CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 44

Net receipts of certain

only to be

taken.

2

S

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

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

Deduction

(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 recognized as productive undertakings in respect of which the main- tenance, cost of manufacture and other working expenses shall be deducted from the gross receipts.

(4) (i) In the case of the Government Wireless Telegraphy of percentage Services the cost of construction of which has been defrayed out of the revenue of the Colony, and not by means of a loan, there shall be deducted in the year 1933 a sum equal to five and a half per centum on the capital expenditure incurred in the establishment of the undertaking during the years 1915 to 1932 inclusive.

when pro- ductive under- taking is constructed out of

revenue.

(ii) In the case of the said Wireless Telegraphy Services after the end of the year 1932 and in the case of any railways, telephones, or other productive undertakings mentioned in sub-section (3), the cost of construction of which may be defrayed out of the revenue of the Colony and not by means of a loan, there shall be deducted annually, until the end of the year 1982 a sum equal to four per centum on the capital expenditure incurred in the establishment of such undertakings, and the percentage shall be struck on the net receipts, if any, after deducting the said sum of four per centum.

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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 or 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.

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