LOCAL AND IMPERIAL TAXATION.
LTO THE EDITOR OF THE "SPECTATOR.'l
SIR,—As the reply of "A Scottish Landowner," in your issue of the 11th inst., appears to have escaped the attention of "C. A.," will you permit me to make a few brief remarks on the points raised by the former ?
I apprehend that your correspondent's contention is that assessment to Income-tax should be the basis of local rating; but he must evidently have overlooked the very material fact that in multitudes of cases an individual's Income-tax return does not show his gross income. For instance, to take a very common case, suppose he is assessed under Schedule D for profits of his business, and supposing he has in addition investments in Railway or Corporation Stocks, &c., the dividends on which are, of course, paid less Income-tax, it is manifest that his return would not show his annual income. Again, suppose another individual's income was entirely derived from similar investments, he would pay no Income-tax at all to the local revenue authorities. Even supposing this difficulty did not exist, there is another one in the way, which I think your correspondent has also overlooked. In London,—and, in fact, in every business centre in the country, —commercial men (excepting, of course, the small tradesmen) do not live on their business premises. They, as a general rule, reside in another district altogether. If he is to be assessed for local rating purposes on the profits of his business, how could it be divided between the two parishes interested ? I also utterly fail to see how a railway company could be directly assessed for local rates on the revenue available for payment of interest and dividends. How would it be possible to appor- tion it amongst the hundreds of parishes interested, in very few of which would the rates be alike ?
I venture to hold the opinion that upon further reflection a " Scottish Landowner" will agree with me that the confusion such a state of things would create condemns it as being impos- sible of practical application.—I am, Sir, &C. RATEPAYER.
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