224 



REPORT — 1878. 



LABOUR. 



9. "Professions, Trades, and Offices," including 

 salaried, agricultural, manufacturing, and 

 commercial employments 



50 or £ 



IX. Where the nominal or gross income is the joint result of property 

 and personal labour, as in all trades, and in many professions, we have 

 first to consider the property income and labour income separately. If 

 the property be valued by the foregoing rules as a principal or capital, it 

 is a truism to say that the interest of the principal will be the interest- 

 value of the property, and that this subtracted from the joint income 

 will give the labour's nominal income. Deducting the labour's out- 

 goings from the latter, we have the labour's interest- value, which added 

 to the property's interest- value, makes the total assessable return re- 

 quired. Examples of the rule are given in the first Report. Being merely 

 a rule of valuation it is as legitimately capable of application by the owner 

 of a business, or by his recognised accountant, as any of the rules now in 

 use, and being thus applied it involves no exposure of his capital or other 

 detail of his business. The following are forms of ordinary account^ 

 illustrative of the application of the rule to particular cases. 



LAND WITHOUT BUILDINGS. 



Cr. £ 



Nominal or gross rent 1000 



£1000 



Dr. £ 



Deduction for land-outgoings 



at£ 60 



Land interest-value or taxable 



income 950 



£1000 



HOUSES BETWEEN £20 AND £40 OF GROSS ANNUAL VALUE. 



Cr. £ 



Nominal or gross rent 1000 



£1000 



Dr. £ 



Deduction for house-outgoings 



at 200- 



House interest-value or taxable 



income 800 



£1000 



LABOUR. 



Cr. 



Nominal or gross labour income 



£ 

 1000 



£1000 



Dr. £ 



Deduction for labour-outgoings 



at£ 500 



Labour's interest- value or taxable 



income 500 



£1000 



Cr. 



LABOUR AND PROPERTY COMBINED IN BUSINESS. 

 £ Dr. 



Nominal income from business of 

 £1000 consisting of : — 



1. Interest of £10,000 of capital, say 



at 4 per cent 400 



2. Nominal labour-income €00 



£1000 



Deduction for labour-outgoings 



at* 



Business' interest- value or tax- 

 able income 



£ 

 300 

 700 



£1000^ 



