D. First case. First rule. D. First case. (First and second. First.) 66 every description of property or profits which "shall not be contained in either of the said Sche"dules A., B., or C., and to every description " of employment of profit not contained in Sche"dule E., and not specially exempted from the said "respective duties." The first and most important division of the section under this head, is the profit of trade. The return must give "the full amount of the balance of the profits or gains of such trade," calculated on an average of the three preceding years, ending on the day on which such accounts have been usually made up, or on the fifth of April preceding the assessment. In estimating this balance of profits and gains no deduction is to be made on account of any sum expended on repairs of premises or machinery greater than the average of such expenditure for the three years preceding; nor on account of any loss unconnected with the trade; nor on account of any capital withdrawn therefrom; nor for any sum employed, or intended to be employed, in such trade, or in the improvement of the premises occupied for such trade; nor for interest on such capital; nor for any debts, except bad debts proved to be such to the satisfaction of the Commissioners respectively;" nor for any average loss beyond the actual amount of loss after adjustment; nor for any sum recoverable under a contract of indemnity; nor for any disbursements or expenses whatever, not being money wholly and exclusively laid out or expended for the purposes of such trade; nor for the expenses of maintenance; nor for the rent of any dwelling house, except such part, not exceeding two-thirds, of the 66 rent bonâ fide paid for a house rented and partly § 101. used for the purposes of such trade as the Commissioners shall allow. D. First and second. The computation of the duty to be charged in respect of such trade, is to be made exclusive of the profits of lands, tenements, and hereditaments occu- Second. pied for the purposes of the trade. (a) In estimating the amount of such profits and gains, no deduction is to be made on account of any (a) The provisions with respect to the manner in which duty is to be paid for lands, tenements, and hereditaments occupied for the purposes of trade are to be found in B. VII.,-which exempts warehouses and other buildings occupied for the purpose of carrying on a trade or profession from any duty under that schedule in respect of the occupation,-in the first rule applying to the first and second cases under the present schedule, which directs that in estimating the balance of the profits of any trade or profession no deduction shall be made for the rent or value of any dwelling house, except such part thereof as may be used for the purposes of such trade; and in the above direction that the computation of the duty in respect of the trade is to be made exclusive of the profits of lands, tenements, or hereditaments occupied for the purpose of carrying on such trade. The effect of these provisions seems to be, that a trader, who occupies a warehouse, for instance, for the purpose of his business, should return that warehouse under the head of "lands " and tenements in his occupation," and under that head pay seven-pence in the pound on the rent, which sum, as we have seen, he will be entitled to retain out of his next payment to his landlord; he is exempted from duty in respect of occupation under Schedule B. In making his return under Schedule D. he will deduct the amount of the rent before striking a balance of his profits. The duty under this head will then be imposed upon him exclusive of the profits of the warehouse, which have been previously returned under Schedule A. If instead of renting the warehouse he is owner of it, the same process is to be gone through, calculating the value as described under Schedule A.; he is in such case his own landlord. D. First case. Fourth. annual interest or any annuity or other annual payment payable out of such profits or gains. This brings us to the consideration of the provisions of the Act, with regard to the duty imposed upon income arising from the interest of money. 66 The 102nd section imposes a duty of seven-pence in the pound on "all annuities, yearly interest of money, or other annual payments, whether such payments shall be payable within or out of Great Britain, either as a charge on any property of the person paying the same by virtue of any deed or " will, or otherwise, or as a reservation thereout, or "as a personal debt or obligation." 66 66 The 52nd section, previously quoted, and which requires the return to be made, directs that, "every "such statement shall be made exclusive of the pro"fits and gains accrued or accruing from interest of money, or other annual payment arising out of the 66 66 property of any other person, for which such other "person ought to be charged, by virtue of this Act." In conformity with this direction the 102nd section provides, "that in every case where the same (i. e. "yearly interest or annual payment) shall be pay"able out of profits or gains brought into charge by "virtue of this Act, no assessment shall be made 66 upon the person entitled to such annuity, interest, or other annual payment, but the whole of such "profits or gains shall be charged with duty on the person liable to such annual payment, without dis"tinguishing such annual payment, and the person so liable to make such annual payment, whether "out of the profits or gains charged with duty, or out of any annual payment liable to deduction, or from "which a deduction hath been made, shall be autho 66 66 66 "rised to deduct out of such annual payment at the "rate of seven-pence for every twenty shillings of "the amount thereof, and the person to whom such payment liable to deduction is to be made shall "allow such deduction at the full rate of duty "hereby directed to be charged upon the receipt "of the residue of such money, and under the pe"nalty hereinafter contained," which is imposed by the 103d section as follows:-" And be it enacted, "that if any person shall refuse to allow any de“duction authorised to be made by this Act out of any 66 payment of annual interest of money lent, or other "debt bearing annual interest, whether the same be "secured by mortgage or otherwise, shall forfeit for every such offence treble the value of such prin 66 cipal money or debt, and if any person shall refuse " to allow any deduction authorized to be made by "this Act out of any rent or other annual payment " mentioned in the Ninth and Tenth Rules of No. "IV. Schedule (A), or out of any annuity or an"nual payment mentioned in Schedule (C) or (E), 66 or in the next preceding clause, save such annual "interest as aforesaid, every such person shall for"feit the sum of £50, and all contracts, covenants, "and agreements made or entered into, or to be "made or entered into for payment of any interest, 66 rent, or other annual payment aforesaid in full, "without allowing such deduction as aforesaid, shall "be utterly void." The 104th section then provides, "That whenever it shall be proved to the satisfaction of the "said respective Commissioners, acting in the dis"trict where any person making the application "shall reside, that any interest of money, annuity, 66 66 66 or other annual payment shall be annually paid out of the profits and gains bona fide accounted for and charged by virtue of this Act, at the rate and ac"cording to the rules specified in Schedule (D), "without any deduction on account thereof, it shall "be lawful for any such Commissioners to grant a "certificate thereof, under the hands of any two of "them, in such form as shall be provided under the authority of this Act, which certificate shall en"title the person so assessed, upon payment of such "interest, annuity, or other annual payment, to "abate and deduct so much thereof as a like rate 66 66 on such interest, annuity, or other annual pay"ment would amount unto, and every person to "whom such interest, annuity, or other annual pay"ment shall be paid, shall allow such deductions " and payments, upon receipt of the residue of such "interest, annuity, or other annual payment; and "the person paying the same shall be acquitted and discharged of so much money as a like rate "thereon would amount to, as if the same had ac 66 tually been paid unto the person to whom such "interest, annuity, or other annual payment shall "have been due and payable; provided no such "certificate shall be required where such payments are to be made out of the profits or gains arising "from lands, tenements, hereditaments, or heri 66 66 tages as before mentioned, or of any office or employment of profit, or out of any annuity, pension, "stipend, or any dividend or share in such public "annuities as are herein mentioned; but such de"ductions may be made without having obtained "such certificate." It appears from these provisions of the Act that it |