182213-1931-Supplementary-Bill-read-a-first-time--Estate-Duty-Amendment — Page 11

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commencement of the new Stamp Ordinance, whatever the date of the death of the deceased. In the revision of the Ordinances in 1924, the effect of the latter provision was incorporated in section 2 of the Estate Duty Ordi- nance in such a way, through an oversight, as to make the latter Ordinance applicable only to cases where application for representation is made after the 1st May, 1921. But Estate Duty is a matter which attaches on the death of a person, wholly irrespective of representation being taken out to his estate. Section 2 therefore amends section 2 of the principal Ordinance by making the Ordi- nance applicable to all deaths after 1st January. 1916, and also to deaths before that date if representation has not been applied for before the 2nd May, 1921.

3. Section 3 (1) of this Ordinance amends section 3 (1) of the principal Ordinance by defining the expressions

• Account • Affidavit for the Commissioner' and "Estate and by substituting revised definitions for the

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definitions of "Commissioner ·Prescribed" and Pro- perty". In the definition of the term "Commissioner" a reference to the Treasurer is inserted in place of the former reference to the Registrar of the Supreme Court, because the Treasurer was substituted for the Registrar as Commissioner by order of the Governor published in the Gazette of the 11th January, 1921. The definition of the term "Commissioner" is also alterel so as to include any Deputy Commissioner of Estate Duty. This is done in order to give such Deputy Commissioner the powers of the Commissioner,

Section 3 (2) amends section 5 of the principal Ordi- nance, which deals with property passing on death, by adding a paragraph in respect of specialty debts derived from section 39 of the Revenue Act, 1862.

4. Section 6 of the principal Ordinance contains a list of properties in respect of which estate duty is not payable. After the principal Ordinance was passed, though before it came into operation an addition had been made by legislation (Ordinance No. 31 of 1915, s. 7) to the classes of property not chargeable with estate duty, i.e., shares in China companies. Section 4 of this Ordinance now adds that class to the list in section 6 of the principal Ordinance.

5. Section 5 of this Ordinance amends section 8 of the

principal Ordinance so as to make it correspond more closely with the language of section 6 (2) and (4) of the Finance Act, 1891, because it is considered desirable to make it clear that duty is to be paid ou delivery of the affidavit and account. Section 8 (6) is amended by the deletion of words which were deleted in 1896 from section 6 (6) of the Act.

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6. Section 9 (3) of the principal Ordinanco is considered to be defective. It provides that No allowance shall he made for debts dna from the deceased to persons resi- dent out of the Colony unless contracted to be paid in the Colony, or charged on property situate within the Colony " In the new sub-section (3) substituted by section 6 of this Ordinance the words “to persons resident out of the Colony are omitted to avoid deductions on neconut of debts charged on property situated outside the Colony and which are not liable to Hong Kong estate Jury.

7. Paragraph (b) of section 6 of this Ordinance adds four sub-sections to section 9 of the principal Ordinance, Ac., sub-sections (5), (6), (7) and (8).

8. The new sub-section (5) is intended to replace section 13 (4) of the principal Ordinance, where the subject matter of the sub-section is not so relevantly placed. That sub- section, however, will now appear in section 9 of the principal Ordinance in a different form. It was based on section 7 (6) of the Finance Act, 1894, but it was adapted in a form which has proved to be mistaken and which has given rise to difficulty and even to litigation. It will now appear as section 9 (5) of the principal Ordinance in the exact words of the sub-section in the English Aet.