COREDENTIAL

Proposed Line to Take

The Governor's Tax Position

(for Panel members' reference)

This Panel comprises three independent members

of the community. We have been asked to advise on

whether the Governor should be liable to pay salaries tax

in Hong Kong, having regard to the law governing his tax position, the terms of his contract of appointment as

Governor and the Memorandum of Understanding outlining

the recent changes to the queen's tax position in the

UK. We will aim to complete our task as Boon as

possible. The public will be informed of our

recommendations.

CONFIDENTIAL

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