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classes and is fixed by a separate provision in Chapter I.
If any individual feels aggrieved at being taxed at the
full rate on 100 of his income,
of his income, Chapter VII provides
him with a remedy in the form of the right to personal
assessment should he so elect. If, for reasous of his
he prefers not to disclose his business interests he must
be prepared to pay the price of such secrecy in the form of
the full rate of tax on the whole of his income.
4.
Property Tax (Chapter II).
I propose a deduction from the full rateable value
for repairs, at a rate to be decided in Hong Kong. Otherwise
there is no change here other than the application of the
full rats instead of half-rate as previously.
5. Profits Tax (Chapter IV).
Under the 1941 Ordinance, Corporation profits bore
tax at the full rate, whereas the profits of non-ingʊrporated
persone bore it at a reduced rate on the first $50,000. In
accordance with the policy set out above I propose the full
rate throughout. In order, however, not to tax small
businesses below a reasonable minimum standard, I retain a
provision exempting business with profits below an amount to
be fixed in Hong Kong.
In section 17 I have substituted the provisions of
the Heel Ordinanse regarding the computation of profits for
those of the 1941 Ordinance, excepting the matter of
depreciation. This latter I have provided for in a separate
Chapter (Chapter VI) based broadly on the provisions of the
U.I. Income Tax Act 1945, Part I and II (the remaining parts
of that Aat are hardly applicable to Hong Kong but could be
adopted if and when circumstances make them necessary). The
granting of the "initial allowances" in respect of
expenditure on industrial buildings, machinery or plant from,
in effect, 1946 expenditure on-wards, I regard as a measure
of relief for rehabilitation and modernisation expenditure.
In/
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