222320-1935-Supplementary-Draft-Bill--Estate-Duty-and-New-Territories-Regulation-Amendment — Page 2

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Objects and Reasons.

1. The Estate Duty Ordinance (No. 3 of 1932) extends generally to the New Territories (under section 3 of the Interpretation Ordinance, 1911) but by section 6 (4) land there situate, in respect of which a successor has been registered under the first clause of section 29 of the New Territories Regulation Ordinance, 1910 (No. 34 of 1910), has been exempted where it does not form part of an estate of which probate or letters of administration have been granted by the Supreme Court.

2. The effect of section 2 of this amending Ordinance will be to remove the exemption, as from the 1st January, 1937, and to substitute a new exemption, not limited to land, under which property situate in the New Territories, other than New Kowloon, will be exempt from duty where the principal value of the estate does not exceed two thousand dollars, and property situate elsewhere in the Colony where the principal value of the estate does not exceed five hundred dollars.

3. The Schedules to the Estate Duty Ordinance do not provide for the payment of any duty where the principal value of the estate does not exceed five hundred dollars, but having regard to the provisions of section 4 thereof it is considered desirable to make express provision in section 6 of that Ordinance for the exemption of these small estates.

4. Section 2 of this Ordinance also adds a new paragraph (4A) to section 6 of the principal Ordinance exempting from estate duty temples for the worship of ancestors situated in the New Territories, other than New Kowloon, which are registered in the name of a manager of a clan, family or t'ong. The paragraph also exempts from duty so much of any clan, family or t'ong property as is used for the main- tenance of such temples. Registration of managers of clan, family or t'ong property is effected under section 27 of Ordinance No. 34 of 1910.

5. Section 2 of this Ordinance also adds another new paragraph (4B) to section 6 of the principal Ordinance exempting from estate duty any other temple in the New Territories, other than New Kowloon, certified, by the District Officer of the district where such temple is situated, to be a "Chinese temple" as defined in section 2 of the Chinese Temples Ordinance, 1928. This paragraph also exempts from duty so much of any property as is used for the maintenance of such temple.

6. Section 3 of this amending Ordinance requires that the Land Officer shall be satisfied that any estate duty, which may be due, has been paid before registering a successor under section 29 of the New Territories Regulation Ordinance, 1910. This amendment seems necessary in view of the repeal of paragraph 6 (4) of the Estate Duty Ordinance, 1932, by section 2.

7. Section 4 postpones the operation of this amending Ordinance until the 1st January, 1937.

C. G. ALABASTER,

Attorney General.

August, 1935.