Page
NOMOR CHINA MAIL
TRANS-ASIATIC AIRLINES, INC.
NEXT FLIGHT:
HONG KONG TO MANILA HONG KONG TO BANGKOK
HONG KONG TO MANILA
NEW RATE TO MANILA
For Passage and Freight app y to:-
Windsor House
Maging Editor: W. J. Kester.
Telephonest
24354 Editors Reporters & General Ofce 32319 (four fines)'
FRI. 2nd May
SAT. 3rd May,
J
Bobscription Rates!
SUN, 4th May
9 months
6 months
One year
ILK.$18.00 F.K.$36.00 II.K.372.00
DEATII
HK$380.00
SOUTH EAST ASIA TRADING CO. (SIAM) Ltd.
69. Connaught Road West. Tel. 24292., or FAR EAST AVIATION CÓ., LTD. Tor Floor, National City Bank of NY. Bldg.
(Entrance Duddell Street).
Tel. 27250.
FEATI
MANILA, PHILIPPINES
HỒNG HỒNG
to
San Francisco
by
C-54 "SKYMASTER" 4 ENGINED PLANE Agents:
HONG KONG CANTON EXPORT CO., LTD.
3rd floor, French Bank Building,
Telephone No. 28000
Kowloon Offico: Peninsula Hotel Arcade Tel. 65440.
GA.F.E
THE CHINA MAIL, THURSDAY, MAY 1, 1947.
THE GREAT BEAUTY OF AN INCOME TAX
Any vigour I may use in ex- pressing the case for this mea- sure should be interpreted not as an indication that Government Is determined to carry it through against all opposition, but na an
convert attempt to
opposition which is thought to be miseen- ceived......I cannot emphasise too often the apparently general agreement (that the Colony ought to raise more revenue) because I relleves me of the necessity to. answer such objections to Income Tax as that it will Injure busi 21, 1947, at her residence, 430ness by increasing charges and Edinburgh Rand, Shanghai,
costs. Auren Maris Marques, aged 40 years, the dearly-beloved! sister of Pussy and Clary and aunt of Mickey,
MARQUES-On Monday, Aprl
TRADE CONTROLS
IL le the general opinion of economists and is
amply borne out by experience elsewhere, that πιν constitutes less Income tax
cesls of A addition to the true business than any other form of taxation. The great beauty of an
income you pay no.tax.
delecting
of income
By
Sydney Caine
former Financial Secretary of Hong Kong being extracts from.. a speech in Legisla- tive Council in the Income Tax debate of 1940.
should be a
and
mystery of Chinese ac
er eft can sell it to somebody clue. The income from it, how- ever, will remain liable to Hetig Kong Income tax if it in im posed, and it is a matter of in. difference to Government whether that tax is paid by the existing owner or by somebody else who buys his property from him.
change
that.
non-
selling
CARNIVAL
By-Dick Turner.
COPR. 1994 BY REA SERVICE, MO, T. M. REQ, U. &. PAT, OFE
12-30
"Okay, okay! If you want to Public School Number 66. then what's the truant officer'a name?" -
BARCLAY ON BRIDGE
By Shepard Barclay-
"The Authority on Authorities"
FEAR WASTES
THINKING
ten-ace.
оп
I do not deny that there are other kinds of capital which can be removed. The principal type of such capital is actual cash balances which may be placed on deposit with banks or other fintr- cial Institutions and which un- doubtedly have come to Hong Kong as a temporary safe resting place. It is obvious that a non- resident who helds such deposits in Hong Kong might be tempted to transfer them elsewhere if he had to pay income tax on the Interest received from them, and the transfer
deposits of such neoid taxation. The officials of might do the Colony harm. For The instinctive tendency by income tax is that if you have no returns unless he is seeking to
any Income tax department run that reason the Bill which is now commercial interests to disparage.
tax on the principles of the British being examined by the Income
Committee provides of no other I can think ment of Government efforts when
administration will Tax well be income tax could equally it goes into business accounted, no] which doubt, very largely for the criti- guaranteed to avold hitting the be perfectly willing to give quite bank interest payable to
minni who honestly any advice which may be residents shall be exempt from in-
come tax, required by the individual as re- gisins of the Department of Sup. [unfortunate business
has made no pront.
It is alleged not merely that the lies, Trade and Industry, ex-
That people will try to evade gards the allowances to which he pressed or implied, at the annual taxation of any kind is certain is entitled. As to business firms existence of income tax will drive
would extra expenses
be capital away in the future but meeting of the Chamber of Com-but there are means open to Gov- the merce. Controls are bad enough, ernment for detecting many kinds small except in the case of firms that the prospect of it is already I do not know where In the which do not now keep any ne- doing so. at evasion.
For those firms I that information is obtained. -uble, but when the operations of course of the long period during ecunts at all.
tax-has-been in can only suggest that the neces-Movements of capital are notori. Shanghai – Bangkok ---Singapora — Manila ing when admittedly inevit of attempts
a government department are ex-which income
only go by such indications ng traded to ensure that the necessities operation in the United Kingdom, sity of compiling accounts for nously difficult to detect and I can of life are made equally available a very great variety of methods come tax purposes
a lot of people were matter to be regretted. I might are available. In the Brat place to all sections of the community of evasion have been tried and a blessing in disguise and not n
whys of great many
Hong Kong dollars one would na-
Surely he at prices which cur neross the them have been developed. I do here refute the general apprchen-
solute certainty. would-be sion that the keeping of accounts that the empetitive dealings of merchants not suppose
could count on his club K tak local busi evaders are going to publish their in English and the rendering of turnlly expect the exchange rate and middlemen, our
stabilization ar mitted by our the returns in English will be obli.to go down, within the limits per
ing a trick at the luft of the such intention has ness-men would not be themselves methods, but at any rate
rangements; in fact, however,
In the long run, skill in se bidder. His diamond A was a ever existed. if they did rost insist upon the methods announced by those pergatory: no
anybody who has dealings in the The honcurable the senior
exchange market will know that lecting the opening lend pays sure thing for another, and a superior values to be derived from sons who claim to be ou fair with
the ordinary Chinese member has made com- the effective market rate has been heavy dividends. The resource-spade trick seemed certain. If a system of free enterprise, con- the intentions of the evaders are
not different from veniently over-simplified into the stock-in-trade of the tax dodger ments an question of administre for many weeks at just about the ful thinker analyzes the bid-South's shortacss was any suggestion that the men who know all over the world. I have never tion which form the main basis highest point at which the banks ding, makes deductions about where, it would have to be in can fix it under those arrange- what the declarer and dummy hearts, of which West had so the job should do it. The submis denied personally that this ques of his object in principle
of evasion is which I therefore want to com.
a card looked, in the West, sions would, however, have sound-tion of prevention
flight from the Hong Kong dollar. then finally selects
Then West recalled North's by far the greatest problem in the ment upon in some detail. First, menta, That does not indicate any hold, studies his own hand and many. At least that's how it ed more convincing and been en-
tax, with all respect, I do not believe Secondly, the returns which Gov- which promises most for his
the 3-No Trumps bid along. the titled to more serious scrutiny had administration
transactions, details of development of tricks for his way and saw there was danger the Chamber framed them in whether here or anywhere else, in this terms other than innuendo. The but I see no reason why it should counting; nothing I have heard of ernment is now receiving of ex-side. Either it launches answers to the questions posed by be less capable of solution here it suggests that it is very day which it is impossible to publish, own side, or kills tricks for the that any spade loser or losers than in other countries. We are ferent from the system by small do not indicate any such substan- declarer, or else, in a sort of might, get discarded on the the Chairman are thoroughly being constantly told that income businesses in Europe as distinct tial fight. Thirdly, if a nervous passive way, it avoids develop dummy's hearts. It looked as well known to all who have had tax has failed in this country or from the complicated accountancy shareholder were trying to avoiding tricks for the declarer. But if he ought to cash his spade
more spade discards reason to take an interest in thest that. All I can say is that in of big European firms; and the
where it adjustment of such accounts for payment of income tax on Hong all of that skill is wasted some- A before South could get one
Kong Investments he might be
times, in situations where the or common routine expected to sell his shares In matters, and far from reflecting those British countries
from a to the discredit of the Depart-existe today, that is not the cf-income tax is
the prices of the ment, they show that the primary ficial view; and there has been a Secondly, I cannot follow him in Hong Kong companies. In the last leader in afraid to lead away hearts. But he could not bear abjectives have been achieved, if steady increase in the number of, his belief that humanity is divid-four weeks
countries in which income taxed into Chinese and the rest. The principal Hong Kong shares have moved hardly at all-but-what- not in full measure, at least to
successfully applied
occurred show movements have the degree where those control exists and in the reliance which argument that income
upon it in those coun- neyer been
are the facts? As to China itself. These are the only Indications & A Q official policy rightly view is placed up the most impor. to Chinese la appealing, but what an average increase of about 15%. the results with a sense of satis- tant sources of revenue.
it is surely obvious that the ad-from There is only one other, thing ministration, for reasons I need form any judgment as to whether HQJ9 faction. Price control has been!
5 3 2 attendeddy marked success in al-
No D A7 most every field, and as the lawer, which' strikes me in this talk of it claberate, is too weak to en-capital Is leaving the Colony and
evasion-it is notorious that other force any such tax; but there are they suggest that it is not. ing of commercial morality ac
taxes are evaded to a greater or other laws which are not enforced doubt I shall again be told that C K 54
a great deal is going on which the
less extent: e.g. import duties on in China which we still make a counts almost entirely for
Government does not know about zunes of defeat, it is hardly the tobacco and liquor are certainly fair show of enforcing here.
The last main group of objec- and I can only repeat that it is from 100% effective, and place of the Chamber to adopt not
Istions to income tax are of a kind Impossible for the Government to be time to time Government The role of critic. It must
Government ought to know things if the people who a whole obliged to institute prosecutions which abvious, too, that range of commodities, knowledge for failure to pay, say the stamp weigh very seriously, if they are claim to have the information do
West of Government duties or wireless licences. It does in fact true: i.e. that the imposinot take the trouble to communi-
anybody, however, tion of an income tax will drive cale it. of the existence
It is, I believe, asserted in some 1 H stocks, available to throw into the to suggest that these taxes should business and capital away from market and upset the profiteer, be abolished because they are not the Colony. I may say that before quarters that our entrepot trade 2 H
4 C Pass has been a potent influence in quite 100% effective, and if the the proposal was brought forward makes Income tax unsuitable. I Pass the case of in this Council at all Government say assorted because I have never Pass
busi- heard establishing Hong Kong's relative suggestion is made
certain leading
attempt to prove or Dhi uny the past
several income tax I cannot but suspect consulted
the statement. I Even with the warning of stability over
is that it covers some other motive, ness men and was assured that even explain months. The merchant who
It is abjected that the tax will come tax at the compara. have heard the echoes of a good
proposed would tively low rate satisfied with a fair margin of
many discussions about Introduc. Bouth's terrific profit has, in fact, little to fear cause a great deal of extra pri- not have any such effect. I still ing income tax in various coun- which he gave in the bidding. curious how un- West could hardly be blamed from the hazards of trade under vate expenditure particularly in believe that that advice was entries and it la present-day conditions. Most of the keeping of accounts and pre-tirely sound. Again I would like animous the opponent always are for doubling that cleven-trick the illustrations that could be paration of returns. The ordinary to remind, honourable members that their particular country is so contract. He did not have a vulnerable.)
works else. big set in prospect, but the, given of traders who have suffer man will not need any expert as that this is a tax on incoms and peculiar that what ed heavy losses on various trans-sistance in the preparation of his not a tax on invested capital as where will not work there; but likelihood of setting it
or on the conduct of brusi- the common plea is rather the trick appeared actions would prove, on test, to
ness us such. The imposition of opposite of this particular theory. concern speculative imports and
It is usually argued that income income tux will impone no hin- drance to the setting up of a busi- tax is not suited to agricultural
income tax is best fitted to secure bad judgment. It may also be noted that any reference to in-
ness here, and it that business is countries but only to trading cont-maintained, I do not believe that Council will venture to deny that not successful it will pay no taxmunities. Government is certainly capital will cease to come here.
The general objection tu all, an equitable distribution of the dustry was conspicuously absent
It it is successful.I do not think not lacking in solicitude for the from the Chamber Chairman's 1
that the man who started it will re-export trade, as our reluctance the alternatives is that none of burden, and I think it would be speech, though it is probably pure» ↑
go away because he finds that he to impose the full system of ex. them approaches an income tax discreditable to us all if we were ly coincidental that it is at the
has to pay a proportion of his change and Import control de. In the extent to which it can be to falter in the attempt to secure.
and it is Again, monstrates;
Govern- adjusted to the capacity to pay that ideal of justice and equity proits to Government. same time an acknowledged fact that local industry would have
that is not true of any alternativement's view that the nature of our of the individual, and, therefore because of minor difficulties and had a very difficult time in its bid
tax. Increased rates, a sales tax, trade does, make very undesir. In fairness of the distribution of expenses of administration. 1. for rehabilitation but for the '
higher charges for electricity and able many kinds of taxation and the necessary burden of taxation, would like to close by pointing that strenuous efforts of the Depart "Persons desirous of hold- telephones would all be burdens many restrictions, but I cannot in that connection I suggest that sentiment with a personal exam- ment of S.T. and I. in obtaining ing Shares in The Hongkong on a new business from ts very see how that trade la damaged by there is something unfair in the ple. It so happens that none of
and Canton Steam Packot Com commencement and
a tax which imposes no hindrance criticisms of imperfection which the alternatives which have been and bringing forward essential raw many are requested to apply not it was profitable.
whatever to the free inflow and are levelled against the suggested suggested here or elsewhere, would materials. Credit should be given without delay either to Mr.
Hong Kong has had and still outflow of goods but merely asks income tax. Because Income tax caller any appreciable sacrifice account in due professedly attempts to adjust the on mytown part; only an income where it belongs and there must Campbell In Hongkong or Mr. has certain advantages to offer the trader to
profits of those burden fairly. In a way that rio tax will really hit me. The amo be few, Chamber or no Chamber, D. Jardine in Canton."
to business and manufacture, fe.course for the
other tax pretends to do it is hot must be true of many others In almost unique hartransactions. security,
very ly criticised because it does not the higher income groups. Car- who do not recognise the debt
administra. For these reasons I am that Hong Kong's economy, in- "Of late. there has been a beur facilities; an dustrial and commercial, ewes to lack of local news; and this tion which we can claim to reach strongly of opinion that the econo. reach 100% fairness. I have attainly I could not feel content
freedom from income tax have been attor the activities of S.T.I. since Sep dreamy weather people-look a high standard of honesty and mile consequences of imposing asks of demanding the abelition which merely diverted my share
BRAATHENS
SOUTH-AMERICAN & FAR EAST AIRTRANSPORT A-S C-54 "SKYMASTER" 4-ENGINED PLANES FROM HONGKONG TO:-
BANGKOK
CALCUTTA
KARACHI
CAIRO
PARIS LONDON OSLO (terminal)
Expected 'departures from Hongkong:
3rd May
11th May
22nd May
No priorities required to or from any
destination.
Fur Ponsage & Freight bookings Apply to:-
WALLEM & CO.
Agents: Hongkong & Shanghai Bank Bldg.. Tels: 3-2177-0
Chinese Freight Apeut;
HIN FAT & CO.
Tel. 23463
CENTRAL AIR TRANSPORT CORP.
Shell House-Queen's Road Central. Hong Kong
t
Tels. 23278, 27811, 27855, 58948 SERVICE FOR PASSENGER & FREIGHT⋅
AMOY
HONGKONG
то
Tues., Thurs., & Sat., CHUNGKING Sat: KUNMING --Tues.; & Thurs. LIUCHOW Tues,, & Thurs.
on
while everything is in short sup ply and the Colony is compelled to
not occur to
100 Years
Ago Today
(Excerpts from The China ** Mail, May 1, 1847)
•
such
tax hos
whether or
which
I personally
These ad-mously exaggerated.
I
can
vulnerable.)
SKJ 844 HAK7G DQ 8
C JG
2
S-10 9 7 5 N WEH 10 4
S
D043 CQ 97
to lead from a holding of the A-Q.
Dhat fear gave South his the *niade West contract.
Q. "book" lead of the heart Two top hearts then onabled South to get rid of his only spade. Thereafter he could not possibly lose anything but one. by trick each in the minors, finessing his clubs,
Tomorrow's Problem
SQ82 HA 86 D 9 7.8
CA 9 8 6
S 3
H 8
DK J 10 GGZ
CA 10 8 32.
(Dealer: West. Neither side
►
1
North
Enst
South
1.9 S
Puas
2 D
SJ 93
Pass
* C
HK 975
3 NT
Pass
4 C
DJ'6 4
5 D
C.K 7 2
S
SK 66
distribution.
N
SA 10 7
4
W EH QJ S
-H 10 4
DK B
JC Q J G
DAQ 10 5 27
C 10 4 3
(Dealer: South, East-West
Who ought to open the bid-
one ding of this deal, and how far
to be an ab- should it proceed?
sangatú ekk
teady suggested: that nobody alternative taxation were adopted am of other taxes because they are of the burden to others less able temper, 1945. It would be an forward to the arrival-of-the impartiality, and error to deduce from this success mall with an unusual degree of irksome restrictions,
soine that the invasion upon normal interest. Apart from the more vantages will remain and when more fnclined to believe that he not free from evasion, and nobody to bear it.
yooda Moscow, Apr. 29. of the wilder talk about the cause exactly the same prognosti. thinks of abtillshing the rates be- natural A
Imposition, of an income tax has cations of disaster have been made cause the asseraments de nei cor-
An American engineering firm commercial practice will continue Indulgence of
other countries, respond exactly with the periodi curiosity to know what the
a Soviet contract sound in principle under every world lo about, this mall is one died down. I do not believe that repeatedly in variety of business conditions of much Importance to foreign the enterprising business man without ever having been realized cal fluctuations in the actuni will refrain from coming here to
to so far as can be shown by actual rents of properties; but for In has secured What is sound and; necessary to residents in China,"
Even with regard to the come tax other standards are up for the construction," of “a make a profit merely because that facts. day-and-will.continue to be .so
profit will not be quite so large more fluid kinds of capital for plied and it is practically suggest $0,000,00 gas liquefaction plant as it might have been. It is, how-which we have actually suggested ed, that unless we can grants capable of liquefying 4,000,000 "H.M.8. Royalist, on her ever, alleged that the existence special treatment it is extremely 100% emciency it will be grossly cute, feet of-natural-gas dally. passage to Singapore called at or prospect of an income tax will instructive to note that the high inequitable even to attempt that The plant, which will be one of its most vital needs, might well Turon, In Cochin China, And drive capital away from the Co. rates of income tax prevailing in tale distribution of the burden the largest in the world, is ox- prove detrimental in a true peace demanded the liberation of Mr. Tony and is in fact doing so. There the United Kingdom have never which is rightly, claimed for pected to be completed by 1949.
some are few things about which more prevented enormous influxes of if we are to choose between one-Router
another I would London when the ner- kind of tax time economy. But significantly, Victor Howes, ....... who,
onctuense is talked than about money the Chamber made no attempt to months ago was wrecked
moment choice on grounds merely of con adduce argument, much less avi- that coast. With this demand capital being removed from a youte, capitalist in Europe has sak that we should not make tho
administration. If the authorities complied, and country. The bulk of the capital thought that for them
How was Carried on to invested in jong Kong la invast London would be a safer place venience of $1.80 per kilo, dence, that Hong Kong in a position safely to leave things to
*Bingapore
ed in property, and, in plant and to losep his money in that in any of very rest importance that any the "unrestricted" "Inter-nction of Arrave published equipment of 31 Minds for examples financial entre 1. believe tax of the magnitude we are dies in
blity, equitably,|| enterorisc
the ple the cables of the Mughes that the capitallay "more inter- cussica, alioiuld be levied not merekli Krul in the
solid be placed on the shoulPot
SHANGHAI ..... Tues, Thurs, & But
AMOY CANTON
ALL VIA CANTON
NEW TARIFF FROM DATE
CHUNG NG
KUNMING
LIUCHOW
(FARE)
HK$189,
(FREIGHT)
rely on world' allocations to meet
Commerc
The U.B.
an