а
I have passed on to Mr. Pudney the sense
of the preceding minutes.
As regards reserving the surtax point, there
The
is possibly some misapprehension about this.
reasons why a surtax is not possible are given in
paragraph 7 of, No. 3 and, I think, are self-explanatory.
A surtax is something appropriate to a normal Income
Tax and if it is agreed (as it appears to be from the
preceding minutes) that we cannot force a normal Income Tax on Hong Kong at this stage, then the
question of a surtax does not really arise. The
absence of a surtax is, however, a reason for urging
the Governor to put the standard rate as high as
possible.
As regards consulting the Treasury, they are,
I think, usually content to allow the Board of Inland
Revenue to advise even Treasury controlled colonies
on technical Income Tax points. This is understand-
able since the Treasury themselves are advised by the
Inland Revenue. We have, I venture to suggest, been
quite within our rights in not consulting the Treasury
while Mr. Pudney was here on the technical points
involved.
Furthermore, the Treasury usually take a
very long time to give their comments on any matters
Key ULAR
which are either technical, and therefore under
reference to other departments, or are obscure.
avoid this happening in this case, the draft letter
to Mr. Serpell attached is expressed more like a
progress report than a submission of proposals for
Treasury sanction.
To
Nevertheless, Mr. Serpell's con-
currence in the terms of the draft telegram is sought.
ऋ
S
I um.
To Simpell (Ty) Но бирле 6 Cope && Sulbert (BIR)
20th January, 1947.
23-1.47
23
1.
47