CO129-586-8 War Taxation 2-2-1940 - 11-5-1940 — Page 86

the suggestions is unprecedented as it is substantially

the "actice of a number of foreign income tax adminis-

trations and of the Union of South Africa. They have

referred in this connection to a publication on the taxa-

tion of foreign and national enterprise of which I will

try and obtain a copy to send to you, as they say it

contains useful information. Moreover, in the course

of the discussion it seemd probable that there was no

practical difference between "profits made in the Colony"

and "profits arising in the Colony" which is a phrase

recommended in the report on the model income tax for

Colonies. That report proposed to confine Colonial

income taxes to profits arising in the Colony and profits

brought into the Colony in order to avoid the difficult

question of residence and control. Since Hong Kong 18

deliberately leaving out profits brought into the Colony

they will as to the rest of it be following the proposals

of the report and precisely for the reasons suggested by

it, that is to avoid difficult questions as to residence

and control.

The

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