Annex

Inland Revenue Ordinance Review Committee

The third Inland Revenue Ordinance Review Committee will start work on 15th June 1976 with the following terms of reference:

To

Having regard to the economic

circumstances of Hong Kong which dictate

(a) a comparatively low level of

direct taxation;

(b) that the system at given tax rates

should be as productive of revenue as possible; and

(c) that the relevant legislation should

be simple and inexpensive to administer;

to consider the present system of taxation of profits and other forms of income contained in the Inland Revenue Ordinance, and in particular -

(a) the system of voluntary aggregation

under Personal Assessment;

(b) the taxation of husbands and wives;

(c) the treatment of dividends and its

relation to the taxation of corporate profits;

(d) the treatment of interest and the

relief for interest paid;

(e) the territorial ambit of the various charges (having regard, inter alia, to the effects of changing commercial practices and recent case law);

(f) the taxation of benefits in kind;

(g) the notional basis of the property

tax charge;

(h) the taxation of specific classes of

taxpayer, including profits from shipping; and

(i) the adequacy of existing relief for

expenses incurred by businesses and employees,

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a prejudgement?

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