87

The revenue for military contribution should, however, be calculated as follows :-

Gross revenue

Deduct gross receipts

$ 100,000 10,000

$90,000

Add net receipts

Gross receipts

10,000

Less working expenses

Four per cent. of capital cost

5,000 12,000

17,000

Net receipts

Nil

Revenue for military contribution

$90,000

J. O. ANTHONISZ, Acting Treasurer,

Straits Settlements.

No. 73 of 1905.

STRAITS SETTLEMENTS.

Paper to be laid before the Legislative Council by Command of His Excellency the Governor.

MEMORANDUM by the Treasurer. Straits Settlements, regarding the calculation of the amount payable for Defence Contribution in respect of 1904. Section 2 of Ordinance XXI. of 1899 and Section 2 of Ordinance XVIII. of 1904 provide that the charges for working expenses and maintenance of any pro ductive undertaking and for interest and sinking fund on any sums borrowed for the construction of such undertaking, or, when the cost of construction has been defrayed from revenue, four per cent. of such capital cost during a period of 50 years, shall be deducted annually from the gross receipts of such undertaking, and the percentage struck on the net receipts (if any).

In the form in which the military contribution has hitherto been calculated the amounts representing four per cent. of the capital cost of productive undertakings have been added together and deducted from the gross revenue, instead of each of such amounts being deducted from the gross receipts of each particular undertaking. This amounts to deducting the debit difference between the four per cent. of the capital cost of any productive undertaking and its gross receipts from the general revenue, whereas the intention is that such debit difference should be treated as nil for the purpose of military contribution. For instance, say the general revenue is $100,000, the gross receipts of a particular undertaking, $10,000, and the four per cent of capital cost of that undertaking, $12,000, and working expenses $5,000.

Under the present plan the revenue for military contribution would be calculated as follows:-

STATEMENT of Actual Revenue of the Colony for the Year 1904 on which the Military Contribution is payable.

Actual revenue for 1904

Deduct :-

Land sales.

Penang Telephone Exchange

Railway receipts

Currency note issue

Christmas Island revenue

Refunds of revenue Penang Pier

Add net railway receipts

Gross receipts

Net receipts, Penang Telephone Exchange :-

Gross receipts

9,323.93

Singapore,

25th October, 1905.

$

10,746,517.49

22,485.83

17,431.81

194,716.31

114,297.61

46,774.15

548.74

405,578.38

10,340,999.11

194,716.31

Less working expenses Less four per cent. capital cost of

construction

144,664.19

74,572.55

219,296.74

Nil.

17,431.81

Gross revenue

Deduct gross receipts

Four per cent. of capital cost

100,000

Less working expenses

10,000

Less four per cent. capital cost..

7,548.42 4,250.61

12,000

11,799.03

22,000

5,632.78

Net receipts. Penang Pier :-

$78,000

Gross receipts

9,323.93

Add net receipts

Less working expenses

6,377.42

Gross receipts

10,000

Less working expenses

5,000

*Less four per cent. on capital cost

($1,228,129.26)

49.125.17

5,000

55,502.59

Nil.

Revenue for military contribution ...

83,000

..

* $600,000 of this sum was borrowed from the Federated Malay States at 4 per cent, interest.

34658

A

. PUBLIC RECORD OFFICE

Reference :-

། ། ། །

لسيلليالي

C.O. 882

9

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

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