1941-05-29 — Page 33

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CHINA MAIL

FIRST NEWSPAPER IN THE FAR EAST. ESTABLISHED 1845.

No. 32,159

THURSDAY, MAY 29, 1941

Price: 10 cts.

INSIST ON

Daisy Brand,

Australia's Choicest

BUTTER

NEW RECOMMENDATIONS OF WAR REVENUE COMMITTEE Expected To

To Bring WASHINGTON

ROOSEVELT SPEECH

In Additional CONFUSED BY Four Million Dollars

INCREASES IN THE BASIC RATES OF THE WAR TAXES, THE CREATION OF A NEW INTEREST TAX (EXPECTED TO PRO- DUCE $1,200,000) AND VARIOUS AMENDMENTS TO THE ORDIN- ANCE TO SMOOTH OUT INEQUITIES AND TO CLOSE CERTAIN LOOPHOLES, ARE RECOMMENDED IN THE REPORT OF THE RE- CONSTITUTED WAR REVENUE COMMITTEE, LAID ON THE TABLE IN LEGISLATIVE COUNCIL THIS AFTERNOON.

WITH THE CHANGES proposed, it is ex- pected that War Revenue will total $13,200,- 000 in 1941-42 against $9,300,000 in 1940-

As of of lo increases, porty

5

as the result of closure of loopholes and part

ly the indications of increased profits.

Warning To U.S.

An important change, Clause 10 of the Strikers

proposed amending Ordinance, provides for the aggregation of the salaries of husband and wife where both are employed locally: with provision that where necessary the wife should pay her own share of the combined

[SPECIAL TO "CHINA MAIL"}

President Roosevelt yes- terday gave flat notice that if personal appeals! fail to prevent stoppage of national defence produc- The Clause is not applicable if come at present untaxed-name- tion owing to strikes, the married woman is living apart ly, interest on loans and mort-"other methods" will be

¡gages. We have therefore

tax.

from her husband.

The Report of the Committee devised a scheme for the taxation tried until the objective of of certain classes of interest an uninterrupted flow of

states:-

"To reduce the possibilities of which we have included in the evasion and ensure equal in- draft Bill under a new Chapter Wwar materials is attained. cidence we first considered the entitled "Interest Tax". This Asked if he planned any other advisability of recommending the tax is practically limited to in- immediate action to avert strikes, complete repeal of the present terest on mortgages, bills of sale, the President replied in the nego- War Revenue Ordinance and debentures and loans made to tive and indicated that patriotic the substitution therefore of a corporations or firms who are appeals to employers and em- full Income Tax enactment; we liable to Profis Tax; we found ployees would continue. decided, however, by a major that the yield to be expected The President emphasised that ity that in view of the op- from taxing interest on bank if this did not work the Govern- position which the suggestion fixed deposits, savings bank ac- ment would try something else. to introduce Incone Tax had counts, etc., would be too small called forth in 1939 we would in relation to the cost and re-affirm in this regard the re- trouble of administration to the commendation of the original banks concerned. War Revenue Committee.

International News Service.

connection with Air Raid Precau- "With a view to increasing the tion measures should be exempt- We decided to appoint a Sub. yield from Business Profits Tax ed from Profits Tax. Committee composed of Mr. we considered that the exemp-

Cost Of Living

A. G. Clarke (Chairman), Mr. tion limit should be reduced E.. M. Bryden, Mr. L. Kadoorie from $10,000 to $5,000 and that and Mr. C. van Langenberg to the limit for the lower rate of "We came to the conclusion examing in detail the present taxation should be reduced from that in view of the. rise in the War Revenue Ordinance with, $100,000 to $50,000. The reduc- cost of living some relief should a view to smoothing out its tion of the exemption limit be afforded to those payers of Inequities and increasing the would greatly increase the num-Salaries Tax who have wives ylold from War Taxation. ber of firms paying this tax and and children. With this object This Sub-Committee held would minimise the incentive to we have recommended that the twelve meetings and presented the splitting of business.

scale of allowances for a wife comprehensive report We considered the questions and children should be

of whether a loss by a business as follows:- or corporation In one should be set off against pro- fits-in-succeeding years-but-in- vlaw of the temporary nature. of the Ordinance and the urgent' nood for reventa wa have not recommended such a provision. For similar reasons, we con-

.a. most

which was gratefully adopted by the full Committee and which formed the basis for our conclu- "slons-and-recommendations. Our conclusions have been incorporat→ ed in a draft War Revenue · Bil{ which is attached to this Report "asian" "Appendix.

Unearned Income

year

-Wife

1st child $1,000 2nd child · $1,000

revised

Now.

Recommended.

$2,000_____ -$3,000 $2,000

$1,000

3rd child $1,000

$.600

4th child $1,000..

$ 500

We consider, however, that no

sider, any provision for deprecia- allowance should be made for tion in respect of the expiry of children in excess of four, or "We felt that the charge of leases to be undesirable. We for dependent relatives, At the nequitable incidence could not have not recommended that pay same time we have recommended be avoided, unless we devlied ments such as charitable contri- that the lower rate of Salaries some means of taxing the one butlons and donations towar Tax be brought into line with the

source of unearned a in- jundaj or jexpensest, Incurred.

(Continued-on Page: 184))

(SPECIAL TO "CHINA MAIL",

There is utter con- fusion in Washington on whether the Roose- velt speech indicates bringing the nation closer to war or away, and Congress is adopting an attitude of watchful waiting until there are unmis- takeable signs of ac- tion such as ordering the Navy to shoot if there is any attempt to interfere with ship- ments to Britain. International News Service.

Tunisia Raid Alleged

(SPECIAL TO "CHINA MAIL")

AMERICA IN THE

WAR

SPECIAL TO "CHINA MAIL"}

The general unofficial impression in London, fol- lowing President Roose- velt's

that speech, is "America is in the war," and enthusiasm surpasses the Bismarck sinking.

Lord Beaverbrook's "Evening Standard" calls the speech "a trumpet call for those who fight."

"President Roosevelt identi- fied the interests of the United States finally and Irrevocably with the interests of Britain. This amounts to an iron pact between allles."

It has been decided in London that no official statement should be given out as this might be as interference, since the address was primarily for the Americas. International News Service.

Vichy alleged yesterday that was downed by French fighters British planes had bombed the when Aleppo aerodrome was the Tunisian port of Sfax. Vichy raided. International News Ser also claims that a British 'plane vice.

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