24.
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The amendments contained in the Bill will apply to assessments made in respect of the year of assessment 1978-79 and all subsequent years of assessment.
Additional Yield and Staffing Implications
25.
Based on present information available in the Inland Revenue Department, the additional revenue yields, should the Bill be enacted, will be about $144 million in 1979-80 and thereafter about $80 million per annum. The yield for 1979-80 will be made up of $80 million for final 1978-79 assessment and $64 million for 1979-80 provisional assessment. The staffing implications in the Inland Revenue Department will be minimal.
that there
26. The general asssumptions made for the purpose of the calculations of yield are as follows: will be no significant variation in prevailing interest rates; that there will be a modest increase in the
volume of business; that the avoidance action which
might be taken by banks is likely to be limited, having regard to their general methods of operation and the attractions of operating in Hong Kong; and that some institutions may take steps to move some of their
business elsewhere.
27. Sir, I move that the debate on this motion be adjourned.