GRS 255

RESTRICTED

FM F C 0 151326Z JAN 80.

TO PRIORITY HONG KONG

RESTRICTED

HKK 430/1

નામાંક

JAN 20

Mo PAJ

REC

ΥΠ

TELEGRAM NUMBER 40 OF 15 JAN.

FOR ROWLANDS FROM CLIET.

YOUR TELNO 17 OF 3 JANUARY: MR V C PENHEAROW,

see

SA

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1, WE FULLY ACCEPT YOUR CONCLUSION AS REGARDS PAYMENT OF OUT- STANDING SALARY TO MR PENHEAROW'S ESTATE. HOWEVER WE ARE STILL NOT

CLEAR ABOUT THE DELAY IN REFUNDING THE OVERASSESSMENT OF TAX. MRS PENHEAROW CLAIMS THAT SHE POINTED OUT SHORTLY AFTER RECEIVING HER TAX ASSESSMENT ON 24 JANUARY 1979 THAT TAX WAS NOT PAYABLE ON PAY FOR ACCUMULATED LEAVE, AND THAT THE INLAND REVENUE ACCEPTED THIS. NONETHELESS, ON 7 FEBRUARY 1979, HK DOLLARS 4,382 WAS DEDUCTED IN RESPECT OF MR PENHEAROW'S ACCUMULATED PAY, AND THIS WAS NOT REFUNDED UNTIL 18 JUNE. AS A RESULT, MRS PENHEAROW APPARENTLY

LOST POUNDS STERLING 47.32 BECAUSE OF EXCHANGE RATE MOVEMENTS

IN THE INTERIM.

2.

NOWHERE ÎN THE CORRESPONDENCE TO DATE IS THERE ANY EXPLAN-

ATION OF WHY THE DEDUCTION WAS MADE DESPITE THE FACT THAT THE

INLAND REVENUE HAD ALREADY AGREED THAT THE ASSESSMENT WAS

WRONG. NOR IS IT EASY TO UNDERSTAND WHY IT TOOK OVER FOUR

MONTHS FOR THE MISTAKE TO BE CORRECTED. WE SHOULD BE GRATEFUL THEREFORE IF YOU COULD CONS! DER WHETHER MRS PENHEAROW COULD AT LEAST BE COMPENSATED FOR THIS PART OF HER LOSS.

WE TAKE THE POINT THAT THE HONG KONG GOVERNMENT CANNOT BE RESPONSIBLE

FOR EXCHANGE RATE FLUCTUATIONS ON NORMAL PAYMENTS, IN THIS CASE IT APPEARS THAT THE SUM SHOULD NOT HAVE BEEN DEDUCTED IN THE FIRST

PLACE.

GRATEFUL FOR REPLY BY 25 JANUARY.

WHILE

3=

CARRINGTON. TON. FILES SEAD

RESTRICTED

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