Proposed Continuance of the Income Tax.-Taxation of Bills of Costs. The following is a copy of the petition lying for signature at the Law Society's Hall, Chancery Lane: 423 of the cause, as between attorney and client, and that without being subject to any taxation whatever. A judge's order was subThat the petitioners have learnt with sequently drawn up by consent and founded regret the proposal submitted by her Majesty's on this agreement, and on the 31st of ministers, for continuing the present tax, commonly called "the Income Tax," for a October the plaintiff's attorney delivered further period of five years, the amount of an unsigned bill to the defendant's attorsuch tax, as respects incomes of 150l. a ney, amounting to 2937. On the 3rd of year and upwards, being proposed to be con- November a summons was taken out to tax tinued. the bill so delivered, but the judge declined "The petitioners submit, that the present In-making an order, and on the 9th of Nocome Tax' is erroneous in principle, in not dis-vember the damages and costs were paid, criminating between income derived from pro- the defendant's attorney protesting in writfessions, and other similar sources and trades, n being and that derived from property; the former ing against the amount of the bill as delibeing in its nature uncertain as to continuance vered. and ambunt; the latter (subject to some modi- A rule having been afterwards obtained, fications not affecting the principle of distinc- calling on the plaintiff's attorney to show tion) being permanent and certain. And the cause why the bill should not be taxed on petitioners submit that the present Income Tax a liberal scale, it was submitted by the is consequenely unjust and oppressive, as re- plaintiff's counsel, that as the bill was not gards the petitioners and others similarly cir- delivered a month before action brought, cumstanced, and persons engaged in trade. "The prayer of the petition is, that the or signed by the attorney, the court had no House will not pass the proposed measure authority to direct it to be referred to taxafor continuing the present Income Tax. Or, tion under the 6 & 7 Vict., c. 73, s. 37; should the House in its wisdom see fit to and that there could be no right to tax the pass a measure for continuing an Income Tax, that it may be provided thereby that income derived from professions and other similar sources, and trades, be made chargeable at a less rate than income derived from property, according to such a just estimate (having regard to the essential difference between income derived from different sources) as to the House may seem meet." TAXATION OF BILLS OF COSTS. bill, as the defendant expressly stipulated that the bill was not to be taxed; and the plaintiff's attorney swore, that no costs, taxed according to the scale settled by the Master, would pay the heavy expenses incurred by the plaintiff under circumstances peculiar to this case. - Upon the first point, the judges were of opinion, that the attorney having delivered a bill which was not signed, did not preclude the court from referring it to taxation under the 6 & 7 Vict., c. 73. Upon this A CASE has been recently reported, in point, Parke, B., said: "The Lord which, although nothing of importance can Chancellor held in re Pender, as the Masbe said to have been actually determined, ter of the Rolls had done, that a bill of two principles have been propounded by costs delivered may be referred to taxation, e judges of the Court of Exchequer, with though not signed by the solicitor, or inreference to the taxation of costs, involving closed in a letter signed by him and referconsiderations of great interest to attorneys and solicitors. ring to it. It was there thought that such bill,' in section 37, is not confined to a The case alluded to was brought to the signed bill, but extends to any bill containnotice of the court, under the following cir- ing the attorney's demand;" and Alderson, cumstances. An action, commenced by B., added:-"It is the attorney's duty to the assignees of a bankrupt, against the deliver a signed bill, and if he neglect to Sheriff of Yorkshire, for seizing certain sign the bill he delivers, it it difficult to goods of the bankrupt under a writ of fi. fa. see how he can by that default exempt his was set down for trial at the Yorkshire bill from taxation." Summer Assizes, but withdrawn by con- Upon the second point raised by the sent; the defendant's attorney agreeing to plaintiff's counsel, Parke, B., said: give a judge's order for payment, on the Have we any power to tax a bill against first day of next term, of 2,000l. damages, an express agreement not to tax it? and all costs which the plaintiffs may have man chooses to enter into such an agreebeen put to relating to the subject matter ment, he cannot tax the bill under the statute. The Master must tax the bill by Young and another, assignees, v. The Sheriff of Yorkshire, 16 Mees. & W. 446. D 8 Beav. 299. If a 424 Taxation of Bills of Costs.-Repeal of the Attorneys' Certificate Duty. ordinary rules." The learned baron, how-cate with their representatives in parliament ever, observed, that an agreement to pay a in support thereof. bill without taxation, was in truth an under- An appointment to receive the deputation taking to pay a fair bill, and that this bill was procured from the Chancellor of the should be submitted to some competent Exchequer, by Mr. Milner Gibson, for attorney to see that no unfair or extrava- Saturday, the 26th Feb. On the part of gant charges were enforced. The Chief the Incorporated Society the following Baron concurred with Baron Parke, that an gentlemen attended :-Mr. Austen, Viceagreement to pay a future bill without President; Mr. Pickering, late President; taxation must be understood to mean a rea- Mr. Coverdale, one of the Members of the sonable bill. He was of opinion, however, Council; Mr. Faulkner, a Member of the that if an unreasonable bill was sent in, Society; and Mr. Maugham, the Secretary. the Court had power, irrespective of the On behalf of the Manchester Law Associa statute, to order it to be taxed. Now what tion the following gentlemen attended:was wanted was, that the sum the defend- Mr. Heron, Town Clerk of Manchester; ant was called upon to pay should not Mr. Street and Mr. Fletcher, Members of exceed the amount to which the plaintiff the Committee of the Manchester Law was fairly entitled. Association. It was finally settled by consent, that the bill should be referred to the Master to settle the amount on liberal terms, and the rule was discharged. REPEAL OF THE ATTORNEYS' CERTIFICATE DUTY. The deputations were accompanied by a considerable number of members; viz., by Mr. Milner Gibson and Mr. Bright, the members for Manchester; Mr. Heywood and Mr. Brown, the members for Lanca shire; Mr. Duncuft, the member for Oldham; Mr. Pearson, the member for Lam beth; Mr. Bremridge, Coroner for Devon shire, member for Barnstaple; and Mr. Cobbold, the member for Ipswich. The last three members, it will be recollected, are practising solicitors. SOON after the commencement of the present Sessions, the Incorporated Law Society, according to their annual custom, determined to present a petition for the repeal Memorials were presented to the Chanof the certificate duty. They had not at cellor of the Exchequer for the repeal of the first received any communication from the tax from the Incorporated Society and the Provincial Law Societies, but on the 24th Manchester Law Association. Mr. Austen ult., a deputation arrived from the Man- and Mr. Heron addressed the Chancellor of chester Law Association, which is always the Exchequer on behalf of their respective active in promoting measures for the good societies, and they were followed by several of the profession. The co-operation of the of the members of parliament, particularly solicitors in the country (as we have always by Mr. Pearson and Mr. Bremridge, whe said) is of the greatest importance, because very ably supported the views of the depa they have the ear of the largest number of tation. members of parliament. Every information regarding the preparations in London were communicated to the deputation, and they were furnished with the draft of a petition which had been already prepared. The deputation attended a numerous meeting of the council of the Incorporated Society, on the same day, and it was then arranged that a deputation from each body should attend the Prime Minister and the Chancellor of the Exchequer; that the deputations should act jointly, and each procure the attendance of such members of parliament as might be induced to support the application for a repeal of the duty. It was also resolved by the Incorporated Law Society to request the solicitors throughout the kingdom to present peti The Chancellor of the Exchequer received the deputation with much courtesy and attention, expressed regret for the absence of Lord John Russell on account of indispo sition, and promised that the subject should receive his best consideration. a The following is the substance of the memorial of the Incorporated Law Society, with some additions which have been since made. It is intended to circulate this paper amongst the members of the profes sion to facilitate the preparation of petitions. 66 STATEMENT OF THE INCORPORATED LAW "The Certificate Duty on attorneys, and a Since this meeting, the intended increase tions for the same object, and to communi- of 21. per cent. has been abandoned. Repeal of Certificate Duty.-Memorial of the Manchester Law Association. Tax on Warrants to prosecute, was imposed in 1785, to make up an expected deficiency in the Shop Tax. That tax was afterwards repealed. "The Warrant Stamp, and all other stamps on law proceedings, were also abolished, as Taxes on the Administration of Justice. "The Certificate Duty remained, and has been largely increased. At first, if the practitioner resided in London or Westminster, he was charged 51., and if in any other part of Great Britain 31. "Such duties were increased in 1804 10%., and in 1815 to 127. for town, and 81. country certificates. b to for A stamp duty of 1107. was also charged in 1804 upon Articles of Clerkship, and 201. upon admission; and these sums were increased in 1815 to 120l. and 251. " By a return made to parliament, the amount paid for certificates from Easter Term, 1844, to 8th March, 1845, was 89,2221. 425 amounts, on an average of the incomes of attorneys and solicitors, to 4. per cent.; and therefore, if they are still required to pay the Income Tax on their professional earnings, ought they not in fairness and justice to be relieved from the Certificate Duty? otherwise they will be subjected to a burden of double the amount borne by other classes of the public. "By the operation of many recent changes in the law and the practice of the courts, and by enactments relating to deeds and other documents, the emoluments of the profession have been much diminished, although the disbursements continue very nearly the same as heretofore. This is submitted to the consideration of the legislature as another reason, if another were required, why this tax should be repealed. "The severe pressure of the Certificate Tax is strikingly shown by the inability of several hundred attorneys to pay it within the time fixed by the act, the 16th December, in each "By another return, the duties paid on year. In the last year 266 solicitors did not Articles of Clerkship, on an average of the last pay it till the following year, and were conseten years, amounted to the annual sum of quently excluded from the Stamp Office Law 57,9967.; and on annual admissions to 9,9001. List. Of these, 65 paid only within the last These duties are partial, unequal, and unjust. month of the year; and 170 having neglected "The pupils or apprentices in the medical for upwards of a year, were compelled to give profession and in all trades and other business public notice, and apply to the court for perpay a duty on their indentures only propor- mission to renew their certificates." tioned to the premium. The premium on articles of clerkship does not, on the average, THE MEMORIAL OF THE MANCHESTER LAW exceed 2001.; and, consequently, the duty thereon, if equal justice were observed, ought to be 61. only, instead of 1207. "Nor is any other profession than that of attorneys, solicitors, and proctors charged with similar stamp duties; nor is any annual stamp duty imposed on the higher branch of the legal profession. "Such duties are not founded on any just principle of taxation. "If a tax on the talent and industry of individuals engaged in a lawful calling be at all expedient, it ought to be levied not only on the three learned professions, but on all merchants, bankers, manufacturers, traders, and others. "A small tax on each would remove the grievance complained of, and at the same time produce far more than the amount now levied unjustly upon attorneys and solicitors. "It is now an established principle that there should be no “ Class Legislation" that taxes should be general, and not be imposed for the protection of manufacturing, agricultural, or any other class. "If, therefore, it be wrong to levy imposts on the community for the benefit of a class, it must be equally wrong to impose burdens on one class in exoneration of the rest. "The attorneys and solicitors, in common with their fellow subjects, pay at least their equal share of all the taxes imposed on the community at large. "The Certificate Duty, which falls exclusively on their branch of the profession, ASSOCIATION. This Memorial states, That the memorialists have heard with much concern that it is proposed by her Majesty's government to increase the Income Tax to 51. per cent, without any modification or alteration of the principle on which it is imposed. That by the statute of 55th Geo. 3, c. 184, the following annual duties were imposed upon every attorney, solicitor, and proctor. On those practising within the £ limits of the twopenny post, who have been admitted for 3 years or upwards On those not admitted so long On those residing elsewhere who have been admitted 3 years. S. d. 26 12 0 8 0 0 . 4 0 0 On those not admitted so long That by the said act a stamp duty of 1207. is also charged upon all articles of clerkship to an attorney, solicitor, or proctor, and a further duty of 251. upon his admission. That by a return made to the honourable the House of Commons by the registrar of the stamp office, bearing date the 17th March, 1845, it appears that the number of attorneys, solicitors, and proctors, who paid the stamp duties for their certificates in the year 1844, was 10,120, the amount of duty paid being 89,2221. That it appears by a return made to the honourable the House of Commons in 1845, that the duties received on articles of clerkship to attorneys and solicitors in the year 1844, was 51,8401. That the annual sum of 9,900!., or there 426 Origin of the Certificate Duty.-Proceedings of the Incorporated Law Society. abouts, is also paid on the admission of attor neys, solicitors, and proctors into the superio courts. That no profession, excepting that of your memorialists, is charged with similar stamp duties, nor are the same or any annual stamp duties imposed on the higher branch of the legal profession. item of his Budget. Without placing the character of statesmen very high, either for wisdom or morals, we venture to say that in these times no First Lord of the Treasury would have the face to make such a speech as the following, by which the polltax on attorneys was proposed on a debate in the House of Commons on the 8th of June, 1785, and afterwards carried. That the income of attorneys and solicitors, derived from their own mental and personal exertions, ought not to be subject to the imposition of the same amount of tax as income been made in the shop-tax, he fancied a defiMr. Pitt said, by the regulations which had derived from realized property; and in respect ciency of about 20,000l. would be occasioned; to tax on income, it appears to your memorialists that the legislature has admitted as therefore he was under the necessity of laying a principle, by excluding income of a less some new taxes to make good that sum; and amount than 150l., that the same rate of taxa- he should resort to a subject in which many tion is not applicable to all income, and that it had run before him, and, therefore, he was would be a more just application if the same not apprehensive of its being objected to; it principle were to be extended by a differential was on certain practitioners in the law: perrate of duty on different amounts of income; haps the tax might in some degree diminish and they also submit that taxation ought to be the number of those gentry, but, in so doing, equal on all classes of the community, and that the public would be much benefited, for, at He should, it is, therefore, unjust that the duty paid present, they were too numerous. annually upon certificates for leave to practise by taxing attorneys; first, by a license, and therefore, propose to raise the sum of 20,000l. next, by a stamp-duty on every warrant they He had not been issued out for an arrest. able to collect the exact number of attorneys in the kingdom; but, as near as he could guess, it was 1,400 in London, and 3,000 in different parts of the country; and last year as attorneys and solicitors should be continued. That the certificate duty levied on their branch of the profession alone, amounts, on an average of their income, to a tax equal to 4 per cent. and upwards, while they, at the same time, pay their equal share of all the other taxes imposed on the community at large; and your memorialists therefore submit, if attorneys and solicitors are still required to pay the income tax, they ought, in fairness and justice, to be relieved from the certificate duty. the number of warrants issued out of the King's Bench amounted to 10,000, and all the other courts to about an equal number; therefore he should suppose, on an average, that 20,000 actions were commenced in a year; The memorialists therefore submit, that in- and the tax, which he meant to lay on every asmuch as they are under the present law com- warrant, was not so much for the sake of repelled to pay the duty on annual certificates for venue, as it was to ascertain the business done leave to practise, the tax on income unduly by each practitioner; and by taxing every presses on them, and to a greater extent than warrant, attorneys would contribute, in proon the rest of the community; and that if the pertion to their business, and free the tax from tax on income is to be increased, a differential tax ought to be imposed between realized property and income, and that a higher amount of tax ought to be borne by the possession of a larger income; but more especially the memorialists submit, that the duty on annual certificates to practise as attorneys and solicitors, ought to be abolished, and that they may not be subjected to a different order of tax than their fellow subjects. ORIGIN OF THE CERTIFICATE partiality; he, therefore, estimated the tax as follows:- - 1,000 attorneys in London, each to take out a license, and pay for the same annually the sum of 57., which would produce 5,000l.; 3,000 attorneys in the country at 34. each would produce 9,000l.; but he should suppose there must be more than 3,000, and would, therefore, estimate them to produce 10,000l.; 40,000 warrants for arrests, at 2s. fid. each, 5,000/., making 20,000l. 25 Hansard, 812. OBJECTS AND PROCEEDINGS OF THE circumstances in which this impost was first exacted are rather curious. Amidst the difficulties of finance ministers to raise THE Incorporated Law Society has reathe supplies required for the public service, dered such important services to the prosome strange pretexts have been given for fession, and which, for the most part, have imposing particular taxes; but usually been duly acknowledged, that it would seem there is a plausible excuse offered, and in an act of supererogation to state them. A these days the Chancellor of the Exchequer few active malcontents have of late, how is expected to "render a reason" for each ever, altogether denied the merits of the Objects and Proceedings of the Incorporated Law Society. 427 Institution, and so grossly misrepresented under the sanction of the Council, to consome of its transactions and supposed short-sider all bills in parliament relating to the comings, that we deem it, not only an act law, and to take such measures as they deem of common justice to the Society, but of expedient to support, alter, modify, or policy towards the profession, to recall to oppose them. the memory of our readers some of the The Council, with the exception of occaprincipal advantages which have resulted sional intervals in the long vacation, meet from its exertions. every week throughout the year. They also It is probable that the Council of the frequently hold special meetings, and their Society, conscious of discharging their duty special committees likewise hold numerous to the best of their judgment and ability, meetings. The time devoted, even during and to the satisfaction of the great bulk of the most valuable portion of the day, is very the Members, consider it unnecessary to considerable; and it is indeed remarkable notice the occasional dissatisfaction which how regularly the Council assembles, as a attends all governing bodies, and rely on matter of professional duty. the good sense of the profession at large to It is said that the Society does not perdiscern the beneficial effect of their labours. form its duty with sufficient activity in The complaints, however, though coming behalf of the profession in general, and esfrom few, are so often repeated, that we pecially that it does not attend to the inthink it high time to answer them. terests of the country practitioners. Now, It may well be supposed that the esta- to estimate the justice of this complaint, it blishment of so comprehensive a Society is necessary to look at the constitution of required much time, labour, and expense. the Society. No less than ten of the Council Its founders were long engaged in raising go out of office annually, so that there are the large fund requisite to accomplish all very rapid means of changing the governthe purposes for which it was intended. It ing body, if they should not represent the is, perhaps, not generally known, that be- opinions of the members at large; but no sides devoting their valuable time, week by change, except by death or resignation, has week for many years, the leading members ever taken place. subscribed from 250l. to 500l. each. About Moreover, it is in the power of any 170 solicitors subscribed upwards of twenty members to convene a general meet30,0007.; but numbers as well as money ing upon any professional subject, if the were requisite, and after much exertion, Council should decline to call it. No such about 800 members were associated, whose meeting has ever yet taken place. Seeing subscriptions amounted to 50,000l. the readiness with which signatures are Prior to this time several Law Societies obtained to any requisition affecting the existed in London:-the old Law Society, general interests of the profession, it is the Northern Agents' Society, and the manifest that any half dozen malcontents Metropolitan Law Society. These profes- might readily procure a meeting if a fit sional bodies were small in number, had "no occasion existed. Is it not, therefore, realocal habitation," and were limited to the sonable to conclude that the Council fairly laudable objects of promoting fair and represent the general wishes of their conhonourable practice, and protecting, so far stituents? as they were able, the interests of the pro- It is not to be expected amongst any fession. The Law Institution, besides large body of men, and especially amongst these, accomplished many other objects. A 1,400 lawyers, that there should be a perlarge hall for the daily resort of the members fect unanimity of sentiment. Either too was erected, a complete law library was much or too little is done, or not at the formed, and a registry of all information re- right time, or in the right way. In short, lating to the proceedings in parliament and unless superhuman success attend their the several courts,-lectures on the principal labours, they are sure to be blamed by branches of the law and practice were es- somebody. tablished. And afterwards the Society suc- It is of course competent to the Council. ceeded in instituting an examination of to originate any measures which they may articled clerks, the registration of attorneys, think beneficial to the profession, and many and the general supervision of the profession, valuable improvements have been comin controlling malpractice and securing due menced by them and carried out successadmissions on the Roll. Amongst other of fully; but they are always ready to receive their important avocations, it is the busi- suggestions from their members, or from ness of various committees of the Society, any one who will take the trouble to make |