CO129-590-11 Commission of Enquiry into irregularities in Immigration Departments 22-4-1941 - 19-12-1941 — Page 282

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should be omitted from the draft Report and that a fresh draft

of Chapter III, to include the points raised by Mr. Lo and

Mr. Dodwell, should be prepared.

L

At the request of Mr. Lo the Chairman explained the

amendments made to the draft Pill by the Sub-committee.

Section 5: it was decided to omit the second Proviso.

Section 14: Hr. Lo objected to the changes made in this

Section by the Sub-committee, pointing out that the vast

majority of Chinese firms had more than ten and often more than

twenty partners, and represented that on grounds of equity the

profits of such firms shodld be taxed on the basis of 5% of

the profits between $10,000 and $100,000 and 10% on the profits

exceeding $100,000, as in the original draft Bill. After some

discussion the matter was put to the vote and it was decided by

a majority of 7 to 4 (4 members not voting) to revert to the

basis mentioned above, as in the original draft Bill.

Section 16 (c): it was decided that this should be

amended to read:

(e) interest paid or payable.

Section 17: it was decided to omit sub-section (1)(h).

Section. 19 of the original draft Bill: the omission of

this Section, dealing with the Deduction of Losses, was, after

some discussion, confirmed by a majority of 7 to 5.

Section 25: it was decided to substitute "owned by"

for "occupied solely for the purpose of " in line 5.

Section 25: it was decided by a majority to amend this

Section to read:

26. For the purposes of assessment the dividends of a

corporation, which is subject to tax under this Chapter, shall not be included in the profits of any other person for the purposes of taxation under this Ordinance.