HONGKONG. DAILY - PRESS
ADVERTISEMENTS ADVERTISEMENTS
R.
Q.
PUBLIC AUCTION.
"..R.
PUBLIC AUCTION
H.K.
GENERAL
CONTRIBUTION
Continued From Page 2
of reference, was, then, as I con- ceived it. to stideavour to solve the difficult problem of placing upon the right shoulders the burden and privilege of the war Taxation, by tears which would" obviate or
PARTICULARS AND CON- mitagate the save a measure PARTICULARS AND CON. DITIONS of the Sale by PublicDITIONS of the Sale by Publiced to the Income Tax measure,
The Bill now before the Counell Auction to be held on Monday, Auction to be held on Monday: 1, Sir, the result of the Commit the 18th day of March 1940, at 3 the 18th day of March 1940, at 3 tee's efforts. P.., at the Offices of the Public P... at the Offices of the Public 3,03. Works Department, by Order of Works Department, by Order of His Excellency the Governor of His Excellency the Governor one lot of Crown Land one Lot of Crown Land at of
Shamshulpo, in the Repulse Bay, in the Colony at of Hong Kong for a term of 75 tony of Hong Kong for a years, with the option of renewal term of 75 years, at a Crown Rent to be fixed bying from 1st July, 1898, with the Sarveyor of His Majesty the the option of renewal at a Crown KING, for one further term of Rent to be fixed by th: Surveyor 75 years."
of His Majesty the KING, for one further term of 24 years less the last three days thereol.
Intending bidders are advised that immediately after the dis- posal of the lot the Purchaser if not the applicant), will be required to deposit with an authorised officer who will be present at the sale, the sum of two hundred dollars, ($200) in cash. This sum will be refunded on payment of the Purchase
and some have" over twenty. JmPiners. It has been sug- gested that the Saltrỳ Tax Li unisie in relation to this tax.
AN EXAMPLE
Let me take an example, Sup- pose a firm of ten partners in equal shares were to make a pro- it of $100,000. At 8 per cent on
* $90,000. the tax comes to $4.500. I do not pretend to say that the Now if the profit were taxed under present Bill has surmounted all the the Salary Tax and if each of administrative objections advanced, the parmers were married with but I do say that, in my view, they four children each could claim have been very substantially re- allowances up to $9,000, making a Coduced, and reduced in a way which total of $90,000 so that the
would have been impossible under balance taxable woula
$10,000. Apart from the provision under the Salary Tax, that 4. per ċent payable upon the first $5,- 000, it is obvious that quch part- neta would be in a more advanta-- geous position if taxed under the Salaries Tax.
commenc
an ordinary Income Tax Bill.
Nor do I pretend to say that all the possibilities of Ill effects on the Colony have been re- moved. I can only hope that the rates of charge proposed by the Bill are low enough to re- duce any such ill effects to the minimum.
be only
It is time that the tax which will give rise; to the greatest dif- Intending bidders are advised
In this regard I have one further ficulty, and will involve the most that. Immediately after the dis-abservation to make. I know there personal inquiry, is the Business" posal of the lot the Purchaser are various places in which an In- Prodts Tax. I have always appre- (if not the applicant) will be tered. The refutation, by result, its probable yield would, not.. by come Tax is successfully adminis-ciated the objections to this tax; required to deposit with an of the forebodings of the tax be- itself. appear to justify its imposi-
of
authorised officer who will before its introduction in such pláčestion. Present at the sale, the sum has been repeatedly used as an two hundred dollars, ($200) In argument in favour of its introduc-
tion In Hongkong. The validity`of- cash. This sum will be refunded this argument depends entirely PARTICULARS OF THE LOT on payment of the Purchase upon the similarity of Hongkong
price.
No. of Bale.
Rural Building
Lot No. 438. ____ Between South Bay-Ed, & In- land Rd., Repulze Bay, North east of Bural Bldg, Lot No. 431.)
Registry No.
Locality.
G.
Boundary.
Measure.
ments.
N. A
As per
sale piza
43,000
Contanta in
Aquare feet
Annual
Bontal.
About
365
Upset Price
price.
PARTICULARS OF THE LÖT
10,750
No. of Bale,
New Kowloon Inland Registry No, Lot No. 2770,
Junction of Yen Chou Street and Fuk
Wing Street,
Locality
144
ក.
Q.
R..
PUBLIC AUCTION,
OlqW[KXXXJH
Boundary Atensure- menta
N. 8. E.
As per
sále plan.
About
部
Annual
Rental Square:fest
Contents
Upset Price. |
6,760
106
R.
PUBLIC AUCTION.
11,620
146
with the other places.
I maintain that Hongkong is not almllar. I would, therefore, urge that the Importance of keeping the rates under this Bill low, so as not to discourage the inflow of capital to, or its maintenance in, Hongkong.
hould be borne in mind. FUNDAMENTAL DIFFÉRENCE It can be said, and it will no doubt be said, that this Bill is but
But, Sir, I submit that this tax should not be considered In isolation, but only in com bination with the other threa taxe. After all, the BUI re- presents on the part of many members of the Committee a compromise of individual views and opinions for the sake of a worthy cause, and It is my considered view that the argument that on the ground of equity such a ČAK must be imposed if there is a Corporation Profis Tax, is quite unanswerable. .vi
IMAGINARY CASE
an Income Tax Bill in a modified form. In a sense this is, of course,
To Mastrate the effect of the true. Indeed, in a sense, every tax, provisions of the Bill let me take even an indirect tax, is a tax on an imaginary case of wealthy re- income. But I venture to think fugec, with capital invested in the that this Bill differs fundamentally Colony. If he has shares in com- from an Income Tax as it is gen- panies he has nothing whatever érally understood.
to do, as the tax will be deducted
Under the generally accepted at source. I he has invested theory of Income Tax the ability capital in factories or firms of of firms and corporations depends, which he is not the actual manng- not on the question where the pro- ing partner or manager, here again
fits are made, but on the locality he has nothing to do
to
taxable
Els
of this
ability, with the result that based on a draft Bill drawn by Mr.
L
FRIDAY, MARCH 15, 1940. —PAGE
ENGLISH MADE
CANTEEN CABINETS
FOR
6-8 -12
"PERSONS COMPLETE
STAINLESS STEEL CUTLERY
GOOD QUALITY
SPOONS and FORKS® ETC.
71
GUARANTEED SHEFFIELD MADE-THE BEST. COMPLETE IN CANTEENS AS UNDER :-
FOR 6 PERSONS $135.00 49 PIECES FOR 6 PERSONS $170.00 63 PIECES FOR 8 PERSONS $280.00 79 PIECES FOR 12 PERSONS $350,00 125 PIECES
LANE - CRAWFORD • LTD.
The House of Quality & Service
emption of Interest should completely remove any danger
of flight of liquid capital.”
BEST ALTERNATIVE
On December 4 1933 Mr. Caine, in view of his pending de- parture, wrote to each member of the Committee a letter enclosing a draft Report of the Committee as representing what he hoped the Committee would be prepared to agree to, rather than what had al- ready so far been agreed. In the course of his draft Report the
of the place from which their He can come and go without operations are controlled This is any question of residential PARTICULARS AND CONnot the case under this Bill. More- liability. If he lends out money PARTICULARS AND CONDITIONS of the Sale by Publicover, unlike an Income Tax Bill, on mortgages he has nothing to DITIONS of the Sale by Public Auction to be held on Monday, this Bill is not concerned with the do, and has no tax to pay.
identity of the individuals consti- bank balances are unaffected. If Auction to be held on Monday, the 18th day of March 1940, at tuting a firm, so many of whom, he owns a house he has to do no the 18th day of March 1940, at 33 p.m., at the Offices of the as regards firms in the Colony, are more than what he has to do al- p.m., at the Offices of the Public Public Works Department, by non-resident
ready, namely, fill in a return of Works Department, by Order of Order of His Excellency the
Again, unlike an Income Tax | the net value of the property, and His Excellency the Governor of Governor of one Lot of Crown one Lot of Crown Land at Blue Land at Castle Peak, in the Pool Road, in the Colony of Hong Colony of Hong Kong for a term Kong for a term of 75 years, of 75 years, commencing from with the option of renewal 1st July, 1898, with the at a Crown Rent to be fixed by option of renewal at a Crown the Surveyor of His Majesty the Rent to be fixed by the Surveyor KING, "for one further term of or His Majesty the KING, for 75 years.
one further term of 24 years less Intending bidders are advised the last three days thereof. that immediately after the dis Intending bidders are advised posal of the lot the Purchaser that immediately after the dis. (if not the applicant) will be posal of the lot the Purchaser required to deposit with an (If not the applicant) will be authorised officer who will be required to deposit with an present at the sale, the sum of authorised "officer who will be two hundred dollars, ($200) in present at the sale, the sum of cush: This sum will be refunded | two hundred dollars, ($200) in the Purchase cash. This sum will be refunded -on payment
on payment of the Purchase price
Bill, it is not concerned with the pay 5 per cent as additional rates. question as to how long a person Honourable Members has been resident within the Co-Council may be interested to know lony relation
that the provisions of this Bill are elaborate provisions have been Caine
in collaboration with the omitted which would otherwise Chairman of the Committee, my have been necessary, and which Honourable friend the Attorney following observation occurred: would be difficult, if not impos- General able to enforce in the absence of
price.
system of universal registration of persons or of passports for the whole of the population.
In short an come bài b fundamentally an individual. tax and must entall detailed enquiry into personal affairs.
PARTICULARS OF THE LOT PARTICULARS OF THE LOT Report, and in the Bill, I need
No. of Bale,
Inland Lot No.0747
Registry. No
Blue Pool
Locality.
Hoad
Boundary
Measure-
ments.
As per
sale plan.
Contents-in-
Square feet.
84,500
Now of Bale,
Registry No
Locality.
Castle: Peak.
33,600 = 1,653
Ting Shan Inland
D.D. STE
AnnustTM
Rental. oe] Upret› Pri00. |
145
DONT FORGET
THAT WHEN You are at Home you can get the HONG KONG DAILY PRESS SELFRIDGES.
KAL
Bour
+34easure.
As per
safe pla
Contents in
Square feet.
OLEST
Annual.
Rental
Upset Price.
15,970
210
ARRIVALS ÄT
KAI TAK
+88%
147
There were only two arrivals at Tak yesterday by the Pan American airliner China, Clipper.
CLASSES OF INCOME This Bill is concerned with the Jour main tikkses of income separately, and deals with them in a way which would be impos sible under an ordinary Income and effect are fully set out in the Tax measure. As their operation
say very little. But in view of cértain ériticismis which have come to my attention I venture to make A few observations on the Salary Tax, and the Business Pronti Tax,, A regards the Bally Tik, its operation is obrigaris limited by the statutory condition of liability. namely, that of a salary of $400 a month, and upwards,
A fled man can claim
a personal allowance of $3,000: a sum of $2,000 for a wife, and a Gum of 31,000 ra cách chia, with the proving that the amount of allowances for, wife and children must not exceed $8,000, A married man with' fottr children can therefore" claim a $9,000, allowance, and the tax in excess of this sum is only 4 per cent on the first $5,000, faxable
BUSINESS
As regards the Business Fronts
Mr. B. L. Heming, from Hono-Tix, the tax is at 5 per cent in lulu, is connected with the Bishop excess of $15,000 and up to $100,- Trust Company of that city. He 000, and 10 per cent in excess is proceedings to Penang by plane. of $100,000., The tax 15, on the
Mr Owen Johnson, from business and not on the indivi- Manila la to take over Mr. Phil duals constituting the arm, sp 8. Delany's job locally as Pan that no exact individual allowance American,["Airways" Company can be given. The, treg allowance Traffic Representative for China of $10.000, and the lowered rates Mr. Delany, with his wife and of charge are given by way of family, wil be leaving the Colony compensation for the absence of by the next Clipper on leave, individual allowances./in and will be away four months. The holiday will be spent in Floritta
The overwhelming majority of Chinese firms have more than five, many have over ten,
MR. CAINE'S STATEMENT.
I would like to quote the follow- ing from a statement prepared by Mr. Came on the "Principal, Dif- ferences Between the War Reventie Bill and the Income Tax Bill:"-
“I. GENERAL, An Income Tax seeks to tax every source of each individual's income and to make allowances for his family responsibilities and other individusl circum stances, Although mach; may be collected at the aggron. It is ultimately, an individual tax and may entail much enquiry into personal affairs.
The new Bill proposes to take each of the main classes of income separately and tex them at rates adjusted only approximately to ckpacify to Day. At, some sacrifics of the refinements of ад income tax it thus “avelda „, many problems which arise in the administration of those|| rennements and removes some of the features of tacoma tak which are objectionable to the bublic,
༣་
2 SCOPE OF TAX. THE taxation' Impones by the naw Rin‚will cover incomes, from rents of property, In Hong- kong, salaries of persons em- ployed in Hongkong and pro- Bts of all businksies" "tartled on in Hongkolík. p. Heóme which would have been Habis to full income tax but will, not be affected by the new Bill Includes interest (other than “dividends" which will suffer indirectly by the tax on company profits) and all in come derived from putalde the Colony but remitted into 1ST Very much the greater part of: the total income will there, fore he caught by the new Bill, but the restriction to Avecified classes of income will
· simplify ・ #dininistration" (eg. the problem of "remittance" will not arise) while the. `ex-
"The best alternative meïns. of imposing taxation of ap- proximately the same degree of and having „ADDTO- severity ximately the same incidence # the proposed Income Tax appear to be a combination of taxes assessed on property. on salaries and analogous. In- comes and on business profits made in the Colony on basen and at rates calculated to im- pose very broadly, the, same `degree of sacrificë the
Hveral classes. affected.
110.
DË... -PRISONS
Such a combination
of taxes would constitute a partial Income tax, covering much the greater päft of the income which would be liable to fall income tax, but fiped of many complications owing to its being partial in scope
dily approximately adjust- éd to individual ability to pay. In particular much of the enquiry into personal circumą. stances which is apprehended the administration of avoid- Income tax should be
CAPACITY TO PAY
I have stated that, subject to dne point, I do not wish to modify in any way the remarks I made In this Comself, on November 19 and that point concerns my remarks as to the capacity of the Colony to pay Your Excellency. ch November, 16, made it quite clear "that Government had not deter- mined to raise a War Budget Re- venue of any predetermined sum, so that whatever amount this Bill Will in fact raise, that would con- His stitute the free gift to Majesty's Government, while en- gaged in a life and death strug- sle I therefore agree that no question of the
the Colony's capacity to pay arises, once the taxing measure has been agreed.
The Committee, in its Report, Expressed the hope that "in view of the purpose for which the four taxes will be used, there should Continued on Page 7
Silverware
Department
Tel. 28151.
Spring
NOW
PROCEEDING
THE SUN CO., LTD.,
G401 271 SGES
THE SINCERE CO., LTD.,
THE WING ON CO., LTD.,
CHINA EMPORIUM, LTD.
"SPECIAL SALE"
New Lald Leghorn Eggs Produced by Diamond Leghorn Farm
yan Bale Agents (2
THE HUNG
CHEONG FIRM
68, NATHAN: ROAD, KOWLOON TELEPHONE SILOS
HONGKONG.