45. Statistics of the assessments for the year 1926-27 will be published in our next Report. In the following pages appear statistics of the assessments for the year 1925-26. These statistics relate to assessments formally made between the 6th April 1925 and the 5th April 1926, irrespective of the year of assessment concerned or of the time when the tax was collected. In the main, such assessments are in respect of income chargeable for that year of assessment, but they also include a comparatively small proportion of assessments in respect of income chargeable for prior years. In the latter cases, the rates of tax charged and the personal allowances, etc., granted were governed by the law in force for the year of assessment concerned, and are shown in Table 44.

46. The statistics which follow should be read in the light of the following definitions of the various expressions used, viz. :

Gross Income means the income brought under the review of the Department, before adjustments are made in respect of repairs to lands, houses, etc., empty property, wear and tear of machinery, overcharges in the assessments, etc. It includes certain income belonging to individuals whose total income is below the effective exemption limit of £135 assessable income.

Actual Income means the statutory income of the taxpayer, estimated in accordance with the provisions of the Income Tax Acts, after deduction of the income of individuals below the effective exemption limit and of the adjustments referred to under the definition of Gross Income.

Earned Income is defined fully in section 14 (3) of the Income Tax Act, 1918, and may be broadly described as income immediately derived by an individual from the carrying on or exercise by him of his trade, profession, vocation or employment.

Assessable Income is the actual income less the earned

income allowance.

Taxable Income represents that part of the assessable income upon which Income Tax is actually calculated. It is thus the assessable income less the personal allowances and deductions.

INCOME TAX-SCHEDULES A, B, C, D, and E.

Table 46.-Assessments made in 1925-26.

(ƒ) AssessABLE INCOME (viz., (d) MINUS (e)] | 1,942,156,386 180,704,632

(g) Personal Allowances, Deductions, and

25,895,540 2,336,890,382 2,541,448 190,675,272 23,354,092 2,146,215,110

Reliefs

This item represents that fraction of the income of exempt persons which comes under the purview of the Department.

† Including some income taxed at the rates in force for previous years (see Table 44.)

This is the total ultimate yield of the assessments made in 1925-26 whether actually collected in that year or later.

Table 47.-Income Tax. Gross Income, Reductions and Allowances, Taxable Income, and Net Produce.

United Kingdom.

£

£

3,082,150,214 76,924,997 26,765,569 3,211,410

1,662,724,028 66,147,193 15,258,040 2,072,050 44,839,604 5,077,976
1,967,065,911 67,718,907 16,840,770 2,691,230 45,096,919 4,887,839
2,445,655,311 75,976,519 16,380,053 2,669,990 45,230,343 3,824,045 42,779,508
2,970,604,036 79,189,297 16,827,937 2,680,310 46,030,815 2,702,894 51,264,766
3,477,058,268 81,633,395 23,060,668 3,675,230 46,955,187 2,181,418 51,713,990
3,214,828,625 70,946,700 24,765,804 2,924,260 47,316,149 2,994,946 52,793,789 550,608,598 752,350,246
49,396,214 3,655,957 57,560,911 511,450,707 728,965,765

£
36,719,999

£

119,157,384

£
289,272,246

38,067,504

161,035,658 336,338,827

187,223,057 374,083,515

224,728,194 423,424,213

606,655,877 815,875,765

1922-23

3,019,601,063 67,048,489 25,933,124 3,211,410 48,265,479 3,605,229 57,064,235 496,588,481 701,716,447
2,912,820,757 60,318,327 30,676,957 4,055,233 71,804,040 3,529,413 54,581,659
2,970,451,275 65,040,846 29,705,235 4,199,526 74,800,222 3,831,296 55,940,026

Estimates

2,944,449,789 66,124,245 2,900,000,000

34,603,850 4,508,000 75,071,578 3,912,016 69,136,160

354,203,558 607,559,407

66,000,000

30,000,000

5,000,000

77,000,000 4,000,000

68,000,000

365,000,000

615,000,000

* The figures in this column represent that fraction of the income of exempt persons which for administrative reasons comes within the purview of the Department.

Table 47.-Income Tax. Gross Income, Reductions and Allowances, Taxable Income, and Net Produce-continued.