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APPEAL OVER PROFITS TAX HEARD IN COURT
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A dispute over the liability of cortain profits to bo taxed formed the subject of jon Appeal hefore the Puisne› Judgo, Mr. Justice E. H. Williams at the Supreme Court yesterday. The appellant was the Commissioner of Inland Revenue, represented by Crown Counsel, Mr. Hooton, assisted; by Mr. C. W. Norris. Act- ing Commissioner of Inland Revenue.,
that enme within the heading "from the trade carried on."
The respondents were Jeb- sen and Company, of 12 Ped-
Crown Counsel Grgtied the Jaw der Street, who were repre-
was if the company had paid the sented by Mr. John McNeill,
currency for the necessary pur- Instructed by Mr. H. J. Arm-
pose of the trade which if currled strong of Messrs. Descona.
The appeal was by way of case any appreciation in the ex-
change giving them
lurger stated from a determination of gain than anticipated would form the Board of Reylow given on
such a proft, but if; on the other March 23, 1949, to decide whe-hand it entered into purchases of her that determination was a foreign exchange as a separate orrect one in point or fact and speculations, that was not conhect- ed with its normal trading and a happened to make a mix on that then that would not be a bushnera
B.
The Commissioner of Inland Revenue had. previously decided in his determination that the, res- pondent company was liable to las on the firm's profits, and the Heet of the Review Board'n de- cision was to exclude, a sum of 3,091.67 from the axuble pro-
The question, as pointed out by appellants,
whether
that Adard was right in deciding that 1,901.87 was not subject to pro- its tax and whether they were right in law in excluding that sum from the amount which would be taxed.
Summed up, the Board's drei- sium was
We being unanimously of the opinion that the said sum a! $30,091.87. was derived from 20 ppreciation. In the value of C. 8. Dollar balance,and,,not a profit arising. from the sale of goods in the purchases of which Euch dollars were
Mr.
Hooton submitted that dealing in foreign exchange was part and parcel of their business as import and export merchants, that they could not carry on their business unless they bought and sold foreign currency and there- fore such activity could not be re- arded as a separate trade.
He
In
Deposits In U.S.
the wald
deposita America held by respondents were not kept as Capital, and the Inland Revenue was not keeking to tax Capital pront Counsel
sald the money was used for trading purposes and
THE CHONA MAIL, TUESDAY, JULY 5, 1849.
Vegetable Market In Action
Some, 2,000 bidders attend the Government, Vegetable. Wholesale, Market daily to buy vegolables coming in hourly, day and night; by road, rail and·sed. The Mar- ket handles, i av 3,000 pieuls of vegetables dally Successful bids are recorded on á huge blackboard by which the sellers enn compare the prices of different lots.— Francis Wa Photo.
A
Running Vegetable
Market Is Complicated Job
profits from such trading trans. The Hong Kong former has now come to realise
actions
must be regarded મા trading profits.
Mr, calon said In toving pen- vere applied and ats che must measure profits on that the said appreciation had the difference between the pur- attached to the dollars before chore and selling prices of goods, April 1, 1947, held that the item and if there were variations
that the Government Wholesale Vegetable Market holds more bonefits for him than the previous arrangement whoroby ho sold his vegetables through middlemen.
of $36,991.87 w was not Assessable exchange between these they The management of the Government Wholesale
to profits tax and directed that the assctament as determined by the Commissioner do re- duced accordingly.
The Board of Review consisted rf five members of which the choirman was Mr. D.J. Gilmore.
History Of Firm
must not be taken because what the Inland Revenue assessed was the was the actual profits, not estimated profts.
up
to
Vegetable Market is an exceedingly difficult and complex job. The many ramifications and extenuating circumstances prevailing in such a highly perishable trade all contribute to make the smooth running of such an or- ganisation anything but simple.
PHILIPPINE INDEPENDENCE
DAY OBSERVED
More than 500 guests attended the reception at the Hong Kong Hotel Roof Garden yesterday afternoon on the occasion of the third anniversary. of Philippine Independence Day.
The Philippine Consul in Hong Kong proposed the toast to the King, and the responding toast to the President of the Philippines WRA
by the Governor
Sir Al Granthami
the the
Sir Alexander recalled friendly relations between Philippines and Hong Kong and said these relations had been knit- ied closer by the war. Both hnd been ravaged by the same enemy, and both had the same problems of rehabilitation to face.
Tegurding a basis to be taken for the cost of goods bought, Mr. Hooton pointed there had never
Teddy Guzman and his band really keen on apreciation in the
U.S. value
enlivened the doilara
proceedings with The small problems which arise meats jot to enlighten the generat their music which kept the guests Mr. Hooton, first traced the bis-enanry 1, 1947. He said the only
almost every hour of day as well public en the tremendous con- in a merry mood for more than
marketing two hours. tory of respondent firm which, bepreciations was against what he
as the major problems which arise [tribution which this call the ct legal or free said, had changed partnership market rate.
as seasonal vegetables are intro-scheme is making to improve the twice with the death each time of
and in- duced all tend to lay added rec- Jeconomy of the farmer ponsibility on the management.
crease production in the New The enforcement of Marketing Territories.
Under the present set-up the Regulations concerning Imports
11 of which have market camiot in any way con- and seed to safeguard the trol prices to the public. All that f:umers
ers of the Colony, call for fein be dene to keep prices rea- sonable is to increase production constant supervision.
The physical and organisational to the extent that it vill meet
1041.
"Mr.
McNeill, yeying for the the two partners since December, defence, declared that d. appeal London, Jaly 2.
recom- was When the firm
based 01 mit conseption, Hong Kong, Singapore and menced business after the re-which arese,
he said, when the Crown Counsel said that pots Malayan students were host: occupation carly in 1940 in Hon
and were
difference between Bie on Thursday at a reception held Kong in the import trade
the
and selling prices of purchase M.
goods, That, he submitted, was o complete misapprehension of the positionet said the annual profits against which tax was chargeable
ar trrusnction but the difference were not a receipt from a perilou
Rosario From
proprietor
Wils
Valuation Of Assets
been
CARELESS DRIVING.
Lieutenant, of
Mark S. Bentley, Surgeon- HMS Belfast, came before Mr. Hin-ching Lo at Central yesterday on three
falling to stop after an acci- dent and driving without a licence.
problems of the marketing or-the tonimon demand.--(Contrl-charges of careless driving, gunisation are, by no means, the busted)." most difficult ones with which the management has to contend
The maintenance of an der. between buyers And sellers, between exporters and
Armed Robber Case Resumed
It was stated in court that on July 3, St Reynolds was driving along Wongnelehong Gap when,
agents, at the British Council build-acting as steamship
Mr. ings in Grosvenor Square. Il was one of the series it which Jebsen.
Dealing with the facts leading Colonial students are enter to the present case, Crown Cout faining British friends during sel said the firm had certain sums "Colonial Month".
Jon deposit in banks in the U.S. A. which, the respondents said, were Miss P.
Honge Kong gave a delightful talk em- be with the dem from mem- }between a position at, the egli standing
of the Jebsen and Jessening of the Gruncial year and the phasising that England was not families, former partners of the end of that year.
Importers and between controllers Hearing of the case against about 30 yards from a road block, strange to student from Hong fam. As a result at the occupa-
and controlled are the most dim-Chou Kan, who is charged with he came upon a stationary pri- Kong, hecatase The influence of tion of Denmark these assets were
cult aspects of
of management. possessing arming and ammunitions vate cur. Enquiries revented that the West was very strong there. frozen by the American Covers-
Since the farmer Is the man and conspiring to commit an arm-n black car from the opposite People listen to the B. B. C..ment. However, these blocked ne- The respondent's position, Mr., whom the organisation serves first ed robbery, resumed at Kowloon direction had scraped the side of especially to the news and big counts were allowed by the U.S. McNell said, was that after an and forenist, he receives every yesterday.
the vehicle and had failed to stóp. aport events, she said. They also Government to be used for the interval of the war, they resumed consideration when his problems Representing the defendant, Mr. 51 Reynolds chased after de- rend English newspapers, such as purchase of merchandise in business and they had certain are brought to the notice of the Percy Chen, instructed by Mr. J.fendant's car, and stopped it at the London Times"
the America unti
for shipment to Hong assets on which they had to pince. management. Every
Stewart of Messrs. C. A. S.Repulse Bay Hotel, possible News "Chronicle," although they Kong or other parts of the British in value. He submitted they were
Pleading gulity
all the effort is made to meet his needs Russ & Stewart, cross-examined
said that ho are five days late.
Empire.
Detective Sub-Inspector Ip Man charges, defendant entified to place upon those assetz
in the field of marketing Miss Rosario, who comes from Having availed themselves of the market value at the beginning
of the or-wal, IOD of the In the beginnings
Trilumshot possessed a naval driving licence Miao, mentioned the variety of this opportunity, and sold goods of the year. which would give gisation it was long and in-police station about the usual and thought that it covered driv educational
to get in Hong Kong, systems in Hong so bought
volved process Mr.them
the farmer procedures of delivering prisoners ing in the Colony. He said that he 4 proper valuation.
was blinded by the lights of the Kong, including Portuguese, Chin-Hooton sald, the respondents
Counsel further submitted to understand what the markerim the cell to the CID offen.
Delective Sergeant Chung Hong other car. ese. Indian and English, She, her-treated their earnings in this way:
that a company was entitled to really could mean to him. It was
Iniso of the Tsimshatsul. Police self, after beginning with a Portu On each purchase of goods they
make out its accounts in any
compulsory
tation testined that be, on the suse education, changed over to debited their purchasing account way it ilked, so the mere fact education when the farmer had instructions from Detective Sub- English and took a London matrie | with the cost of the goods con-
learn that they had chosen to credit to
it worked. and learned Pitman' shurthand. verted at the estimated free rate
For an exchange reserve fund with derinanach about the scheme station's CAD office, hall brought ALLEGED ASSAULT
long time he did not uk. Inspector J. Hidden of the pollee The English members of the ut
certain increment did Exchange Equalisation
was told, he defendant from the station cell Account audience were delighted with her exchange and credited
affect the legal position at the just did
to be questioned in the CID office..
ON WAITRESS cicstription of the suminer moon- with the difference between that
Mr. McNeill argued that proffis
people argued ⚫ with him When maked by the prosecution Sight nights in Hong Kong-es-rate and the official cale, instead could only arise if the gold dollars of the Anancial anit, rice, or
year were valued nleeping out all night.
03
Or necount
their their
ព
no
more or less a case of
he
how
ណ hc
them belleved
to
A fine of $75 was imposed.
pecially on the beaches, swim- of including them in their profits at the beginning at a different, is slowly beginning to realise what jufce, Chung Hong said the had Kong, appeared before My. I
wing, eating ren lively
and
Mr. H.T. Wa, also from Hong
Kong, presentel photographs on The screen
creen Tepicting both
the
pean and Chinese aspects of
Terle Kong fe
Afterwords, studenta zed guests tock refreshments in another roam
Property Purchase
Confirmed
Actual Profit Alleged
it was the con
contention ct the
sad there
HO TIN COMPRADORE
No. 5, Queen Victoria St, Hongkong. Tel: 23574.
that the scheme was no good whether or not he had assatified, Charged with common assault. but time or threatened defendant while Private Erick Knight, aged 19, of has had it effect and the farmer peorting the latter to the CID Headquarters, Land Forces, Hong Mr. Hoojan sald as 91 Decem• rate, ber 31, 1947, that Exchange Summarising, Mr. McNeill satt Bends the scheme holds for him.no
Wicks at Kowloon jesterday, Equalleation Account showed a profits for taxation purposes was
Among the witnesses who testi- The proseculioni alleged that credit of $38.99137, WATCH was the difference between the opening
Continuous Servico ned yesterday was Mr. Wong defendant had assaulted Trim Lin, the figure
with which the of the accounts of a firm and the The importing of vagelables Hing-lam. Intepreter of the police aged 20. waitress of the Star Crown was concerned
with a choir. in this close of the accounts at the end through the marketing organish-station. Br. Wong said that he Hotel bar room case.
Injuries to the of the year. He said pronte were on calls for a round-the-clock aided DIS Hidden in testioning causing scalp Crown Coupure! gald respondents not the difference between
the service. Vegetables are coming in defendant in the CID office, waitress, and talked together for the rest bought American podivus their purchase and sale prices out both by road, rail a d sea. Whe- adjourned to this afternoon.
was ordered to be at all hours of the day and night The ease
WIK The case
adjourned to of ble evening. A display of available upla
In the Counsel further pointed out two
(July 12, Photographs of Malaya, Hang U.S.A. bright: the goods to kinds of profits: the normal tradether they
rive at the railway Kont and Singapore attracted Hong Kong, sold them in the or-lug proft, and the present profit station or at the unloading plera much attention.
janinry
course of business and the taxation of which the rea- the unngement is responsible for io availabib hualnego rule but is not a pondents were disputing. Tir, reeing that transpe to the husiness profit only a gain
been no
to get the produce Lo the market. Arising from the appreciation pf evidence to support that the Com-
The 2,000 bidders, among p value of the U.S. dollar arnissioner of Inland Revenue was
whom Aro hawkers. shop. against the free, market rate of entitled to require those assets to
Кверого, market stall holders that carency in terms of Hons be valued ir a "netilious man- and representatives from holets Kong dollars.
ner," using the official rate of ex-
and restaurants, are all dealt change.
with in-exactly the same man. Counsel kuld respondents were nor by the mänügöment. carrying on business with their The hawker who..once used to Basets valued at the market value, buy on credit from the middleman Judgment in favour of plaintiff Commisioner of the Irland Br which Counsel submitted was the
how
Day was given by the Chief Justice, venue, dr. Hooton said, that it proper valuation. He said the ap-hawker out
of debt The buyer Sir Leslie Gilson, yesterday in wan part of the actual proît peliants' case was based on mio- generally gets much fairer prices an application for, a confirmatory | which was du fact mado by Jolsen | conception and the whole cas❤ since he can compare the prices assignment for a wartime pro-and Company in the ordinary was based on fallacious argu-
of different Tols with greater ease perty purchase
course of their riport and exportment.
than when he used to buy from The plaintiff was Yeung Yu-usiness.
? After Anal reply by Crown the midlemán, yuk, nipongunda merchant of No. After dealing with the princ!- Counsel, the Judge reserved judg The heading of 3,000 piculs of 18 Wing Kut Street, who claimed pies of taxation in dctermiang ment.
vercloulma đặc cause many he had purchased No' 77-B Holly-taxable profits and the local taxd-
problema In the market It- wood Road, during the Japanese ton ordinance goyaring them
self. Some get damaged, tickets beruption, from... Ng Kwan-Mr. Hooton contended that, the
are test from others bna it. Is In -oliko, Ng, Yung-ho, widow of 49 respondents in bringing the goods
this respect that the management Mityle Streat, and Chun Yik-zule, from America and selling them niin hos Man-lac of 4, Tund here had made profits which could
Chan Kel-chak, aged 18, kunden-have been so completely success-
ful. Chal
Street
both of whom were come within the meaning of the FX d'Aimoda at Central with
ployed, was charged before Mr. Enchi menth slows that lossen clied as defendants,
Young claimed that he paid ordinance of profi grising and stealing IKI20 from the pocket from these causes are reduced.
deriving in the Colony 009 Military Yên Tor the property:
of Mr. Wing Ke at the Cable And During the past Ave months the eWireless office in Pedder Street losses de incurred amount to let On the question of whether but no registration of the trans-
than "^07 of the total amounts action was made with the Japa-Proline mudé hyrespondents on Saturday afternoon
southmelties due to defendants arose or derived from the trade
Defendant had aroused the sus handled... Thid Ingludes unsold.
detective by return to sign the necesary carried on My
which muit ba đồn hin velables
motually cankift; · medi-linaded my
'moment filde to the revent formed an ic. the tunetes and him while taking the money from has been done to get lie public
ochen is otties invitereking. [scheme.: 11 is now the manage=
PICKPOCKET
· SENTENCED
must
artment TANK TOPSY FEAWAN-Dostopkun,auid thef [picion of.a
Pleation Bikermponts, and wes ofverwarde istri bedav
14. PIRKILIFI WAS IEPTEwyami by ate, whatige an
A of Arculit.
and the
The limo zg
D. ^ Le Wright, Instzwoped by Mr. 20 W 10 To complainant' his packat
Durendamewerenhaent and taken into account for the sealsamice, was ihrow months
· wero diótleguttyi represented profils and fo, ning whither limprisonment and deportation,
eash this keeps the
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