STATEMENT OF INCOME for Assessment, under Schedule D, to be returned within 21 Days. If you have no Income falling under any of the following heads, or if, though you have such Income, the Income Tax has been deducted from the whole of it before it reaches you, you should enter the word NIL in the Money Column below, and sign the General Declaration at the foot hereof. I. Profits of Trade, Profession, Employment, or Vocation, viz. :—from How to be computed (see Rules on page 1 [of Form]). According to the full average Profits of the three years 1901, 1902, and 1903, except where the Trade, &c., has been set up within that period. The Trade or Business of carried on by (in the case of a Company insert name of Company, and The Profession of exercised by me at The Employment or Vocation of exercised or carried on by me at Buying and Selling Stocks or Shares of any description II. Profits from Discounts and Interest of Money not Taxed by Deduction- According to the full amount arising therefrom in the year 1903. Interest of Money (including Interest on Banking Account or Deposits), III. Profits from Colonial and Foreign Securities, where the Duty is not deducted by the Agent According to the full amount received or to be received in the United Kingdom in the current year without any deduction. Interest of Money, Annuities, or other Annual Payments arising from Interest of Money, Annuities, or other Annual Payments derived from Interest or Dividends on Investments in Securities of Foreign or Colonial IV. Profits from Colonial and Foreign Possessions According to the full amount received in the United King dom on the average of the three years 1901, 1902, and 1903. Possessions in any of His Majesty's Dominions, out of the United King- Foreign Possessions. V. Property or Profits not coming under any of the foregoing heads If certain in amount on the Profits of the year 1903. If uncertain -on an average of years. (State the nature thereof), and the Amount thereof is computed according AMOUNT. £ I hereby declare that in the foregoing Statement I have given a full and complete Return of the whole of my Income chargeable under Schedule D, according to the best of my knowledge and belief, and according to the Rules and Regulations of the Acts of Parliament, and I desire to be assessed by the * *If you elect to be assessed by the Commissioners for the District under a Number or Letter, the Return is to be sent to the Clerk to Commissioners; if by Special Commissioners, the Return is to be sent to the Surveyor of Taxes under cover endorsed For Special Assessment." If you do not make any election, you will be assessed by the Commissioners for the District in the ordinary course in your own Name. Form No. 6. (Off. No. 11B.) No. of Assesst. SCHEDULE D. (No. III. Sch. A.), 1904-5 NOTICE requiring Return for Assessment for the above-mentioned year, in respect of the annual value or profits arising from the following Concerns, viz. :(a) Mines of coal, tin, lead, copper, mundic, iron, and other mines. (b) Quarries of stone, slate, limestone, or chalk; iron works, gas works, salt springs or works, alum mines or works, water works, streams of water, canals, inland navigations, docks, drains, and levels, fishings, rights of markets and fairs, tolls, ways (except railways, for which a special form of Return, No. 10в, is provided), bridges, ferries, cemeteries, and other Concerns of the like nature. The sum chargeable as the annual value or profits of a mine of any description for the said year is to be returned, on an average of the five preceding years, or if the working commenced within five years, on an average from the period of commencing such working, either ending on the day of the year when the annual accounts of the Concern have been usually made up, or on the 5th day of April immediately preceding the year of assessment. The sum chargeable as the annual value or profits of the several other Concerns above described for the said year is to be returned according to the profits of the preceding year. If in any case the working commenced within the year of assessment, the Return should be made according to the best of your knowledge and belief, and the grounds on which the amount shall have been computed should be stated for the information of the Commissioners. The annual value or profits of these several Concerns is to be returned, and the duty charged, upon the produce or value thereof, before paying, rendering or distributing such produce or value, either between the different persons or members of the firm, corporation, company, or society engaged in the Concern, or to the owner of the soil or property, or to any other person having a claim on or out of the said profits In estimating the annual value or profits, deductions are allowedFor the supply or repair of implements, utensils, or articles employed, not exceeding the sum usually expended for such purposes, according to an average of five years, or in the preceding year, as the case may be. For bad debts, or such part thereof as shall be proved to the satisfaction of the Commissioners to be bad; also doubtful debts according to their estimated value. For any other disbursements or expenses wholly and exclusively laid out for the purposes of the Concern. No deductions are allowed On account of loss not connected with or arising out of the Concern. For any sums expended on improvement or extension of such Concern, or On account of any annual interest, annuity, rent, or royalty, or other A. annual payment out of such profits or gains. The duty on such. interest, royalty, or annual payment, should be deducted from the person to whom the payment is made. For any disbursements or expenses of maintenance of the parties, their families, or establishments. For any sum paid as income-tax on the profits or gains or on the annual For wear and tear of machinery or plant; but allowances may be claimed STATEMENT. Style of Firm, Company, If not a Public Company, Places at which the Busi &c., carrying on the Concern. state Names and Addresses ness is carried on. Profits chargeable without deduction of Rent or Royalty, wear and tear, or other Payments as above directed. Particulars for Income Tax Assessment, Schedule D, for the Year 19 Note. Please state how the amount of depreciation for 19 is arrived at : (The Act does not authorise any allowance in respect of Depreciation of Mill and Buildings.) It is in the statement of the profits for assessment under Branch I. on Form 5 that the real accounting difficulties have to be faced. It is not necessary to submit accounts to the surveyors or commissioners in the first instance; they are only called for by these officials either to satisfy themselves when the return appears in any respect abnormal, or when an appeal has been intimated or a less formal representation has been made to the surveyors against the amount of assessment. The accounts may be in one of two forms: the first is a profit and loss account excluding the items which are not allowed as deductions for assessment purposes. This account, however, does not agree with the firm's profit and loss account, and this method should therefore not be adopted where the books have been kept by double entry, although where they have been kept by single entry this method is the only one available. The alternative method is to copy the firm's profit and loss account as originally prepared, and to the net profit brought out thereon to add the items not allowed as deductions, and to deduct items which are allowed but which were not debited in the firm's accounts. The following illustration introduces the items most usually requiring attention in this respect and will suggest the mode of treatment for them. The assessable profit is required for the assessment year to 5th April, 1907, the period covered by the accounts taken into the average must therefore be the three years prior to the 5th April, 1906 |