CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 28

>

exemption of the incomes of, for example statutory or registered building

or friendly societies and of local authorities and ecclesiastical, charitable

or educational institutions of a public character in so far as such income

is not derived from trade. (See Section 8(1) of the Model Income Tax

Ordinance).

I assume that, having regard to circumstances in the Colony,

such specific exemptions were not considered desirable.

40

It is also observed that in Sections 50 and 51 power is taken to

arrange with other Governments for relief from double taxation and to give tax

credits in conformity with any such double taxation agreement. In this

connection the United Kingdom: Inland Revenue Department is prepared to submit

proposals as regards such an arrangerent with the United Kingdom Government as

soon as the Hong Kong Government is ready to consider the matter.

5. In view of the recent changes in the constitutional position of

India and Burma, it is suggested that the definition of the British Empire in

Section 2 should, when a suitable opportunity arises, be amended to read as

follows:-

**British Empire' means any part of His Majesty's dominions, territories

under His Majesty's protection, and territories under mandate or trustee-

ship by the Goverment of any part of His Majesty's dominions,'

6.

I am addressing a separate communication to you regarding the

liability to Income Tax of the "Colonial allowances" paid to temporary officers

of the Admiralty.

I have the honour to be,

Sir,

Your most obedient,

imble servant,

(sad) A Creech Jones.

27

}