JULIE

STATEMENT

REVIEN OF THE GOVERNOR'S TAX POSITION

d

The

independent

panel appointed by

the

to

review the Governor's exemption

from

Administration

salaries tax on his official income has recommended that

there be no change. The full report of the panel's findings

and recommendations, will be published today.

The panel Were asked to examine the Governor's tax

position under the laws of Hong Kong, the Governor's contract

of employment and the Report of the Royal Trustees and the

Memorandum of Understanding on Royal Taxation.

The panel's main conclusion are:

(a) The Governor

tax position under Hong

Kong laws is very clear. His official

emoluments are statutorily exempted from

payment of salaries tax.

(b) The

Governor's

Letter of Appointment is

a binding

document

and the legal

obligations contained therein should be

upheld.

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