.axation of businesses, such as shipping
businesses registered in the Colony and to
remove the incentive for the transfer of
registration and control from Hong Kong to
Shanghai or other ports of China. At the
same time it is obvious that the restriction
to profit made in the Colony would give rise
to considerable difficulties in practice.
These are well set out in the enclosed copy
of a comment on the point made by
H. J. Huxham, now Financial Secretary, Ceylon,
who was, as you probably know, formerly in
the Inland Revenue Department and eventually
went to Ceylon in charge of their Income Tax.
The people who are directly
responsible for administering this tax in
Hong Kong are rather perturbed on this point
and have a sked if we could get as soon as
possible the reactions of the experts here.
I have myself a good deal of responsibility
in the matter as I was Financial Secretary in
Hong Kong until December last, when I was
recalled
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