A (2) 21
Hon. C. S.
I attach a statement showing the Military Contribution calculated in respect of the financial year ended 31st December 1930 $4,136,920.36. In my calculation I have assumed that the profit on exchange and overpayments recovered in respect of previous years will be exempted from Military Contribution.
The total payments made on account of 1930 fall short of the above figure by $275,059.36 and I propose to include this payment in the current monthly remittance on account of 1931 Military Contribution.
The amount provided in the 1931 Estimates for arrears on account of 1930 contribution is $126,751.
(Sgd.) EDWIN TAYLOR,
Treasurer.
6.5.31
Hon. C. S.
Through Hon. C. T.
Treasurer's minute of 6th May 1931, para.1.
I am afraid I am forced to re-open the question of the profit on exchange as related to the Military Contribution because the Secretary of State's instructions are not being followed.
2. There is deducted from the actual balance liable to Military Contribution the sum of $1,480,590.26 "Other Miscellaneous Receipts". This represents mainly the profit by reason of exchange on Sale of Investments &c., during the year less 20% credited to "Suspense Account, Military Contribution”.
3. The question has been discussed at some length on previous occasions but it was definitely ruled by the Secretary of State after consultation with the Director of Colonial Audit that all such profits should be carried to revenue and therefore be assessable for Military Contribution.
In his despatch 431 of 26th November 1925 the Secretary of State gives his reasons for this ruling and requested that the suggestions of the Director of Colonial Audit for carrying it out may be adopted.