CO129-509-8 Military Contributions- claim for relief 24-2-1928 - 15-12-1928 — Page 56

3.

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5.

The hope of relief through the deliberations

of this Committee now no longer exists, and it is therefore necessary again to bring before your attention certain points, over which you will no doubt agree that relief is justified and that if the proposed new method of assessment does not meet with the approval of the Treasury certain modifications of the existing practice are necessary and long overdue.

6.

The existing Ordinance No.1 of 1901 (The Defence Contribution Ordinance No.1 of 1901) is not

altogether satisfactory, and various differences of opinion frequently arise. In the first place Colonial revenuc includes the gross receipts from all sources of revenue,

but does not include proceeds of land sales. Contributions

to the Widows' and Orphans' Pension Scheme and sale of

condemned stores have also been excluded and only the net

receipts from the Opium Monopoly are assessable. There is

also the question which has recently arisen as to whether

military contribution should be paid on the increase in the

book values of sterling securities, when sold, owing to the

fall in exchange. These securities form part of the surplus

balance of the Colony, they are due greatly to proceeds of

land sales, and may be considered as part of the Colony's

capital. Under Colonial Regulation 309 the "profit" has to

be carried to Current Revenue. It is not considered that

any such increased dollar value of sterling securities is revenue for the purposes of the Defence Contribution

Ordinance, though it may be necessary according to Colonial

Regulations, which do not deal specifically with exchange

any difficulties, to place difference on the revenue or

expenditure side of the accounts.

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