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Because a considerable amount of time is spent
by the Inland Revenue Department, the Inland Revenue Board
of Review and indeed by taxpayers themselves in seeking to
resolve disputed cases, I propose, subject to the advice
of the Executive Council, to amend the Inland Revenue
Ordinance to provide for the automatic granting of time
apportionment where, in a year of assessment, an employee
renders services outside Hong Kong for a period of more
than 60 days in total. At the same time I propose that,
where services are rendered outside Hong Kong for 60 days
or less, the whole of the income from that employment
shall be regarded as arising from services rendered in
Hong Kong and no time apportionment will be permitted.
estimate the cost to the revenue of these amendments which
I propose will take effect from the year of assessment
1987-88 to be about $25 million in the year of
implementation and $35 million in a full year.
I
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