WATCH OUT FOR
“THE AMAZING MR.
WILLIAMS"
THE CHINA MAIL, JUNE 10, 1940
K.C.C. GIFT WAR TAX TO TOBACCO LIABILITY
EXPLAINED
DUE AT THE KING'S FUND
WEDNESDAY 12th JUNE
Her Astounding!
Heart Trouble Caused by High Blood Pressure
If you have paina around the heart, pal- pitation, dizziness, headaches at top and back of head and above eyes, shortness of breath, feel nervy, or suffer from poor sleep, loss of memory and energy, indiges- Lion, worry and fear, your trouble is prob ably caused by High Blood Pressure. This Is a mysterious disease that causes more deaths than cancer, because the symptome are so common and usually mistaken for some simple allment. If you suffer from any of these symptoms, your life may be endangered by Heart Trouble or a paralytic stroke, and you should start treatmont at once. The very first dona of Hynox, a new medical discovery, reduces High Blood Pressure and makes you feel years young. er in a few days. Get Hynox from your chemist today. It is guaranteed to make you feel well and strong or money back on return of emply, paokage.
As a result of the recent dramatic
performances held at the Kowloon Cricket Club, a draft for £50 has
been forwarded to the Overseas League Tobacco Fund, making total of £80 sent,
a
Sir Evelyn Wrench sent the fol- lowing letter. In acknowledgment of
previous donations, to Mr. V. c.
Labrum:
the
Dear Mr. Labrum.-I cannot tell you how grateful we are for further splendid donation of £10 you have sent from the members of the Kowloon Cricket Club. Will you please convey to all concerned our most sincere thanks, and tell them what an encouragement it is to us to meet with such whole-hearted help.
I enclose our official receipt, and am arranging for the immediate dis- patch of the cigarettes and do hope you will have many reply postcards from the men themselves saying how grateful they are.
That the profits tax will be charged on the same basis as the salaries tax, namely, that liability for 1940-41 will be on the profits of the year ended March 31, 1940, is ex- plained in a leaflet issued by the Commissioner of War Tax yesterday.
Where business made up annually to a given date, the accounts to that date will be adopted for tax purposes in the exercise of the Com- missioner's discretion, e.g. Business ac- counts are made up annually to 30th June. The assessment for 1940/41 will be based on the accounts for the year ended 30th June, 1930.
accounts have been
The latter part of Sec. 18 (2) deals with cases where a change is made in the ac- counting year. The object is to ensure that tax is not evaded by such a change, e.g. A company makes up its accounts annually to 30th June. Its normal profit is about $40,000 per annum, but in the year to 30th June, 1940, it makes an exception- ally large profit of $100,000. It decides to change its accounting date to 31st March,
31st and the result of the 9 months to March, 1941, is $30,000. Assuming an an- You will be interested to hear Inual profit of $40,000 in other periods the am sure that we are now receiving profits and assessments will be contributions from every part of the Commonwealth, and from every country where Britons reside. It is a wonderful demonstration of the unity of the Empire and of the wide- spread feeling that our Tobacco Fund is just the right thing for the fighting men.
The demand for smokes is very large-and continuous-and at the moment we are aiming to provide especially for the men of the Mine
crews of small
and sweepers and comfortless craft, who are carrying out their dangerous tasks with such cheerful courage.
With again our grateful thanks.
Yours very truly,
(Signed) EVELYN WRENCH,
lows:-
As fol-
War A50058- Profit. Tax Year., ment. $40,000 1940/41 - $40,000 100,000)
>
Sec below
Year to. 30th June, 1939 30th June, 1940 9 months to 31st Mar., 1041 30,000) 1941/42 31st Mar., 1942 40,000 1042/43 $40,000 If the company is allowed to claim for 1941/42 that it should be assessed on the result of the 12 months to 31st March, 1941,
the assessment will be on $55,000 (1.c.
of $100,000 plus $30,000), and the Revenue will lose the difference between $100.000 and $55,000).
In such a case the Commissioner will direct that the assessment for 1941/42 be
maintained on the result of the year to 30th June, 1040.
EXEMPTIONS
1. Business Profits not exceeding $10,000
are not taxable.
2. Any person the whole of whose in- come is liable to Income Tax in any other part of the British Empire. To get the benefit of this exemption it will be neces- sary for the taxpayer to obtain a certifi- cate to that effect from the taxing author- ity in the country where the income has
INCOME EXPENSES ALLOWABLE It is not possible to furnish a list of allowable expenses: the only tests as to whether an expense is allowable are:-
(1) Is it incurred in the production of the income?
been taxed. Director General.
Try our BREAD CHANTECLER BAKERY
Deliveries to all parts of the Colony 176, Nathan Road, Kowloon.
Tel. 50021.
INDO-CHINA
STEAM NAVIGATION COMPANY, LTD.
OPERATING SERVICES FOR CARGO and PASSENGERS
TO-SWATOW, SHANGHAI, TSINGTAO, CHEFOO and TIENTSIN
KOBE and OSAKA
SINGAPORE, PENANG and CALCUTTA
SANDAKAN, HAIPHONG
All
steamers berth alongside the Roosevelt Terminal · in tha French Concession at Shanghal, where pas-
sengers and cargo are landed.
For Further Particulars Please Apply To
JARDINE, MATHESON
& CO., LTD.
GENERAL MANAGERS.
TELEPHONE
30311.
(2) is it specially dealt with in Sec. 18 (a) to. (e)?
(3) is it a prohibited deduction under Sec. 17?
DEPRECIATION
1. As depreciation is" allowable as "a trade expense it must be calculated for the period for which the accounts Bre made up.
NEW YORK FEARS AIR RAIDS:: DEFENCE RUSH
Jittery at what the fu- ture holds, American de- fence authorities are rushing plans to defend New York and its neigh- bourhood in the event of air raids, cables a New York correspondent.
The Senate, Military Appropriations Commit- tee are studying the re- quest of the War Depart- ment for big grants to create defences which, it is claimed, will make New York bomb-proof.
GERMAN AIR VIOLATIONS
IN SWEDEN
(SPECIAL TO "CHINA MAIL"}
Stockholm, Yesterday. German planes continue to fly over Swedish territory, and Swedish anti-aircraft gunners have bagged an- other Nazi aircraft over Bohslaen province.
Three planes flew over Swedish territory, the crew of the machine brought down being killed.
Four German, parachutists ar- rested on the Swedish border have been sent to concentration camp. The air raid warning was sounded at the Swedish railway station of Ornetraesk, about 30 kilometres east of the Norwegian border. Havas.
of the year preceding the taxation year 1940/41. In some cases this will be possi- ble without undue labour.
In other cases, either records may not be available, or the task may be unduly difficult owing to the age of the assets and the number of additions and discards made. In such cases, it will normally be has satisfactory, provided depreciation been regularly written off in the past, to accept a computation based on the value 2. Written down value. Certain diffi- of the plant in the Balance Sheet. culties will arise in fixing the starting
3. Additions and sales. It will normal- value for taxation purposes where the ly be sufficiently accurate to treat any business has been in existence for some additions and sales as if they occurred at time. To make an accurate calculation it will be necessary to have a schedule show- ing the date of purchase and cost of each piece of plant etc, now in use. From this it will be a simple matter to calculate the written down value at the commencement
the end of the year in which they were made.
4. Profit or loss on sale or discard of plant, machinery and fixtures. .It should be noted that there is no question of an absolescence allowance. The allowance is due when the plant is sold or discarded, except when the business is closing down, whether the plant is replaced or not..
Any profit on sale, except when the busi- ness is closing down, shall be treated as chargeable.
RENEWALS
It should be noted that a claim for re- newal under this subsection will be limited to the cost of a replacement in the same style as the original, e.g. a factory build- Ing constructed in timber and containing 100,000 square feet of floor space is re placed by a new building in concrete 'con- taining 200,000 square feet of the floor space. The renewal claim would be limit ed to the estimated cost of building a new factory of the same size and in the same materials as the old one, the excess being considered as capital expenditure,
It is open to a taxpayer to claim the cost of renewal in place of depreciation of plant machinery and fixtures. There is no objection to his claiming renewals of one class of plant and depreciation of an- other, é.g. a manufacturing concern may claim.depreciation on its factory machin- ery and reriewals of its motor lorries. It will not, however, bo permissible to claim depreciation of certain machines in the factory and renewals of others.
DABAD AND DOUBTFUL DEBTS Profits are to be computed by reference to the full amount receivable, whether ac- tually received, or not. There is conse- quently provision for the allowance of bad and doubtful debts. The allowance is not for sums, credited in the accounting year which subsequently become bad, but for amounts which become bad during the period, whether credited during that previous periods. In making a claim un- der this paragraph it is, therefore, advis able to: submit a schedule showing, in the cape of the larger amounts, why they are considered to have become bad in ; the period under review.
or