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SPECIMEN CASES 77 
   
  
£74. K. S. derives his income entirely from invest- 
Tents paid at various dates during the year, and 
1 ceives £1,300 in cash between April 5th, 1918, and 
+ pril 5th, 1919. Some of the dividends are paid for 
{ le six months ending June 30th and December 31st, 
+ | the June dividends are really made up of 1917-18 
i=iofits (say January 1st to April 5th), and 1918 profits 
Tom April 6th, 1918, to June 30th, 1918. The 
 lilway company, or whatever it is, in paying the 
* ine dividend, calculates the tax at the rates in force 
of iring the first six months on the first portion of it 
£ the 1917 rate of 5s.,and on the second part at 6s., 
+ 1d deducts tax from the June dividend at the mean 
ite of bs. 57d. The second (December) dividend 
+ is tax deducted at 6s. in the £. 
{ ‘Taking the figures so shown on the dividend war- 
nts, he finds that his gross income is, say, £1,823. 
i he difierence between that and £1,300, the cash 
4 ceived—viz., £523—is, therefore, the tax he has 
{ yparently paid. (It may here be stated that there 
"no general rule making it binding on any company 
* | stop tax at this very exact rate. Scottish railway 
{ impanies do, reckoning the number of days during 
1 hich different rates of tax were in force, and so do 
{me other companies. English railway companies 
*! fually reckon by months, and in the particular case 
+ ven would deduct at 5s. 6d.) 
+t The company, however, has paid tax on its entire 
1 ofits for the year 1918-19 at 6s. in the £, and the 
*! lareholder has, of course, contributed his share of 
1 le tax at this rate. 
*l Taking his net income at £1,300, this represents, 
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