INCOME TAX INSTALMENTS.
(To THE EDITOR OF THE " SPECTATOR."] Sra,—I do not wish in any way to minimize the importance of the question of the present position of national finance, but it is never wise to overstate one's case. I am venturing therefore to point out an error into which you, Sir, with others who have written on the subject, have apparently fallen.
In the " News of the Week " in your last issue you write: " Now that Income Tax is paid in two instalments, it would be unwise to expect a great improvement in the revenue returns for the second half of the financial year, inasmuch as half the Income Tax has been already collected." Surely you have overlooked the fact that this privilege is confined to individuals only, and that all Income Tax paid by corporations, public bodies, and companies is payable in one instalment on or after January lst in every year. Consequently the Revenue have not received any tax from these sources during the present financial year, other than such as might have been unpaid on April 5th last, and a whole year's tax will become payable before April 5th next. In addition to this taxable item there is the tax payable in respect of dividends on War Loan stocks paid without deduction of tax during the financial year 1918-19. The -whole of these dividends come in for assessment for the year 1919-20, and the duty is payable in one instalment on or after January 1st next. No doubt owing to abatement or relief a considerable part of these dividends will not carry
duty at 6s. in the pound, but in spite of this there must be a very large sum repayable to the Treasury.—I am, Sir. &c., Acme Ctsats TO Commissunsra.s FOR INCORR TAX. [We quite agree. We ought of course to have said that the Income Tax revenue collected in the first half of the year is now a larger part of the year's revenue from this source than it used to be, though not a half of the whole Income Tax.—Eu. Spectator.]
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