CONFIDENTIAL
HKA 233/1
288
147170 MDHOAN 3760
pa
а
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 723
OF 30173OZ APRIL 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
TOP COPY Q DIST?
260
YOUR TELNO 1123: AMOCS: TAX
1.
WE SHOULD BE GRATEFUL IF YOU WOULD FAX TO US A COPY OF YOUR EXCHANGE WITH THE INLAND REVENUE DEPARTMENT ON THE TAX POSITION.
2. WE ARE A LITTLE SURPRISED AT THE POSITION TAKEN BY THE IRD. OUR INTENTION IS TO ARGUE THAT THE PAYMENTS AFTER 30 JUNE 1997 ARE PART OF AN OVERALL COMPENSATION PACKAGE, ARRANGED IN SUCH A WAY AS TO ENCOURAGE PEOPLE TO STAY IN HONG KONG OR AT LEAST TO AVOID ENCOURAGING THEM TO LEAVE. WE CAN POINT TO THE FACT THAT THE CALCULATION OF THE AMOUNTS PAYABLE WILL DERIVE FROM ONE BASE FIGURE, PART OF WHICH WILL BE PAID TO ALL THOSE IN SERVICE ON 30 JUNE 1997 AND THE REST ANNUALLY THEREAFTER.
3.
THE QUESTION OF TAX ON THESE PAYMENTS HAS FIGURED IN A NUMBER OF THE LETTERS WE HAVE RECEIVED AND WE MUST CLEARLY TRY TO RESOLVE THE POSITION AS SOON AS POSSIBLE. WE ARE CURRENTLY IN CORRESPONDENCE WITH THE INLAND REVENUE HERE. GRATEFUL IF YOU WOULD TAKE THIS UP AGAIN USING WHATEVER ARGUMENTS ARE AT YOUR
DISPOSAL.
HURD
YYYY
ΜΑΙΝ
40
DISTRIBUTION
40
.HER MAJESTY'S OVERSEAS .CIVIL SERVICE RESTRICTED
HKD
LEGAL ADVISERS//MISS BROOKS
FED
NEWS D
RAD//MR WYE
RMD
OVERSEA PENSIONS/ODA//MR FISH
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR BURNS
PAGE
1
MR KERBY
CONFIDENTIAL
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