THE INCOME TAX.

Press, Volume LX, Issue 11496, 31 January 1903, Page 9

THE INCOME TAX.

TO THE EDITOR OF THE PHE9S. Sir, —In connection witih the audit of the books of a jnanufacturing conoem in thus district, the (following came under my notice. In the coanpany'e profit and loss account appeared , an item 01, we wil!l say, £250, for depreciation of machinery. In due course the return for the Income Tax was made, and amongst the deductions from the gross income was set out the foregoing item of £250. Subsequentily the Department wrote, etiating that the item had been disallowed; and that the amount assessed for the payment of Income Tax was increased by that sum. The Department was written, to, pointing out tliat deduction for depreciation of machinery was allowable by the Act-. In response thereto came the inquiry, as to whetther tib« imaohmery nvas driven by eteam. Aβ & matter of vfact toe motive power fwas hy way of a ,gas engine, and the Department vaa advised accordingly. They now etate that tihe machinery being driven »y gas precluded any allowance for depreciation, it seenw te most remarkable thing, and, ac far as I can see, indefensible. Be the motive power gas or steam, the wear and tear of the machinery must be the, same. Considering thi* a matter affecting the public is my excuse for troubling tou witik it.—Yours, «tc., GEORGE W. EULME. January 30*, 1903.