CO129-589-13 War taxation- exemption and evasion 1-2-1941 - 10-9-1941 — Page 24

No. 27.

7

23 APR 941

GOVERNMENT HOUSE,

HONG KONG,

1st February, 1941.

24

My Lord,

I have the honour to forward for Your Lordship's

Enclosure No.1. information copies of correspondence which has passed

between Colonel E.S. Doughty, D.S.O., the Canadian

Government's Commissioner of Immigration resident in Hong

Kong and the War Taxation Department and the Colonial

Secretary on the subject of Colonel Doughty's liability to

Salaries Tax under the War Revenue Ordinance, Ordinance

Enclosure No.2. No.13 of 1940, a copy of which is enclosed for convenience

(5) (~10) cgsh Mas

of reference.

2.

At first it appeared that Colonel Doughty was

claiming exemption from Salaries Tax in accordance with the

terms of the fourth proviso to Section 8 of the Ordinance,

that is to say on the grounds that his income or part of his

income was liable to Income Tax in another part of the

British Empire. But in his letter dated 14th December, 1940,

Colonel Doughty admits that the salaries of Canadian

Government officials who reside abroad are not liable to

Canadian Income Tax though he states that for the year 1939

he suffered a deduction from his salary equivalent to the

payment of Canadian Income Tax and has furnished what

purports to be documentary proof of such deduction in the

form of an official interim receipt for Canadian $100 "on

account of income tax for taxation year 1939". In order

THE RIGHT HONOURABLE

LORD LLOYD OF DOLOBRAN,

&c., &C., &c.