CO129-565-3 Defence Contribution Amendment Ordinance draft bill 17-9-1937 - 29-8-1938 — Page 18

A BILL

INTITULED

[No. 22-20.8.37.-1.]

18 END

An Ordinance to amend the Defence Contribution Ordinance, 1901, as amended by the Defence Contribution Amend- ment Ordinance, 1935.

Be it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:-

1. This Ordinance may be cited as the Defence Con- Short title. tribution Amendment Ordinance, 1938.

No. 1 of

2. Sub-section (2) of section 3 of the Defence Con- Amendment tribution Ordinance, 1901, (as enacted by section 2 of the of Ordinance Defence Contribution Amendment Ordinance, 1935) is 1901, amended by the addition of the following paragraph at the $.3 (2). end thereof:-

(xii) all revenue refunds.

Ordinance No. 43 of 1935.

Objects and Reasons.

1. In a circular despatch of the 15th January, 1937, the Secretary of State suggested a change in this Colony's accounting procedure in connection with drawbacks, repay- ments of tax and other refunds of revenue and with recoveries of over payments, so as to bring it into accord with Colonial Regulations.

6151/20/16 2. In a supplementary despatch, No. 30 of the 19th

Gen January, 1937, the Secretary of State suggested that, as the Hong Kong Defence Contribution is calculated as a percentage of assessable revenue, the proposed change might have the effect of increasing the revenue liable to assessment for the purpose, and directed, if that would result, that the change should be deferred until the Defence Contribution Ordinance has been amended to allow for the deduction of all revenue refunds.

3. The new system will effect a considerable change in the appearance of the accounts since, owing to the re-export trade, drawbacks here are on a much larger scale than in the average Colony. It is estimated that it will involve an apparent increase of revenue and of expenditure of about one million dollars a year.

4. As this Bill which amends the Defence Contribution Ordinances in the manner suggested in paragraph 2 hereof will have to be submitted to the Secretary of State and the Military Authorities before enactment, it is dated as a 1938 Bill and if it is passed early that year the 1939 Estimates will be framed in accordance with the new procedure.

August, 1937.

C. G. ALABASTER,

Attorney General.