1941-02-21 — Page 8

PAGE 8-HONGKONG DAILY PRESS

STEPS

ኃ

TAKEN FOR IMPORTATION

lows:-

Profits" Tax)

Corpn. Business Salarles Tax Property Tax

"

ENTIRELY EXEMPTED

!

Was DS

CORPORATION PROFITS

Sir, this is the whole case for suggesting that the principles on which taxatlon is based should be

BUDGET

OF FIREWOOD HON. MR. LEO D'ALMADA

few.

Continued from Page 7

descent.

of blood

ΟΣ

FRIDAY, FEBRUARY 21, 1941.

Governor Meets With

Slight Accident

HIS EXCELLENCY THE ACTING GOVERNOR LT.-GEN, E. F. NORTON, C.D., D.S.O., M.C., was unable to preside at the Budget meeting of the Legislative Counell yesterday morning as the result of a slight injury sustained when walking in the country on Wed- nesday evening.

reconsidered. I can see no ground Estate Duty Commissioner for in-ed for this by the public, and r/calling for any alleged superiority today.. I am sure that I may ex- and sustained concussion. for surprise that the business pro-vestigating every estate are neces- mention it here only because it than once have I advocated that our deep sympathy and our hopes absolute quiet for 48 hours and no

press. on behalf of this Council, His Excellency has been ordered

for a very early recovery.

em-

engagements before Monday. Feb.

HON. MR. J. J. PATERSON · 24.

Hon. Mr. Li Tse-fong

Continued from Page 7

Continued from Page 7 taxes would constitute a partial) The Financial Secretary points ped by now, because I can imagine complaints, and of these I have a ment for the control of immigra income tax, covering much the out that according to the revised no one possessing greater zeal,

Mon. Here again, it appears to greater part of the incorne which estimate, salary tax will being in and exercising greater vigilance. I do not know what Govern-have been thought necessary to lay

ment feels about would be able to a full income $1,000,000. AS

fts last twelve emphasis on race distinction, for, Was anticipated: than the present holder of the

months administration in tax but freed of many complica-property tax $2,300,000. as against office of Superintendent of Inland

this if I remember rightly, in ndver Colony. tions" owing to its being partial $2,000,000.

anticipated Revenue and Estate Duty Com-

my opinion, apart/tking, for In

immigration officers in scope and only approximately whilst corporation and business missioner, for whom, if he wom revenue, there is little room | Government made it clear that adjusted to individual ability to tax should bring, in $8,400,000. as allow me to say so. I hold a higher complacency, much less for these posts were open only to Brl-

In accordance with Article XXI (Senior Unofficial Member): On pay. In particular much of the against $3,000,000. anticipated. But regard. Indeed, I go further and congratulation,

tish subjects of pure European of the Royal Instructions, enquiry into personal circum- be adds, as regards the latter item: say that it is the deliberatė view.

the behalf of the community, Sir, may THREE MATTERS

Now, Sir, this might

Colonial Secretary (HON. MR. N.I say how sorry we are to hear stanees which is apprehended "This figure includes not less than of the legal profession as a whole from the administration of in- $5,500,000. In respect of corporation that the zeal and vigilance exhi-ters as to which Government has tive importance or of a specialised

I will mention only three mat-these were positions of compartito preside" at the meeting.

possibly have been excusable if SMITH, CMG) was appointed that this accident should have happened to His Excellency and come tax should be avoided." profits and only $500.000, in respect bited by this conscientious officer laid itself open to criticism, nature but this is not so. In-Smith said: I regret to announce

Addressing the Members, Mr, we wish him a" speedy recovery. 6. It is if anything more diff business profits, which is disap-have been so excessive in many First, a very late start Was cult to assess the probable an-pointingly small ..........."

FELL INTO NULLAH migration officers have been re- cases as to occasion unjustifiable made to provide air raid shelters.cruited from every walk of life, that His Excellency the Officer Ad- His Excellency was out, walking nual yield of these taxes than

delay, Inconvenience and expense Next, a most lamentable lack of and the fact that they are paid ministering the Government when with Maj.-Gen. A. E. Grasett in that of an income tax, but the

to bona fide applicants for legal tact was displayed in the hand-only $400.00 a month is another walking in the country yesterday the neighbourhood of Wongnel- estimate of Mr. S. Calne, then

representation.

Ung of evacuation. Government indication that the job is not one which prevents him from prestaing fell into a nullah, struck his head evening sustained a slight injury chung Gap when he slipped and Financial Secretary, was as fol-

The powers conferred on the has already been severely censur-

intelligence. More › $3,000,000

But I suggest that in should be included in any debate Government should draw no in- $1,000,000 nts tax should yield something Just sarily wide.

and totally unnecessary $2,000,000 under one million, as against the wielding such great powers regard which involves the review of the vidious

unexpectedly larger yield of cor- should be had to the presence or past year's policy and activities. distinctions in engaging its

Mr. Calne never absence of grounds for suspicion Some months ago, it was deem-ployees. But I suppose the policy $6,000,000 pcration profits.

attempted anything more than a of evasion of duty, and that undered advisable to establish a depart-is so ingrained that only where it guess of the combined yield of the normal circumstances the Estate

is impracticable to pursue it will corporation and business profits Duty Commissioner should not at-i

Government reluctantly adopt an- con-other. In comparing this with the tax, for the simple reason that tempt to reopen and resuscitate pected to acquiesce in the estimate of $10,000,000 from a full there were no accurate data avail-matters adjudicated upon a longtinued administration of a mex

flush systems. I wish to point out, plaints against the administration Income tax it should be remem-able. Nor can I see how the yield time ago.

sure' which compels people to walt

FAR FROM TRUE

that this responsibility of daily of this department. for long hours outside the Immi- If this constant discrimination collection of night-soll, if under- of the taxes as above indicated can

It should be well known to Gov-gration Office. herded together like were productive of something af taken by Government, is a service complaints

From the general public these

have United afford, any evidence that the inci-ernment that family inheritance

been mainly cattle, in order to get a permit value, if for example, it made for rendered to a particular class of directed against the difficulty in Kingdom Income Tax is al- dence is not spread fairly over the has always constituted a very im-ar to get back a deposit..

a High standard of efficiency, the community and that class obtaining the necessary forms, the most entirely exempted under community. It may well be that.

portant part of Chinese family the new Bill. Several impor- in order to produce more revenue, life, and. I do submit that exces ministrative machinery there have, sald for it. This however, is far My Chinese colleague, the Hon. cates and the insistence that pho-

Apart from the question" of ad- there might be something to be should pay for it.

unusual delay in issuing certif tant companies are thus out- some alterations will have to be sive rates of levy, undue delay in been numerous complaints of sheer from true, as Government knows Mr. Tam, has spoken very fully on tographs must be taken by "ap- side its scope altogether. made in the Ordinance. As I do obtaining legal representation, and rudeness and offensive conduet on from complaints in regard to ad- this subject. While I agree that proved" firms. From the shipping Profits tax will be applied not wish to anticipate in any way harsh administration of the Estate the part of the officers of this ministration brought to its atten- the scheme sponsored by the Urban concerns they have been connected only to profits made in Hong the Andings of the Committee Duty Ordinance, all constitute Department. 'Civil Servants should on by Unofficials and through Council is an improvement, I feel with the undue delay in "the ex Kong, whereas income tax which His Excellency has recon-great incentive to evasion..... be civil servanty may be a familia other sources My honourable that unless Government is in a amination of passengers' papers would have "applied to all stuted X abstain from further Sir. the Unofficial Members of witticism, but I suggest that it friend. Mr. M. K. Lo has already position to carry out that scheme and the absence of posting immi- profits of resident persons, comment.

this Council, as well as the Chinese, embodies a wholesome admonition dealt with the inefficiency and in- in full. the alternative method grition "officers on board ships to including companies register- I regret that I now come to a Members of Councils. have had to which Civil Servants in Hong civility to be met with in the Im- mentioned by Mr. Tam in dealing facilitate such examination. ed here, wherever made.

point of serious criticism. against } occasion to make various repre- Kong should pay serlous heed. A migration Department. Com- with the existing system appears te Other income from

The Chinese member on abroad the administration of the War sentations to Government on cer-most unfavourable impression has plaints with regard to it are to be a practical one.

Executive Council as well as my will not be taxed at all un-Revenue Ordinance. In the Report tain aspects of Government Ad- already been created on visitors to heard on all sides. "Government's NEW SUBSIDY CODE der the new Bill.

two Chinese colleagues on this of Mr. Caine, to which I have re-inistration during the past year. The Colony. And I do seriously excuse far as ineficiency is In the matter of education. I council and I have found it neces- It was, however, repeatedly terred, he made it quite plain that Pending their final outcline I feel appeal to officers of the Immigra-concerned will doubtless be the welcome the provision for a new sary to address a joint communi- emphasized by the official re- "Partnerships will be assessed as at my duty to make a few general tion Department to remember that plea that this is a newly created subsidy code for vernacular schools cation to the Honourable the Col- presentatives on the Committee whole and no enquiry whatever observations.

they are being paid by local tax-department with a heavy volume which makes generous provisions onial Secretary in regard to "some that Government was not seek will be necessary into the division

payers to perform their duties and of work to cope with. Whether for subsidies to schools on the basis of these complaints and in our ing to "raise any particular sum of profits between partners". The To begin with I wish to say a few not to show off their own impor- this is a valid excuse can only be of approved expenditures on salar-opinion there are urgent needs for of money but to impose a rea-Honourable the Financial Secretary

ascertained on inquiry; and it lies of teachers and rent of school reform in the method of conduct- sonable burden of taxation and himself, in introducing this Bill in words on the question of Food tance.

Sir. I do say deliberately that no answer to the charge of inciy-buildings. As a member of the ing. this department. I may add we consider that the rates of March 1940, said:

The task of a Food Controller is either the administration of the y Complaints of a more serious Board of Education I firmly believe that tax proposed do impose such a

obviously one of very great diff-Immigration measure is radically nature have been made against that in the educational system of charge of this department towards reasonable burden."

- are respectively. corporation culty, and due allowance must be improved and I submit that it this and other departments and this Colony it is. Chinese primary the general public is not at all

profits tax......... and a business made for

can, and should, be improved--or I do not think I am exaggerating education which the fact that many

urgently needs helpful. profits tax on profits made in things would have to be done in a that measure should be dropped when I say that if more is not development. At the present time RICE AND FIREWOOD the Colony which is levied on hurry. I submit that the indis-

altogether.

heard, it is because the people of the development of Chinese pri- On the question of Food Con- Hongkong are 50 CRITICAL PERIODS. ·

fnured to the mary education is left almost en-trol, I wish to urge Government to pensable qualification of any Food

many fallings of Government that tirely in the hands of private pay its His Excellency assumed the ad- they have come to regard them enterprises and I do not think that recent rise in the cost of living in closest attention to the to the ownership of the business "cial knowledge and experience, ministration of this Colony during almost as part and parcel of the

bered that fa Income subject to

"8. We therefore recommend that Government should proceed with measures on the lines of the attached Bill If the re- venue obtained is inadequate consideration should be given to

the adoption of some or all of the items referred to at the be- glining of paragraph 4;

.......

In a note prepared by Mr. Caine on "Principal differences between. the War Revenue Bill' and the 'Income Tax Bill" he states:-

"1. General.

An Income Tax seeks to tax

every source of each individual's

income and to make allowances

for his family responsibilities and other individual circum-

many problems which arise in the administration of those re- finements and removes some of

the features of income tax

public."

COMPROMISE MEASURE

"The third and

fourth

I

w

taxes

the business and not on indivi-

Control,

FOOD CONTROL

dual persons so that no enquiry as Controller must be some commer-

the

the attitude of those in

and the division of the profits is and. however well qualified in the a period which is one of the most system, to be borne with resigna-achieved

a satisfactory system can be the Colony particularly rice and

involved. There is, in the cir- theory of economics and conselen-critical periods of the British Em- tion. cumstances, no deduction in res- tlous ip the discharge of his dupire. It is not surprising that the pect of personal and family ties. the present Food Controller aimculty of the situation should

has had no commercial experience. have

allowances.....

Government.

the

its repercussions on

security

and

con-

in

OVER-CAREFUL

Out

JJ

NEW DEPARTURE -

There has

without Government firewood. These are the two dally taking a leading part in its deve- necessities of the Chinese Com- lopment.

munity. The rise in the prices of There is perhaps one other rea-j I wish, therefore, to urge Gov-these two commodities is a serious the In spite of the history of this The record of his administration Colony.

son why one does not hear more, ernment that as soon as the an-matter for the Chinese, particu- The Chinese community matter, and of the official declara- has not inspired confidence that gratefully appreciates his

The Press is the usual verit for ancial position permits, it should larly the middle, and poor classes. tions to which I have referred. If in an emergency all will be well as cern and labour for the well-being ing subject to our very strict laws the development of Chinese pri-should take vigorous measures to public feeling, but newspapers be proceed with the programme for and I consider that Government am sorry to have to state openly in regards the question of food sup-and this Council that examiners have ply. and. I record in this Council exemplified by his Initiative

of the Colony, as of libel, to the misfortune of the mary education. This programme combat this evil. With regard to sought to get Chinese firms to dis- my grave doubt as to his ability providing the population with air bile in such a case as this, are has beer carefully considered by rice I know that measures had

not unnaturally close the names of the partners. In turning over certain reserve raid shelters, in the construction times over-careful, as

careful, some-the Board of Education and sub- been taken and are being taken by constituting the firms. I should food stocks-though the quantities of which he

to what mitted to Government by the Government to check the abnor- had taken such a stances. Although much may be have thought it impossible "that purchased are infinitesimal to the keen personal interest.

they publish Sir, were these laws Director of Education with the full mal rise in the price of this com- collected at the source it is ulti-

Since "his

relaxed, and any Government official would quantities originally

were there

unanimous support of its modity at the end of 1940. proposed arrival in the Colony the Chinese assurance that the airing of com- members. I venture to think that

any and nately an individual tax, and

proceed counter to one of without very serious losses arising. Members of Councils have had to plaints and charges which

While I recognise that such mea- may entail much enquiry into

fundamental bases of the taxation, We know that the Food Control-make numerous representations to not mere groundless and wicked gant one and does not. call

were this programme is not an extrava-sures have, to a certain extent, personal affairs,

and I look to the Honourable the ter has now delegated his powers His Excellency, and on their be-

formet with some success, I feel that The new Bill proposes to take Financial Secretary, as the Com-in regard to rice to a business man half, and also on my own. I desire thing being done, the correspon- spread over for a number of years."the whole situation carefully with rumcurs would result in some-heavy expenditure which will be Government should now review each of the main classes of in- missioner under the. War Revenue more conversant with the subject. to tender to His Excellency an dence come separately and tax them,

columns Ordinance, to see to it that his

dall'es I come now to the question of expression of our deep gratitude would be full of the most inter- tures on social services, expendi-control over the rice stock in the I consider that, of all expend the object to secure an effective at rates adjusted only approx1- subordinate officers do carry out Firewood mately to capacity to pay. At

for the sympatheti mзmer inesting disclosures and revelations, ture on Chinese primary education Colony both in regard to quality completely the spirit of the fram- some sacrifice of the refinements ers of the legislation, in accordance has at long last taken, or is taking. those

I understand that Government which he had invariably received As things are, one cannot expect should receive first consideration as well as quantity.

representations, of un income tax it thus avoids with the solemn declarations of definite steps for the importation ever-ready desire to give effect tople in Hongkong who either do viding proper education, a large stock are of such a poor quality his this, but today there are few ped. If we were able to prevent, by pro- been a report that some of the or firewood Into the Colony. The them as far as possible.

not know or have not heard re-number of young people from fall that they are not it for human The Honourable the Financial Chinese Members of Councils had May I, Sir, also tender Our Secretary has intimated that Gov- urged Government to take such a thanks to the Honourable the Col-Ports of matters which have al- ing into the criminal class, it would consumption.

ready reached even Government's relieve this Colony from other which are objectionable to the ernment proposes to increase the step ever. before His Excellency onlal Secretary for the invariable remote ears, and which cry for in-heavy burdens such as increased domestic life of the Chinese com- The position of firewood in the Death Duties. I appreciate that Sir Geoffry Northcote left the courtesy which he has shown to vestigation, Stories are circulat-police force. Honourable Members will have an Colony on leave. On August 3rd, the Unofficial Members. My col-ing regarding the maladministra-

munity is second in importance to opportunity of

that of rice. The situation has discussing this 1940 a memorandum on this ques- leagues and I desire to pay warm tion in departments whose impor-With regard to the recently gone from bad to worse during the Such, Sir, were the views of Mr. question when the necessary tion was sent in to Government, tribute to him for the conspicuous tance is vital at the present time; established Immigration Depart last few months. This might have Caine. He had made it plain that amending Bill is before this Coun- wherein it was urged that Gov-ability which he has shown 2.3 he was in favour of a straight in-cil. But in the meantime I wish to erriment should requisition steam- His Excellency's

it is the common belief that ment I wish to make the follow-beer caused by seasonal demands chief adviser, come tax measure. But he him- make a few general observations.

I believe that such as the Chinese New Year but ers for the purpose of importing which is such a well known char-bribery, and graft are rife; and ing observations. self was the author of the Ordin-

the head of a department has the imposition of restriction on have no doubt that it has been The Report of the Taxation, nrewood Into Hong Kong, I feel acteristic of our esteemed Colonial ance now in force, and he put it Committee published as Sessional that the Chinese, community has Secretary.

been credited with practice ot free immigration was a new de-jaggravated by the activities of forth as a compromise measure Paper No. 2/1939 contained the every reason to be dissatisfied with

nepotism in its uglest form, parture of the well-established unscrupulous profiteers. It has, without any trace of reluctance, following observation on the Government's inactivity, over such

Such a state of affairs one has policy of the Colony to keep this been proved that the cost of fire- My colleagues on this Counc and certainly without any mis-question of Death Duties:-

A lengthy period, in relieving the deatre me to state that they wish with some Latin or Balkan States, & common practice in other parts charges is far below the prevailing

accustomed

place open to the Chinese: Imust wood to associate

imported Into Hongkong givings as to there being any in-

say restriction of this kind is quite including freight and all landing "Any further revente under acute shortage of frewood, which to associate themselves with the equity in its incidence.

this head should be obtained by nas caused so much hardship to tributes I have paid, and the views with what justification care not of the world but with this Colony's market price demanded by exorbi- an increase in the rates of Es-1 the community. `especially the I have expressed. In due course exist in the Government of a Bri-step can only be considered as an Government are now taking mea- That it should be permitted to close relation with China, such a tant dealers. I understand that tate Duty rather than by the poor.

Honourable Mr. Tam will speak on tish Colony is surely matter call emergency measure forced upon sures to relieve the present situa- introduction of other methods GRAVE DISSATISFACTION the question of removal of night-

soll and the prevalling lawlessnessing for the most searching in-jus by-prevailing circumstances. tion and I believe that such mea- Legacy, or Succession Duties; but given rise to grave dissatisfaction, Honourable Mr. Li will speak on ernment emulate the dictators in evils prevalling in the Colony are

Another matter. Bir. which has and insecurity of the Colony, and quiry. I suggest, sir, that Gov- I realise that many of the social sures.will meet with success. 'we consider the present rates, the administration of the Immi rimary" education, and I desire to one regard, and take measures to closely connected with this dif

FOREIGN CURRENCY which were fairly recently in-gration Ordinance. When I spoke express my concurrence with their purge its ranks...

Before I resume my seat I wish creased to a maximum of 20% in this Council

cult problem of excessive popula- to say how regrettable it is that we on the Second views on these subjects. high enough in the circum- stances of Hong Kong, where the the effect of this measure on the of the struggle now being waged

tion and I have, therefore, no have found it necessary to Reading of the Bill I thought that

eut Fully realising the true character

hesitation in agreeing that some down a good deal of Public Works much higher rates prevailing in. Colony depended very largely on by Britain and her Empire, the

BILLS READ sort of restriction on the ever-Extraordinary"not so much as a e.g., the United Kingdom, would how it would be administered by Chinese in

The first reading of a Bill to

growing population is, at the pre- desire to balance the budget but add greatly to the incentive to the Immigration Officer, and I hiingly and, indeed, enthusi-mend the Medical Registration that it was on economic grounds in a very small

the Colony have

sen't time, desirable. I presume as an effort to conserve, although evasion."

then stated that my colleagues astically co-operated with

Ordinance, 1935, and a Bill to

way, the much That report was dated 5th April, and I intended to maintain a close erment in all measures which amend the Hongkong Corps of Alfed to Introduce this measure. cote, in his speech in this Council 1959, and I am not aware of cir-interest in the operation of this

that Government had been advis treedod foreign currency and ton- cumstances which have arisen be-measure, and that we should have

Government has deemed it neces-

Rald Wardens Ordinance,

nage for the successful prosecu- 1940, When this measure of imi- tion of the War. I realise that the and the second and third reading gration control was brought before tendency to-day is for Government Britain's war effort, whether by

The Honourable the Financial Secretary said: "Although the War Revenue, Ordinance has secured considerably more revenue

than was anticipated it has falled to secure enough to meet the revised war expenditure either in the cur- rent year or in 1941/42"

Pausing here I should like to point out that the position he now takes up is fundamentally opposite to that taken up by Government hitherto. As I pointed out in this

Council on the 14th March, 1940,

His Excellency Sir Geoffry North-

on November 18th, 1939, made it quite clear that Govertiment did

of taxing property on death, e..

no longer sound.

to do.

LAWLESSNESS IN COLONY

Gov-

grown

Ordinance, 1919. and a Bill to

not determine to raise a war budtween then and now which render no hesitation in making to Gov.sary to carry out in furthering of a Bill to amend the Places of this council for consideration last to play a more pronounced part get revenue in any pre-determined that deliberate expression of viewernment any representations which responding to the calls made for Public Entertainment Regulation: November, the Government assur- in the social and economie life of sum: in other words, the Govern-

we might consider it our duty so service in the Volunteer Corps, amend the Entertainments Taxpartment is to be administered in increased responsibilities and ad- ment's attitude was that "as re-

EFFECTIVELY STOPPED

ed us that "the Immigration De- the community and to shoulder.“ Police Reserve, ARP., Fre Auxi- gards war expenditure, that ex- As to how far evasion of death I know that the Immigration Hary Service, Bt. John, etc, etc., or

Ordinance, 1930, were moved by the interest of passengers and all ditional duties. sum obtainable by the War Re-petent to speak. But of this I am the discharge of his very difficult their deeds I trust, sir, that it is of the Legislative Council cause any obstruction or incon- peace it would be possible for this" penditure was to be limited to the duties exists I do not feel com- Officer has not spared himself in in other directions. In view of the Attorney General at the meet- shipping generally

and not to I hope that with the return of venue Ordinance, and not that the quite certain. If evasion could be duties, But I do say that what not necessary for me to pledge to

yesterday. Colony had to find a specified prevented by zeal and vigilance, it ever may be the explanation the you once more the willing continu-

would have been effectively stop- Chinese community cannot be ex-ance of that co-operation.

amount.

venience that can be possibly Colony to go forward with Buch The Financial Secretary (Hon, avoided." In spite of this assur- increased responsibilities and add- Mr. H. R. Butters) seconded. ance there have been many com- tional duties

K

.