THE CHINA MAIL, MAY 25, 1989.
CONTINUED FROM PAGE ONE ·
ALHAMBRA Local Taxation
LIFE
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THE WORLD-FAMOUS TENOR
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·
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The Ritz Brothers in "KENTUCKY MOONSHINE”
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Possibilities
in
imposition, some indication slums, for the eradication of which of the heads of expenditure the Committee assumes Government to which its yield will be ap-expects to have to find funds) the plied.
Committee regards an increase (d) We feel that it would be un- rates as a regressive rather than wise to impose a tax of this progressive tax, and recommends nature until a substantial that, in spite of ease and economy body of opinion in the Colony of collection and size of yield pos- believes that the tax can be sible, this means should be regard- levied fairly and efficiently. ed as a last resource. (e) The imposition of Income Tax should to some extent be compensated for by the remission of other forms of taxation.
PROFITS TAX ·
At 5 per cent. a Corporations Profits Tax would produce, it is estimated, $2,500,000 annually. Ob- jections are difficult of assessment THE COMMITTEE
and collection, evasion (illegal con- Members of the Committee were:
cealment of profits), the fact that The Hon. Mr. Sydney Caine (Fin- it differentiates unfairly between ancial Secretary), chairman; Sir investors in the Colony and those Vandeleur Grayburn, Mr. D. J.whose capital is invested outside. It Sloss, the Hon. Mr. J. J. Paterson, would leave unaffected, insofar as the Hon. Mr. M. K. Lo, Mr. John they are not shareholders in public Fleming and Mr. C. B. Burgess companies, the salaried and pro- (Secretary).
fessional classes, landlords and large body of private businessmen, whose operations though smaller is scale, give rise to a large aggregate of profits.
The terms of reference were:
"to consider and report what methods of taxation could best be adopted in the Colony, should it be
additional re- necessary to raise venue, having regard to the Co- lony's general economic position and the importance of distributing any additional burden in the most equitable manner in relation to the incidence of existing taxation."
Discussing Income Tax, the Com- mittee finds that the Gold Coast, Malaya and Hong Kong are the the only important territories in Colonial Empire in which it does
for of
not exist in some form or other. It is found that this direct form of ATTENTION TO ECONOMY The Committee decided "that the taxation is the most logical, equit- terms of reference directed our at-able and remunerative, and the least tention to a consideration of the discriminatory, if capable of suc- nature of additional taxation if cessful administration. circumstances should arise in
DOUBTS SUMMARISED Doubts are summarised as to the which additional revenue were re- quisite. The responsibility for geographic situation of the Colony, deciding when such circumstances presenting obvious loopholes were present rested upon Govern- evasions; the primitive system ment and the legislature. We de- Chinese bookkeeping rendering fair cided, however, that it was within assessment difficult if not impossible, our scope to make recommenda- | the migratory nature of the Colony's tions regarding the equitable dis- population, the benefits to be deriv-. tribution of the incidence of existed from making Hong Kong the ing taxation as well as to suggest haven for "refugee" capital, the new methods of increasing the belief that so radical a change in general yield, and that it would not fiscal policy would give rise to a be irrelevant for us to express our demand, now dormant, for popular firm conviction that a strict atten- representation, the belief that the tion to economy in administration | European would bear the chief bur- should precede any attempt to ex- den and the Chinese escape pand the revenue of the Colony by evade its incidence.- means of additional taxation.”
-
01"
is
THE OTHER SIDE POST OFFICE
Against these misgivings, it The Committee proceeds to ex-pointed out that in every country amine all the main classes of re-loopholes for evasion exist, there venue to be met with in the modern
are certain considerable classes of world, rejects the idea of a general
income which could not easily escape, customs tariff as impracticable in view of the peculiar economic and the migratory section is that which would be in general be ex- commercial situation of the Colony,
the tax, the rates rejects any increase in tobacco empt from duties as bearing mainly on
would not be so high as to drive poorer classes, and considers an away "refugee" capital; the collec- attempt to increase the already tion of any given amount of addi- considerable profit shown by the tional revenue might lead to a de- Post Office as in general
mand for public control of finance, whether raised by Income Tax or desirable.
any other means.
the
un-
MOTORING TAXES The Committee suggests that an
After a review of all the pros and appropriate increase in the sphere cons, the Committee feels that the of motoring could be best obtained really vital question is the possibil- by additional taxation on motority of effective administration un- spirit and opposes increased licence der the conditions prevailing in fees, regards Hong Kong's death Hong Kong.
is
duties (20 per cent. maximum) · as In conclusion, the Committee re- high enough, and rejects business commends that if Government licences, passenger landing fees as satisfied that, after allowing for possible economies, substantial fur- irritants.
After the "minor" suggestions as ther revenue from taxation is like- to where increases in revenue couldly to be required within the next few be obtained (outlined above), the years, it would appear desirable to Committee exhaustively discusses institute a special expert enquiry. the Asbesement Tax, Corporation into the practicability of Income Tax in the Colony, under the Chairman- Profits Tax and Income Tax.
Having regard to various con- ship, or at least with the assistance, siderations of inequity and social of a man experienced in the ad- evils (passing on of tax to tenant, ministration of the tax in an Eas- forcing up. ntals, encouraging | tern country.