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Waikato Times, Volume 87, Issue 13274, 1 September 1916, Page 4

in the f Commissioner be deemed to include any land used by the taxpayer in the production of his income aid for which he pays rent, and then the rent paid by the taxpayer during th&, income year shall be added to his assessable income for that year. E.g. A leaseholder has a capital of £SCOO employed in his business. After deducting rent paid £IOOO he has an assessable income of £2OOO. The interest of the owner in the property for which he pays the rent is valued at £20,000. The lessee's interest (if any) would be included in arriving at his capital.j His personal services are assessed 'at £3OO. Under option (d), ttpai t from the above special provision, lli.s standard income would be:— £ Capital £SOOO at 7 5 p.c 375 Add for personal exertion 300 675 Assessable income for income year 2000 Less standard income 675 Excess profits 1325 If_ the Commissioner applied the special provision his excessive profits would be £825. "Capital" is the difference between the assets employed and the liabilities incured by the taxpayer in the production of his income. In addition to the ordinary income tax, the Finance Act, 1916,' provides for a special tax on all assesable income over £3OO. Up to £9OO the rate is 2£ per cent. (6d in the £). Over £9OO the rate is 5 per cent (Is in the £) — e.g., (1) If a taxpayer has an assessable income of £SOO, he will pay on £2OO at 6d in the £, equals £5; (2) if a taxpayer has an assessable income of £l2Ol, he will pay on £9Ol at Is in the £, equals £45 Is. Where excess profits duty is payable, the duty is allowed as a deduction in arriving at the taxable balance for ordinary income tax, and also for special income tax.

Provision is made for the hearing of objections to assessments of excess profits duty, at the election of the taxpayer either by a Magistrate's Court, under the Land and Income Tax Act, 1916, or a special board of appeal constituted by the Finance Act, 1916.