r-tax, it may be observed, occupies a position in the English
system similar to that of the additional tax in the United States,
serving to increase the tax upon the larger incomes in accordance with
the principle of progression.

Considering the various provisos and exceptions in connection with the
general rule of the act, the scope of the application of the method of
collecting the tax at the source may perhaps be safely stated thus: the
normal tax is to be deducted (1) from all interest payments made by
corporations on bonds and the like, without regard to the amount; (2)
from all other interest payments when the amount is more than $3,000 in
any one year; (3) from all payments of rents, salaries, or wages
amounting in any one case to over $3,000 annually; (4) from all other
payments of over $3,000 (excepting dividends) which may be comprised
under the designations "premiums, compensations, remuneration,
emoluments, or other fixed or determinable gains, profits, or income."

The principle of assessing income at its source, as applied in this
act, does not relieve the individual from the necessity of making a
full revelation to the tax officials of his personal income from all
sources. Though this statement needs to be qualified in one or two
particulars, the law provides in general that every person subject to
the tax and having an income of $3,000 or over shall make a true and
accurate return under oath or affirmation "setting forth specifically
the gross amount of income from all separate sources and from the total
thereof deducting the aggregate items or expenses and allowance"
authorized by the law. Although income from which the tax has been
withheld is not included in the net personal and taxable income of the
taxpayer, it must, nevertheless, be accounted for and included in his
declaration as a part of his gross income, forming one of the specified
items which are to be deducted from the gross income in arriving at the
income subject to taxation.

As already intimated, the general requirement of the full and complete
statement of income is subject to certain exceptions. One relates to
the income from dividends, the law providing that "persons liable to
the normal tax only ... shall not be required to make return of the
income derived from dividends on the capital stock or from the net
earnings of corporations, joint-stock companies or associations, and
insurance companies taxable upon their net income." It