3
3. Report of the Hong Kong Legislative
Council. of 28-3-4 0.
40.
tre 2. how? signify now. dis allowing
навреский
1515/40.
Aquestion of frinciple is in whared by the
new { 36 (1), which allows deduction
uction of
any amounts façable in taxation on
profits
from the net annual profits before surplus
profito
If
are assosed for the future of payment
additional royalty. Other fublic utility
lobe allowed to deduct
Comprconies are
tne royalty from these profiles before anesment
for parbores of was
Kaxation.
for a Ca
Il Carine
From were
Han son any obson.
16.5.40
consered wo the thing.
doceby is Whent
20
S
The provision referred to by Mr. Martin as not part of the scheme agreɩd by me before leaving Hong Kong but has no doubt been added in vie.. of the subsequent adoption of measures to special war taxation and I think should be accepted. If it had not been inserted the position ould have been that the company would have been paying profits tax on the Government's share of the profits. in fact, doubtful whether it was necessary to make any such explicit provision in the Law because
I um,
royalty