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DRAFT SPEECH BY HON MRS RITA FAN LEGISLATIVE COUNCIL 6.2.85
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Inland Revenue (Amendment) (No. 2) Bill 1984
sir,
I am
The Inland Revenue (Amendment) (No. 2) Bill 1984 is aimed at protecting revenue in the sense that there will be less opportunity for eventual default in payment of tax. in full agreement with the intention. The Financial Secretary told this Council on 27 June 1984 that $2,984 million in tax was held over as at 31 March 1984, and he stated, "... This unsatisfactory situation should not be allowed to continue To this view, I am also in full support. I am, however, at variance with the proposed method of achieving the aim as outlined by the aforesaid Bill and the amendments that have
been tabled.
Section 71 subsections (2) and (3) of our existing Inland Revenue Ordinance has clearly stated that tax shall be paid notwithstanding any objection or appeal, unless the Commissioner orders that payment of tax to be held over pending the result of an objection or appeal. The Commissioner can also cancel such order and demand for immediate payment if he is of the opinion that the tax in dispute is likely to become irrecoverable, or that the taxpayer is unreasonably delaying the process. It should be noted that under the present law, no interest is payable by the taxpayer on the tax in dispute while the case is under consideration, therefore it can be argued that there is some incentive for a taxpayer to use objection or appeal as a device for deferring payment of tax.
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