CO129-530-8 Estate Duty Ordinance- 1931- Bill 27-2-1931 - 15-12-1931 — Page 31

No.

2976616

3

376.

RECE

6 OCT 1931) COL. OFFIC

GOVERNMENT HOUSE,

HONG KONG, 1st September, 1931.

Sir,

I have the honour to acknowledge the receipt

of Lord Passfield's despatch No.134 of 5th May, 1931, on

Jof

the subject of the Estate Duty Amendment Ordinance No.6 of

1931.

31

Aned

2.

Section 9 of the Ordinance was introduced to

meet difficulties occasioned by a practice obtaining in this Colony but not I understand in the United Kingdom by which the purchasers of shares do not register themselves as beneficial owners, but attach to the scrip a stamped transfer in blank signed by some previous registered owner, the scrip thereafter passing to successive owners by mere delivery. This practice has undoubtedly been used in the past as a means of evading the payment of estate duty.

3.

I am advised that this section is not regarded as in conflict with section 28 of the Companies \Ordinance to which it is supplementary, as it is well understood to be applicable only to a special state of affairs obtaining locally. Moreover the Companies Ordinance deals with ordinary trusts and not representation which it is the practice of all companies to note on their registers. The points referred to in Lord Passfield's despatch have however been dealt with

THE RIGHT HONOURABLE

in

J. H. THOMAS, M.P.,

&C.,

&C.,

&c.