Appendix E.
REPORT OF THE SUPERINTENDENT OF IMPORTS AND EXPORTS FOR THE YEAR 1926.
I.—LIQUOR.
The net revenue collected was $1,186,312.55 as compared with $1,140,925.07 in 1925.
Compared with normal years the collection must be considered a great improvement, considering the general business stagnation and great decrease of population since 1925. While every other source of revenue has shown a marked decrease, the amount collected in liquor duties shows a reduction of $43,000 only as compared with 1924 the last normal year. The increase of the rate of duty on Chinese liquor as recorded elsewhere made little difference to the amount collected under this head.
Collection from local distilleries were not very satisfactory, several were detected defrauding the revenue, including one large distillery on the island of Hong Kong and several small ones in various parts of the New Territory.
Extensive fraud on the Revenue.
In May it was discovered that a large distillery had been defrauding the revenue to the extent of $30,000 per annum. The method adopted was to record about half the amount produced, and to account for all spirit distilled as being much weaker than it really was. The illegitimate profits so made appear to have gone wholly to the managing partner, who had been robbing the firm extensively, and producing a balance sheet showing a large loss. To dispose of the spirit embezzled from the Distillery, on which no duty was paid, the manager had opened a Chinese wine and spirit shop nearby, jars of spirit which had been inspected by the Revenue Officer and duly labelled, were removed in the usual course with a pass in due order to this shop, as soon as the jars reached the premises the labels were removed and sent back to the distillery, where they were re-used on jars of spirit which had not paid any duty, and not been passed by the Revenue Officer. On proceedings being taken the manager absconded, and has not since been seen. Civil proceedings were taken and a considerable sum was recovered from the firm. Nemesis, however, soon afterwards overtook this distillery, it being overwhelmed by a severe flood in July and the premises swept bare of everything. This disaster compelled the firm to dispose of the ruins of the premises.