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THE HONG KONG GOVERNMENT GAZETTE, JANUARY 25, 1935.
Statement under Section 13.
The Tai Shan Insurance Company, Limited.
Statements and abstracts under Sections 14 and 15.
The Luk Hoi Tong Life Assurance Company, Limited.
The Oi Kwan Life Assurance Company, Limited.
QUESTIONS.
5. The Hon. Mr. JOSÉ PEDRO BRAGA, pursuant to notice, asked the following
questions:-
1. Are sale and purchase contracts and/or debit notes for shares of all Com- panics operating outside the Colony but dealt in in this market treated alike for purposes of stamp duty? If the reply to this question be in the negative, what is the differentiation and on what grounds is the differentiation justified?
2. Is the Colonial Treasurer in a position to state approximately the value in Hong Kong Currency of the business carried on, since 1st January, 1934 to the 30th June last, by brokers on exchanges outside the Colony whose contracts and/or debit notes are exempt from stamp duty?
3. If the volume of the business referred to in Question 2 is ascertainable, will the Honourable Member inform the Council what would have been the estimated amount of stamp fees derivable therefrom if the transac- tions had been liable to payment of stamp fees on the scale chargeable to shares of Hong Kong Companies?
4. Is it the opinion of Government that the operations by brokers in Hong Kong on exchanges outside the Colony do divert dealings in shares of local Companies; and if they do, does not the revenue of the Colony suffer by reason of the diversion from local to foreign exchanges through a diminution in stamp duty collections in respect of share contracts. and/or debit notes ?
5. For the benefit of the revenue of the Colony has the attention of Govern- ment been directed to the necessity for rectifying an existing anomaly that while dealings in shares of local Joint Stock Companies are subject to stamp fees certain foreign Companies enjoy immunity from such taxation?
The Colonial Treasurer replied as follows:-
1. The answer is in the affirmative.
2. The answer is in the negative.
3. In view of the answer to question 2, this question does not arise.
4. Government is not in a position to say to what extent, if any, operations by brokers in Hong Kong on exchanges outside the Colony divert deal- ings in shares of local companies. Share dealings and investments are governed by the demand or requirements of each particular buyer or investor. A man with money to invest may choose as he pleases and buy local or other investments as his fancy dictates. The revenue of the Colony, however, does not suffer as all contract notes issued by brokers in Hong Kong must be stamped.
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