HONG KONG LEGISLATIVE COUNCIL
157
The amendments were agreed to.
use 28.
THE FINANCIAL SECRETARY.-I beg to move that in this section there shall be substituted for the word "company" wherever it appears the word "corporation".
The amendment was agreed to.
Clause 41.
THE ATTORNEY GENERAL.-I rise to move the insertion of a marginal note reading "Expenditure on Machinery or Plant."
The amendment was agreed to.
Clause 42.
THE FINANCIAL SECRETARY.—I have an amendment to propose. I beg to move that for clause 42 there shall be substituted the amending clause set out in the slip which has been circulated to Honourable Members.
"42. (1) Any individual being a resident of the Colony may, by notice in writing to the Commissioner, elect to be per- sonally assessed on his total income. Such election shall be made not later than the last day of the year following the year of assessment to which it relates;
(2) For the purpose of this Section-
"resident of the Colony" means an individual who stays in the Colony for a period or a number of periods amounting to more than one hundred and eighty days during the year of assessment in respect of which the election is made or for a period or periods amounting to more than three hundred days in two consecutive years of assessment, one of which is the year of assess- ment in respect of which the election is made.
""
All profits arising in or derived from the Colony are liable to tax, and this applies whether the recipient is a resident or a non-resident. If the Bill were not amended as now proposed, a resident say, of Canton, who had a few shares in some Hong Kong company could set off the various personal allowances to which he might be entitled gainst this income, which would in fact only represent a fraction his total income, and so escape tax altogether. The amendment ow proposed limits the election for personal assessment to residents
the Colony as is defined in the new sub-section 2.
I feel sure at Honourable Members will agree as regards the desirability of this
endment.
The amendment was agreed to.
Clause 43.
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