88
2
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should be omitted from the draft Report and that a fresh draft
of Chapter III, to include the points raised by Kr. Lo and
Mr. Dodwell, should be prepared.
4.
At the request of Mr. Lo the Chairman explained the amendments made to the draft Bill by the Sub-committee.
Section 5: it was decided to omit the second Proviso.
Section 14: Mr. Lo objected to the changes made in this Section by the Sub-committee, pointing out that the vast majority of Chinese firms had more than ten and often more than twenty partners, and represented that on grounds of equity the profits of such firms should be taxed on the basis of 5% of
the profits between $10,000 and $100,000 and 10% on the profits exceeding $100,000, as in the original draft Bill.
After some
discussion the matter was put to the vote and it was decided by
a majority of 7 to 4 (4 members not voting) to revert to the
basis mentioned above, as in the original draft Bill.
Section 16 (c): it ras decided that this should be
amended to read:
daval
(e) interest paid or payable.
Section 17: it was decided to omit sub-section (1)(h).
Section 19 of the original draft Bill: the omission of this Section, dealing with the Deduction of Losses, was, after some discussion, confirmed by a majority of 7 to 5.
Section 25: it was decided to substitute "owned by"
for "occupied solely for the purpose of " in line 5.
Section 26: it was decided by a majority to amend this Section to read:
26. For the purposes of assessment the dividends of a
corporation, which is subject to tax under this Chapter, shall not be included in the profits of any other person for the purposes of taxation under this Ordinance.