CO129-615-3 Income tax 24-2-1948 - 12-8-1948 — Page 19

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an individual, i.e., his total income from salaries and

annuities

less certain personal allowances.

The full standard

rate was charged on profits and on interest. In the event

of a person electing to have his incomes aggregated and to be

personally assessed thereon, allowances similar to those under

Salaries and Annuities Tax were granted and a similar graduated

scale of rates was applied.

Board of Inland Revenue.

5. Under Section 3 of the Ordinance, a Board of Inland

Revenue was appointed consisting of the Hon. Financial Secre tary, the Hon. M.K. Lo, C.B.E., the Hon. M.M. Watson, A. Ritchie,

Esq., and H.R. Hirst, Esq. During the course of the year,

the Board made rules dealing with the following matters:-

Rates of Depreciation.

Hong Kong branches of banks whose Head

Offices are outside the Colony.

Basis of assessment where the option

to have 1947/48 assessment adjusted to actual profits is exercised.

The dividends liable to tax to be

included in total income under Personal Assessment.

Profits of Hong Kong branches where the

Head Office is outside the Colony.

Apportionment of an annuity between

capital and income.

These Rules were, in due course, approved by the Legislative

Council and are now in force.

Inland Revenue Department.

6. To carry out the provisions of the Inland Revenue

Ordinance, 1947, the Inland Revenue Department, under the Commissioner of Inland Revenue, was set up with effect from 1st April, 1947. In fact, however, a great deal of preliminary work had been done between 1st January, and 1st April, 1947

in anticipation of the passing of the Bill.

7.

The organisation of the Department follows generally,

the lines on "hich the War Tation Department ope ̈

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