>
exemption of the incomes of, for example statutory or registered building
or friendly societies and of local authorities and ecclesiastical, charitable
or educational institutions of a public character in so far as such income
is not derived from trade. (See Section 8(1) of the Model Income Tax
Ordinance).
I assume that, having regard to circumstances in the Colony,
such specific exemptions were not considered desirable.
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It is also observed that in Sections 50 and 51 power is taken to
arrange with other Governments for relief from double taxation and to give tax
credits in conformity with any such double taxation agreement. In this
connection the United Kingdom: Inland Revenue Department is prepared to submit
proposals as regards such an arrangerent with the United Kingdom Government as
soon as the Hong Kong Government is ready to consider the matter.
5. In view of the recent changes in the constitutional position of
India and Burma, it is suggested that the definition of the British Empire in
Section 2 should, when a suitable opportunity arises, be amended to read as
follows:-
**British Empire' means any part of His Majesty's dominions, territories
under His Majesty's protection, and territories under mandate or trustee-
ship by the Goverment of any part of His Majesty's dominions,'
6.
I am addressing a separate communication to you regarding the
liability to Income Tax of the "Colonial allowances" paid to temporary officers
of the Admiralty.
I have the honour to be,
Sir,
Your most obedient,
imble servant,
(sad) A Creech Jones.
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}