COFY)
Land Court,
740
Hongkong, 8th February, 1904.
I
Bon: Col: Secretary.
21831
REC
IRES 20 JUL, 04'
With a view to assisting the Executive to arrive at some definite conclusion in respect of taxlords and with a view also of placing my own opinion on record in case an error at this juncture in dealing with the taxlord problem should result in serious difficulties, I venture to submit the following minute.
The title of taxlords and their lessees is unsound ab initio because it originated in a fraud on the Chinese Government. Statute XCV of the Tai Ts'eng Lut Lai requires all transfer of land to be registered under pain of severe corporal and pecuniary punishment in addition to confiscation of the land in question: and under the regulations appended to the same statute the Government fee for transfer is fixed at 3% of the consideration money stated in the deed. Now in order to evade this 3% tax, two courses have been frequently adopted by Chinese in the New Territory:-
(1) A, holding land under a red or registered deed, transfers part of his land by sale to B under a white or unregistered deed. Therefore A, who still holds the red deed, and is accordingly still liable to the Chinese Government for the full tax under his red deed, protects himself from loss by stipulating that B shall annually contribute to him the proportionate part of the tax. For example, the total tax on A's land is $1 per annum. A transfers half his land to B, but still remains liable to the Chinese Government for the full sum of $1 per annum.
Therefore B contributes $0.50 per annum to A in order that A may pay the tax vicariously. The parties accordingly come under Statute CXXII of the Tai Ts'eng Lut Lai which recites:-
"Whoever undertakes to deliver to Government the amount of impost due from another, shall suffer 30 blows, and shall still, in behalf of the responsible proprietor, deliver into the treasury of the Government the whole amount originally due and half as much more by way of for-
T
COFY)
Land Couri,
740
Hongkong, Brdr February, 1904.
I
Bon: Col: Secretary.
21831
REC
IRES 20 JUL, 04'
With a view to assisting the Executive to arrive at some definite conclusion in respect of taxloeds and with a view also of olac- ing my own opinion on record in case an error at this juncture in deal. ing with the taxlord ocoblen should result in serious difficulties, I
venture to submit the following minute.
The title of baxlords and their lessees is unsound ab ini-
tio because it originated in a fraud on the Chinese Government. Statute XCV of the Tai Ts'eng Lut Lai requires all transfer of land to be re- gistered under pain of severe corporal and pecuniary ounishment in addi- tion to confiscation of the land in question: and under the regulations appended to the same statute the Government fee for transfer is fixed Now in order to at 3% of the consideration money stated in the deed. evade this 38% tax, two courses have been frequently adopted by Chinese
in the New Territory:-
(1) A, holding land under a red or registered deed, transfer part of his land by sale to B under a white or unregistered deed. There! fore A, who still holds the red deed, and is accordingly still liable to the Chinese Government for the full tax under his red dead, protects) himself from loss by stipulating that E shall annually contribute to him the proportionate part of the tax. For exanole, the total tax on A's land is $1 per annum. A transfers half his land to E, but still remains liable to the Chinese Government for the full sum of $1 oer
Therefore B contributed $0. 50 per annum to A in order that A may pay the bax vicariously. The parties accordingly come under Sta- tute CXXII of the Tai Ts'eng Lut Lai which recites:-
annum.
"Whoever undertakes to deliver to Government the amount of imoost "due from another, shall suffer 30 blows, and shall still, in behalf "of the responsible veoorietor, deliver into the gradery of the Govern "the whole amount originally due and half as much more by way of for-
1
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