Wt. 49614/485 3/46 50m. S. & S. Ltd.

54307/47

0.

Mr. Emanuel

2011

Mr. Mayle

Mr.

Mr.

Mr.....

21/4

DRAFT. LETTER.

D. R. SERPELL ESQ., 0.B.E.,

TREASURY.

Permt. U.S. of S.

Parly. U.S. of S.

'Secretary of State,

For Mr. Emanuel's signature.

Dear Serpell,

22

4/46

(17 on 54126/4/4 copy below 1)

(1)

to avoid lose of revenue from the delay that

would be entailed if an income tax ordinance on entuely new lines had i be totale nepared

FURTHER ACTION.

Copy to:-

Gil

F.G11pert

Esq.-Bd. of In. Rev. Somerset Home

Recire in ten

days Rif

reply received

ho

You may like to know in

connection with Hong Kong's efforts to

increase revenue, that progress is being

intro audio

made as regards the re-estab ament of

Income Tax. You will remember that the

Governor appointed a committee to go into

the question of revenue and taxation (Hong

Kong telegram No. 996 of 9th September,

1946, refers) and inter alia to consider

the introduction of a normal form of

Income Tax in place of the war-time

measure introduced in 1941.

We have now heard from the

Governor that the Committee ha reported

in favour of a tax on income, but have

recommended as an interim measure the re-

introduction of the 1941 war revenue

Ordinance with such amendments as are

necessary to adapt it to peace-time

conditions. To this end, the Governor

sent E.W.Pudney, who is nominated to take

charge of Income Tax, to London for

technical discussions with the Board of

Inland Revenue. These have now been

completed and Pudney is on his way back.

He has gone back with the re-drafted

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