426 MISC. PUBLICATION 218, U. 8. DEPT. OF AGRICULTURE 
The above scale expressed in dollars and percentages is as follows: 
Percent Percent 
SOE7Z00= 512200 ae eae aa By OM S38: 000294857002 =e eee 25. 0 
Sili25200— S14 O00 Las Se aes 652155948 5700-$73. 000s: =? Saraen ee lao 
pi1:4:600-$19) 50052 — ae 10. 0 $73,000-$97, 3002-2555. 2s ae se 30. 0 
$19) 50082453002 a2 ae a eee 50 $97-300=$146 0002232 aes ee Sy 
$24°300-$29' 2008 2222 eee ae 1S $146;000—$243,38002_) == ess t Sis 
$29, 200—$38,900____________- 20. 0 S24 SSO LARS Bee 2 ee Os ae eg Slo 
The tax is based upon a division of income into five classes or 
“‘schedules”’, called A, B, C, D, and E. The law does not attempt 
a general covering definition of income but defines the income that 
falls under each of these five divisions. ‘The five schedules and their 
general scope are: 
A.—Income from the ownership of lands, houses, etc. 
B.—Income from the occupation of lands. 
C.—Income from Government securities, when such income is taxed by deduction 
at the source. 
D.—Income from trades, professions, and vocations; foreign securities and 
possessions; interest and miscellaneous items of income. 
E.—Income from employments. 
The actual income in respect of which tax is charged for any year 
of assessment may, but commonly does not, represent the actual 
income received by the taxpayer in the year. ‘This arises from the 
fact that the income tax acts provide a variety of rules for the assess- 
ment of different classes of income under the five schedules. The 
schedules which concern forest lands are A, B, and D 
Schedule A relates to income derived from ownership of land as 
distinct from occupancy. It includes the annual or rental value of 
all land, houses, buildings, and the like. Broadly speaking, annual 
value of land and buildings means the rent at which the property is 
let or is worth to be let by the year, the tenant bearing the usual 
tenant’s rates and taxes, and the landlord bearing the cost of repairs 
and other customary charges. Annual vaiue for the purpose of 
schedule A throughout Great Britain is determined every 5 years, and 
the value thus fixed is continued, subject to the qualifications stated 
below, during the intervening years. A new assessment, begun in 
1930-31, came into force for the year of assessment 1931-32. The 
annual value fixed at the periodic date is subject to increase in the 
case of structural alterations to a property, and new properties are 
brought into assessment at their appropriate annual values. Reduc- 
tions of annual value are made, on proof that the annual value has 
diminished. 
The annual value determined in the manner described constitutes 
the gross assessment. From this gross assessment of annual value 
there is deducted, in order to arrive at the net assessment, certain 
statutory allowances or deductions for repairs, maintenance, and the 
e. 
Schedule B relates to the occupation of land as distinct from owner- 
ship. The amount of taxable income under this schedule is made on 
a conventional basis, which assumes that the profits arising bear a 
relation to the annual value of the land occupied. From the years 
1922-23 onwards, the profits have been assumed to be equal to the 
annual value of the land in the case of lands used mainly or solely 
for husbandry. In the case of other lands, including woodlands, the 
income is assumed to be one-third of the annual value. The device 
