CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 36

Not receipte of certain

only to be taken.

(xi) revenue from the profits arising from the Crown Agents' routine realisations.

(3) (i) The charges for working expenses and mainten- undertakings ance of the British Section of the Kowloon Canton Railway, and of any railways, telephones or other productive under- takings of a similar character already established or which may hereafter be established, and for interest and sinking fund on any sums raised by loan and utilised for the con- struction of such railways, telephones of undertakings, shall be deducted from the gross receipts of such railways, tele- phones or undertakings respectively, and the percentage struck on the net receipts only in each case.

Deduction

of percentage when pro- ductive under- taking is constructed out of revenue.

(ii) For the purposes of this sub-section the Government Opium Monopoly, the Government Wireless Telegraphy Ser- vices, the Government Motor Meat Van Services, and the Water Installation (House Service) Account shall be recognised as productive undertakings in respect of which the main- tenance, cost of manufacture and other working expenses shall he deducted from the gross receipts.

(4) In the case of anv productive undertaking (including the Government Wireless Telegraphy Services) the capital ex- penditure on ich, or a part thereof, has been or may be defrayed out of the revenue of the Colony, and not by means of a loan, there shall be deducted annually, from and including the year 1933, a sum equal to five and a half per centum of any capital expenditure on such undertaking which was de- fraved out of the revenue of the Colony during the years 1915 to 1932 inclusive, and a sum equal to four ner centum of any capital expenditure which was or which may be defraved out of such revenue during the years 1933 tó 1982 inclusive. The percentage required for appropriation under section 2 shall be struck on the net receipts, if any, of the undertaking after making the said deductions.

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Objects and Reasons.

1. This Amendment Bill when enacted will repeal sections 2 and 3 of the principal Ordinance and substitute two sections which represent their effect as modified by agreement contained in instructions received from the Secretary of State.

2. The new section 2 corresponds with section 2 of the Straits Settlements Ordinance No. 64 (Defence Contribution) and also with the first paragraph of the repealed section 3 of the principal Ordinance.

3. The new section 3 (1) corresponds with section 3 (1) of the Straits Settlements Ordinance and with the repealed section 2 of the principal Ordinance with the exception of the inclusion of a saving reference to sub-sections (2), (3) and (4) and of the omission of the reference to land sales, premia on leases and statutory land grants which are now included in sub-section (2) of the new section 3.

4. The new section 3 (2) gives a list of sources of revenue excluded.

Paragraph (i), relating to land sales, comes from the latter part of the repealed section 2.