1939-11-16 — Page 4

Page

THE CHINA MAIL, NOVEMBER 16, 1939

"NOT IMPRESSED BY ARGUMENT"

fully

of

(Continued from Page 1.)

that such a big amount was to be ex-be catered for by the institution fore hold a strong view, not

pended, and I hope the expenditure some sound Provident Scheme.

I venture to suggest, Sir, this ques- shared by my colleagues, that this on capital account for this new depart-

tion of Pensions is already getting out Budget, coming at a time when the ment will soon be completed.

I regret that I must level a com- of hand, and unless dealt with firmly, situation is obscure, should have been

will be Depart-efficiently and immediately, framed to show a large surplus, which plaint against the Sanitary

a load for this Colony to if realized, could have been held in a ment, on the question of the clean- too heavy

someliness of our streets. I believe there bear. special reserve, and utilized at

I hope it will not be long before more suitable time for the various is some difference of opinion in re-

some Government can make some announce- projects referred to by the Senior Un-gard to this matter, and also official Member. It would, I am con- difficulty in regard to the water sup-ment, that an expert is dealing with vinced, have been more businesslike ply required. I hope that a satisfac- the whole question. to have postponed these projects and tory solution of these differences will given them consideration when prices be arrived at, for I feel strongly, as do of iron, steel and other imported re- many others, that money will be well quirements for building had returned spent if our roads and streets are kept to pre-war and reasonable levels.

MEDICAL COSTS

in clean condition.

INCOME TAX

CHINA

ORDER FOR

AIR FORCE

New York, To-day. China has ordered an attack bomber, a set of assembly Jigs and duraluminum sufficient for 25 planes from the Vultea Air- craft company.

Total value of the order is $1,000,000.-Reuter.

Coming now, Sir, to the question of the Special War Budget, and the pro- posal to introduce Income Tax to pro- vide funds to meet that Budget, I must also comment on the Squat- gladly avail myself of the Honourable Secretary's invitation The rapid growth of the Medical ter Settlements in various overcrowd- the Financial Department with its formidable num-ed districts, particularly the way mat- made in the opening sentences of his ber of highly paid staff, and conse-shed buildings are allowed indiscrim-speech to make some rejoinder to his quent increasing pensions list calls inately on the hillsides. I appreciate arguments and contentions. I am also for some comment. I am apprecia- there are numerous difficulties in the grateful to you, Sir, for agreeing to tive of the work being done and

tax and not way, but I maintain these settlements postponement of this adjourned Coun-

really pursued the why very soon after its inception, unmindful of the lack of Hospital fa-are no credit to whoever is responsible cil Meeting until to-day. This courtesy never

is very much appreciated. cilities as shewn in the comprehen-for their supervision.

The Honourable the Financial Se-dropped it. sive report recently published. I hope

cretary, naturally with bias in favour of the the Tax, has ably dealt with its num-

and has assailed erous aspects arguments made by Unofficial Mem- bers with spirit, but his arguments are hot convincing.

PENSIONS

some

I shall not be described as heartless, As one who has from time to time if I here express doubts as to whether voiced criticism, I should be wanting the Colony can afford to pay this en-in my duty if I did not make

reference to Pensions, for this is a ormous Doctors bill.

subject that is constantly discussed in business circles with ever increasing alarm and apprehension.

The question of providing bigger hospital accommodation will no doubt be tackled in due course. I hope when be that time comes every care will taken to see there is no extravagance or unnecessary expenditure incurred,

In the meantime, I hope the Director will, when developing the numerous schemes he now has in hand, keep : watchful eye on expenditure.

to

After close scrutiny of his speech. 1 can see no reason to alter views.

A.R.P. EXPENDITURE As I have frequently referred expenditure on Air Raid Precautions at meetings of the Finance Committee, I must here again express my scep- ticism, as to whether the Colony is getting full value for its money. Ied cannot be put on a proper actuar-able Financial Secretary when he de- cannot believe it was ever anticipated tal basis, the future could, I believe,

COLONY'S TRADE

I am given to understand that of the tax actually collected ap- proximately 76% was borne by the European community.

removed

It was certainly a. War Time mea- sure, but in spite of that fact, impor- objections must have existed, tant

which as to my information

must be The Colony is fully justified in its

available. It is significant the imposi- demands that this question be tackled

I am still of opinion that the intro- tion of Income Tax was soon dropped forthwith, and a scheme evolved

itsduction of this particular form of tax-in the Straits Settlements. whereby it will definitely know

CAPITAL ASSETS total commitments from year to year, ation cannot be anything but a hin-

The Financial Secretary has point- and not have to rely upon an estimate drance and deterrent to the business

I hold it is of para-ed out that capital invested in plant in the Annual Budget. I cannot be of this Colony. lieve there is any better service the mount importance that the cheap and and equipment cannot be

Port from the Colony and goes on to re- Financial Secretary can render this easy facilities offered by this Colony than for him to solve this stu-must be maintained, and that its fin-mark that it is a matter of indiffer- ancial structure to deal with this trade fence to the Government whether a pendous problem satisfactorily.

tax on the income from it is paid by Although I am not altogether satis-is not hampered.

the existing owner or anyone else to fled the pensions already being enjoy-

whom I am in agreement with the Honour-

his shares. But he has sold surely the Financial Secretary has clines to accept the allegation that overlooked the deflationary effects of the Colony has been suffering during a general movement to sell out Hong. the last two years from trade depres- Kong investments. The plant and sion in consequence of the Sino-Ja- equipment to which the Financial panese hostilities. The view of my Secretary refers have been purchased Unofficial colleagues and the commer- from funds provided by the investor. cial community generally is that the

Many of these investors are in Colony has undoubtedly enjoyed A

position to transfer their money from wave of prosperity. But at the same one part of the world to another_and time there is no doubt that those con- their money happens to have been ditions have been abnormal and must invested here because of the attrac- be entirely ignored when measurin

tions offered by Hong Kong in the the Colony's taxable capacity.

A NIGHT OF HURRICANE..THAT SWEPT TEMPESTUOUS LOVE THEIR WAY!

It whirled whole cities away...and tossed them into each others' arms!

IRENE

*

CHARLES

DUNNE BOYER

WHEN TOMORROW COMES

Barbara O Neil • Onslow Stevens Nadia Westman « Fritz Feld

JOHN M. STAHL PRODUCTION

A NEW UNIVERSAL PICTURE: Produced and Dire

TO-MORROW

At the

ALHAMBRA

a

without

I must take issue with the Honour-way of security and a reasonable and

untaxed return on capital. able Financial Secretary's arguments The imposition of an income tax regarding the expenditure which will will, in the opinion of the business be incurred and the difficulties which community, raise. doubts in the mind will be met in the collection of the

an investor, who of such Tax. I suggest, with all due defer- ence, that to inaugurate a big and im- giving full consideration to what the Financial Secretary calls the beauty portant department by "drawing

of income tax, may decide to dispose staff required from other branches of

of his share of the plant and equip- the Government Service, whose acti- ment referred to. vities will have to be reduced to some extent", is a proposition which is un- tenable.

the

tc

INTRICACIES OF COLLECTION The intricacies of Income Tax col- lection in Great Britain remains this day a problem difficult of solu- tion. The Financial Secretary will be aware that there are many experts finding an honest livelihood advising clients, who have no thoughts whatso- ever of the evasion of Income Tax. am not impressed with the argument that expert assistance will not be re- quired. I maintain the situation out here in regard to this matter must be complicated, much more complicated than at home, where despite many years during which the tax has been in operation, legal problems are a con- stant source of litigation.

matter

In

If he does so he may have to take less than he expected and in turn his forced selling and the forced sales of others will mean recession throughout the share list. There will then follow

the value a heavy reduction in collateral securities and bankers will start to call in their loans.

The

of

1925.

FINANCIAL CHAOS Colony will then find itself again in the financial chaos which pre-,

during the vailed

autuinn of when private investors

were forced huge losses and the Government had to come forward with assistance

in the shane of a Trade Loan.

The Financial Secretary quotes the Taxation Committee as being unani- mous that an income tax was in principle the best method of raising further funds. I am not satisfied this is quite a fair statement. As I am given to understand that Committee

· FEARS RECOGNISED

out

One further word in regard to the matter of collection of the tax, and that is the question of Chinese 110- were against Income Tax, but agreed counts and accountancy. The Honour- it could be brought in case of neces- able the Senior Chinese Member, in sily of the Colony itself. I do not his speech, dealt with this pointing out difficulties that would cer- believe they visualized it would be tainly arise. I must frankly confess suggested as a means of taking money that I am disappointed at the manner out of the people to be remitted in which the Financial Secretary light- of the Colony. ly passes over these comments. support of my honourable friend; Mi It appears that the Honourable Fin- Chau's view, I would say that in con-ancial Secretary does 'entertain some versation with leading British Ac- fears that Capital may be removed, countants, I discover numerous dif- for he ficulties, too numerous to catalogue should be adopted to prevent such

immovement. here. I would have been more pressed if the Financial Secretary had been able to give us an assurance that the local firms of accountants had been consulted. I remain unmoved in my view that it will be a costly matter both to Government and to the Com- munity, adding burdensome heads.

BINGAPORE EXPERIENCE

makes two suggestions that

The first one is that "No Income Tax should be charged on interest on deposits held by non-residents."

Is not this an admission there is some danger of such deposits being removed, and, if there is fear of non- over-residents doing so, why should it not cause residents to do likewise?

Later in his speech the Financial In dismissing in a few words, the Secretary proposes some special con- reference to the imposition of Income cussion is to be made to newly Tax in Singapore the Financial Secre-established factories. It seems to me tary says, "I have it on very good au- this is also an admission of some:fear thority that the enforcement of Income new capital may be prevented from

tothing, here. Tax was never seriously pursued."

I am disappointed the Financial Secretary has not given us the reason why "the" administráfioi In Singapore

$

To my mind Iricome Tax is un- suited to the peculiar conditions" of:

(Continued ow Paye H)^~