Dear Firth,
98
13th March, 1940.
Hobinson tells me that you are the best
person to appeal for help in the following matter.
Like most other Colonies, Hong Kong
considered the adoption of Income Tax on the outbreak
of war. There was a good deal of local opposition
and eventually a compromise has been worked out by which instead of a full Income Tax, it is proposed
to have a series of special taxes on particular
kinds of income, e.g. a property tax, a salaries tax,
and a business profits tax. This is of course by
no means a satisfactory solution, for it is certain to give rise to various complications, although it
was probably the best that could be done in the
local circumstances.
The immediate point which is
causing trouble is the scope of the business profits
tax.
2. M.T. FIRTH, ES4.
The present proposal is that this should
The object
apply to "profits made in the Colony".
was to avoid complications arising out of the
taxation