County of , district of A RE-ASSESSMENT of the duties chargeable under the Schedule (D.) of the Act 16 & 17 Viet. c. 34, for granting to her Majesty duties on profits arising from property, professions, trades, and offices made upon the several persons chargeable with the said duties within the of in the said district, pursuant to the several Acts of Parliament in that behalf, for raising the sum of , being the amount of an arrear of the said duties which has arisen within the said for the year ending the 5th day of April 18 , by default of , collector of the said duties for the said for the said year ending as aforesaid. [Here follow particulars of re-assessment in such tabular form as the Board shall prescribe.~\ We, the undersigned Additional Commissioners of the Income Tax acting in and for the district of aforesaid, do hereby certify the foregoing re-assessment of the duties chargeable under Schedule (D.) of the Act 16 & 17 Viet. c. 34. Given under our hands and seals at , within the said district, this day of in the year of our Lord 1 8 . } Additional Commissioners } of the Income Tax. "We, the undersigned Commissioners of the Income Tax acting in and for the district of aforesaid, do hereby allow and confirm the foregoing re-assessment of the duties chargeable under the Schedule (D.) of the Act 16 & 17 Viet. c. 34, amounting to the sum of , all appeals against the same having been heard and determined. Given under our hands and seals at , within the said district, this day of in the year of our Lord 1 8 } Commissioners of the \ Income Tax. 5. COLLECTORS' DUPLICATE or \_jirst, additional first, or supplementary, as the case may require~\ ASSESSMENTS. [For the year 1 8 .] County of , district of A DUPLICATE of the assessments of the duties under the respective Schedules (A.) and (B.) [or (D.) and (E.) as the case may require] of the Act 16 & 17 Viet. c. 34, and of the duties on inhabited houses, under the Act 14 & 15 Viet. c. 36, made upon the several persons chargeable with the said duties within the* of in the said district, for the year ending the 5th day of April 18 , pursuant to the Acts of Parliament relating to the said duties. [Here follow particulars of assessment in such tabular form as the Board shall prescribe.] We, the undersigned Commissioners of the Income Tax and In- habited House Duties acting in and for the district of aforesaid, do hereby sign and allow the foregoing duplicate of the assessments of the duties payable under the respective Schedules (A.) [or (D.) and (E.) as the case may require] and (B.) of the Act 16 & 17 Viet. c. 34, 454 APPENDIX VII. and of the duties on inhabited houses, under the Act 14 & 15 Viet, c. 36, amounting in the whole to the sum of Given under our hands and seals at , within the said district, this day of in the year of the Lord 1 8 Commissioners of the Income Tax and Inhabited House Duties. * Where parishes or places have been united for tax purposes all the names should be inserted and described as the " united parishes or places of." COLLECTOKS' "WABRANT.* To and of in the district of in the county of WHEREAS you, the above-named and , were on the day last duly nominated and appointed by the Commissioners of the Income Tax and Inhabited House Duties acting in and for the district aforesaid, in the county aforesaid, to be collectors of the duties on profits arising from property, professions, trades, and offices, and of the duties on inhabited houses [or as the case may be], for thef of in the said district, for the year ending the 5th day of April, 18 . And whereas, by virtue and in pursuance of the powers and autho- rities of the several Acts of Parliament relating to the said duties, we, the said Commissioners, have signed and allowed the (foregoing) duplicate of the assessments of the said duties, chargeable under the respective Schedules (A.) and (B.) [or (D.) and (E,) as the case may require'] of the Act 16 & 17 Viet. c. 34, and of the duties on inhabited houses, under the Act 14 & 15 Viet. c. 36, and charged upon the several persons mentioned in the foregoing duplicate within the afore- said, for the year ending the 5th day of April, 18 Now we, the said Commissioners, do hereby enjoin and require you the above-named collectors, or either of you, to make demand of the several sums contained in the foregoing duplicate from the parties charged therewith, or at the places of their last abode, or on the premises charged with the assessment, as the case may require, within the time and in the manner appointed and directed by the said Acts ; and upon payment thereof to give acquittances under your hands (without taking anything for such acquittances) unto the several persons who shall pay the same ; and if any person or persons shall refuse to pay the sum or sums charged upon him, her, or them, upon demand duly made by you, or either of you, then we do hereby enjoin and strictly require you, or either of you, for non-payment thereof, to distrain for the same according to the directions of the said Acts, by virtue of this our warrant without further authority. Given under our hands and seals at , within the said district, this day of in the year of our Lord 1 8 . Commissioners of the Income Tax and Inhabited House Duties. * This warrant may be printed on the duplicate or be a separate document, t Where parishes or places have been united for tax purposes all the names should be inserted and described as the " united parishes or places of." TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 455 6. APPOINTMENT OF ASSESSOES FOE MAKING RE-ASSESSMENT OF INCOME TAX. To and , assessors of the duties on profits arising from property, professions, trades, and offices for the of , in the district of , in the county of WHEEEAS an arrear of the duties chargeable under the Sche- dule of the Act 16 & 17 Viet. c. 34, for granting to her Majesty duties on profits arising from property, professions, trades, and offices, for the year ending the 5th day of April, 18 , amounting to the sum of has arisen in the of aforesaid, by the default of , collector of the said duties for the said we, the under- signed, being Commissioners of the Income Tax acting in and for the said district, do hereby, by virtue of the Acts of Parliament enabling us in this behalf, appoint you the above-named and assessors for making a re-assessment within and upon the said for raising the said arrear ; and we do hereby strictly enjoin and require you and each of you to make a re-assessment within and upon the said by charging the said sum of on the amount of the assess- ment for the said made for the said duties for the year ending the 5th day of April, 18 , by duly apportioning the amount of such arrear amongst the several persons assessed in the said last-mentioned assessment to the same duties respectively, according to each person's assessment thereof, as nearly as the case will admit ; and in making the said re-assessment you are to pursue the like methods, rules, and directions by which the original assessment was made of the same duties. Hereof you will not fail as you and each of you will answer the contrary at your peril. Given under our hands and seals at , within the said district, this day of in the year of our Lord 18 . ) Commissioners of the \ Income Tax. 7. COLLECTOE'S WARRANT, WHICH MAY BE ISSTED DTJEING THE PEEIOD THE ScHEDrLES OF DEFAULTERS REMAIN WITH THE COMMISSIONERS. To and collectors of the duties hereinafter mentioned for the of , in the district of , in the county of WHEREAS the Commissioners of the Income Tax acting in and for the before-mentioned district have made and executed the several assessments of the duties on profits arising from property, professions, trades, and offices, for the year ending the 5th day of April, 18 , upon the several persons chargeable with the said duties within the aforesaid, and duplicates of the same have been delivered to you, the above-named collectors of the said duties : And whereas the said Commissioners have received, in pursuance of the Acts of Parliament in that behalf, a certain Schedule in writing, signed and duly sworn to by you the said collectors, whereby the several persons therein named are returned as defaulters, for that the several sums assessed upon them and therein contained have been demanded from and are due and wholly unpaid from the respective persons charged therewith : Now we, the undersigned Commissioners of the Income 456 APPENDIX VII. Tax acting in and for the district aforesaid, do hereby enjoin and require you, or either of you, the above-named collectors to make demand of the several sums mentioned in the said Schedule, and con- tained in the said assessments, from the parties charged therewith, or at the places of their last abode, or on the premises charged with the assessment, as the case may require, and upon payment thereof to give acquittances under your hands unto the several persons who shall pay the same ; and if any person or persons shall refuse to pay the sum and sums charged upon him, her, or them, upon demand duly made by you, or either of you, then we hereby enjoin and strictly require you, or either of you, for non-payment thereof, to distrain for the same, according to the directions of the said Acts, by virtue of this our warrant, and that you return to us the amount and particulars of the several sums received by you on the day of now next, at the usual place of meeting, namely, at , in the said district. Given under our hands and seals at , in the said district, the day of in the year of our Lord 1 8 . Commissioners of the Income Tax. 8. CEBTLFICATE or REMOVAL. To the Commissioners of the Income Tax and Inhabited House Duties acting within and for the district of , in the county of WE, the undersigned Commissioners of the Income Tax and In- habited House Duties acting within and for the district of in the county of , do hereby certify that in and by the*' assess- ments of the duties payable under the Schedule of the Act 16 & 17 Viet. c. 34, and under the Act 14 & 15 Viet. c. 36, respectively, and subsequent Acts, for the of in the said district, for the year ending the 5th day of April, 18 , now residing in the of , in the district of , in the county of , hath been duly charged and assessed for the undermentioned duties ; (that is to say,) Income Tax. Inhabited House Duties. N.B.f *. d. . d. Total - And we do further certify that the said hath left unpaid the sum of in respect of the income tax, and the sum of in respect of the inhabited house duties so charged and assessed as aforesaid, which became due and payable on TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 457 the 1st day of January in the year of our Lord 18 , and the said sum now in arrear. And we, the undersigned Commissioners, do request you, the said Commissioners of the Income Tax and Inhabited House Duties acting within and for the district of aforesaid, to raise and levy the said sum of and so charged and assessed upon the said and now in arrear as aforesaid, and to cause the same to be paid and applied according to the directions of the several Acts of Parliament for raising the said duties. Given under our hands and seals at the said district of this day of in the year of our Lord 18 . Commissioners of the Income Tax and Inhabited House Duties. * First, additional first, or supplementary, as the case may be. t Here specify the "particulars of the assessment," viz., the Schedule under which the duty is charged description of property, profits, or sources of income, to which the assessment applies, and whether on own return or estimate. If the arrear be under Schedule A., the name and address of the owner of the premises should be stated, and if the assessment be in respect of a house in the metropolis or a large town, the certificate should set forth the street and number of the house. | State whether the amount is included in Commissioners' schedule of defaulters. To and collectors of the duties on profits arising from property, professions, trades, and offices, and of inhabited house duties, for the of , in the district of , in the county of WE, the undersigned Commissioners of the Income Tax and In- habited House Duties acting within and for the district of afore- said, do hereby authorize and require you, the above-named collectors, or either of you, to make due demand of and from , the person named in the foregoing certificate, of payment of the sum of , in respect of the duties charged and assessed upon him, as in the said certificate is mentioned, and if he shall refuse or neglect to pay the same upon such demand being made, then we hereby empower and require you, or either of you, to distrain for the same, according to the directions of the statute in that behalf, by virtue of this our warrant, without further authority ; and upon receipt of the said sum of money, or any part thereof, we hereby direct and enjoin you to pay over the same to the collector of Inland Revenue for the county of , to the account of , the collectors of the said duties for the of for which this shall be your sufficient authority. Given under our hands and seals at , in the said district of , this day of in the year of our Lord 18 . Commissioners of the Income Tax and Inhabited House Duties. N.B. As the collector of the parish or place where the duties herein certified are assessed and due has not collected the same, and as, therefore, he is not entitled to any poundage thereon, the collector of any other parish or place who shall collect the said duties, will, on payment thereof to the receiving officer, be allowed the poundage to which the first-mentioned collector would have been entitled if the duties had been collected by him. 458 APPENDIX VII. 9. WARRANT TO BREAK OPEN. To and , collectors of the duties hereinafter mentioned for the of in the district of , in the county of WHEREAS in and by the assessments of the duties of income tax and the duties on inhabited houses for the aforesaid for the year ending the 5th day of April, 18 , of hath been duly charged to the said duties in the sum of And whereas it appears by the oath of collector of the said duties appointed for the said taken before us, whose hands and seals are hereunto subscribed and set, being two of the Commissioners of the Income Tax and Inhabited House Duties acting in and for the district aforesaid, that the said sum of hath been duly demanded of the said and that he hath refused and neglected to pay the same, and that the same now remains due and unpaid : And whereas it further appears by the oath aforesaid that divers goods and chattels, liable by law to be distrained for the said duties, are lying and being in a certain house, situate in the of in the district and county aforesaid, now in the possession of These are therefore to authorize and require you, the above-named collectors, and either of you, calling to your assistance the constable or other peace officer within and for the of aforesaid, and in the presence of the said constable, or other peace officer, to demand entrance into the said house, and in case of resistance, or neglect or refusal to open the same, to break open in the daytime the said house, and enter the same, and to distrain therein the said goods and chattels, and the distress there found to keep by the space of five days, at the costs and charges of the said and if the whole of the said sum of together with the said costs and charges, be not paid within the said five days, then the said distress, having been first duly valued and appraised by two of the inhabitants of the said of , or other sufficient persons, to be sold by you, and the overplus, if any, of the moneys arising by such sale, after paying and deducting the said sum of and all costs and charges of taking, keeping, and selling the said distress, to be restored to the owner thereof. Given under our hands and seals at , within the said district, this day of in the jear of our Lord, 18 Commissioners of the Income Tax and Inhabited House Duties. 10. WARRANT or COMMITMENT. To and , collectors of the duties hereinafter mentioned for the , of in the district of , in the county of , and to the keeper of her Majesty's prison at WHEREAS in and by the , assessments of the duties payable under the Schedule of the Act 16 & 17 Viet c. 34, for the , of , in the district of , in the county of , for the year ending the 5th day of April, 18 , of , hath been duly charged and assessed to the said duties in the sum of TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 459 And whereas it appears by the oath of collector of the said duties appointed for the said , of , taken before us, whose hands and seals are hereunto subscribed and set, being two of the Commissioners of the Income Tax acting in and for the district of aforesaid, that the said sum of , as and for the duties so charged and assessed as aforesaid, hath been duly demanded of the said and that he hath refused and neglected to pay the sum of part of the said sum of , by the space of ten days after such demand as aforesaid ; and it further appears by the oath aforesaid that the said sum of , for the duties charged and assessed as aforesaid, now remains due and unpaid, and that no sufficient distress can or may be found whereby the same may be levied. Now, therefore, we, the said Commissioners, whose hands and seals are hereunto subscribed and set, do hereby command you, the above- named collectors of the said duties, or either of you, to apprehend the said , and to take him to her Majesty's prison at , in the said county, and to deliver him to the keeper thereof, together with this warrant ; and we do hereby command you, the said keeper, to receive him the said , into your custody in the said prison, there to be kept without bail until payment shall be made or security to our satisfaction be given for payment of the said sum of , remaining due and unpaid as aforesaid, and also of the further sum of which we, the said Commissioners, do adjudge to be reasonable for the costs and expenses of apprehending the said and conveying him to prison. Given under our hands and seals at , within the said district, the day of in the year of our Lord, 1 8 . Commissioners of the Income Tax. 11. EE VOCATION OF COLLECTOR'S APPOINTMENT. To , one of the inhabitants of the of , in the district of , in the county of WHEREAS by virtue and in pursuance of the powers and authorities of the several Acts of Parliament relating to the duties on profits arising from property, professions, trades, and offices, and inhabited houses, two of the Commissioners acting in the execution of the said Acts in and for the district aforesaid, did, by their precept, bearing date the day of , 18 , nominate and appoint and to be collectors of the said duties for the aforesaid, for the year ending the fifth day of April, 1 8 : And whereas wilful delay and failure hath happened in demanding, receiving, and recovering and paying divers sums of money and duties charged and assessed on the several persons chargeable with the said sums of money and duties, within the said for the year aforesaid, through the default and neglect of the said , one of the collectors of the said duties. Now we, the undersigned, two of the said Commissioners, do, by virtue and in pursuance of the powers and authorities given by the Acts of Parliament in this behalf, hereby revoke the appointment of the said as such collector as aforesaid ; and we do by this, our precept, nominate and appoint you, the above-named , in the place and stead of the said to be collector of the duties and sums 460 APPENDIX VII. of money remaining due and in arrear and uncollected on the dupli- cates of assessments herewith delivered to you, for the said year ending the 5th day of April, 18 , with full power to collect all arrears and sums of money which are now due and unreceived from the parties charged therewith by the said assessments. And we do hereby enjoin and require you immediately to make demand of the several sums contained in the said duplicates from the parties charged therewith, or at the places of their last abode, or on the premises charged with the assessment, as the case may require ; and upon payment thereof to give acquittances unto the several persons who shall pay the same ; and if any person or persons from whom any of the said duties, or sums of money, or any part thereof, now remain due or unpaid shall refuse to pay the sum and sums charged upon and due and owing from him, her, or them, upon demand made by you, then we hereby enjoin and strictly require you for non-payment thereof, to distrain for the same, according to the directions of the said Acts by virtue of this our warrant without further authority. Given under our hands and seals at , within the said district, the day of , in the year of our Lord, 1 8 \ Commissioners of the Income Tax and Inhabited House i Duties. 12. WARRANT TO IMPRISON PERSON AND SEIZE ESTATE or DEFAULTING COLLECTOR. To , constable of , in the county of , and to , keeper of her Majesty's prison at , in the said county. WHEREAS it appears to us and , whose hands and seals are hereunto subscribed and set, being two of the Commissioners of the Income Tax and the Inhabited House Duties acting for the district of , in the county of , upon the oath of and other suffi- cient evidence, that , of , a collector of the duties of income tax and the duties in respect of inhabited houses for the of , in the said district, hath, as such collector, collected and received from divers persons within the said the sum of , in respect of the said duties, and that the said hath neglected to pay the said sum of money according to the directions of the several Acts of Parlia- ment in that behalf, and that he hath detained and doth now detain the same in his hands. Now, therefore, we, the said Commissioners whose hands and seals are hereunto subscribed and set, do hereby command you, the above- named constable, to apprehend the said , and him safely to convey to her Majesty's prison at , in the said county of , and to deliver him to the keeper thereof ; and we do hereby command you, the said keeper, to receive him, the said , into your custody in the said prison, and there to detain and keep him until payment shall be made of the aforesaid sum of money, or until he shall be otherwise discharged by due course of law ; and we do hereby further command you, the said constable, to seize and secure the estate, as well freehold as copyhold, and all other estate, both real and personal, of him the said , to him belonging wheresoever the same can be discovered and found ; and if the said shall not pay or satisfy the said sum of money as ought to be done according to the directions TAXES MANAGEMENT ACT, 1880. SCHEDULE 11. 461 of the said several Acts, you are forthwith, to give notice to us that we may proceed further as the law directs ; and for so doing this shall be to you and each of you a sufficient warrant and authority. Given under our hands and seals at , in the said district, this day of in the year of our Lord 18 . \ Commissioners of the Income Tax and Inhabited House ' Duties. 13. WARRANT TO SELL COLLECTOR'S ESTATE. of WHEREAS by a certain warrant bearing date the day of , in the year of our Lord 1 8 , under the hands and seals of and , two of the Commissioners of the Income Tax and Inhabited House Duties acting for the district of , in the county of , reciting that , of , a collector of the duties on profits arising from property, professions, trades, and offices, and the duties in respect of inhabited houses, for the of , in the said district, had, as such collector, collected and received from divers persons within the said the sum of in respect of the said duties, and that the said had neglected to pay the said sum of money, according to the directions of the several Acts of Parliament in that behalf, and that he had detained and did then detain the same in his hands, the said Commissioners, whose hands and seals are subscribed and set to the said warrant, did thereby command one , constable of , in the said county, to seize and secure the estate as well freehold as copyhold, and all other estate, both real and personal, of the said to him belonging, wheresoever the same could be discovered and found. And whereas by virtue and in pursuance of the said warrant, the several estates, goods, and chattels belonging to the said men- tioned and particularized in the schedule or inventory hereunto have been seized and secured. And whereas and , Commissioners as aforesaid, did, in pursuance of the statute in that behalf, appoint the day of at , in the said district, for a meeting of the Commissioners of the Income Tax and Inhabited House Duties for the said district, and did cause public notice to be given of the time and place when and where such meeting was appointed to be held ten days at least before such meeting. And whereas the said meeting hath been held in pursuance of the said notice, and the said hath not paid or satisfied, as ought to be done, according to the directions of the said Acts, the said sum of money so detained by him as aforesaid. Now therefore we, whose hands and seals are hereunto subscribed and set, being the major part of the said Commissioners present at the said meeting, do hereby require and empower you, the above-named , to sell and dispose of the said estates, goods, and chattels so seized and secured for the cause aforesaid, to satisfy and pay into the 462 APPENDIX VII. hands of the collector of inland revenue at , the aforesaid sum of money so detained by the said , and remaining unpaid as aforesaid, together with the reasonable costs and charges of recovering, raising, and paying the same, and for your so doing this shall be your sufficient authority. Given under our hands and seals at , in the said district, the day of in the year of our Lord 1 8 . Commissioners of the Income Tax and Inhabited House Duties. 14. NOTICE or SEIZTTKE OF COLLECTOE'S ESTATE. WHEREAS by a certain warrant, bearing date the day of in the year of our Lord, 1 8 , under the hands and seals of two of the Commissioners of Income Tax and Inhabited House Duties acting for the district of , in the county of , reciting that of , a collector of the duties of income tax and the duties in respect of inhabited houses, for the of , in the said district, had as such collector collected and received from divers persons within the said the sum of in respect of the said duties, and that the said had neglected to pay the said sum of money according to the directions of the several Acts of Parliament in that behalf, and that he had detained and did then detain the same in his hands : The said Commissioners did thereby command the constable of , to whom the said warrant was directed, to seize and secure the estate, as well freehold as copyhold, and all other estate, both real and per- sonal, of the said to him belonging, wheresoever the same could be discovered and found. And whereas certain estates, goods, and chattels of the said collector have been seized and secured under the said warrant : Now we the undersigned, and , being two of the said Commissioners acting in the said district, do, in pursuance of the Act of Parliament in that behalf, appoint the day of for a meeting of the Commissioners of Income Tax, and Inhabited House Duties for the said district, to be held at in the said district, at of the clock in the noon of the said day ; and we do hereby give notice that if the said sum of money so due and owing from the said collector be not paid or satisfied, as ought to be done, according to the directions of the Acts in that behalf, the Commissioners present at such meeting, or the major part of them, will sell and dispose of the said estates, goods, and chattels, to satisfy and pay the said sum of money. Given under our hands, this day of in the year of our Lord, 18 . Commissioners of Income Tax and Inhabited House Duties. TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 463 15. (CHARGE.) DUPLICATE OF THE INCOME TAX AND INHABITED HOUSE DUTIES. THIS DUPLICATE, amounting to , contains the full amount of the sums assessed upon each parish or place in the district of , in the county of , by virtue of the Acts of Parliament grant- ing to her Majesty duties on profits arising from property, pro- fessions, trades, and offices, and of the duty in respect of inhabited dwelling-houses, together with the Christian and Surname of the several assessors and collectors, for the year 18 ending 5th day of April, 18 . Signed, sealed, and delivered by us, this day of , 18 . Commissioners of the Income Tax and Inhabited House Duty. To the Commissioners of Inland Revenue. [Here follow particulars in such tabular form as the Board shall prescribe.~\ I do hereby certify that I have examined this duplicate thoroughly, and have compared it with the assessments, and that it is a correct duplicate thereof. Surveyor of Taxes. Date. N.B. This duplicate should be made out after the time appointed by the Taxes Management Act, 1880, for making supplementary assessments of the said duties, and within one month at farthest after all appeals shall have been heard and determined, and should contain the full amount of the sums given in charge to the collectors and to the collector of inland revenue, and which remains charged in the assessments after the appeals ; all discharges subsequent to that period must be included in the Schedules, under the 108th section of the Taxes Management Act, 1880. 16. COMMISSIONERS' SCHEDULE or DEFAULTERS. A SCHEDULE made in pursuance of an Act of Parliament passed in the forty-fourth year of the reign of her present Majesty, intituled the Taxes Management Act, 1880, by the Commissioners of the Income Tax and Inhabited House Duties acting in and for the district of , in the county of , containing the names of certain persons charged with duties and sums of money in the assessments made by virtue of the Tax Acts, within and for the several and respective parishes herein under-mentioned in the said district, for the year ending the 5th day of April, 18 , and whose names have been returned to the said Commissioners by the respective collectors for the said several and respective parishes, as persons who have made default in payment of the several duties and sums of money set opposite to their respective names, and charged upon them respectively in the said assessments, and from whom the respective collectors have not been able to collect or receive such duties and sums of money for the causes herein 464 APPENDIX VII. mentioned, and which have been duly verified on the [oath or affirmation, as the case may be~\, of the several and respective collectors. \_Here follow particulars in such tabular form as the Board shall prescribe.] Given under the hands and seals of us the undersigned, two of the Commissioners of the Income Tax and Inhabited House Duties acting in and for the district aforesaid, at within the said district, the day of in the year of our Lord 1 8 . Commissioners of the Income Tax and Inhabited House Duties. N.B. A total of each, column to be made for each parish or place. 17. SCHEDULE or SUMS DISCHARGED FROM ASSESSMENTS RETURNED IN THE DUPLICATES OF CHARGE. A SCHEDULE containing the sums discharged from the assessments of the duties on profits arising from property, professions, trades, and offices, and of the duty in respect of inhabited dwelling- houses for the under-mentioned parishes or places in the district of , in the county of , for the year ending the 5th day of April, 1 8 , pursuant to the Acts of Parliament relating to the said duties. \_Here follow the particulars in such tabular form as the Board shall prescribe.^ We, the undersigned Commissioners of the Income Tax and Inhabited House Duties acting in and for the said district of , in the said county, do hereby certify that the above-mentioned sums, amounting to , have been discharged from the respective assessments for the said parishes by the Commissioners of the Income Tax and In- habited House Duties acting in and for the said district, in due course of law, upon the returns of the collectors duly verified on oath. Witness our hands and seals the day of 18. Commissioners of the Income Tax and Inhabited House Duties. [18, 19, and 20, relate to Land Tax.] TAXES MANAGEMENT ACT, 1880. SCHEDULE II. 465 21. CERTIFICATE TO THE HIGH COURT OF THE NAMES OF COLLECTORS WHO HAVE MADE DEFATTLT IN ACCOUNTING FOR THE DUTIES AND LAND TAX. Exhibited before me as the certificate referred to in the annexed affidavit of sworn this day of 18 . INCOME TAX, INHABITED HOUSE } DUTIES, AND LAND TAX, 18 . In the High Court of Justice. Exchequer Division. To the Eight Honourable the Lord Chief Baron of the Exchequer Division of the High Court of Justice, and to the Honourable the rest of the Barons of the same Division. I, of , collector of inland revenue, receiver of the duties on profits arising from property, professions, trades, and offices, the duties on inhabited houses, and of the land tax, charged and assessed in the parishes and places hereinafter mentioned, by virtue of the several Acts of Parliament in that behalf, do hereby humbly certify to the Barons of the Exchequer Division of the High Court of Justice in pursuance of the several statutes in this behalf made and provided, that the several and respective times and places mentioned and described against the name of each division in the schedule here- unto subjoined, were by me appointed according to the directions of the statutes in that case made and provided, for payment to me, as such collector of inland revenue and receiver as aforesaid, of the said duties and the land tax assessed and charged within the several parishes and places, and within the respective divisions mentioned in the said schedule, for the year ending on the 25th day of March and the 5th day of April, 18 , respectively, and which are by the said statutes directed to be collected or levied by the several collectors of the duties and land tax on or before the 1st day of January now last past ; and that I, the said collector of inland revenue, did attend at the said several and respective times and place so appointed as afore- said for the purpose of receiving the said duties and tax, and that the several collectors of the said duties and tax for the said several parishes and places within the said divisions respectively did then and there make default in paying or accounting for the said duties and tax given to them in charge for the said parishes and places respectively, in the several sums mentioned in the said schedule, and did then and there neglect and wholly make default in delivering to me, the said collector of inland revenue, a schedule in writing signed by such collectors respectively, containing the Christian and Surname of each person making default in payment of the said duties and tax and the respective sums then in arrear from each such defaulter, with an affidavit subscribed and made according to the directions of the statutes in that case made and provided, contrary to the form of the said statutes. And I, the said collector of inland revenue, in pursuance of the several statutes in this behalf, do hereby further humbly certify that the said schedule hereunto subjoined doth also contain the names of the several collectors in default as aforesaid, and o the several parishes and places in which default has been made as aforesaid, and the divisions where such failure hath happened and the amounts of R. H H 466 APPENDIX vn. the duties and tax which remain unpaid or unaccounted for by the said collectors respectively, to the best of my knowledge, and as I verily believe. Given under my hand this day of in the year of our Lord 18 . Witness, SCHEDULE to which the foregoing Certificate doth refer, containing the names of collectors who have not paid or duly accounted, by the delivery of schedules of defaulters, for the full amount of the duties on profits arising from property, professions, trades, and offices, the duties on inhabited houses, and the land tax, for the year ending the 25th day of March and the 5th day of April, 18 , respectively. [Sere follow the particulars in such tabular form as the Board shall prescribe.^ Sections 4, THE THIRD SCHEDULE. 1 ' 5,7. ENACTMENTS REPEALED. [NOTE. Portions of Acts which have already been specifically repealed are in some instances included in the repeal in this schedule in order to preclude henceforth the necessity of looking back to previous Acts.] 43 Geo. 3, c. 99. 43 Geo. 3, c. 150. An Act for consolidating certain of the provi- sions contained in any Act or Acts relating to the duties under the management of the Commissioners for the Affairs of Taxes, and for amending the same. An Act for consolidating certain of the provi- sions contained in any Act or Acts relating to the duties under the management of the Commissioners for the Affairs of Taxes ; and for amending the said Acts so far as the same relate to that part of Great Britain called Scotland. The Third Schedule is repealed by Statute Law Revision Act, 1894 (57-8 V. c. 56). TAXES MANAGEMENT ACT, 1880. SCHEDULE III. 467 43 Geo. 3, c. 161 45 Geo. 3, c. 71 45 Geo. 3, c. 95 48 Geo. 3, c. 55 48 Geo. 3, c. 141 An Act for repealing the several duties under the management of the Commissioners for the Affairs of Taxes, and granting new duties in lieu thereof ; for granting new duties in certain cases therein mentioned ; for repeal- ing the duties of excise on licenses, and on carriages constructed by coachmakers, and granting new duties thereon, under the management of the said Commissioners for the Affairs of Taxes ; and also new duties on persons selling carriages by auction or on commission ; in part ; namely, Sections sixteen, twenty-four, fifty, fifty- one, fifty-three, fifty-four, fifty-six to fifty-eight inclusive, [sixty 2 ], sixty- nine, seventy, seventy-two, seventy- six, seventy-eight, and eighty. An Act to amend the several laws relating to the duties under the management of the" Commissioners for the Affairs of Taxes. An Act to amend so much of an Act of the forty- third year of his present Majesty, for consolidating certain of the provisions of the Acts relating to the duties in Scotland under the management of the Commissioners for the Affairs of Taxes, as relates to the ap- pointment of assessors and sub-collectors, and the notices required to be delivered to persons assessed to the said duties. An Act for repealing the duties of assessed taxes, and granting new duties in lieu thereof, and certain additional duties to be consoli- dated therewith ; and also for repealing the stamp duties on game certificates, and grant- ing new duties in lieu thereof, to be placed under the management of the Commissioners for the Affairs of Taxes ; in part ; namely, Section seven. An Act to amend the Acts relating to the duties of assessed taxes, and of the tax upon the profits of property, professions, trades, and offices, and to regulate the assessment and collection of the same ; in part ; namely, Section one, No. 1 Eules to No. 5 Eules inclusive, sections four, five, six, and thirteen. 2 Sect. 60 is revived by the Statute Law Revision and Civil Procedure Act, 1881 (44-5 V. c. 59), and the Revenue, Friendly Societies, and National Debt Act, 1882 (45-6 V. c. 72), s. 7. HH 2 468 APPENDIX VII. 50 Geo. 3, c. 105 52 Geo. 3, c. 95 55 Geo. 3, c. 161 1 & 2 Geo. 4, c. 113. 3 Geo. 4, c. 88 6 Geo. 4, c. 7 6 Geo. 4, c. 32 1 & 2 Will. 4, c. 18. 4 & 5 Will. 4, c. 60. An Act to regulate the manner of making sur- charges of the duties of assessed taxes, and of the tax upon the profits arising from pro- perty, professions, trades, and offices, and for amending the Acts relating to the said duties respectively. An Act to amend and regulate the assessment and collection of the assessed taxes, and of the rates and duties on profits arising from property, professions, trades, and offices in that part of Great Britain called Scotland. An Act to amend and render more effectual an Act of the fifty- second year of his present Majesty, to amend and regulate the assess- ment and collection of the assessed taxes, and of the rates and duties on profits arising on property, professions, trades, and offices, in that part of Great Britain called Scotland. An Act to continue several Acts for the relief of persons compounding for assessed taxes from an annual assessment, for a further term ; and to amend the Acts relating to assessments and compositions of assessed taxes. An Act to amend the laws relating to the land and assessed taxes, and to ' regulate the ap- pointment of receivers general in England and Wales. An Act for the further repeal of certain duties of assessed taxes, and for granting relief in the cases therein mentioned ; in part ; namely, Section eleven. An Act to provide for the application of moneys arising in certain cases of assessments for land tax in Great Britain. An Act for transferring the duties of receivers general of the land and assessed taxes to persons executing the offices of inspectors of taxes, and for making other provisions for the receipt and remittance of the said taxes. An Act to amend the laws relating to the land and assessed taxes, and to consolidate the boards of stamps and taxes ; in part ; namely, Sections one, six, seven, eleven, twelve, thirteen, fourteen, and fifteen. TAXES MANAGEMENT ACT, 1880. SCHEDULE III. 469 5 & 6 Will. 4, c. 20. 5 & 6 Will. 4, c. 64. 6 & 7 Will. 4, c. 65. 1 Viet. c. 61 5 & 6 Viet. c. 37 6 & 7 Viet. c. 24 7 & 8 Viet. c. 46 An Act to consolidate certain offices in the collection of the revenues of stamps and taxes, and to amend the laws relating thereto ; in part ; namely, Sections six, seven, ten to twenty-one inclusive. An Act to alter certain duties of stamps and assessed taxes, and to regulate the collection thereof ; in part ; namely, Sections ten to thirteen inclusive. An Act for granting relief from the duties of assessed taxes, and on stage carriages, in certain cases, and to regulate the charging of the duty payable for taking or killing game in Great Britain ; and to provide for the collection of certain local taxes in Scot- land ; in part ; namely, Sections ten to twelve inclusive. An Act to extend an exemption granted by an Act of the last session of Parliament from the duties of assessed taxes, in respect of certain carriages with less than four wheels ; and to amend the laws relating to the said duties ; in part ; namely, Section three. An Act to continue until the fifth day of April one thousand eight hundred and forty -four compositions for assessed taxes, and to amend the laws relating to the land and assessed taxes ; in part ; namely, Section seven. An Act to continue until the fifth day of April one thousand eight hundred and forty-five compositions for assessed taxes, and to amend the laws relating to the land and assessed taxes, and also the laws relating to the duties on profits arising from property, professions, trades, and offices. An Act to continue until the fifth day of April one thousand eight hundred and forty-six compositions for assessed taxes, and to amend certain laws relating to duties under the management of the Commissioners of Stamps and Taxes. 470 APPENDIX VII. 9 & 10 Yict. c. 56 - 17 Viet. c. 1 17 & 18 Viet. c. 85 - 19 & 20 Viet. c. 80 - 20 & 21 Viet. c. 28 - 24 & 25 Viet. c. 91 - 25 Viet. c. 22 26 & 27 Viet. c. 33 - 27 & 28 Viet. c. 56 - An Act to provide forms of proceedings tinder the Acts relating to the duties of assessed taxes, and the duties on profits arising from property, professions, trades, and offices in England. An Act to explain and amend an Act of the last session relating to the duties of assessed taxes, and to authorise justices of the peace in Ireland to administer oaths required in matters relating to income tax ; in part ; namely, Section five. An Act for better securing the collecting and accounting for the land tax, assessed taxes, and income tax by the collectors thereof. An Act to grant relief in assessing the income tax on lands in Scotland in respect of certain public burdens charged thereon ; to alter and regulate the allowances to clerks to the Com- missioners of Income Tax ; and to amend the laws relating to the land, assessed, and income taxes, and the redemption and pur- chase of the land tax ; in part ; namely, Sections two and four. An Act to amend the laws relating to the pay- ment of the land and assessed taxes and property and income tax in Scotland ; in part ; namely, Section two. An Act to amend the laws relating to the Inland Revenue ; in part ; namely, Sections thirty-seven to forty-five in- clusive. An Act to continue certain duties of Customs and Inland Revenue for the service of her Majesty, and to grant, alter, and repeal certain other duties ; in part ; namely, Sections forty-two to forty -five inclusive. An Act for granting to her Majesty certain duties of Inland Revenue, and to amend the laws relating to the Inland Revenue ; in part ; namely, Section twenty-three. An Act for granting to her Majesty certain stamp duties, and to amend the laws relating to the Inland Revenue ; in part ; namely, Sections fifteen and nineteen. TAXES MANAGEMENT ACT, 1880. SCHEDULE IH. 471 28 Viet. c. 30 29 & 30 Viet. c. 64 - 30 & 31 Viet. c. 90 - 32 & 33 Viet. c. 14 - 33 Viet. c. 4 33 & 34 Viet. e. 32 - 34 & 35 Viet. c. 103. 36 Viet. c. 8 36 Viet. c. 18 37 Viet. c. 16 41 Viet. c. 15 42 & 43 Viet. c. 21 - An Act to grant certain duties of Customs and Inland Eevenue ; in part ; namely, Section five. An Act to amend the laws relating to the Inland Eevenue ; in part ; namely, Sections seventeen and eighteen. An Act to alter certain duties and to amend the laws relating to the Inland Eevenue ; in part ; namely, Section twenty-six. An Act to grant certain duties of Customs and Inland Eevenue, and to repeal and alter other duties of Customs and Inland Eevenue ; in part ; namely, Part H., sections five to eleven inclusive. Income Tax Assessment Act, 1870. The Customs and Inland Eevenue Act, 1870 ; in part ; namely, Part V. (section sixteen.) The Customs and Inland Eevenue Act, 1871 ; in part ; namely, Section thirty. An Act to make provision for the assessment of income tax, and as to assessors in the metropolis ; in part ; namely, Sections one and two. The Customs and Inland Eevenue Act, 1873 ; in part ; namely, Sections six to nine inclusive. The Customs and Inland Eevenue Act, 1874 ; in part ; namely, Sections eight to ten inclusive. The Customs and Inland Eevenue Act, 1878 ; in part ; namely, Sections fourteen and fifteen. The Customs and Inland Eevenue Act, 1879 ; in part ; namely, Sections nineteen to twenty- five inclusive. 472 APPENDIX VII. Sections 5, 7. THE FOUETH SCHEDULE. ENACTMENTS in which a reference to this Act is to be substituted. 38 Geo. 3, c. 5. 43 Geo. 3, c. 161. [ss. 10, 15, 17, 55, 59, 62, and 77.] 48 Geo. 3, c. 55. [Sch. A.] 57 Geo. 3, c. 25. [ss. 1, 2, 3, and 4.] 5 Geo. 4, c. 44. [s. 4.] 4 & 5 Will. 4, c. 60. [ss. 2, 5, 8, and 9.] 5 & 6 Will. 4, c. 20. [ss. 4, 5, 8, and 9.] An Act for granting to his Majesty an aid by a land tax to be raised in Great Britain for the service of the year one thousand seven hun- dred and ninety-eight. An Act for repealing the several duties under the management of the Commissioners for the Affairs of Taxes, and granting new duties in lieu thereof ; for granting new duties in certain cases therein mentioned ; for repeal- ing the duties of excise on licenses, and on carriages constructed by coachmakers, and granting new duties thereon, under the management of the said Commissioners for the Affairs of Taxes ; and also new duties on persons selling carriages by auction or on commission. An Act for repealing the duties of assessed taxes, and granting new duties in lieu thereof, and certain additional duties to be consolidated therewith ; and also for repeal- ing the stamp duties on game certificates, and granting new duties in lieu thereof, to be placed under the management of the Commissioners for the Affairs of Taxes. An Act to explain and amend an Act made in the forty-eighth year of his present Majesty, for repealing the duties of assessed taxes, and granting new duties in lieu thereof ; and to exempt such dwelling-houses as may be employed for the sole purpose of trade, or of lodging goods, wares, or merchandize, from the duties charged by the said Act (23rd May 1817). An Act for allowing persons to compound for their assessed taxes for the remainder of the periods of composition limited by former Acts, and for granting relief in certain cases. An Act to amend the laws relating to the land tax, and to consolidate the boards of stamps and taxes. An Act to consolidate certain offices in the collection of the revenues of stamps and taxes, and to amend the laws relating thereto. TAXES MANAGEMENT ACT, 1880. SCHEDULE IV. 473 6 & 7 Will. 4, c. 28. 5 & 6 Viet. c. 35. 5 & 6 Viet. c. 37. [ss. 3, 4, 5, and 6.] 12 Viet. c. 1. 16 & 17 Viet. c. 34. 23 Viet. c. 14. 29 Viet. c. 36. [s. 8.] 34 & 35 Viet. c. 103. [s. 31.] 41 Viet. c. 15. [ss.12, 13, and 16.] An Act to enable persons to make deposits of stock or exchequer bills in lieu of giving security by bond to the Postmaster General, and Commissioners of Land Revenue, Cus- toms, Excise, Stamps, and Taxes. The Income Tax Act, 1842. An Act to continue until the fifth day of April one thousand eight hundred and forty-four compositions for assessed taxes ; and to amend the laws relating to the land and assessed taxes. An Act to consolidate the Board of Excise and Stamps and Taxes into one Board of Com- missioners of Inland Revenue, and to make provision for the collection of such revenue. The Income Tax Act, 1853. An Act for granting to her Majesty duties on profits arising from property, professions, trades, and offices. An Act to grant, alter, and repeal certain duties of Customs and Inland Revenue, and for other purposes relating thereto. The Customs and Inland Revenue Act, 1871. The Customs and Inland Revenue Act, 1878. INDEX. ABATEMENTS. See Allowances, Abatements, and Deductions. ABSENTEES, temporary, 285. ABSTRACTS of statements, &c., 61. ACCOUNT. See Returns ; Statements ; Schedules of Property. procedure as to, 97 et seq. by person claiming deduction under Schedule (A.), 144, 145. forms, 421. of annuities and dividends under Schedule (C.), 184. of lands to be delivered in parish where lands situate, 135. of properties in Schedule (A.), Nos. H. and III., where interest has commenced within the time for which the account is directed to be made out, 137. of rent to be delivered by tenant under parol demise or unable to pro- duce lease, 163. ACTIONS against income tax officials, limitation of, 105. ACTS, Income Tax, interpretation of, 301. See Index of Statutes. ACQUITTANCES of collector, 88. ADMINISTRATORS AND ASSIGNS liable in default of deceased, 92, 144, 157, 272, 292. ADVENTURER, mine carried on by, how charged, 125. AGENTS, claims of exemption by, 85. when charged, 56, 58, 215, 249, 288, 290. when exempt from penalty for not delivering statement, 60. AGREEMENTS, void under the Income Tax Acts, 166, 235. ALLOWANCE where person making is chargeable, statement to be made exclusive of, 57. ALLOWANCES, ABATEMENTS, AND DEDUCTIONS, for premiums paid for certain deferred annuities, 245 et seq. for premiums paid for insurance in certain cases, 245 et seq. for small incomes, 293. none, unless authorized by Act, 144, 296. to clergymen for expenses incurred in performance of duties, 211. Schedule (A.), charitable purposes, rent of lands vested in trustees for, 150. college or hall at university, repairs of, 146. public buildings and offices of, 149. repairs of public buildings and offices of, 149. repairs of gardens, walks, and grounds of, 149. 476 INDEX. ALLOWANCES, ABATEMENTS AND DEDUCTIONS continued. Schedule (A.), collegiate churches and chapels and chancels of churches, repairs of, 146. draining, fencing or embanking, public rate for, 147. Drainage Advances Acts, 149. friendly society, lands, &c. of, 150. hospital, public school, or almshouse, public buildings and offices of, 149. repairs of public buildings and offices of, 150. repairs of gardens, walks, &c., 150. rent of lands of, applied to charitable purposes, 150. house, repairs of, 145. allowance of, one-sixth part in certain cases, 145. unoccupied, 165. lands, inclusive of farmhouse and buildings, allowance of one-eighth part, 145. literary and scientific institution, allowance for buildings of, 150. tithe commutation rentcharge, for expense of collecting, 137. for parochial rates and taxes, 136, 146. Scotland, for public burdens in, 148. trades union, exemption of funds applied for provident benefits, 151. for land tax, 147. for money repaid borrowed to renew works, 132. for procurations and synodals, 146. for sea walls and embankments, 147. for tenths, first fruits, and duties and fees on presenta- tions, 146. for tithe commutation rentcharge when duty on is paid by owner of land, 136. for wear and tear of machinery and plant, 132. none for capital expended in sinking new pits, 132. none for expense of collecting manorial dues, 124. none for sum set aside to restore plant and apparatus in the future, 133. Schedule (B.), allowance of one-eighth part in certain cases, 155. to farmers where profits fall short of assessments, 174. in case of loss, 175. Schedules (A.) and (B.), for loss caused by flood or tempest, 172. for rates and taxes in certain cases, 157. for tenants' rates, taxes, &c. paid by landlord, 157. Scotland, for landlords' rates, taxes, &c. paid by tenant in England, 157. Schedule (C.), charitable purposes, exemption of stock, &c., applied to, 180. friendly societies, exemption of stock of, 179. industrial and provident societies, exemption of, 179. Queen, &c., exemption of stock, &c. of, 181. repairs of cathedral, college, church, or chapel stock applied to, 181. savings banks, exemption of, 180. trades unions, exemption of, 151. Treasury, exemption of, 181. Schedule (D.), charitable purpose, exemption of stock, &c. applied to, 243. friendly societies, exemption of stock of, 244. industrial and provident societies, exemption of, 245. savings banks, exemption of, 244. trades unions, exemption of, 151. for annual value of business premises, 214. for bad debts, 203. INDEX. 477 ALLOWANCES, ABATEMENTS AND DEDUCTIONS continued. Schedule (D.)> f r diminution of income, 263. for loss in trade, profession, &c., 265. for money used in business, &c., 204, 213. for repairs of implements, &c., 203. for repairs of premises, 202, 206. for wear and tear of machinery and plant, 206. to bankrupt, 266. to person ceasing to exercise trade, &c., 266. to person dying, 266. to trader in case of loss, 265. none for annuities, &c. payable out of profits and gains, 208. capital exhausted, 203. capital withdrawn from business, 203. depreciation of lease, 204. dwelling house, 212. expenses incurred in raising capital, 205. family expenses, 212. loss not connected with trade, 203. premium paid for lease, 204. sum employed as capital, 203. sum recoverable under insurance, 203. an indemnity, 203. what deductions not allowed, 202, 212. Schedule (E.), for expenses necessarily incurred in performing duties, 278. for expense of keeping horse, 278. for official deductions, 276. for travelling expenses, 278. ALMSHOUSE. See Hospital ; Public School ; or Almshouse. ALUM mines or works, annual value of, 125. ANNUAL PAYMENT, from property of person for which that person is charge- able, statement to be made exclusive of, 57. ANNUAL VALUE. of alum mines and works, 125. of docks, 125. of drains and levels, 125. of dues and services, 123. of ecclesiastical dues, 123. of fines, 123. of fishings, 125. of iron, gas, and waterworks, 125. of lands, tenements, &c., 121. where rent depends on price of corn, 158. actual produce, 158. is paid in corn, 158. of manors, 123. of mines of coal, tin, lead, copper, mundic, iron, &c., 125. of payment in lieu of tithe (not arising from land), 123. (arising from land), 123. of quarries of stone, slate, limestone, and chalk, 124. of railways, bridges, and ferries, 125. of rights of market and fairs, 125. of royalties, 123. of salt springs and works, 125. of streams of water, canals, and inland navigation, 125. of teinds, 123. of tithes compounded arising from lands, 123. of tithes in kind, 123. of tolls, 125. 478 INDEX. ANNUAL VALUE continued, assessor to estimate where no account is delivered under Schedules (A.) and (B.) or if dissatisfied with account, 159. when determined by actual valuation, 170. sometimes determined by poor rate, 159. ANNUITIES, INTEREST, AND DIVIDENDS. See also Interest. charged on land, deduction of duty from, 143. paid prior to passing of Act, 119. Schedule (C.), accounts of annuities, dividends, &c., payable by and to Bank of England, &c., 181. colonial, how charged, 184 et seq. duty on, how assessed and paid, 178 et seq. from, any public revenue, duty on, under Schedule(0.), 178. foreign, how charged, 185 et seq. not amounting to 50s., 183. Schedule (D.), agreement for payment of, without deduction of tax void, 235. charged on foreign or colonial securities, 224. deduction of tax by person paying, 224, 239 et seq. from foreign or colonial company, 228 et seq. from institution in India, 233. not payable out of profits or gains, 234. payable out of profits or gains, no deduction for, 208. Schedule (E.), assessment of, 279 et seq. deduction of duty on payment of, 275 et seq. payable out of the public revenue, 271. deduction for premiums paid for certain deferred, 245 et seq. from property of person for which that person is chargeable, statement to be made exclusive of, 57. time when income tax must be deducted from, 242. APPEALS, against surcharges, 75. are final except where case stated for High Court, 74. . barristers and solicitors cannot appear in, 74. by persons removing before appealing, 75. notice of, 73, 170, 253. procedure, 73. Schedules (A.) and (B.), 170. Schedule (IX), 253 et seq. to Special Commissioners, 260. to Special Commissioners, by persons assessed for mines or quarries, 172. ARREARS, proceedings for, 102. schedules of, 99. tenant quitting liable for arrears of duty, 157. to be re-assessed, 33. ARTIFICERS, royalo 273. ARTILLERY, officer in, 273. ASSESSMENT, Procedure on, 53 et seq. additional first, 69, 87. allowance of, 69. amendment of, 68. books of, 45, 79. certificate of, Forms, Appendix VII., 1, 2. collectors' duplicates of, 86. double, relief from, 78. errors in, not material, 69. examination of, 67, 68. in default of return, 66, 159. INDEX. 479 ASSESSMENT continued. Procedure on continued. limitation of time for amendment of, 68, 70. of new-comer in place, 63. of person removing, 64. omissions from first, 70. penalty for refusing to deliver up, 45. place of, 62. rectification of, 70. relief from double, 79. special, 93. supplementary, 80. year of, 65. Schedules (A.} and (B.\ Procedure, 159 et seq. allowance of, 169. of concerns in Schedule (A.), No. IU., 126 et seq. of houses and dwellings under 10?., 135, 161. of lands, &c., when determined by poor rate, 160. of lands, &c., let for term for rent and improvement, 162. of railways, by Special Commissioners, 126. rectification of, 170, 172. Schedule ((7.), Procedure, 181 et seq. Schedule (D.), Procedure, 247 et seq. amendment of, 252, 258. by Special Commissioners in certain event, 261. books of, 267. certificates of, 252. examination of, 252. made by the additional Commissioners, 250, 251 et seq. numbered and lettered, 267. place of, 247. questions in writing touching, 256. signing of, 252. when made by the General Commissioners, 256, 259. Schedule (E.}, Procedure, 277, 279 et seq. place of, 273. supplemental, 273. ASSESSORS, administration of oath to, 54. appointment of, 24. for making re-assessments, Form, Appendix Vii., 6. certificates of, 66 ; Form, Appendix VII. , I. declaration to be subscribed on taking office, 26. definition of, 40. estimates in default of returns, 66. liability of, in certain cases, 103. limitation of actions against, 105. notices to be delivered by, 54. oath of, 420. penalties on, 26. remuneration of, 27. to verify the delivery of statements, &c., 61. Schedules (A.} and (B.), assessment by, 159 et seq. may assess house under 101. without return, 161. may be examined by the Commissioners, 168. may demand production of lease, 161. may estimate annual value of lands, &c., in certain cases, 159. and may estimate it by poor rate, 159. may make assessment on the rent, 161. may survey lands, &c., by order of the Commissioners, 169. to deliver assessments and returns to the Commissioners, 167. to require production of rate books in certain cases, 167. 480 INDEX. ASSESSOES continued. Schedules (A.~) and (-5.), Scotland, may make assessment on the rent, 165. may require production of lease, 164. schoolmasters to assist, 169. Schedule (Z>)., estimate in default of returns under, 66. Schedule (E.), 279. ASSIGNEE, of tenant, stands in his shoes, 142. ASSIGNS. See Administrators. BANK OF ENGLAND, directors of, are Commissioners, 16. savings. See Savings Bank. BANKER, dealing with coupons, 187, 234. BANKRUPT, 101. debt from, how valued, 197. relief to, 266. BARRISTER, cannot appear in appeals, 74. BILLS OF EXCHANGE, for payment of foreign and colonial dividends, 187, 234. interest on, 241. BOARD, definition of, 40. BONUS, no deduction for bonus paid with loan repaid, 204. BOOKS, parochial, power to inspect, 53. BOROUGH, office or employment of profit in, 274. Commissioners for, 20. BRICK-FIELD, 122, 124, 127. BRIDGES, annual value of, 125. BROKERS, rents, profits of, 224. BUILDINGS, Sched. (A.) farm, allowance of one-eighth, 145. Sched (A.) repairs of, allowance of one-sixth of the rent, 145. Sched. (D.^ allowance for repairs executed, 203, 206. Sched. (D.) no allowance for depreciation of, 206. BUSINESS. See Profession; Trade. changes in, 80, 216, 266. premises, allowance for annual value of, 214, 223. exempt from Schedule (B.), 155. trade, allowance for repairs of, 202, 206. triple, 199. utensils, &c., allowance for repairs of, 203. CAMBRIDGE UNIVERSITY, assessment of, 22. CANALS, 134. annual value of, 125. INDEX. 481 CAPITAL, exhausted, no deduction for, 203. expended in sinking new pits, no deduction for, 132. expense incurred in raising, no deduction for, 205. sum employed as, no deduction for, 203. withdrawn from business, no deduction for, 203. CASE, for the opinion of the High Court, 76. costs of, 78. prepared by clerk. See the "Intro- duction." Schedule (D.), for the opinion of the General Commissioners, 251. CASUALTY, 143. CATHEDRAL, allowance for stock applied to repairs of, 181. CATTLE, dealer in, 218. CAVALRY, officer in, 273. CERTIFICATE, for certain allowances under Schedule (A.), 148, 153. of assessment, Forms, Appendix VII., 1, 2. Schedule (D.) to be delivered to the General Commis- sioners by the additional Commissioners, 252. of assessor, 66. of re-assessment, Forms, Appendix VII. 3, 4. of removal, 91 ; Form, Appendix VII. 8. to High Court of collectors making default, Form, Appendix VII. 21. CHALK quarry, 124. CHANCEL, allowance for repairs of, 146. CHANGE, from a district before appealing, 75. from partnership to limited company, 137, 216. in concern or business, 80, 216, 266. in partners, 215. of tenancy, 142, 156. CHAPEL, allowance for stock applied to repairs of, 181. collegiate, allowance for repairs of, 146. CHARGE DUPLICATES, 80 ; Form, Appendix VII. 15. CHARITABLE INSTITUTIONS, exemption of, 180, 243. CHARITABLE PURPOSES, allowance for rent of lands of hospital, public school, or almshouse, applied to, 150. allowance for stock and dividends applied to, 180, 243. meaning of, 153. CHURCH, allowance for stock applied to repairs of, 181. chancel, allowance for repairs of, 146. collegiate, allowance for repairs of, 146. CITY, office or employment of profit in, 274. Commissioners for, 20. CIVIL GOVERNMENT, office belonging to, 273. CLAIMS OF EXEMPTION. See Exemption. CLAIMS FOR REPAYMENT, limitation of time for, 85. R. I I "482 INDEX. CLERGYMAN. See also Sector. allowance for expenses incurred in performance of duties, 211. CLERK, to Commissioners, appointment of, 9. definition of, 40. functions of. See the " Introduction." oath of, 420. penalty on, for misconduct, 9. remuneration of, 10. vacancy in office of, 10. CLERK, salary of, Schedule (E.), deduction of duty from, 276. COAL MINE, annual value of, 125. COLLECTION, of tax, 85 et seq. See remarks on, in the " Introduction." under Schedule (E.), 281. COLLECTOR, action on bond of, 112. appointment of, 29. by board, 31. Scotland, 36. default of, -when parish liable, 34, 103. definition of, 40. duplicates of, 86, 268 ; Form, Appendix VII. 5. estate of, seizure of, 110. warrant for, Form, Appendix VII. 12. notice of, Form, Appendix VII. 14. examination of, 109. liability of, in certain cases, 103. limitation of action against, 105. making default, certificate of, to High Court, Form, Appendix VII. 21. nomination of, 29. oath of, 420. office of, not compulsory, 30. parish answerable for, 33 et seq., 103. penalties on, 113. . proceedings against, 109. remuneration of, 34. revocation of appointment of, 110; Form, Appendix VH. 11. security to Commissioners, 32. warrant to, 86, 87, 268 ; Forms, Appendix VII. 5, 7. COLLECTOR OF INLAND EEVENUE, definition of, 40. COLLEGE, allowance for stock applied to repairs of, 181. COLLEGE OR HALL, at university, allowance for repairs of, 146. public buildings and offices of, 149. repairs of buildings and offices of, 149. repairs of gardens, walks, and grounds of, 149. COLLEGIATE churches and chapels, allowance for repairs of, 146. COLONIAL, annuities, dividends, &c., Schedule (C.), how charged, 184 et seq. company, Schedule (D.), interest, dividends, &c. of, 232 et seq. securities and possessions, Schedule (D.), 218, 220, 249. annuities, &c. charged on, 224. COMMISSIONERS, acts of, valid, though not within prescribed times, 44. assessed like other persons, 267. concerned to have no voice in controversy, 45, 267. INDEX. 483 COMMISSIONERS continued. exempt from parish and ward offices and serving on juries, 23. for annuities, dividends, pensions, salaries, &c. payable by Bank of England, 16. for annuities, dividends, pensions, salaries, &c. payable by Commis- sioners for reduction of National Debt, 17. for foreign dividends, &c. 17. for certain cities and towns, 3. for offices in Courts and public departments, 19. Houses of Parliament, Counties Palatine, &c., 19. cities and boroughs, 20. for pensions and stipends payable by her Majesty, 22. for the universities, 22. limitation of time for actions against, 105. meetings of, 43. newly appointed, may assess and levy for former years, 43. not personally liable for costs, 112. number of, competent to execute powers, 45. oath of, 419. qualification of Schedule (E.), 282. vacancies, how supplied amongst, 5. COMMISSIONERS, ADDITIONAL, appointment of, 11. definition of, 40. functions of. See the "Introduction." may act as General Commissioners, 42. qualification of, 12. Schedule (D.), to make assessments under, 250 et seq. when to state case for the General Commissioners Tinder Schedule (D.), 251. COMMISSIONERS, GENERAL, allowance of assessments by, 69. appointment of, 1 et seq. board may increase number of, 3. books of assessment are property of, 45. deductions, to settle differences respecting, 296. definition of, 41. failure of, to act, 5, 44. functions of, 42. See also the " Introduction." not to hear appeals from assessments made by themselves, 42. oaths, may administer, 44, 257. qualification of, 6 et seq. rectification of assessments by, 70. vacancies amongst, how supplied, 5. warrants and precepts of, by whom executed, 44. Schedules (A.) and (B.), assessments delivered to, 167. rectification of, 170, 172. signed and allowed by, 169. may examine assessors, &c., 168. may order assessors to survey lands, &c., 169. Schedule (D.), appeal to, 253 et seq. assessed like other persons, 267. case for opinion of, 251. power to summon witnesses, 257. when to make assessments under, 256, 259 et seq. Schedule (E.), 275, 279 et seq. COMMISSIONERS, SPECIAL, appointment of, 15. definition of, 41. foreign dividends, &c., are Commissioners for charging, 17. foreign company, interest, dividends, &c., from, are Commissioners for charging, 229. functions of, 15. See the "Introduction." n2 484 INDEX. COMMISSIONERS, SPECIAL continued. mandamus to, 264. powers of, in appeals, 262. railways, are Commissioners for assessing, 126. persons employed by, are Commissioners for assessing, 274. salaries of, 16. Schedule (D.), assessment by, 261. appeal to, under, 260. to supply vacancies, 2. COMMITTEE, of lunatic, chargeable, 56, 58, 288, 290. COMPANY, change from partnership to company, 137, 216. foreign and colonial, interest and dividends from shares of, 228 et seq. office or employment of profit in, 271, 273. officers in, to prepare statements, 59. to do all acts requisite for assessment, 288. to set aside sums assessed under Schedule (C.), 182. residence of, 193. CONCERN. See Business. CONSTRUCTION of terms used in The Income Tax Act, 1842... 298. CONTRACTS, void under the Income Tax Acts, 166, 235. COPPER MINE, annual value of, 125. CORPORATION AND SOCIETIES. See Company. officers in, to do all acts requisite for assessment, 288. to prepare statements, 59. office or employment of profit in, 271, 273. residence of, 193. CORPORATION, CITY, property of, 223. COSTS, Commissioners not personally liable for, 112. of case for the opinion of the High Court, 78. of valuation of lands under Schedule (A.), by whom paid, 170. recovery of, 88, 103. COUNTY, office or employment of profit in, 274. COUPONS, attached to National Debt certificates, 184. for payment of foreign and colonial dividends, 187, 234. COURT, High, case for opinion of, 76. definition of, 41. martial, office or employment of profit in, 273. of Justice, office or employment of profit in, 273. CROWN, exemption of, 283. property, tenants of, not exempt, 138, 284. right of reply of, 78. CURATE, stipend to, 143. CUSTOMS, tolls called customs in Scotland, 148. DEBTS, allowance for bad debts, 203. bankruptcy of debtor, 197. doubtful, to be valued, 197. instalments of, not assessable, 226. no allowance for, 203. INDEX. 485 DECEASED PERSON, abatement in case of, Schedule (D.), 266. heirs, executors, administrators, and assigns, when liable, 92, 144, 272, 292. DECLARATION. See Statements. on amended return, 71. penalty for false, 72. Schedule (D.), showing where person is chargeable, 248. DEDUCTIONS. See Allowances, Abatements, and Deductions. DEDUCTION OF DUTY, Schedule (A.), on payment of rent, 138 et seq. time for, 140. Schedule (D.), on payment of interest, dividends, annuities, &c., 224 et seq., 239. time for, 242. Schedule (E.), 276. Commissioners to settle differences respecting, 296. contracts for payment of rent, interest, dividends, &c., without deduct- ing the tax, void, 166, 235. DEER FOREST, to be charged in respect of the rent actually paid, 155. DEFICIENCIES, schedule of, 100. DEFINITIONS, 40. DEMAND, by collector, 87. DEMAND NOTE, contents of, 87. DEPRECIATION, of capital, no allowance for, 133, 203. of lease, no allowance for, 204. of machinery and plant, allowance for, 132, 206. DEPUTY, in receipt of profits chargeable, 280. salary and wages of, Schedule (E.), 276. DISCOUNT, on duties paid in advance, 269. profits on, 218. DISTRESS, to recover the tax, 88 et seq. DIVIDEND, meaning of, 59. DIVIDENDS. See Annuities ; Interest. DIVISION, definition of, 40. DOCKS, annual value of, 125. London, East and West India, and St. Katherine's, 250. DOUBLE, assessments, relief from, 78. taxation, can property be twice taxed?... 58. DRAINS, 134. annual value of, 125. DRAINAGE ADVANCES ACT, 149. DUES, ecclesiastical, annual value of, 123. manorial, annual value of, 123. no allowance for expense of collecting, 124. 486 INDEX. DUPLICATES, charge, 80 ; Form, Appendix VII. 15. collectors 86, 268 ; Form, Appendix VII. 5. DUTIES, definition of, 41. non-payment of, not to disqualify for voting for members of parliament, 297. paid in advance, 270. recovery of, 88. repayment of, where person is exempt, 83 et seq. limitation of time for, 85. when to be deducted, 140, 242, 296. DWELLING-HOUSE. See Home. EAST INDIA COMPANY, 17. ECCLESIASTICAL BODY, allowances and deductions to, how made, 147. office or employment of profit in, 273. ECCLESIASTICAL DUES, annual value of, 123. EMBANKING, public rate for, allowance for, 147. EMBANKMENT, sea or tidal river, allowance for, 147. EMOLUMENT, additional, Schedule (E.), how charged, 273. from public office or employment of profit, 271. meaning of, 211, 275. EMPLOYMENT. See Profession. duty in respect of, 209. public office or employment of profit, 271 et seq. under corporation, 271, 274. ENGINEERS, officer in, 273. ERRORS, in assessments, 69. ESTIMATES, in default of returns, 66. EXCHEQUER BILLS, &c., 188. EXECUTORS, of deceased person, when charged, 92, 144, 272, 292. of deceased tenant, 157. EXEMPTION. See Allowances, Abatements and Deductions. claims of, 81 et seq. by joint-tenants, tenants in common, and partners, 84. by trustees, agents, &c., 85. for income under 160Z. determined by the General Commis- sioners, 261. income from lands and tithes how estimated, 84. must be made within three years, 85. penalty for false, 83. claims of, Schedule (C.), 189. of incomes under 1607., 293. of temporary residents, 285. of the Crown, 283. Schedule (A.), charitable purposes, rent of lands vested in trustees for, 150. friendly society, rent of lands of, 150. hospital, public school, or almshouse, rent of lands of, 150. trades unions, 151. unoccupied house, 165. INDEX. 487 EXEMPTION continued. Schedule (B.), dwelling-house, loo. Schedule (0.), charitable purposes, stock and dividends applied to, 180. friendly societies, 179. industrial and provident societies, 179. minister (foreign), 181. Queen, 181. savings banks, 180. trades unions, 151. Treasury, 181. Schedule (D.), charitable purposes, stock and dividends applied to, 243. friendly societies, 244. industrial and provident societies, 245. savings banks, 244. trades unions, 151. FACTORS. See Agents. FAIRS, annual value of profits of, 125. mode of levying duties on, 166. FARMER. See Occupier ; Tenant. allowance to, in case of loss, 175. where profits fall short of assessments, 174. may elect to be charged under Schedule (D.), 154. FEE FARM KENT, 143. FEES ON PRESENTATIONS, allowance for, 146. FEES, Schedule (E.), additional, beyond amount of assessment, 273. allowance for official deductions from, 276. payable at office, duties stopped there, 275. FENCING, Schedule (E.) allowance for public rate for, 147. FERRIES, Schedule (E.), annual value of profits of, 125. FEU DUTY, 143. FIARS, 158. FINES, annual value of, 123. on renewal of lease, 124, 223. receivable by same person may be assessed in one account, 134. FIRE INSURANCE BUSINESS, 200. FIRST FRUITS, allowance for, 146. FISHERIES, annual value of, 125. mode of levying duty on, 166. FLATS, houses let in several tenements chargeable on landlord, 144. FLOOD OR TEMPEST, abatement for loss caused by, Schedules (A.) and (B.) 172. FOREIGN, company. See Company. minister, exemption of, Schedule (C.), 181. possessions, 220 et seq., 249. resident, 285. See Temporary Absentees. person acting for, to be charged, 288. securities, 218, 249. 488 INDEX. FOKGERY, punishment of, 107. FORM, proceedings not void for want of, 104. FOEMS, 104. See page 420, and Appendix VII. delivery of, 104. FRIBNDLY SOCIETY, exemption under Schedules (A.), (C.), and (D.), 150, 179, 244. GAINS. See Profits. meaning of, 1 99. GARDEN, market, profits estimated under Schedule (D.), and charged under Schedule (B.), 156. GARRISON BATTALIONS, royal, officers in, 273. GASWORKS, annual value of, 125. foreign, 127. GOOD, common good of city, 224. GOVERNMENT, civil, office or employment of profit in, 273. guarantee of, 227. GRAY'S INN, 47. GROUP, definition of, 41. GUARANTEE, of government, 227. GUARDIANS OF INFANTS, when chargeable, 92, 288, 290. HALL, at university. See College. HEIR, when liable, 144. HEREDITAMENTS. See Lands. HERITAGES. See Lands. HISTORY OF THE INCOME TAX. See the " Introduction." HOP GROUNDS, how charged, 156. HORSE, allowance for expense of keeping, 278. HOSPITAL, PUBLIC SCHOOL, OR ALMSHOUSE, allowance for, Schedule (A. ), public buildings and offices of, 149. repairs of public buildings and offices of, 150. repairs of gardens, walks, and grounds of, 150. rent of lands applied to charitable purposes, 150. HOUSE, dwelling, exempt under Schedule (B.), 155. no deduction for, under Schedule (D.), 212. occupied partly for purpose of trade, Schedule (D.), 212, 223. farm, allowance of th part, 145. in two parishes, 62. let in several tenements, 144. not farmhouse, repairs, allowance of one-sixth, &c., 145. power to inspect, 62. rent under 101. charged on landlord, 135. may be assessed without a return, 161. unoccupied exempt from duty, 165. INDEX. 489 HUSBAND AND WIFE. See Married Woman, HUSBANDRY, occupier of lands occupied for purposes of husbandry may elect to be charged under Schedule (D.), 154. IDIOT, LUNATICS, OR INSANE PERSON, person acting for charged, 57, 58, 85, 288, 290. IMPLEMENTS, trade, allowance for renewal of, 203. IMPROVEMENTS, land let for term for rent and, 162. INCOME, abatement for diminution of, 263. exemption and abatement for small, 293. relief to persons with small incomes claiming abatements, 176, 266. INDEMNITY, no allowance for sum recoverable under, 203. INDIA, bonds, how charged, 188. institution in, annuities, pensions, &c., from, 233. INDICTMENT, proof in, 108. INDUSTRIAL AND PROVIDENT SOCIETY, exemption of, Schedule (C.), 179, Schedule (D.), 245. INFANT, claims of exemption by person acting for, 85. parents and guardians liable in default of, 92. person acting for charged, 57, 58, 288, 290. INFANTRY, officer in, 273. INSANE PERSON. See Idiot. INSPECTORS. See also Surveyors. appointment of, 36. functions of. See remarks on in the " Introduction." oath of, 419. salaries of, 36. INSTALMENTS, payment of debt by, 122, 226. payment of tax by, abolished, 178. INSTITUTION, allowance for buildings of literary and scientific, 150. office or employment of profit in public, 273. INSUPERS, 102. INSURANCE, fire, business, 200. life, business, 199. participatory policies in, 200. mutual, business, 201. premiums, allowance for, in certain cases, 245, sum recoverable under, no deduction for, 203. INTEREST, 191, 226. See Annuities. meaning of, 225 et seq., 240. on bill of exchange, 241. on mortgage, 241. on purchase-money, 241. secured, on rates, 225. whether annual or not, 226. whether assessed under Case I. or Case IV. of Schedule (D.), 219. 490 INDEX. INTERPRETATION of the Income Tax Acts, 301. INVESTMENTS, profits from rise in value of, 202. IRELAND. See remarks on in the " Introduction." sections relating to, 19, 93, 118, 149, 218, 237, 305 et seq. IRON, mine, annual value of, 125. works, annual value of, 125. JOINT INCOME, of husband and wife, 291. JOINT TENANTS, claims of exemption by, 84. LAMBETH, 47. LANDLORD, and tenant, contracts between, void if contrary to Income Tax Acts, 166, 235. houses let for less than 10Z. charged on, 135. in several tenements charged on, 144. lands and tenements let for less than a year charged on, 135. must allow deduction of tax by tenant, 166, 235. LANDS, TENEMENTS, HEREDITAMENTS, AND HERITAGES, annual value of, 121 et seq. when determined by actual valuation, 170. poor rate, 159. where rent depends on produce, 158. price of corn, 158. is paid in corn, 158. assessment of land let for term for rent and improvements, 162. inclusive of farm-house and buildings, allowance of one-eighth, 145. in same occupation belonging to different owners, 135. let at will or from year to year to be assessed by value, 164. let for less than a year charged on landlord, 135. occupation of, charged, 154. occupied for purpose of trade or profession, 212, 214, 223. occupied by same person in different parishes, 135. dealer in cattle and milk, 218. occupier for purposes of husbandry only may elect to be charged under Schedule (D.), 154. of friendly society, allowance for, 150. of hospital, public school, or almshouse, allowance for, 150. person having use of, to be deemed occupier, 156. property in, duty on, 120. Scotland, 122, 148, 157, 159, 164. to be assessed by the assessor, 159. and whether occupied or not, 165. valuation of, 170. where assessed, 63, 134. LAND TAX, allowance for, 147. LAND TAX ACTS, definition of, 41. LAND TAX COMMISSIONERS, definition of, 41. LAY IMPROPRIATOR, form of return of, 421. LEAD MINES, annual value of, 125. LEASE, depreciation in, no allowance for, 204. fines on renewal of, 124, 223. premium paid for, no allowance for, 204. repairing, 145. to be produced to the assessor by the tenant, 161, 164. INDEX. 491 LESSEE. See Occupier ; Tenant. LETTERS PATENT, no exemption by, 292. LEVELS, annual value of, 125. LIFE, insurance business, 199. allowance for certain premiums paid for, 245. LIMESTONE quarry, annual value of, 124. LIMITATION, of time for actions against income tax officials, 105. amendment of assessments, 68. charging person omitted, 70. claim for repayment of duty paid for "which person is exempt, 85. LINCOLN'S INN, 47. LISTS, 53 et seq., 423. See Statements. of persons assessed, Schedule (D.)> 267. of salaries, wages, &c., Schedule (E.), 281. LITERARY AND SCIENTIFIC INSTITUTION, allowance for buildings of, 150. LODGERS, notice to deliver lists of, 56. LUNATIC. See Idiot. MACHINERY AND PLANT, allowance for wear and tear of, 132, 206. no allowance for sum set aside to restore in future, 133. repayment of money borrowed to renew, 132. MANDAMUS, 264, 302. MANOR, annual value of, 123. in two parishes, where assessed, 134. profits of, occupier, owner, &c. liable for duty, and may deduct it, 166. MANORIAL DUES, annual value of, 123. no allowance for expense of collecting, 124. MARINES, officer in, 273. MARKET, profits of, annual value of, 125. See also 166, 223. garden, profits estimated under Schedule (B.) and charged under Sche- dule (D.), 156. MARRIED WOMAN, joint income of husband and wife, 291. how charged, 56, 58, 85, 288, 291. MAYOR'S COURT FEES, 223. MEETINGS OF COMMISSIONERS, 43. METAGES, corn and fruit, 223. METROPOLIS, 25, 304. MILITIA, officer in, 273. MILK, dealer in, 218. 492 INDEX. MINE, annual value of coal, tin, lead, copper, mundic, iron, 125. carried on by adventurers, how charged, 125. difference between mine and quarry, 127. failing, annual value how computed, 137. to be charged where situate or produce manufactured, 137. wholly failed, assessment discharged, 137. MINES AND QUARRIES, person assessed for, may appeal to Special Commis- sioners, 172. MINISTER, foreign, house of, charged on landlord, 138. exempt under Schedule (0.), 181. religious, allowance for expenses incurred in performance of duties, 211. MORTGAGEE. See 144, 145. in possession chargeable as occupier ..144. not in possession must allow deduction of duty by mortgagee, 144. MORTGAGOR. See 144, 145. MUNDIC MINE, annual value of, 125. MUSEUM, British, exemption of, 227. MUTUAL INSURANCE CONCERN, 201. NATIONAL DEBT COMMISSIONERS, are Income Tax Commissioners, 17. exemption under Schedule (C.), 181. NAVY, officer in, 273. NOTICES, 53 et seq. affixed to church doors, 54. may be served on the clerk, 105. of appeals, 73, 170, 253. of signing or allowing assessments, Schedule (A.), 170. requiring persons to deliver statements, 54. served by assessors, 54. service of, 105. to assessor, of election to be charged by Special Commissioners, 261. to surveyor by farmer electing to be charged under Schedule (D.), 154. verified by assessors, 54, 61. NURSERIES, profits estimated under Schedule (D.) and charged under Sche- dule (B.), 156. OATHS, administered to assessor, 54. forms of, 421. may be administered by the General Commissioners, 257. to be taken by income tax officials, 37. OBSTRUCTION of income tax officials, 107. OCCUPATION, change of, how assessments are made, 142, 156. divided during year of assessment, 297. of lands, &c. charged under Schedule (B.), 154. OCCUPIER. See Tenant. change of, duties how paid, 142, 156. duties to be charged on and paid by, Schedule (A.), 156. form of statement of, 421. INDEX. 493 OCCUPIER continued. for purposes of husbandry only may elect to be charged under Sche- dule (D.), 154. may deduct duty paid in respect of rent from the rent, 138. and although the landlord is exempted, 140. may deduct duty which he has paid in respect of a payment in lieu of tithe, 138. of tithe or tiends in kind to pay 2d. in on annual value, 155. owner, paying rates, taxes, or composition for tithes, may deduct them in estimating annual value, 157. paying arrears of duty due from former occupier may deduct the amount from the rent, 142. penalty on for not delivering account, 133. persons having use of lands, &c. to be deemed occupiers, 156. quitting, is liable for arrears of duty, 156. relief to, in case of loss, 175. where profits fall short of assessments, 174. Scotland, to produce lease or deliver an account to the assessor, 164. to deliver an account in each parish where lands are situate, 135. to make separate estimates for lands belonging to different owners, 135. to produce lease if required, 161. under parol demise or unable to produce lease to deliver an account of the rent, 163. public, Schedule (E.), 271. under Corporation, 271. under Schedule (E.), where assessed, 277 et aeq. OFFICER, commissioned, Schedule (E.), 273. receiving fund for salaries chargeable, 280. OFFICIAL DEDUCTIONS, allowance for, Schedule (E.), 276. residences, 138. OMISSIONS, from first assessments, 70. OVERSEERS, of the poor may be required to produce rate books, 167. examined by the Commissioners, 168. OWNER- OCCUPIER. See Occupier. OXFORD UNIVERSITY, assessment of, 22. PARENTS of infant liable on his default, 92. PARISH, definition of, 41. detached, 49 et seq. duties under Schedule (A.) chargeable in parish where lands are situate, 134. group of, 29, 47. in jurisdiction of two separate bodies of Commissioners, 46. in two counties, 62. liability of, for collector, 34. may be divided by board, 46. mentioned in 48 Geo. III. c. 141... 49. 5 & 6 Viet. c. 37... 50. newcomer in, 63. occupier to deliver an account in parish where lands are situate, 134. person removing from, 64. poor law parish to be parish for purposes of income tax, 46. transfer of, 48. union of, 49. 494 INDEX. PARLIAMENT, Houses of, office or employment of profit in, 273. PAROCHIAL BOOKS, power to inspect, 53. PART, definition of, 41. PARTICIPATING POLICIES, 200. PARTNER, claim of exemption by, 84. declarations by, 423. precedent acting, return of, 214. returns of, under Schedule (D.), 214. PARTNERSHIP, change from, to limited company, 137, 216. change in, 216. persons engaged in more than one, 217. PAYMENT, by post office orders, 97. in advance, Schedule (D.), 269. in postage stamps, 96. time for, 86. of railways, 93. in Scotland, 86. under Schedule (D.), 269. PENALTY, for failing to deliver statement, 55, 59. fraudulently changing residence to avoid the tax, 65. converting property to avoid the tax, 65. delivering false statement to avoid the tax, 65. evading the tax, 65. inducing person to make false statement, 60. in case of surcharge allowed, 76. making false claim for exemption, 83. declaration on amended return, 72. neglecting to attend with parochial books, 53. refusing to allow inspection of parochial books, 53, 168. deliver up duplicate, 87. papers relating to income tax, 45. removing without paying duties, 64. wilfully obstructing surveyor or inspector, 67. tearing notice, 54. Schedule (A.), for failing to deliver an account of lands, &c., 135. for not allowing deduction of duty from rent, 139. Schedules (A.) and (B.), for delivering false account or concealing the value of lands, &c., 164. for making false claim for abatement for loss by flood or tempest, 173. relief, 175. Schedules (A.) and (B.), Scotland, not complying with notice from assessor, 164. Schedule (0.), for making false claim for exemption, 190. for neglecting or refusing to deliver an account under, 186. Schedule (D.), for having assessment increased, 259. for not delivering schedule of property, and not attending the summons of the Commissioners, 259. for refusing to allow deduction of duty from interest, &c., 235. to attend to be examined, 258. on assessors neglecting to estimate the value of dwelling-house of which rent is under 10/., 161. on assessors neglecting to verify notices and omitting persons, 61. on clerk for misconduct, 9. INDEX. 495 PENALTY continued. on collectors, 109. See Proceedings against Collectors. on Commissioners concerned taking part in controversy, 45. on officials under Schedule (E.), 279. person exempt from duty not liable to, 60. recovery of, 88, 106. PENSION, deduction of duty on, under Schedule (E.), 275 et seq. from institution in India, 233. payable by her Majesty, or out of the Public Eevenue, 271. Commissioners for, 22, 273. PERJURY, punishment of, 107. PERQUISITES, allowance for official deductions from, 276. how estimated, 274. meaning of, 272, 274. payable at any office, duties to be stopped there, 275. PETITION OF EIGHT, 302. PLANT. See Machinery. POLICIES. See Insurance. POOR LAW PARISHES, to be parishes for the purpose of the Income Tax Acts, 46. POOR BATE, determines the assessment of lands in certain cases, 159 et seq. POSSESSIONS, foreign, 220. Irish, 220. meaning of, 220. POST OFFICE ORDERS, payment by, in Scotland, 97. PRECEPTS, of General Commissioners, by whom executed, 44. PREMISES, business, allowance for annual value of, 214, 223. allowance for repairs of, 202, 206. exempt under Schedule (B.), 155. PREMIUMS, for deferred annuity and life insurance, allowance for, in certain cases, 245 et seq. paid for lease, no allowance for, 204. PRESCRIBED, definition of, 41. PRESENTATIONS, fees on, allowance for, 146. PRISONERS, 92. PROCEDURE, in general, 39 et seq. Schedules (A.) and (B.), 159 et seq. Schedule (C.), 182 et seq. Schedule (D.), 247 et seq. Schedule (E.), 277 et seq. PROCURATIONS, allowance for, 146. PROFESSION, EMPLOYMENT, OR VOCATION, changes in, 80, 216, 266. duty in respect of, 209. computed irrespective of profits of lands, &c., occupied for purpose of, 214. 496 INDEX. PROFESSION, EMPLOYMENT, OK VOCATION continued. loss in, relief from, 265. money used in, allowance for, 213. person ceasing to exercise, 266. person succeeding to, 216. premises occupied for purpose of, allowance for, 214. exempt from Schedule (B.), 155. when exercised within the United Kingdom, 194. PROFIT, office or employment of, 271 et seq. PROFITS AND GAINS, annual, meaning of, 226. application to public purposes, will not free from duty, 129, 284. are equivalent terms, 199. balance of, meaning of, 198. consolidation with untaxable fund, does not exempt, 199. customer receiving portion, does not exempt, 201. destination of, immaterial, 199. from increased value of investments, 202. meaning of, 127, 203, 211, 212. not charged by Acts, interest of money from, 234. of uncertain annual value, how charged, 217. to produce profits there must be a trading, 127. under Schedule (E.), 271 et seq. undescribed, 222. PROPERTY, can it be twice taxed?... 58. PROVIDENT, industrial and provident society, exemption under Schedules (C.) and (D.), 1V9, 245. PUBLIC PURPOSES, application of profits to, will not free from duty, 129, 284. PUBLIC SCHOOL. See Hospital. QUALIFICATION, none for Commissioners under Schedule (E.), 282. none for Special Commissioners, 15. of Additional Commissioners, 11. of General Commissioners, 6. QUARRIES. See Mines. annual value of stone, slate, limestone, or chalk, 124. difference between mine and, 126. QUEEN, exemption of Crown, 283. stock and dividends of, 181. house of, in occupation of official, charged on and paid by the occupier, 138. QUIT KENT, 143. KAILWAY, annual value of, 125. office or employment of profit in, assessed by Special Commissioners, 274. time for payment of duties, 93. to be assessed by the Special Commissioners, 126. to pay duties by instalments, 93. BATE, of duty which may be deducted, 139, 240. poor, determines the assessment of lands in certain cases, 159 et seq. public, for draining, fencing, or embanking, allowance for, 147. INDEX. 497 RATE BOOKS, may be inspected by income tax officials, 53, 167, 168. BATES, creditor, on, 228. interest secured on, 225, 228. BATES, TAXES, ETC., allowance for, in certain cases, 157. allowance for tenant's, paid by landlord, 157, 162. landlord's, paid by tenant added to rent, 158, 162. on tithe commutation rentcharge, allowance for, 136, 146. Scotland, allowance for landlord's rates and taxes paid by tenant in England, 167. BE-ASSESSMENTS, appointment of assessors for making, Form, Appendix Vll. 6. certificate of, Forms, Appendix VII. 3, 4. of arrears, 33. recovery of, 103. BECEIPT, collectors', contents of, 88. duplicates to be delivered to officers under Schedule (D.), 268. exempt from stamp duty, 103. procedure as to, 97 et seq. Schedule (D.), 270. EECEIPT AND ACCOUNT, 97 et seq. EECEIVEKS or TRUST PROPERTY, when chargeable, 249, 290. BECOVERY, in Ireland, 93. in Scotland, 94. of duties, 88. of re-assessments, 103. BECTOR. See Clergyman. form of return of, 421. paying occupiers' rates and taxes on payment in lieu of tithe may deduct them in estimating annual value, 157. BELIEF. See Allowances, Abatements, and Deductions. BEMOVAL, certificates of, 91 ; Form, Appendix YH., 8. from district before appealing, 74. penalty for fraudulently removing to avoid the duties, 65. procedure in case of, 64, 91. BENEWAL, of implements, allowance for, 203. of works, repayment of money borrowed for, allowance for, 132. BENT, account of, to be delivered by tenant under parol demise, or unable to produce lease, 163. agreement for payment of, without deduction of tax, void, 166, 235. allowance for, where lands vested in trustees for charitable purposes, 150. annual value of lands where rent depends on price of corn, 158. produce, 158. is paid in corn, 158. assessor may make assessment on, 161. assessment on, not binding where rent is less than rackrent, 161. fee farm, what is, 143. occupier may deduct duty paid in respect of rent from the rent, 138. and although the landlord is exempt, 140. occupier paying arrears of duty due from former occupier may deduct the amount from the rent, 142. R. K K 498 INDEX. KENT continued. of business premises, allowance for, 214. of dwelling house, no allowance for, 212. provision as to duty on rent paid prior to passing of Income Tax Act, 120. quit, what is, 143. rack, what is, 122. service, what is, 143. tithe commutation rent-charge. See Tithe. what is, 122. which includes money paid for purchase of goods, must be split up, 122. REPAIRS, of business premises, allowance for, 202, 206. of cathedral, college, church, or chapel, allowance for stock applied to, 181. of chancels of churches, allowance for stock applied to, 146. of college or hall at university, allowance for, 146. of collegiate chapels and churches, allowance for, 146. of gardens, walks, and grounds of college or hall at university, allowance for, 149. of hospital, public school, or almshouse, allowance for, 149. of houses and buildings, 145, 163. of implements, &c., allowance for, 203. of public buildings and offices of college or hall at university, allowance for, 149. of hospital, public school, and almshouse, allowance for, 150. REPAYMENT, of duties, where person is exempt, 83. limitation of time as to, 85. of money, 132, 226. REPEAL of enactments by the Taxes Management Act, 1880, ..299. RESIDENCE, of corporations, 193. meaning of, 191. person having more than one, may be required to deliver two statements, 250. where charged, 248. temporary, 285. RESIDENT, foreign, person acting for to be charged, 56, 58. new, how charged, 63. temporary, 285. RESIDING in the United Kingdom, what is, 191 et seq. RETURN. See Account; Statements; and Schedule of Property. amended, 71. definition of, 41. estimates in default of, 66. examination of, 68. RIDING, office or employment of profit in, 274. ROYALTIES, annual value of, 123. meaning of, 122, 124. profits of, how charged, 134, 166. INDEX. 499 SALARIES, accruing from offices or employments of profit, 271. additional beyond assessment, how charged, 273. deduction of duty on, 276 et seq. need not be included in statement of corporation, 59. official deduction from, allowance for, 276. SALT SPRINGS, annual value of, 125. SAVINGS BANKS, exemption under Schedules (C.) and (D.) of stock and dividends of, 180, 224. SAVINGS, of powers contained in former Acts, 299. SCHEDULE (A.), 116, 120. See remarks on, in the " Introduction." No. I., 121. No. H., 123. No. HE., 124. No. IV., 134. No. V., 146. No. VI., 149. SCHEDULE (B.), 117, 154. See remarks on, in the " Introduction." No. VII. , 154. No. VUL, 156. SCHEDULES (A.) AND (B.), No. IX., 156. No. X., 157. No. XI., 159. procedure, &c., 161 et seq. SCHEDULE (0.), 117, 178. See remarks on, in the "Introduction." procedure, &c., 181 et seq. SCHEDULE (D.), 117, 190. See remarks on, in the " Introduction." origin of last clause of, 225. SCHEDULE (D.), Case I., 197. Case H., 209. Case in., 217. Case IV., 218. Case V., 220. Case VI., 222. procedure, &c., 223 et seq. SCHEDULE (E.), 117, 271. See remarks on, in the " Introduction." procedure, &c., 271 et seq. SCHEDULE, of arrears, 99. of defaulters, Form, Appendix VII. 16. of deficiencies, 100. of property under Schedule (D.), amendment of, 260. Commissioners may require to be veri- fied, 258. General Commissioners may put ques- tions in writing touching, 256. objection to by surveyor or inspector, 255. penalty for refusing to deliver, 259. time extended for delivery of, 260. when required by the General Commis- sioners, 254. of sums discharged from assessments, Form, Appendix All. 17. provisions applied to one may extend to another, 298. SCHEDULES, THE, 116 et seq. KK2 500 INDEX. SCHOOL, public. See Hospital; Public School, &c. meaning of, 151. SCHOOLMASTERS in Scotland to assist assessors, 169. SCIENTIFIC INSTITUTION, allowance for buildings of, 150. SCOTLAND. See remarks on, in the " Introduction." appointment of collectors, 36. assessors to be examined by the Commissioners, 169. duties on tolls called customs in, 148. lands, &c. in, to be estimated according to the general rule, 159. recovery in, 94. schoolmasters to assist assessors in, 169. tenants in, to produce their leases on notice, 164. tenants' rates and taxes paid by landlord in Scotland, allowance for, 158. time for payment in, 86. valuation roll, Commissioners sometimes bound by, 122. SEA-WALLS, allowance for, 147. SECURITIES, foreign and colonial, interest arising from, duty on, 218, 224. Irish, 228. profit from rise in the value of, 202. SERVICE, rent, 143. SERVICES, annual value of, 123. SHARES, profit from rise in the value of, 202. SHIPS, joint owners of, 215. husband, 215. ownership of, let to freights, is a trade, 197. SHIRE, office or employment of profit in, 274. SLATE, quarry, annual value of, 124. underground workings for, 126. SOCIETY, friendly, exemption under Schedules (A.), (C.), and (D.), 150, 179, 244. how charged, 59, 288. office or employment of profit in, 273. SOLICITOR cannot appear in appeals, 74. SPECIFIC CAUSE, meaning of, 216. STAMP DUTY, receipts exempt from, 103. STAMPS, payment by, in Scotland or Ireland, 96. STATEMENTS, 53 et seq. See also Account; Return; and Schedule of Property, abstracts of, to be made by clerks, 61. amended, 71. by persons acting for others, 56, 58 et seq. contents of, 57. examination of, 67 et seq. forms of, 421. officers of corporation, &c. to prepare, 59, 288. penalty for not delivering, 59. to be made exclusive of annual payment from property of person for which that person is chargeable, 57. INDEX. 501 STATEMENTS conti n ued. to whom delivered, 55. where none delivered, assessor to form estimate, 66. Schedule (A.), 134 et seq. Schedule (D.), 248 et seq. further statement may be objected to by surveyor or inspector, 255. further statement, when required, 254. may be delivered under seal, 250. to be examined by the additional Commissioners, 250. to whom delivered, 55, 250. objection to by surveyor or inspector, 252. when referred to the General Commissioners, 251. where delivered, 250. where none delivered, 251. Schedule (E.), 279 et seq. STEWARTRY, office or employment of profit in, 274. STIPENDS. See Pensions. STOCK, profit from rise in value of, 202. STONE QUARRY, annual value of, 124. SUMMONS OF COMMISSIONERS, penalty for neglecting to attend, 258. SURCHARGE, 67 70. appeals against, 75. in case of improper deduction made, 70, 145. treble duty in case of, 75. SURVEYORS, appointment of, 36. definition of, 41. examination of, returns by, 68. functions of. See the " Introduction." may amend assessments, 68, 168. may sometimes act as assessor, 25. may surcharge assessments in certain cases, 70, 145. oath of, 419. remuneration of, 16, 36. Schedule (D.), may object to assessments, 252. may object to statements in schedule, 255. when dissatisfied with assessment may require case to be stated, 251. SYNODALS, allowance for, 146. TAX. See Duties. TAX ACTS, definition of, 41. TAXES. See Rates. TEIND, annual value of, 123. in kind. See Tithes. TEMPEST. See Flood. TEMPLE, the, 47. TEMPORARY ABSENTEES AND RESIDENTS, 285. TENANCY, charge of, how duties paid, 142, 156. 502 INDEX. TENANT. See Occupier. assignee of, stands in his shoes, 142. change of, duties how paid, 142, 156. executors and administrators of deceased tenant liable, 156. fanner, may elect to be charged under Schedule (D.), 154. if landlord distrain and does not allow tax, the tenant can recover it, 141. in action for rent may plead payment of the duty, 140. landlord and, contracts between, void if contrary to Acts, 166, 235. may deduct duty paid in respect of rent from the rent, 138. and although landlord is exempt, 140. omitting to deduct the duty from next payment of rent cannot after- wards recover it, 140. paying arrears of duty due from former tenant, may deduct the amount from the rent, 142. quitting, liable for arrears of duty, 156. relief to, in case of loss, 175. where profits fall short of assessments, 174. TENANTS IN COMMON, and joint tenants, claims of exemption by, 84. TENANTS OF CEOWN PROPEETY, not exempt, 284. TENEMENTS. See Lands. TENTHS, allowance for, 146. TIME, for payment of duties, 86. for railways, 93. in Ireland, 86. in Scotland, 86. for deduction of duty from rent, interest, &c., 141, 242, 296. delivery of statement or schedule under Schedule (D.), extended, 260. TEST MINE, annual value of, 125. TITHE COMMUTATION BENTCHARGE, allowance for expense of collecting, 137. annual value of, how determined, 136. landlord allowing deduction of, may deduct in like manner, 142. may be assessed on the owner, occupier, or landlord, 135, 136. parochial rates and taxes may be deducted from, 136, 146. when paid by owner, allowed as a deduction in the assessment of lands, &c., 136. TITHE OE TEIND IN KIND, annual value of, 123. how dealt with under Schedule (B.), 155. TITHES. See remarks on, in the " Introduction." composition for, annual value of, 123. how charged, 123, 135, 166. occupier may deduct duty paid in respect of, from the same, 138, 166. paid by landlord or owner, occupier, to be deducted in estimating annual value, 157. how dealt with under Schedule (B.), 155. payment in lieu of, annual value, of, 123. how charged, 123, 135, 166. occupier may deduct duty paid in respect of, from the same, 138, 166. rector or vicar paying occupier's rates and taxes on, may deduct them in estimating annual value, 157. recovery of duty on, 166. INDEX. 503 TOLLS, annual value of, 125. called customs in Scotland, 148. how charged, 166. what are, 127. TOWN, office or employment of profit in, 274. TRADE, MANUFACTURE, ETC., changes in, 80, 216, 266. duty in respect of, 197. computed irrespective of profits of lands, &c., occupied for purpose of, 214. loss in, relief from, 265. money used in, allowance for, 213. person ceasing to exercise, 266. person engaged in more than one, 217. person engaged in more than one, may set off loss in one against profits in the other, 223. person succeeding to, 216, 266. premises, allowance for, 214. repairs of, 202, 206. exempt from Schedule (B.), 155. utensils, allowance for repairs of, 202. set up and commenced, meaning of, 202. when exercised within the United Kingdom, 194. TRADES UNIONS, exemption of certain funds of, under Schedules (A.), (0.), and (D.), 151. TREASURY, exemption of stock and dividends of, 181. TREBLE DUTY in case of surcharges, 75, 76, 259. TRUSTEES, claims of exemption by, 85. when charged, 56, 58, 249, 288290. when exempt from penalty for not delivering statement, 60. UNITED KINGDOM, when trade exercised within, 194. UNIVERSITIES of Oxford and Cambridge, 22. UNIVERSITY, college or hall at. See College. UTENSILS, trade, allowance for repairs of, 202. VALUATION BOLL. See Scotland. VICAR. See Hector. VOCATION. See Profession. meaning of, 209. VOLUNTEERS, officer in, 273. VOTING for member of Parliament, non-payment of duties does not disqualify for, 297. WAGES. See Salaries. WALES, 298. WALLS, sea, allowance for, 147. WAREHOUSE. See Trade Premises. 504 INDEX. WARRANTS, execution of, 107. for collecting, 86, 87, 268 ; Forms, Appendix VII. 5, 7. foreign and colonial dividend, 187. of commitment, Form, Appendix VII. 10. of General Commissioners, by whom executed, 44, 234. to break open, Form, Appendix VII. 9. to imprison person and seize estate of defaulting collector, Form, Appen- dix VII. 12. to sell collector's estate, Form, Appendix VII. 13. WATERLOO SUBSCRIPTION FUNDS, 181. WATERWORKS, annual value of, 125. WIFE. See Married, Woman. WITNESSES, may be summoned and examined under Schedule (D.), 257. 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