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HONGKONG LEGISLATIVE COUNCIL
Clause 23 is the clause dealing with ex- change contracts. Hon. members will find on the table a proposed new draft of that clause. It is not really a change of substance but what I should call a drafting amendment. I think 1 explain ed it in introducing the Bill. The point 18 this: the schedule is a list of duties which are imposed on particular instru- ments: there was nothing in clause 23, as drafted, to require any instrument at all to be drawn up on cancellation of an exchange contract. The new clause remedies that defect so that there will be in future some instrument on which the
called duty must be paid. It is "exchange contract cancellation note." It is not intended that any particular form of note shall be used, and I under stand that the broker note will be marked cancelled and be used as a cancellation notë, Whatever form be found convenient by the bankers and brokers will no doubt be quite sufficient, but some document must be executed as a cancellation note, and, on that document duty must be paid." A consequential amendment is the amendment of the schedule so as to read "exchange con- tract caucellation note."
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Clause 20 is the clause dealing with late registration duty. It is proposed now to abandon that. There are many difficul ties and it is felt on the whole that the best thing will be not to introduce that duty but to accept the suggestion made by the Stockbrokers' Association to in- crease the stamp duty on share contract notes instead.
Clause 41, sub clauses (1) and (2), deal with the ability of corporate bodies and firms, and their officers and partners and servants, for failure to stanup. I am not sure that I fully grasp the objection, to these clauses as they now stand, but we are prepared to alter that as regards
the directors and officers in the one casO,
and partners and servants in the other case, no as to agree with the form of the section in the Companies' Ordinance dealing with failures to comply with the provisions of that Ordinance by com. panies and their officers and servants. I think the proposal which has found favour is to make sub-clause (1) read: "Every director, manager, secretary and other officer who knowingly is a party to the default." I am not sure that alters the meaning very much. We shall be
prepared, if that is not thought energ to make the clause read "who kuoniga and wilfully authorises or permits the de fault." The same remarks apply to ath clause (2). In case any members wish G refer to the Companies' Ordinance, thi first form is to be found in section and the second form is to be found section 37, of the Ordinance of 1911.
Clause 42 has been objected to, but think chiefly on the ground that it indefinite and that it is not quite clear f what it refers. It was meant, chiefly, refer to appeals from the Collector to the Summary Court and it has been sugge that the clause might be transferred frea its present place to Clause 15 which desi The with appeals against assessments- party appealing from the collector hu clearly got to establish his case agité the decision already given and the who
by means of thing is carried out stated case. I think the simplest this
cia would be to omit that altogether; it does not exist in the pre sent Ordinance and we have got on te well without it.
#1
onus
HONGKONG LEGISLATIVE COUNCIL
Dealing with the schedule, and Heading No. 4, it is proposed to abandon that to omit it altogether. It would, no doubt, roduce a very large revenue even if the ate of duty were reduced, but it is doubtful bow far one could collect anything like the proper amount. No doubt a great many greements would escape the duty and it is Sought fairer to omit that proposal
together.
Heading 5 I have already mentioned in ealing with clause 21. That will also be mitted
In Heading No. 12, bill of exchange, ab-heading (4) letter of credit, has been bjected to and it has been suggested at persons leaving this Colony and aking with them letters of credit for dinary travelling purposes would go to Banton and get their letters of credit here. I do not think there is much in bat, and I do not think that heading ught to be omitted. But there is another form of letter of credit which I think ught to be exempted from duty on the recedent of the United Kingdom Stamp et. One of the exemptions is letters of redit granted in the United Kingdom athorising drafts to be drawn out of the nited Kingdom payable in the United Fogdom. I think that we ought to
Clause 45, limitation of time. It is pr posed to add to that clause another sub section providing that no pros shall be instituted under this Online a similar, exemption here." except with the consent of the Colle That is to prevent the institution of prosecutions by unauthorised persons.
Heading No. 13. The increased rate of uty above the line of $3 has been objected to. I have no doubt that that increased
Clause 16. It is proposed to itsetuts would not be felt at all on the higher eights, but to meet the objection and after the word "commits," the words "a
a compromise, it is proposed to make attempts to commit" any offence. Ide
the dividing line $5 instead of $3, so that not think many cases will occur in whi
nder $5 the duty will be ten cents, and the added words will take effect, b
ver $5 thirty cents. some may occur.
Clause 43 is a clause which gives port of inspection and search. That has be objected to, but I think unreasonably. is a clause that no honest person has a ground for objecting to. It is intende to save the honest person from having bear an undue share of taxation by reas of the evasion of duty by the dishon person. It will be used, I have no de only in cases where there is good man to believe that duty is being evade systematically and deliberately, and give up that power, I suggest, would to invite the disloyal and dishonest citin to attempt to evade the duties imposed this Bill.
Heading 16, Charter Parties. That, sir, tis proposed to reduce to fifteen cents tead of twenty-five: the present rate ten cente,
10 Heading 17, conveyance on sale, it is roposed to make the dividing line $20,000
tead of $5,000, allowing a
certain amber of smaller transactions to escape payment of the lower scale of duty. The present limit is $6,000.
Heading 30. I must apologise for some these drafts being incomplete, but
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the duty on collateral securities ten cents instead of twenty cents. It is also proposer to make Sub-heading (4) a little clearer by inserting the word "aditional" before the That I words "principal sum secured." understand is proposed in the memorandum drawn up by the Chinese Chamber of Com- merce, which unfortunately I have not yet had an opportunity of reading.
Heading 33. It is proposed to reduce the duty from $20 to $10. I think the Chinese Chamber of Commerce also made a representation that that duty was too high and would press unfairly on the smaller firms.
Hearting 31. In the original draft of the Bill & pure drafting mistake occurred, and it appeared that an ad valorem duty on marine policies was imposed. It was never intended that any ad valorem duty should be imposed). The proposal with regard to marine policies is simply that the existing duties should be doubled and where the amount does not exceed 81,000 the duty should be twenty cents, and where it exceeds $1,000, fifty cents. The draft amendment omits two mor heads which ought to appear-duplicates of policies, and reinsurances, to be found on page 27. It is not intended to drop those two sub-heads, but owing to haste they did not appear where they should.
27
Heading 35 is to read
power of attorney or revocation of attorney,"
power of That appears in the existing Ordinance, too.
of shares, it is proposed to reduce Heading 41. In Sub-heading (1), transfer
the duty from fifty cents to twenty eents, that is to twenty cents a bundred, in- stead of fifty. Sub-heading (2) will be omitted altogether as clause 29 is being omitted, duty goes. in other words, the late registration
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There is another amendment which I did mention in introducing the Bill. In the 5th column, opposite "transfer of shares" the works should be "Before execution" instead of "Do."
In Sub-heading (5) it is proposed to adopt
the scale which, I understand, has been proposed by the Stockbrokers' Associa ere was no time to draft and get print tion-with one alteration. The scale
ed complete drafts. The effect of the propose is this: [TD to $1,400 at posed amendment is simply to make the rate of $1, over $1,000 up to $10,000,
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