6.
125
i.e.
2.
F.
to Rexierane
It will be seen therefore that if the correct system of
accounting is to be adopted in the future the Colony would have
cont
to pay 20 Military Contribution on what to all intents and
purposes is a pure and simple reimbursement.
The fact that this
money is being expended in the manner shewn increases the
receipts in respect of water rates and thus helps to swell the
general revenue on which military contribution is correctly levied.
It is submitted therefore that the contribution be assessed only
on the net receipts
if any.
OVERPAY OVERPAYMENTS IN PREVIOUS YEARS.
It was decided some years ago that overpayments recovered
in respect of previous years should be credited to Revenue and not
deducted from current expenditure. This rule has been followed
in all Colonies I have served in except Hong Kong. Its non-
adoption locally may have been due to the fear that such credits
would be assessable for military contribution. Anyhow to obviate
any doubt about it the credits were deducted from expenditure.
It is bad accounting and should cease. Approval is required
that any such credits should be exempt from military contribution
as they are not true revenue. They will be shewn in a distinct
sub-head of revenue should they occur.
G.
WATERWORKS UNDERTAKINGS BUILT OUT OF REVENUE.
ース
>
It is provided by Section 3 of the Defence Contribution
Ordinance No. 1 of 1901 that after 1st January 1911 in cases of
> productive undertakings the cost of the construction of which
has been or hereafter may be defrayed out of the revenue of the
Colony and not by means of a loan there shall be deducted annually
from the gross receipts of such undertakings during a period of
50 years a sum equal to on the capital expenditure incurred
The Waterworks of Hong Kong and Kowloon
in their establishment.
have been constructed entirely from revenue up to the year 1923
after which date major works of a capital nature have been charged
against loan funds, but small capital costs are still being met
out of general revenue. No deduction has however been made
78
No comments yet.
Private notes are available after approval.