2

in respect of Life Insurance premia and the carrying

forward of

lovve

against future

Thus even if the War Revenue Ordinance were left

on the Statute Book a good deal of amendment would be

necessary and as the introduction of completely new

legislation before the end of the present

financial year is not a practical proposition, we

recommend that the present War Revenue Ordinance should

be completely recr.st incorporating such amendments and

additions as may be found desirable. In recasting this

legislation we are of opinion that Government should

consider means to allow rehabilitation costs as a

charge against profits during the next few years.

We

Technical advice will be necessary on this and

on other changes which may be found desirable.

therefore favour the suggestion that Mr. E.W. Pudney

should pay a short visit to London to seek expert

advice on such matters as we recognise that the

legislation designed to take the place of the War

Revenue Ordinance must be enacted at the earliest

possible moment.

We recommend that the taxation year should remain

at present, i.e. ending on the 31st March and that

be tho

e taxes, levied under the War Revenue Ordinance be

Gazes

reimposed with effect from the 1st April 1947 though

the tax collected will of course be based on receipts

during the year ending 31st March 1947. The possibility

of changing the tax year to the calendar year was

considered but as most Chinese businesses terminate

their year of accounting at Chinese New Year the effect

would be to reduce very considerably the amount of

110

5.

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