Code
INWARD TELEGRAM
CGPY FOR REGIS
FROM HONG KONG (Sir M. Young)
TO S. OF S.
COLONIES.
D. 30th April, 194470
R. 30th
No. 756 Confidential.
12.00 hrs.
X
2455
1947
ΧΗ
XH I
VII LX
ΠΛ
ΤΑ
RECEIVED
IN
REG
(8)
Your telegram No. 606, (7)
Income Tax.
Question of liquidation is no longer of great importance, as the Committee which was appointed to examine the Bill in detail. recommended that tax-payers should be given the option of having their assessment reduced to actual earnings or profits for the year 1947/48. I accepted this recommendation in view of (corrupt group) objection to retrospective taxation and also the fact that profits earned during 1946/47 have, to a considerable extent, been used in making good losses arising from the war. The necessary amendment was included in final draft of Bill which passed its first reading on 24th April,
20
With reference to the last sentence of paragraph 2 of your 46.elegram No. 165, when first published the Bill gave rise to very
cousiderable opposition from all sections of the community, part of which was due to the fear that standard rate would be fixed at an unduly high level. Both Unofficial Members of the Legislative Council and the Taxation Committee have been pressing for measure to be postponed for at least one year and they also recommend thet standard rate should not exceed 10 per cent. The postponement of the introduction of Income Tax in Malaya has, of course, tended to increase opposition to immediate introduction of such a measure here, but, as a result of reference to two Committees, the second of which has recommended certain amendments some of the opposition has now been overcome,
13.
Copy sent to:-
Board of Inland Revenue
Mr. F. Gilbert,