10
CHINA'S NEW INCOME
TAX LAW
Status Of Extraterritorial Foreigners
DIFFERENCE IN ARTICLES
No Enforcement Regulations
(BY DR. K. M: MARX; PH.D.)
The much expected and discussed Income Tax Law was passed, apparently, with many important changes from the original When, whether draft, by the Legislative Yuan en July 9, 1936.
and in which form it will come into force is, at the time being, as unknown as the question of enforcement regulations which, according to Art. 21, are to be drafted by the Ministry of Finance and are to be put before the Executive Yuan for approval, Apart from some points of vagueness in the present free translation of the Chinese working into English and which are to be settled as soon as the official text will have been-published; the enforce- ment regulations will be specially important in a law like this because the difficulties in executing such a law are specially great according to the experience of other countries more advanced In this respect. And these difficulties are even greater if a law as the present one shows-in many important points-doubts and possibilities of misunderstanding as even a superficial pe rusal will prove.
MATERIAL INTERESTS OF MANY INJURED
The question of "taxation of side and more convenient for the foreigners." expected with special tax-payer on the other side. This
not interest in foreign circles. is is true, for instance, specially for mentioned in the law itself, Ac- the income tax imposed on salaries from on interest accrued cording to the reports given about and
The anticipation ex- the discussions in Nanking the bonds, etc. Government seems to intend to pressed in some quarters that the levy the income tax on those tor- income tax will have to be paid in cigners who are under Chinese advance on the basis of an esti- with mate Jurisdiction. The rest lles
of the anticipated income the enforcement regulations. But seems to be unfounded according It may be said here-as far as the to the free translation published. principal question of the position of the foreigners goes-that the material Interests cf a big propor- tion of foreigners-those who do not enjoy the privilege of extrater- and titoriality will be Injured Influenced by the new Income Tax Low to a considerable extent, since
'à foreigner under extraterritorial-
530 PER MONTH EXEMPTION Utterly contradictory to the ex- perience of Western countries is the scale given in Art. 3. ↑ and 5 in connection with the amount mentioned as tree of income tax: without any reference to the ques- tlun the particular statistical base
ity does not only benefit by a speci-on which the scale has been work-
ed out by the Guvernment and in
al jurisdiction but would also get consideration of the absolutely dit-
an important advantage by not being compelled to pay any in- come taxes.
HONG KONG DAILY PRESS, TUESDAY, JULY 21, 1936.
KOWLOON INDIAN LEAGUE TENNIS INTERESTING
TENNIS CLUB
Annual General Meeting
The 9th annual general meeting of the Kowloon Indian Teanis Club was held on Sunday, July 19 at 3
D.D.
In the absence of Mr. Mahan Bingh, the President, who is on holiday in India, Mr. M. A. Khan (Vice-President) took the Chair. There was a large and distinguish éd gathering. Those present in cluded Messrs. M. R. Deb, H. Pritam Voswani, 8, S.
and Mamak Sabanan,
The Secretary and Treasurer's reports showed that the Club was In a good and healthy condition.
|
RESULTS
K.C.C. Beat Recreio In Mixed Doubles
TENNIS TO-DAY
CHINESE TO BE TESTED BY K.C.C.
The most Important match in Iri tre mixed doubles of the "A" division in the Hong Kong Tennis the "A Division Tennis League League the Kowloon Cricket Club for this afternoon is that between and the C. R. C. beat the Club de Recrelo by 7 sets the K C. C. to 1. The matches were played at "A" on the farmer's courts,
Kowloon have quite a strons the K.C.C, ground.
Chinese a real fight. K. C. C. wit depend on the Fincher brothers for the majority of their sets. If they can get three sets the other pairs have a very good. wo
THESE JAPANESE
VISITORS TO
HENLEY TALK IN SMILES
BUT THEY ARE REALLY NOT SO HAPPY
บ
E. C. Flasher and Mixs OL Dalziel side and are expected to give the Just A Bit Homesick! beat A. V. Remedios and Miss A. Roza 6-3; beat C. A. Barretto and Miss C. Botelho 6-4; beat 4. V Gossho and Miss O. Rebeiro 7-5,
E. F. Flocher and Miss Grimths beat Remedios and Miss Roza 6-1; chance of getting the other two beat Barretto and Miss Botelho 6-1: Guest is playing very well his drew with Gosano and Miss Re-Year. He has adopted a het game
beiro 8-6.
G. Bodiker and Miss Mackenzie lost to Remedios and Miss. Ross 5-7; beat Barretto and Miss Botelho 6-4; beat Gosano and Miss Rebelro 6-3.
U.S.R.C. v. K.C.C.
at last. although there is still room for Improvement.
Clark and Bodiker still remain
The following officials were elected for the ensuing year:-
a "steady pair and are able to President: Mr. Mahan Slagh: Vice- Presidents: Messrs. M. A. Khan and
do big things if they are in form. C. R. C. will depend on the Tsu H. Pritam Vaswani; Hon. Secze
brothers and Wong and Luk The tary: Mr. Jahan Dad; Hon. Trea-
Tsui brothers are bad starters and surer: Mr. I. Mahan Singh: Bár
At the U.S.R.C. ground yesterday, there is a chance that they might Convener: Mr. Gurbachan Singh the home team beat the Kow-lose to the Fathers if they meet Grounds Representative: Mr. 6. Soon Cricket Club "g" team in the first. Wang and Luk appes" to Mamak; Tennis Representative: Mr. S. A Husshin: Hockey Repre- sentative: Mr. Khadim Hussain.
General Committee:-Messrs. G. M. Khin, Ahmad Khan, M. Firdos Khan, M. R: Deb and A. P. Sousa.
After the annual meeting prizes were distributed by Mrs. H. Pritam!
Vaswant to the winners of the Club
Tennis Tournament. Miss J. Mahan
Singh presented Mrs. Vaswani with a bouquet.
Results Club Tennis; Tourna-
ment: Singles Championship (challenge cup presented by Mr. Mahan Singh): Winner. Mr. M. Firdos Khan: runner-up, Mr. I. M. Singh.
Doubles Championship (challenge cups presented by Messrs. M. A. Khan and H. Pritam Vaswani): Winners Messrs. K. Singh and G. Singh; Runners-up. Messrs. M. A.)
Khan and M. Firdos Khan.
Singles Handicap: Winner, Mr. T. M. V. Devan: Runner-up. Mr. H. S. Mamak
Doubles Handicap: Winners, M. Ramzan and Jahan Dad: run- ners-up. Messrs. G. M. Khan and Ahmad Khan:
OLYMPIC SOCCER. FESTIVAL
Berlin, July 19. Britain has been drawn to meet
ferent purchasing power of the Chinese population it must be sald that an amount of $30 per men- Logically, therefore, the renewed semi as free of, incume tax can. establishment of two categories of even in China, never mean what Chiria in the first round of the of the Olymple foreigners would be useful to those it should be le, a minimum income football section foreigners only who already enjoy on which
per Games. every individual, the privilege of extraterritoriality, average, should be able to live. That means it would create just
The amounts of tax as published such an effect which certainly does are so minute in the lower cate- not correspond with the stand-gories that the costs of collecting. point of the Chinese, Government.
even if the system is efficient and elaborate, would take a consider- able part of the State's gross out of this tax. Even in taking the local conditions of China into con- sideration one is compelled to ask. whether it would not be better in che interest of both the Govern- ment and the tax-payer to .com- bine a higher amount of income, free of tax, with higher tax rates for larger incomes.
It does not seem very logical that a government, which often tried to terminate all kinds of extrater- ritorial rights "should help to in- crease the capacity of competition of those who driföy extraterritorial ity to the disadvantage of those who are under Chinese jurisdie- tion. The privilege of every coun- try and of every government to impose taxes on all people on an equal base is, of course, in 10 Apart from the impossibility of way affected by these arguments. treating Chinese and foreigners in Whether the system on which the same manner with regard to the amount of income, free of tax, the Income Tax Law is based as a whole is appropriate may not be it is striking that no difference has discussed here for it demands too beeen made betweeeu a bachelor, voluminous explanations.
a married man, or a father with But the of
regu- family, though the latter, the same and income assumed, can spend much striking 50
should less money per head that the sin- The possibility of mak- agle man.
ing life insurance and other forms
points
are
some lations obvious that
be
they mentioned even
short perusal
in
TAX ACCORDING TO FISCAL PRINCIPLES
In the same round, Japan wil meet Sweden- Reüler.
According to Art 3, the tax im- posed on an income of $300 per mensem out of a capital of $10,000 would be $360" per year.
Under Art. 4, a-d, the same in come would have to bear a tax of $153 per year:
Whilst according to Art. 5, a-t, the tax on à monthly salary of $300 would ahorat to $5.50 per mensem or $66.60 per year.
BUSINESS ÉISKS
Quite apart from the lacompre. hensthie diference between the tax rates according to Art. 3 and
Hong Kong Tennis League.
be playing very well at the mo- L. Goldman and Mrs. Wilson beatment. they did very well against S. A. Gray and Mrs. McCaw 6-1; the I, R., C. winning all three sets. beat 8. S. C. Burnett and Mrs. Kung and lu do not seem to com- Horsford 6-2; beat N, A. E. Mackay bine very well and are the weak- and Mrs. Stokes 6-2.
est of the three combinations. Two sets might be snatched by Kowloon from this pair.
A. L. Sullivan and Mrs. Holmes lost to Gray and Mrs. McCaw 5-7
lost to Burnett and Mrs. Horsford
1-6; lost to Mackay and Mrs.
Stokes 1-6.
Capt. J. D. Milne and Mrs. Ash- ten lost to Gray and Mrs. McCaw
4-6; beat Burnett and Mrs. Hors- ford 7-5: beat Mackay and Mrs. Stokes 6-1.
ון
BRILLIANT BOWLS BY A. E. COATES
BEATS HYDE-LAY AFTER 27 HEADS
in a game that was featured by fluctuäting fortunes, A. E. Coates (C.C.C.) 'defeated A. Hyde-Lay (K50% on the C.S.C.C. green yesterday by 22 shots to 18 after 27 heads in the Quarter Finals of the Open Singles Lawn Bowls Championship.
The game was extremely in- teresting and closely fought throughout, Hyde-Lay after lead-
ing his opponent by the score of 13 shots to one on the 10th head was from then onwards öter- shadowed by the brillánće of Coates
On two or three decailors Hyde- Lay was lying, but dates with deadly precision dislodged the woods to claim the shots.
An exceptionally thrilling mo- ment was on the 25th head. Hyde-Lay was lying three with his acore at 18. Coates had 19. With his last wood. Coates, with deadly accuracy sent in his last wood in between his opponent's shota and a single to took the head with indke the score 20 to 18.
A two on the next head gave Coates the game
GAME POSTPONED
Championship between
The Open Singles Lawn Bowls
AL.
GERMAN SWIMMERS GIVE HOPE
The match
worth should be both teams go in both are hitting and
watching as for hård keen to win.
that
ANOTHER GOOD GAME Another keen match should be between the Recreto and the I. R. C. at Sookumpoo. Re- creto, last year's runners up. are looking forward to winning the shield this year and should come very near being able to do sg. In (A.V.) Gonzalves and Remedio
any they have a pair equal to other in the Colony, whilst Gosano and Barreto are not far behind. The I. R. C. will be considerably strengthened by the reappearance of H. D. Ramjahh, whò, last week. was unable to play owing to a sprained ankle. The match should be very even with the odds in favour of the Recrelo
The full programme as fol- lowa:
K. C. C. v. C. R. C. (.. C. R. C. (2) v. U, S. R. C.
I. R. C. v. Club de Recreio. H. K. C. C. v. B. ¤‚ ̧ À‚...‚‚¦
ST. LOUIS WINS DOUBLE-HEADER
FULL PROGRAMME OF MATCHES
Baseball Results
New York, July: 20. The following were the results of the League baseball matches played to-day..
NATIONAL LEAGUE
Philadelphia Chicago
R. H
1
13
3
2
8
B
Philadelphia. Chicago
4
#
0
4
2
A. Broolyn
New York
Cincinnati
New York Cincinnatti
10.
2
Baston
yt. Louis
Boston
4. the result of this' strange "sys-Gutierrez and Shepherd which Pittsburgh tem" would be that a business man was to have been played on the who risks his capital will be pun Kowloon Deck Green was post- ished with a five-fold income tax poned, and will be played off to- in comparison with an employee morrow on the same green. who gets his salary regularly with- out any risk of capital. An en- couragement to invest capital for of voluntary private old age pen- business and to risk it thereby sion popular by making them free seems scarcely to be given by these of income tax to a certain amount principles. And even from a cer Thus, it seems to be doubtful
as in other countries, has, unfortain political point of view. it may whether, for example, it would not
create a very unpleasant feeling to have been better to abstain from tunately, not been used. calculating a tax on the basis of WHOLE SCHEME UNSYSTEMATIC realize how unjust capital is treat- Moreover, the amounts free of ed by the regulations of this new a capitalization of business under-
"Hong Kour Daily Press Specísti takings (Chapter 1. Art. 1, class A, income tax and the whole scheme law.
Doubtrai remidis the exact legál
Halberstadt, July 19. a) and, accordingly, to impose the of tax rates seem to be rather un-
acording to and economic interpretation of One new world and two national tax upon a percentage of a capita-systematic: whilst, lized income, calculated according Chapter 2. Art, 4, earnings of busi- "net profit" (Art. 7. a); is it identi records at the German Swimming to Ascal principles. Whether prim-ness establishments which cannot cal with the profit as figured out championship competitions at Chicago
the Philadelphia.... ary school teachers (Art. 2. b/3) be calculated on the capitalization after the usual business principles, Halberstadt. Indicate that should not get higher salaries in- basis an amount of $100 (annual- or are, perhaps, spécial deprecia- German aquatic stars will be
in the St. Louis ly?) will be free and whilst emolutions, reserves, transfers of losses formidable contenders ments and salaries are liable to the from previous years allowed, etc.? Olympic Swimming competitions.
Martha Gerenger established a income tax daly for amounts above Besides it is not clear why-ac-
World And National
怨
Records Broken
St. Louis commu
2
|
7 AMERICAN LEAGUE Chicago v...
17.
D
11 171 Rosenthal and Dykes homered. Philadelphia.......
-5: Bob Johnson, hit a homer.
B
2
3
10
10 13
New York
Ruffing, Lou Gehrig and Selkirk
Lou Gehrig homered.
- stead of making an exemption, re- mains not only psychologically as doubtful as the question of why the income, of non-profit-seeking 530 per mensem (Art. 5) the pre-cording to Art. 9, 10 and 11-re-world record in Breast Stroke for homered. judicial persons only shall be free sent English translation does not porte should be necessary within women by doing 200 meters in 3 of income tax (Art. 2 a). Not make clear how the income cal-diderent periods, while it seems to mins. 27 seconds. The "Charlott. Louis, mentioned at all is the question of culated on the capitalization basis be sumclent if one and the same tenburger Nixen won the 600 New York
(Art, 3) will be treated in this limit of time would be fixed for meters relay in mins. 51.2 seca, agricultural industry and real es- tate, the first of which allegedly respect; a similar doubt remains all tax-payers in due course of betting a new German record, and shall be free of income tax, which, with regard to the question of which the the necessary declara- the 100 meters free style race was Cleveland however, cannot be seen from the which sorts or forms of business tion for the previous period would won by Gisela Arends in German Washington
cannot be calculated on a capita- Late to be delivered,
record time of 8 secs, and her present wording of the law.
By the regulations as provided brother, Heinz established a new Cleveland The experience of other coun-lization basis and which authori
for by the law (specially with re-national record of 20 mink 5.2 Washington tries shows that in many cases the ties will have to décide.
Stone hit a homer. How togteal and injust the tax gard, to interest accrued from difces. In 1500 meters free style. collection of taxes at the source of the income is preferable to individ rates are calculated. is best proved fefent cources) the authorities will In view of these results, Ger- ual declarations of each tax-payer. by a comparison of the different be troubled unnecessarily by many Hany's hopes for the Olymple Detroit
wimming medals are very high and moreover, it is much methods for calculating the tax
Tromsoocan News Bowmize. cheaper for the government on one rates as created by the law:
(Continued on Fats 12)
Boston
--Reuter.
3
(Special Air Mall Service).
Henley-on-Thames, July 2. In a language of smiles and signs the Tokio University Rowing me very plea- Club entertained santly. None of the crew speaks English and the manager, Dr.
but Toshio Azuma, has
a few words. And, regrettably, mý cum- mand of the Japanese tongue just Isn't.
Still we smiled Intelligently at each other and got on famously until Mr. Norizane keda "came along and helped matters out.
•
On the subject of the crew, Mr. Ikeda fluent. He rejoices in the sensation the crew's rowing has caused at. Henley, but is modest withal. Good as the crew has proved itself to be here, br. Ikeda told me that it rows far better in Japan.
ALL VERY UNSETTLING
been to "Not one of them has England before; this is the Arst time they have rowed against a foreign crew and, frankly, they are Anding things very strange. I am trying to make this house a home from home, but so far they haven't really settled down.
con-
"Maybe the weather has had a lot to do with that, several of them are complaining that thes not sleep and one or two have been troubled with a touch of rheuma- tism.
"They find their surroundings here are so different, and they are meeting so many strange people that life really is very unsettling.
He is a former member of the Tokio crew and has cored a Balliol crew in his time. He speaks admir
"All, of course, are in strict able English, and is the Poo-Bah of the party-chauffeur. interpre- training. The daily programme is this: get up at 7 am.' breakfast at ter, guide, philosopher and friends am. and out for rowing prac- of every man.
"
tice at 9.30 a.m.
ALL VERY EAGER
"Lunch is at noon, and then they A white fag with a red spot on have a rest and maybe a nap until It dies outside a very English villa they go out, for practice again at on the hill above Henley. In Sher- 3.30 p.m. We don't take tea-that wood House the members of the is not a Japanese custom, but sup- crew have made their headquarter is served at 6 p.m. Lights go ters: they have imported a Japa- out at 10 p.m. nese cook from a London restaur- ant, and, if only the weather. As for meals, we have rice three would let them, are trying to it times a day because we like it and agine they are, bome in old Nippon. because we are used to it, but we
Meet the crew--all youngsters, have other things as well. 21 years old or so; mostly small and slim. and all very eager to show Henley what they can do.
Six of them are graduates of the First High School in Tokio. com- parable with an English public school, and are now at the Univer- sity. They live together at their rowing club and have been toget" her as a crew for the last 2 years. Bow is Yoshiteru Suzuki, No. 2. Takeo Hari, both engineering stud- ents. Haruyoshi Nakagawa and Osamu
NO SMOKING!
"Breakfast, for instance, includes ham and egg-not eggs! only one is permitted. while for lunch and supper there will be Japanese soup. rice and then maybe beefsteak. chicken and such things.
is
"Smoking is forbidden., 80 drinking, but twice a week Dr. Shuhel Beta, our, coach. félénts. and then they sample English beer, though only one or two glasses. They like it, too.
He relented also after the win Kitamura are studying åt Marlow, and we diled the cup medicine and rowing 3 and 4 At with beer when we got home and No. 5 is the big fellow of the crew. passed it all round, loving-cup fas- Isamu Miia, who stands five feet hon. elevet. He is going to be a rail- way engineer.
WEIGHT GRIÉVANCE The heaviest man in this crew, which averages only 10 stone 7 id, 1s Shusui Sekigawa, lawyer in the Who weighs exactly s making, stobe over average and rows at 6.
"As for our rowing, the rate of aziking is high in a spurt. but of. course we cannot keep up such s rate all the time. The method is to follow the other bout, never get- tung more than two lengths behind and tlien spurting to finish,
fast."
SCOTS SAYINGS OF THE WEEK
"We are proud of the shell too: At No. 7 is Masaru Kashiwabara, it is something new and really is going to be a doctor; stroke is Tadashi Negishi, "who is a scientist With a special vent for electricity. Cox is tiny Tadashi Shimojima
His grievance against life is that his weight was only seven stone Ave when he arrived at Henley, but thanks to beetsteaks and ham and eggs. he has added an extra three pounds.
On the course these Japanese wear grey fannels and blue bla- zers, but in the seclusion of Sher- wood House, prefer the dark cloth gown of Japan.
Distillers
Scotland does not live, by indus- tries alone-Sir David Mason.
At Westminster Scotland is, a minor interest-Principal J. A.
Bowie,
Glasgow students are behaving themselves better than they used
to Lord Provost Stewart, Glas-
BOW:
D. C. L."
MALT EXTRACT
WITH
COD LIVER OIL
Is made
the finest
selected Barley, and malt-. ed with the greatest care
of the Company's own pre- mises by the most selecti
methods of manufað-
ture
THE DISTILLERS
COMPANY, LTD.,
EDINBURGH
Price:-Per 2 18. Jar÷82 60
SOLE AGENTS":—
GANDE, PRICE & CO., LTD.
St. George's Building. 'Ice House Street, Tel: 20185