FORESTRY AND INCOME TAX. 3 1 



7. Forestry and Income Tax. 



The Finance (No. 2) Act, 1915, Section 22 (4), provides that, 

 in future, occupiers of woodlands shall pay Income Tax under 

 Schedule B on the full rental as appearing in the Valuation 

 Roll, in place of on one-third of that rental as formerly. It 

 also provides that any occupier, who proves to the satisfaction 

 of the General Commissioners that his woodlands are managed 

 on a commercial basis with a view to the realisation of profits, 

 may elect to be charged under Schedule D instead of under 

 Schedule B, subject as follows: — 



(a) Any such election shall extend to all woodlands so 



managed on the same estate; and 

 (d) The election shall have effect not only as regards the 

 year of assessment mentioned in that section (18 of the 

 Customs and Inland Revenue Act, 1S87), but also as 

 respects all future years of assessment so long as the 

 woodlands are occupied by the person making the 

 election. 



Section 18 referred to is the section giving the option to 

 farmers to be charged under Schedule D, and providing for 

 notice either to be delivered personally or by registered letter 

 to the Surveyor of Taxes within two calendar months after 

 the commencement of the year of assessment. After receipt of 

 the notice the charge upon the farmer to the duties of Income 

 Tax for such year shall be under Schedule D, and his profits 

 or gains shall be considered to be profits or gains of a trade 

 chargeable under that Schedule. The difference between the 

 farmer and the arboriculturist in making this election is that 

 the farmer's election stands for one year only, whereas the 

 arboriculturist having once made the election must stand by 

 it as long at he occupies the woodlands. 



It has now been ascertained that the income from woodlands 

 managed on a commercial basis will normally be regarded as 

 "earned" income, whether assessed under Schedule B or 

 under Schedule D, and will be entitled to reduced rates of tax 

 where the occupier's total income does not exceed ;]^25oo. 



The Council had an opportunity of considering and making 

 suggestions on the draft form of Account prepared by the 

 Inland Revenue before it was finally printed off. Copies of 



