TNAG-2595-FCO40-3783-Appointment-of-Chris-Patten-as-new-Governor-of-Hong-Kong--Ap-1992 — Page 79

INLAND

REVENUE

11

236

1

TEL No.

Inland Revenue

International Division

071 438 6865 03.06,92

cc'd Mr Carter,

(3M 410)

son 216

1 Mass Williams

11:15

Pa pls

New Gor. File

2/6

Somerset House

PPD London

The Govenor's emoluments are

payable out of the his do

WC2R 1LB

Telephone 071-438 Fax: 071-438 6865

Talam, ATENT IQIDA. LIJDE

of Hong Kong and not

心

fall within Section 132/4)(a)

Your reference

y shd not be Lbject to UK tax.

P.02

6015

Mr Woodrow FCO

By fax

270

3387

PS/Mr Patter

We spoke. I attach my draft reply

to Mrs Mercer. Grateful for any comments.

B~/16

Dear Mr Woodrow

GOVERNORSHIP OF HONG KONG

M

Our reference

Yui Mr Jox

Date2 June 1992

Grateful for advice: Lord Wilson's terms.

• conditions of service would not be a suitable precedent. PPD are responsible for preparing Mr Potten's terms & condition of service. Will Mr Patten's office be considered to be under the Crown? And consequently will he be subject to UK tax? Perhaps williams Perhaps an interim reply is necessary, if

we can't find the

answers quickly?

216

We spoke earlier on the correct tax position, for the purposes of Section 132 (4) (a), Income and Corporation Taxes Act, 1988 of the emoluments paid for duties performed as part of the office of Governor of Hong Kong.

I attach a copy of Section 132 (4) (a) which, as you will see, deems the duties of any Crown employment to be performed in the UK. This will mean, very broadly, that emoluments for such duties are subject to UK tax.

The relevant definition is in Section 132 (4) (a) which concerns "duties of any office or employment under the Crown" for which emoluments are "payable out of the public revenue of the UK or Northern Ireland"

•

11

We do not appear to have any precedent papers on the position, under this Section, of the office of the Governor of Hong Kong. Could you please provide me with sufficient detail to enable the correct position to be determined, eg is the office under the Crown. and are the emoluments for duties performed payable out of the UK's public revenue?

I would be grateful, as discussed, for your early response.

My fax number is 071-438-6865.

"Mercer

MRS J MERCER

HIKD 2071 नहीी