CO129-556-10 Defence contribution- legislation and correspondence 2-12-1935 - 15-12-1936 — Page 30

30

Net receipts of certain undertakings only to be taken.

Deduction

when pro- ductive under- taking is constructed out of

revenue.

2

(ix) moneys, dividends, interest or the produce of invest- ments specially exempted by any Loan Ordinance from con- tribution under this Ordinance.

(x) moneys received as punitive rates specially exempted under the provisions of any Ordinance for the time being in force relating thereto from contribution under this Ordinance. (xi) revenue from the profits arising from the Crown Agents' routine realisations.

(3) (i) The charges for working expenses and mainten- 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 or 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.

(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 be deducted from the gross receipts.

(4) In the case of any productive undertaking (including of percentage the Government Wireless Telegraphy Services) the capital ex- penditure on which, 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 the gross receipts of such undertaking, during a period of fifty con- secutive years from the date of such expenditure or, if later, the date from which the undertaking is recognized for the purposes of sub-section (3) (i), a sum calculated at the rate of four per centum on such capital expenditure incurred prior to 1915, at the rate of five and a half per centum in respect of such expenditure incurred during the period 1915 to 1932, both years inclusive, and at the rate of four per centum in respect of such expenditure which has been or may be incurred from 1933 onwards. The percentage required for appropria- tion under section 2 shall be struck on the net receipts, if any, of the undertaking after making the said deductions.

Passed the Legislative Council of Hong Kong, this 28th day of November, 1935.

H. R. BUTTERS,

Deputy Clerk of Councils.

Page 30Page 31