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the accounting arrangements connected with the annual valuation of investment securities, should be excluded from the revenue assessable for military contribution.
11. As regards the subject of the despatch in question, which is not dealt with in your letter, viz., the treatment of the profits arising from the sale of investment securities, I am to say that the Council think it desirable to set out in some detail the relation of these profits to the assessable revenue. They understand that these securities may have been purchased either from the proceeds of land sales or from surplus general balances. While they agree that any profits arising on the sale of securities purchased from the proceeds of land sales are exempted from assessment they consider that any such profits, whether arising owing to exchange fluctuations or otherwise, in the case of securities purchased out of surplus general balances are properly assessable for Military Contribution.
*
These profits may arise from the sterling
appreciation of the securities or from an increase in their value in dollars due to lower exchange, The sterling appreciation of investments of general balances, when realised, is already included in the revenue (see paragraph 291 of Colonial Regulations). There remains for consideration only the dollar appreciation of such securities; It would seem reasonable that such appreciation should be assessable to the Military Contribution, but the Council will not press this point, subject to confirmation by your Department of their understanding that the amount involved can only be very small, and that its separate calculation would involve special and complicated accounting arrangements. They agree similarly to the exclusion from the assessable revenue of the profite arising from the Crown Agents' routine realisations (see paragraphs 12 and 13 of the Governor's despatch No. 400),
ies! securities a new suggestion is made in your letter, viz.,
In connexion with the profite or the sales of
(1 on 62916/199
ة
/that
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