15S 



FARMERS AND THE INCOME TAX. 



[Dec. 1894:. 



v.— FARMERS AND THE INCOME TAX. 



The Board of Agriculture consider it desirable, in view of the 

 changes consequent on the passing of the Finance Act, 1894, to 

 issue in a revised form the appended Memorandum prepared 

 under the authority of the Board of Inland Revenue, and 

 originally published in 1893 (Leaflet A 2-93), directing the 

 attention of persons occupying lands, for the purposes of 

 husbandry only, to their statutory and other rights in regard to 

 the assessments made upon them to Income Tax. 



By the exercise of the option (referred to in paragraph No. 3 

 of the following Memorandum) of being dealt with according to 

 the rules of Schedule D. of the Income Tax Acts, occupiers of 

 land for the purpose of husbandry only who have made no profits 

 therefrom on the average of the three years preceding the year of 

 assessment, or whose aggregate income from every source does 

 not exceed 160^. a year, are still able to avoid assessment to 

 income tax in respect of such occupation, provided, of course, 

 that the returns they make on the form which will be supplied 

 to them by the Surveyor of Taxes for assessment under Schedule 

 D. are regarded as satisfactory by the Commissioners of Taxes. 

 In such cases no appeal to the Commissioners is requisite, since no 

 assessment is made, and no question arises involving payment 

 and subsequent repayment of the tax. 



Where assessments are made under Schedule B. the law provides 

 ample means of obtaining relief if at the end of the year the 

 farmer has made no profits, or if his profits have fallen short of 

 the sum assessed, but by reason of the fact that the Commis- 

 sioners of Taxes require the production of accounts before they 

 issue a certificate for repayment, the process is necessarily some- 

 what troublesome to the farmer. It is for this reason that the 

 making of a return for assessment under Schedule D. would in 

 many cases be a simpler and more advantageous proceeding. 



In any case of difficulty arising under any of the heads 

 mentioned in the Memorandum, the Board recommend that 

 application for advice and assistance should be at once made to 

 the local Surveyor of Taxes. 



Memorandum. 



Income Tax. Schedules A . and B. on Lands used for the 

 purposes of Husbandry. 



1. Income tax is chargeable on the annual value of lands 

 under Schedule A. in respect of the ownership, and under 

 Schedule B. in respect of the profits derived from the occupation. 

 The rate of tax for 1894-5 is 8d. under Schedule A. and Sd. 

 under Schedule B. 



