543077
Code
No. 165
OUTWARD TELEGRAM
TO HONG KONG (Sir M. Young)
FROM S. OF S.. COLONIES.
Sent 26th January, 1947. 15.15 hrs.
Your telegram No. 1651.
· Revision of War Revenue Ordinance.
You will wish to know that draft Income Tax Ordinance which Pudney is taking back with him after consultation with Board of Inland Revenue has my general approval in principle. Pudney will fully explain ways in which draft Ordinance differs from 1941 Ordinance. Principal advantage over 1941 Ordinance is that it permits institution of a standard rate and gives encouragement to taxpayers to seek personal assessment on basis of whole income,
2.
Question of rates of tax was not discussed in de tail with Pudney except in general terms. I wish, however, to emphasise the importance I attach to putting the standard rate
In this at as high a level as you consider practicable. connection Ordiance as drafted by Pudney will not permit the imposition of a surtax on higher incomes and this is an additional reason for making the standard rate as high as possible with individuals in lower income groups being given larger allowances where personal assessment basis is chosen. I shall be glad to learn in due course what rates you actually propose.
Copies sent to:~
Treasury
Board of Inland Revenue
130
Mr. D.R. Serpell, 0.3. E. Mr. F. Gilbert.
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