§ 74. Sir R. Robinsonasked the Secretary of State for the Colonies whether the war damage compensation claim in respect of produce companies in Malaya has yet been completed; what proportion of the losses suffered in the occupation is expected to be regained by those concerned as a result of this payment; and why, if these losses are capital losses, taxation has been exacted in respect of the compensation payments.
§ Mr. Lennox-BoydPayment has been made on all war damage claims by produce companies in Malaya, except where it is conditional upon restoration which is not yet finished.
War damage claims were divided into a number of categories, namely, rubber, tin, private chattels and other claims, and within the total of £50.75 million available in the War Damage Fund maxima were fixed of the payments to be made in each of these categories. Awards were assessed on the post-war cost of making good war damage losses of essential capital items only (less depreciation) and the payments made on each award represented the proportion which the total sum available for that category of claim bore to the total of awards.
The claims of rubber companies amounted to £46.5 million and those of tin mining concerns to £32.4 million. These were assessed at £11.5 million and £10.7 million, respectively, and payments of £9.72 million and £9.7 million have been authorised. Figures are not available of the total value of claims made by other producers, e.g., oil palm, tea, coconut, pineapples, but payments of £3.3 million have been authorised to them on assessments of £4.7 million.
War damage payments are not in themselves subject to income tax, and all rehabilitation expenditure incurred by the mining and planting industries is granted relief from income tax by special deductions spread over a number of years. In order to determine the amount of relief to be given, however, the amount of any war damage payments is deducted from total expenditure upon rehabilitation.