PAGE 8-HONGKONG DAILY PRESS,
FRIDAY, NOVEMBER 10, 1939.
MR. D'ALMADA STRESSES THREE OBJECTIONS
As for my community, so far as:
examination of the draft bill, the
numerous allowances, ensures that.
control of imports and exports and fand prevent fresh capital and-in-| There is another point which I can judge from a preliminary": exchange, not as much here as industries coming to it, and secondly, needs serious consideration betert scale upon which it is proposed to- other parts of the world, and so will not the organization for setting up an expensive collection. much uncertainty about the effects collecting it prove too costly? department, which, if it is to do its base the tax, together with the of the Sino-Japanese conflict, that | The Committee's answer to both work thoroughly I fear will almost it is impossible to form a reliable these questions was in the affirma- certainly cost more than the flies few will be hard hit, apart alto- opinion about the future. In these tive. We attached Ettle import-mentioned by the Hon. Financial Sether from the fact that we de- circumstances, I feel that it is an ance to the danger of industrial Secretary, I doubt if the Govern- sire, as does everyone who has en- unpropitious moment to embark enterprise being driven away from ment really appreciates how large ag and the privileges of living"
joyed the protection of the English upon a doubtful experiment.
the Colony, for the simple reason 3 proportion of the tax, if applied within the Empire, to help as much. that most of it derives consider throughout the Colony, would have
THREE REASONS
WELL-KNOWN INCIDENT able benent from Imperial Prefer-to be refunded by the Home as we can in this War. The Financial Secretary has ence, but we came to the Government. alluded to the success which has unanimos conclusion that the risk. I estimate that six large British attended the imposition of Income of a fight of capital was a very concerns, apart from the purely for three reasons.
I object to this proposed tax, Sir.. Tax in other places, and particu- real one which should not be taken local
The first is the limited companies, larly mentioned the Dutch East if our war contribution could be contribute a very substantial pro- tioned, of the night of capital would attendant danger, already men→ · Indles, where the Chinese are collected in some other way. portion of the tax collected from from this Colony. While not con- apparently paying up, without
European British companies, and vinced that this is the inevitable · demur; his reference to burglars `DIFFERENT FOOTING
the great majority of their share-result of income tax, I am never- reminds me of the well-known
holders are in the United Kingdom. theless certain that it is a danger Incident that occurred, not so many:
Finally, Sir, I realise only too well within the bounds of possibil-
A storage,
years ago, of the wealthy Chinese distributing, and financing centre. well that opposition to Income Taxity, and once this is admitted, and
merchant in Java who for years had been getting away with a return of 10,000 guilders a year,
the region of a million.
14
In our position as
wealth to speak of, we are on an with no mineral or agricultural
at the present moment sounds it cannot be denied, then there can extremely unpatriotic, entirely different footing to Ceylon
no doubt be no question but that a measure when his income was probably in and other Crown Colonies which particularly so to my Honourable involving this risk is one that have introduced Income Tax. Our friend the Acting" General Officer should be resorted to only when
and the Services all other means of raising money" trade is very largely dependent Commanding. The tax collection department at upon cheap money. In my own generally, who pay their 7/6d. have been toled and found wanting. last in desperation raidëd his office experience it has suffered very and seized all his books." He seriously on many occasions before So far as the European Britons is obvious from the numerous al- promptly engaged an adept bur-trom flights of capital, when in- 'n the Colony are concerned. I amternatives suggested to Govern- glar, who stole the books from the berest rates have risen to 7% and confident that they are fully pre- ment by representative and res- collector's office and burnt them's and seriously affected all in-pared to accept their responsibility ponsible bodies in this Colony, by He then sued the Government for dustry and trade.
'n this matter and that all would the press, and by individuals suf---
OBJECTION TO METHOD"
That this is far from the case
the loss of the books and obtained. In the light of the strenuous gladly make thetr contribution ficiently alarmed at the prospect:
damages.
非
opposition of our Chinese collea- through the medium of an Income to have filled the correspondence" That however may be an isolated gues who fear that it will have Tax, provided that reasonable columns of more than one local
case, and in the event of Income this effect, I personally feel that allowances are made, and that the paper during the last few weeks. Tax being introduced. I hope my it might be a dangerous experix is for the duration of the war, honourable friend will not have to menta resort to such drástic measures.
TWO CONSIDERATIONS
,"
From what my Chinese colleagues have said, it is clearly not the
of payment
the contribution to which they object, but to the method of its collection. Conceiv ably of course the danger of a fight of capital may prove ап exaggerated bogey.
It must be remembered, as - has been mentioned more than once since this tax was first mooted, that it is not being imposed on a colony enjoying a period of normal commercial prosperity. The "prosperity", if so it may be called, of the last two years or so, has been artificially brought about, and no one would care to predict Its continuance for any length of time.
This may seem strange advice from one whose Company is regis- I would like now to contradict tered at Home, pays Home Income the impression which seems to be Tax and Excess Profits Tax, and circalating in the Colony that the on this account was at a serious Committee of the Chamber of disadvantage during the last war Commerce, of which I am one, was Nevertheless, it is my considered
We undoubtedly have a magnifi- nelther in favour of making any opinion unless we can get over the cent harbour and many attractions contribution to the Imperial War Chinese objections.
and facilities to counteract the: Chest, nor of paying Income Tax I recognize that none of us imposition of the tax, but from my themselves. Nothing could-be-fur- should rightly pass anal judgment thirty years' experience of hoy ther from the truth, The Com-upon the subject until the Bill is little it takes to upset the delicate and the most confirmed optimist: mittee was unanimously in favour before us and we know its terms. economic equilibrium of this Co- cannot pretend that the present of a substantial contribution, their The Committee, now sitting may lony, I am convinced that there is state of Far Eastern affairs does share of which they have no desire succeed in devising some method a grave element of risk, and that not give rise to serious misgivings nor intention to evade.
of making it less objectionable to in view of the difficulties of trad-on our part. Government in these Only two considerations weigh our friends. Under their terms.ofing we are likely to have to con- circumstances must do nothing with the Committee: firstly, will reference it is difficult to see how tend with, it is one we should not from which may arise a risk to the the introduction of Income Tax this can be achieved, but if it can, take unless the Committee now In Colony's future, drive Chinese industrial enterprise then the main objection I have to session can make the BIII palatable
IMPOSSIBLE TO ADMINISTER and capital away from the Colony! Income Tax will disappear.
•
MR. LEO D'ALMADA JNR:
There Are Less
Are Less Expensive Alternative Methods To Secure War Gift
The Hon. Mr. Leo D'Almada e Castro, Jnr. said: -In view of present circumstances I do not propose to criticise the Colony's. ordinary budget izisofar as its public works expenditure is con- cerned, because at a time like this, when, as I believe, economy should be the watchword; whatever disappointment one may feel over the programme of pable works must be borné in 'silence. But for the same reason I would be falling in my duty were I to pass over the figures connected with administration costs.
31
to the Chinese community.
Our outlook 15, at best, uncertain..
I have two other, and these perhaps secondary, objections to income tax. One of them is the. strong probability that in a mixed | discouraging the right type of
population such as ours. It will be young man from Joining. I am confident that on this much more found impossible to administer it economical basis. which would equitably, so that while some will bear the full burden of it, others, mean a saving both in actual pay and they are the vast majority, are and in passages, there would still so placed as to be in a position be eager seekers after posts from easily to escape it. And there is the ranks of those who have spent no reason to suppose that they will their youth here and are the pro-not avail themselves of this escape. duct of our local schools.
My third objection is the neces- sity for the creation of a new
PORTUGUESE STANDPOINT
So much for our ordinary Budget. administrative department, not On the subject of the War Budget only because of the cost but be- I am, like the rest of my unofficial cause of its inevitable liability to colleagues, strongly opposed to the bribery and corruption. I have in proposed taxation of incomes for the past criticised the Police and reasons, which I shall give later. Revenue Departments in regard to Before doing so, however,, let me this. Prosecutions of members of make it clear that, as in the case the departments show that I am
More than one unofficial mem-is more evident than ever, on the of my colleagues, my objections do Justified in my criticisms, An In- ber, has in past years called these score both of fairness to the com- not arise from self-interest. Nor come Tax Department, once creat- figures astronomical, and the munity and of keeping down ex-are they volçed on behalf of the ed will quickly earn for itself an epithet is more apt today than pense.
Portuguese community. ever. One realises that with
巍
Government might well consider growing colony must of necessity also the payment on a dollar come a certam increase in the basis of those of its junior officers personnel of administration and who are engaged locally and who, consequently in its cost.
while on probation, are paid in The objection lies not to this dollars. In their case there is no but rather to the fact that injustification for an automatic recruiting its officers, Government transfer to sterling when they does not give the Hongkong man have proved satisfactory. the chance he deserves. I had Conditions are such all over the occasion last year to complain that world today, and the amenities of local men were not employed in life in Hongkong are so much the service as much as they should greater than they were say thirty! be. It reform in that direction years ago, that such a policy would was desirable then, its need today] not result, as might be feared, in
From the personal stand- polnt, indeed, few measures could be mor) welcome-It is obvious that the legal pro- fession stands to gain consider- ably from Its introduction, lawyers probably coming next after chartered accountants as persons whose assistance must of necessity, be invoked by the taxpayer, whether he be willing or loth to pay. Were I-actuated selfishness, therefore, 1 would urge. Its Immediate adoption,
by
meriviable reputation for the same falling.
COUNSEL OF PRUDENCE"
These in brief, Sir, are my ob- jections to this proposed tax, and I have voiced them with the less hesitation because in doing so I am echoing the opinions of business men, men with years of experience in the commerce of this Colony, men who have come into more fre- quent and closer contact with the Chinese business community than any member of Government has come or can hope to come. Above all, Sir, I am convinced that in
Page 20Page 21