8 



country, the Council have again directed their attention to the 

 problem of restocking these areas. They recognise (i) that the 

 replanting of all the cleared areas is a matter of great national 

 importance, and (2) that as it was improbable that all these 

 areas would be replanted by the owners voluntarily, some sort 

 of Government action would be necessary to insure that the 

 work is done within a reasonable time. 



Forestry and Income Tax. 



The Finance (No. 2) Act, 1915, 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 



{b) 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 1887), 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 and 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 as he occupies the 

 woodlands. 



A draft form of accounts prepared by the Inland Revenue 

 was sent to the Society for consideration, and on returning the 

 form approved the following recommendations were submitted 

 for consideration by the Inland Revenue : — 



(r) That in the event of assessment under Schedule D being 

 chosen for woodlands, an average of at least five years' 

 accounts should be taken, and that if accounts could be 

 shown for ten years, that period would be preferable. 



