3.
55
5.
The hope of relief through the deliberations
of this Committee now no longer exists, and it is therefore necessary again to bring before your attention certain points, over which you will no doubt agree that relief is justified and that if the proposed new method of assessment does not meet with the approval of the Treasury certain modifications of the existing practice are necessary and long overdue.
6.
The existing Ordinance No.1 of 1901 (The Defence Contribution Ordinance No.1 of 1901) is not
altogether satisfactory, and various differences of opinion frequently arise. In the first place Colonial revenuc includes the gross receipts from all sources of revenue,
but does not include proceeds of land sales. Contributions
to the Widows' and Orphans' Pension Scheme and sale of
condemned stores have also been excluded and only the net
receipts from the Opium Monopoly are assessable. There is
also the question which has recently arisen as to whether
military contribution should be paid on the increase in the
book values of sterling securities, when sold, owing to the
fall in exchange. These securities form part of the surplus
balance of the Colony, they are due greatly to proceeds of
land sales, and may be considered as part of the Colony's
capital. Under Colonial Regulation 309 the "profit" has to
be carried to Current Revenue. It is not considered that
any such increased dollar value of sterling securities is revenue for the purposes of the Defence Contribution
Ordinance, though it may be necessary according to Colonial
Regulations, which do not deal specifically with exchange
any difficulties, to place difference on the revenue or
expenditure side of the accounts.
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