the lowest paid of the working classes. Adulteration of the higher grades of Chinese spirit has also been very prevalent, and many complaints have been heard of the difficulty of purchasing locally genuine Chinese spirit, made from rice alone. The introduction of standards of purity for Chinese spirit presents some technical difficulties owing to the fact that the crude methods employed in the distilleries do not conduce to the production of a spirit of any very constant composition. The question is however receiving careful consideration.
Weighing frauds.
At the end of the year an extensive conspiracy was discovered on the part of the Chinese revenue officers in charge of the scales to facilitate the false declaration of amounts of spirit declared for the purpose of paying duty, by recording light weight in favour of certain importers with whom they had made suitable arrangements. The loss so caused was about ten to fourteen per cent. of the revenue payable on imported Chinese spirit. A large number of importers were involved but the conspiracy could not be proved to the satisfaction of the court. It is certain that the officers concerned received some reward for their help in reducing the amounts of duty payable, but no details could be discovered. Enquiries made subsequently tended to show that a certain small sum had for some time been collected on each jar passed for the purpose of paying duty in the case of many of the importing firms.
Estimate of loss of Revenue.
In 1924 a comparison of the amount of Chinese spirit paying duty in the years 1913 and 1923, after taking into consideration the great increase in population, showed that up to about $400,000 was probably being lost to the revenue per annum by various methods of evasion. Discoveries made during 1925 exposed some of these methods, and enabled an estimate to be formed of some of the chief losses in a normal year.
Estimate of losses to the revenue under certain heads.
Loss on Spirit denatured with shellac $150,000 Light weight on imported spirit 50,000 Watering down samples of strong spirit 15,000 False reports of distillery outputs 80,000 Spirit consumed in Hong Kong after paying only New Territory rates 10,000 Smuggling, especially of spirits of wine and Tientsin spirit 40,000 Adulteration with water of duty paid spirit by retailers 20,000}
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the lowest paid of the working classes. Adulteration of the higher grades of Chinese spirit has also been very prevalent, and many complaints have been heard of the difficulty of purchasing locally genuine Chinese spirit, made from rice alone. The intro- duction of standards of purity for Chinese spirit presents some technical difficulties owing to the fact that the crude methods employed in the distilleries do not conduce to the production of a spirit of any very constant composition. The question is however receiving careful consideration.
Weighing frauds.
At the end of the year an extensive conspiracy was discover- ed on the part of the Chinese revenue officers in charge of the scales to facilitate the false declaration of amounts of spirit de clared for the purpose of paying duty, by recording light weight in favour of certain importers with whom they had made suitable arrangements. The loss so caused was about ten to fourteen per cent. of the revenue payable on imported Chinese spirit. A large number of importers were involved but the conspiracy could not be proved to the satisfaction of the court. It is certain that the officers concerned received some reward for their help in reducing the amounts of duty payable, but no details could be discovered. Enquiries made subsequently tended to show that a certain small sum had for sometime been collected on each jar passed for the purpose of paying duty in the case of many of the importing firms.
Estimate of loss of Revenue.
In 1924 a comparison of the amount of Chinese spirit paying duty in the years 1913 and 1923, after taking into consideration the great increase in population, showed that up to about $400,000 was probably being lost to the revenue per annum by various methods of evasion. Discoveries made during 1925 ex- posed some of these methods, and enabled an estimate to be formed of some of the chief losses in a normal year.
Estimate of losses to the revenue under certain heads.
Loss on Spirit denatured with shellac
$150,000
Light weight on imported spirit
50,000
Watering down samples of strong spirit
15,000
False reports of distillery outputs
80,000
Spirit consumed in Hong Kong after paying
only New Territory rates
10,000
Smuggling, especially of spirits of wine and
Tientsin spirit
40,000
Adulteration with water of duty paid spirit by
retailers
20,000
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