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Rh be made. If an exemption or abatement be claimed, the statement on the back of such form must be filled in. In filling in such claim it is necessary to state not only the particulars of income for assessment under Schedules D and E, but the particulars of income from every source whatsoever, whether taxed or not. The penalty for not making a return, or for making an untrue return, is ₤20 and treble the duty payable.

Adjustment of Profit and Loss from different Sources of Income.—Where a person has sustained a loss, as distinguished from a mere decrease in profits, during any year, either in any trade, profession or employment, or in the occupation of lands for the purpose of husbandry, he may, on giving notice in writing to the Surveyor of Taxes for the district, within six months after the year of assessment, apply to the Commissioners of Income Tax for an adjustment, by setting off the loss against the total aggregate amount of his income from other sources, if any.

The advantage of this provision is greater than may appear at first sight. For instance, A. has house property which is let, and brings him in £300 a year. He is also in trade, and his return for a particular year (based on a three years' average) shows a loss of £200. This he can deduct from the income derived from his house property and thus reduce his total income for the year, for the purposes of income tax, to the sum of ₤100. The result of which will be that inasmuch as his income is under ₤160, he will be entitled to total exemption and may claim repayment of any tax he may have paid in respect to his house property.

Claims for repayment of Income Tax.—Where tax has been paid in excess of the amount due in respect to the ownership or occupation of land, a claim for the excess paid may be made within twelve months from the expiration of the year of assessment. Where the profits of a trade, profession or office, have been over-assessed, a claim should be made at the end of the year of assessment. A claim for repayment in respect to premiums paid for life insurance may be made within three years. Similarly, a claim for the repayment of tax paid by any person entitled to an exemption or rebate may be made within three years from the end of the year of assessment to which the claim applies; for instance, a claim in respect to the year beginning April 6, 1902, and ending April 5, 1903, would have to be made by April 5, 1906.

Claims by persons entitled to exemption or rebate, how made.—The claim must set out the total income from every source, whether taxed or not, in accordance with the form provided for that purpose, which may be obtained from the Surveyor of Taxes for the district, whose address can be ascertained from the local collector of taxes.

If it is intended to claim in respect to more than one year, a separate claim for each year must be made and entered on a separate form.

Claim by married woman.—In the case of a married woman living with her husband and earning an independent income, the claim is to be made by her husband. (As to her right to claim, see p. 1948.)

Particulars required with regard to income.—In setting out the items of income, the gross amount must be stated, without any allowance for deduction of income tax. The amount of income tax deducted or paid must be set out in the separate column for that purpose. There is no difficulty in ascertaining these figures with regard to items upon which the claimant has himself paid the tax, nor with regard to rent due from a tenant, as the amount of the rent must be known, and the amount of the tax paid thereon will be shown by the voucher which it is the duty of the tenant to produce on deducting the tax from his rent. But in the case of dividends which are paid, as is generally the case, "free of income tax" without stating the amount deducted for tax, it becomes necessary to calculate what is that sum which, after a deduction for income tax at the current rate, will leave the amount for which the warrant is payable; for such is the sum to be stated as the gross income, and the tax