VERMENT HOUSE HUNG KUNG.
TUN 03 110V 32 1110
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CONFIDENTIAL
4.
8.
The earnings scale for OG1 in the first phase of the Scheme was drawn up on the basis of statistics on income distribution of tax payers provided by the Inland Revenue Department (IRD). For the purpose of the second phase, however, reference should be made to the income profile of OGIN applicants in the first phase because it covers solely managers and administrators and appears to be more accurate and reliable than the all-inclusive IRD figures.
9.
A comparison has been made between the income profiles of OGIN applicants in the first phase (Annex 2) and those of salaried nex 3 workers and sole-proprietors. The results are at Annex 3. Some general
observations are as follows :-
nex 2
(a) there is no evidence in the income profile of OGIN applicants that business operators earn substantially more than salaried executives;
(b) the IRD statistics show that generally the level of income is inversely proportional to the number of people in that income range; and
(c) the income profiles of OGIN applicants follows largely the trend in (b). The difference lies however in the magnitude; the smaller percentage of low-income earners is not unexpected as only the supposedly better qualified managers and administrators are covered in the OG, whereas all salaries and profits tax payers, irrespective of their occupation, are included in the IRD figures.
CONFIDENTIAL