HKK 011 9
(1)
DAT
RECEIVNE
21 FEB 1985
Supplementary to Question No. 2
in the Legislative Council on 6 February 1985
Dr. IF :- Sir, in cases where a company lets its employees stay in accommodation
it owns, would it be feasible to assess the housing benefit based on the true
values recommended by the Rating and Valuation Department?
Financial Secretary :- Sir, the law is as established by the Inland Revenue
Ordinance and as later decided by various case studies.
are worth no more than anybody else's.
Beyond that my opinions
Dr. IP :- What reasons have Government got to offer for allowing passage benefits
not related to work to be tax-free?
Financial Secretary :- Because this is provided under the law of Hong Kong, Sir.
His Excellency the President: And final question, Dr. IP.
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Dr. IP: Sir, is it in line with Government policy to tax fringe benefits as their
true value thus broadening the tax base and keeping the percentage tax rate low?
Financial Secretary :- I think Dr. IP should be very cautious when she talks about
IF
fringe benefits. I believe doctors normally look after each other and those
fringe benefits could be calculated. I also remind her that 45 per cent of the
population of Hong Kong lives in subsidised accommodation.