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TAX POSITION OF GOVERNORS OF DEPENDENT TERRITORIES

1.

After

The Governor of Hong Kong wrote to us after The Queen's announcement that she would pay tax from the beginning of the next financial year to ask whether this decision has any implications for the tax position of Governors. checking the position of Governors of other dependent territories, we established that there is no general policy on the tax arrangements for Governors. In practice, a Governor who is a member of the Diplomatic Service pays UK Income Tax; the position of other Governors is determined by the local legislature in their dependent territory. I attach for your information a copy of our reply to the Governor of Hong Kong.

2.

The Governor of Hong Kong has asked whether it would be possible for HMG to make some form of public statement making clear that The Queen's decision has no implications for Governors. We think the best way to do this without drawing too much attention to the fact that some Governors pay no tax is to inspire a written PQ. The reply to the PQ would be as follows:

"The Queen's decision to pay tax has no implications for the tax position of Governors of dependent territories. The terms and conditions of Governors who are not members of the Diplomatic Service are regulated by their local legislatures"

3. Please would you confirm that you see no problem with this proposal and that you are content with the reply. As an announcement on the details of The Queen's tax arrangements is likely to be made in the near future, I would be grateful for replies by 22 January.

пи

NC G Whitney

Hong Kong Department

WH 304 270 2651

15 January 1993

عليمي

cc: Shelagh Brooks, Legal Advisers

Royal Matters Unit

tax.dep.ADM

SLM

HICD नही

RE

16

1993

INDE

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