CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 30

commitments of the Government and to strengthen

the financial position of the Colony.

3. I note from paragraph 9 of the despatch

for that/the reasons given therein it was decided not

to include in the Ordinance provision for taxing

income received in the Colony from abroad. In view

of the many difficulties likely to arise in the

period immediately following the introduction of

the Ordinance, I do not wish to press for any

amendment at this stage, yet, Nevertheless, it is

I am parte that funder of the Ordinfine the Jofuer-in- mall way by Order

exempl institution

and herron, office.

trak hayment of all or Hart of the tax chargeable under the It would appear Ordinance.

be

that it is desirable to state the cimpurtances in which much an Onderwy

be maple, and it is

mggested for your consideration

that the words

"I

grounde aquity hold

invertfal after the frond timlifilim". Seating 89.

in life 2 of

ليستلم

بیما

considered only reasonable that a person or firm

resident in Hong Kong should be taxable on the total

income received in the Colony. You will doubtless

this bear this point in mind when a suitable opportunity

obrime that no

provisim is In this connection occurs to amend the Ordinance.

the exemption of the incranes of, for example,

registered building or friendly societies and of local 4. It is also observed that in Sections 50 and 51 anthorities and exclusivitical,

charitable or cxrational 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 arrangement with the United Kingdom Government

as soon as the Hong Kong Government is ready to con-

ider 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,

en a suitable opportunity arises, be amended to read

follows:-

'British Empire' means any part of His Majesty's

dominions, territories under His Majesty's

protection, and territories under mandate or

trusteeship by the Government of any part of

His

s dominions."

of a public

intitatims

character in as

w mul

income is not derived from trade. ( See Sec. 8 [+) up the Model Ineme Top Ordinance). I assume that, having regard

circumstances in the

کا

Colony, much specific exemption were not, considered deviable

(Copied from

Malaya as drafted by C.0

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Legal Advisers

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