CO129-589-13 War taxation- exemption and evasion 1-2-1941 - 10-9-1941 — Page 14

SECRETARIES' OFFICE,

INLAND REVENUE,

T.2015/19/41.

432 B/SEC(L).

8. 14

IMPERIAL HOTEL, LLANDUDNO.

18th August, 1941.

Y

Dear Monson,

You wrote to me on the 8th August (54002/4/41) about the liability to taxation in Hong Kong of Norwegian seamen who have been lying in Hong Kong for three months in a year.

The third paragraph of the letter from the Officers' (Merchant Navy) Federation correctly represents the position of Allied seamen in regard to United Kingdom Income Tax. There is a good deal of history behind the decision to exempt these people, but I do not think you need be bothered with that; I imagine it will be enough for your purpose to have the fact of exemption confirmed.

The claim of the Hong Kong authorities to tax the Norwegian seamen rests, I suppose, on Section 10 (2) (b) of the Ordinance, as amended, under which "periods of temporary residence" up to three months in the year of assessment are not regarded as "residence in the Colony" for the purpose of salaries tax. It seems to me

that/

W. B. L. Monson, Esq.

Ciusd