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HONG KONG LEGISLATIVE COUNCIL.
instead of a fullstop. I also move that addition of a fourth paragraph recommended by the Standing Law Committee. This paragraph reads as follows: "(IV) in the case of a married woman no allowance shall be made for a child in respect of whom such allowance has been made in favour of her husband."
Clause 13.
THE FINANCIAL SECRETARY.-Certain apprehension appears to have arisen as a result of the new definition in Clause 2, which reads "'profits made from transactions in the Colony' means the whole profits except such portion thereof as is properly attributable to the trans- actions of an office situated outside the Colony," that where there exists a branch in this Colony, as distinct from a head office, the books of the whole concern will have to be produced disclosing all transactions throughout the world. This is not intended and opportunity will be taken to avoid any such wholesale requirement by submitting the matter These for regulation to the Board of War Taxation under Clause 58. remarks will apply also to Clause 14.
Clause 16.
THE ATTORNEY GENERAL.-It has been suggested in recent discussions that paragraph (a) at the top of page 8 should be reduced very considerably and read “(a) an allowance for reasonable depreciation." That means deletion of all the words after "depreciation" in the first line. Another amendment, suggested by the Standing Law Committee, is the addition of the words "for the purpose of producing the profits" at the end of paragraph (e).
THE FINANCIAL SECRETARY.-It has been suggested that royalties payable to Government should be specially excluded under this section. It has always been understood that such royalties should be deductable from profits before profits are assessable for war taxation, and it has always been the intention to avoid double taxation, as I explained when introducing the Telephone Amendment Bill, 1940. Owing to this general understanding and to the special nature of the royalties under the Telephone Ordinance, which are calculable after and not before Profits Tax under this Bill will be assessed, it is considered unnecessary to insert what would require to be somewhat complicated provisions in this Bill; but I am authorised, on behalf of Government, to give an undertaking that royalties other than those paid by the Telephone Company, for which provision has already been made, will not be included in the profits subject to tax under this section.
Clause 18.
THE ATTORNEY GENERAL.-The marginal note to this clause seems to be a little high. I will bring it to the notice of the printers.
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