introducing separate
taxation for married
women would be some
$400 million per annum at 1986-87 levels of income. And the
cost
the
system
could
amount
to
of administering
$17 million (55). It seems to me that even if the revenue were
able to forgo a further sum of this magnitude, it would be preferable that the benefit should be spread amongst personal taxpayers generally rather than be enjoyed by any particular
group. I have no doubt I shall hear more on this subject and
look forward to Members'
Members' views with interest. I suggest that Speech should be the starting point for any
the 1983 Budget
further debate.
DOUBLE TAXATION
136.
As regards double taxation, Members will recall that
last year
the Commissioner of Inland Revenue was asked to look
into this matter and obtain the views of a number of
professional organizations. Whilst all are agreed that double
taxation presently Occurs to some extent, particularly in relation to employees who make frequent trips to the People's
Republic of China, the extent of the problem, and the cost to
the revenue of possible remedies, has proven difficult to
quantify. The question of double taxation is currently being
examined against this background and I am hopeful that some
progress can be made in the not too distant future. But in the
meantime, my proposal to amend the law in relation to time
apportionment cases will provide a measure of relief to some
taxpayers.
ANTI-AVOIDANCE LEGISLATION
137.
Finally, I come to а matter which, if left unchecked,
could result in a substantial drain on profits tax yield. I am
aware that a growing number of taxpayers are entering into asset
(55)
on
Written reply by the Financial Secretary to a question asked by the Hon Mrs Rita Fan at the sitting of Legislative 14 January 1987.
Council
/refinancing
43