Dec. 1896.J 



FARMERS AND THE INCOME TAX. 



203 



FARMERS AND THE INCOME TAX. 



The Board of Agriculture have, from time to time, in the 

 pages of this Journal and by the issue of leaflets, directed the 

 attention of persons occupying lands for the purpose of hus- 

 bandry only to their statutory and other rights in regard to the 

 assessments made upon them to income tax. A memorandum 

 on this subject was originally issued in 1893, but in view of the 

 alterations in the mode of assessment effected by the provisions 

 of the Finance Acts of 1894 and 1896, it has been considered 

 desirable to give publicity to the following revised memorandum, 

 prepared by the Board of Inland Revenue, which sets out fully 

 the principles upon which the assessments are now made, and 

 the various rights of appeal and relief which exist. 



By the exercise of the option (referred to in paragraph No. 4 

 of the 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 Commissioners of Taxes require the production of 

 accounts before they issue a certificate for repayment, the 

 process is necessarily somewhat 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. 



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

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



B 2 



