CO129-519-4 Adjustment of exchange account- payment of military contribution on profit on exchange 10-9-1929 - 10-6-1931 — Page 12

Bat the military

contribution is a

+

Surplus

bracteant

•

& less in 'bad years. But as securities

12

realizadonly

in' badges, charging mils contribution on this profit'means that the contribu.

•time is kept up in bad years by fontui- -tous cincs.

The case for exempting these profits is not really a very strong one, because the "profit is all found mony as far as the fol. is concurred.

percentage both ways

wat of Losses are

But the WTO. ought not to ham it both ways. If they are to take a share of the fol's fortuitous profits they ought to bear an equivalent share of the fol's fortuitous losses- The principle is thesome as that which causes the Inland Revenue to

Income Tax on betting fo charge no Lacome Tax jains

on profits on the sale of invest. -ments in this country.

I think that this minuti gives enough maturial to argue this point.

The material for againg the other

points is contained m 62832/29.

Director of Colonial Audit.

༠.༤.༣-C་ཀ རྟ་མཕལ་

29/2/29

I have already referred to you a draft semi-official letter to the Treasury on the subject of a proposed amendment of Colonial Regulation 291,

so as to provide a re-valuation of securities each

year, and an entry as revenue or expenditure of any appreciation or depreciation shewn by such

re-valuation.

As far as I can make out, the specific point raised on this paper is really just the same.

It appears that Hong Kong was allowed differential

treatment in 1925 but I consider that the

"Adjustment of Exchange Account" set up for Hong Kong was just as unsound as the "Investments Depreciation

i

A/C"