CO129-615-3 Income tax 24-2-1948 - 12-8-1948 — Page 53

T. 2015/43/46

Your Ref: 54307/47.

RECEIVED

1 MAY 1942

Ansi (15)

SECRETARIES' OFFICE

INLAND REVenue

1152

SOMERSET HOUSE

C. O. REGY.

LONDON, W.C. 2

2nd May, 1948.

Dear Palmer,

(37) on 247 file

You wrote to Gilbert on 20th February about the Hong Kong Income Tax Ordinance. If it is no longer your affair, perhaps you will pass this on.

We had left this point for consideration along with others during the expected visit of the Hong Kong Income Tax Commissioner but as his visit is delayed we are putting our views on paper now.

(30) a'47 file

(37) a'47 file.

In Gilbert's letter of 27th October last he criticised Section 89 which gives the Governor power to exempt from tax under the Ordinance. As you pointed out in your letter of 20th February, there is a distinction between exempting from tax and remitting tax which has been assessed; and while we think it reasonable that the Governor should have power to remit tax on grounds of hardship, it seems unreasonable to us for the Administration to have power to exempt from liability to tax. We think that any additions to the list of exempt persons or bodies should be made by specific enactment and so subject to the approval of the Legislative Council; the other method seems a bit high-handed. That was why we suggested the limitation to exemptions on grounds of poverty or equity, and while we agree with you that we must let the Governor decide the point local conditions may make it necessary to have this power we thought that you should be told the reasons for

our attitude.

H. Palmer, Esq., O.B.E.

Yours sincerely,

J.b. Studinal

1

RECEIVED 30 MAY 1948

C. O. REGY.