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The proposals in the Bill are for royalty to be
payable on
on gross
income from television advertising,
according to a sliding scale, but subject to an overall
per cent ceiling of 12 of the overall income from television
advertising. Royalty would be payable on the amount that
would be expected to be due to a licensee at published
that
is,
e
Will not be
market rates for particular transactions, any special discounts given in particular instances deducted in the calculation of the royalty due.
The
new
This is
system
of
to designed calculation is not, however, intended to be a means of
prevent avoidance.
but rather to
ensure
increasing revenue,
that the
community benefits from the licensees' privileged use of a
community property.
This Bill is rather complex in parts,
particularly as regards disclosure of
of information on
shareholdings and the mechanisms for tracing the ultimate The existing control of the voting shares of a licensee, Ordinance has broad provisions which were intended to keep the ownership and control of licensees in local hands. However, as I indicated earlier, these provisions may be circumvented because the ceiling on ownership by 'non-local' shareholders stops at ownership of the shares
to the in the licensee company, and
company, and does not apply ownership of the shares in a company which in turn owns
shares in a licensee.
/This is
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