CO129-587-7 Telephone Amendment Ordinance 1940 9-4-1940 - 16-4-1940 — Page 3

3

3. Report of the Hong Kong Legislative

Council. of 28-3-4 0.

40.

tre 2. how? signify now. dis allowing

навреский

1515/40.

Aquestion of frinciple is in whared by the

new { 36 (1), which allows deduction

uction of

any amounts façable in taxation on

profits

from the net annual profits before surplus

profito

If

are assosed for the future of payment

additional royalty. Other fublic utility

lobe allowed to deduct

Comprconies are

tne royalty from these profiles before anesment

for parbores of was

Kaxation.

for a Ca

Il Carine

From were

Han son any obson.

16.5.40

consered wo the thing.

doceby is Whent

20

S

The provision referred to by Mr. Martin as not part of the scheme agreɩd by me before leaving Hong Kong but has no doubt been added in vie.. of the subsequent adoption of measures to special war taxation and I think should be accepted. If it had not been inserted the position ould have been that the company would have been paying profits tax on the Government's share of the profits. in fact, doubtful whether it was necessary to make any such explicit provision in the Law because

I um,

royalty