TUESDAY, OCTOBER 8, 1974
11
PROPERTY TAX IN TSUEN WAN
GOVERNMENT SPOKESMAN EXPLAINS
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A GOVERNMENT SPOKESMAN, COMMENTING ON REPORTS THAT SOME DEMAND NOTES HAVE BEEN SENT BACK TO THE INLAND REVENUE DEPARTMENT BY PROPERTY OWNERS IN TSUEN WAN AS A PROTEST AGAINST THE INTRODUCTION OF PROPERTY TAX IN THE AREA, EXPLAINED TODAY THAT PROPERTY TAX WAS NOT AN ADDITIONAL FORM OF RATES AS SOME PEOPLE BELIEVE. IT IS A TAX ON THE INCOME WHICH PROPERTY OWNERS GET FROM LETTING OUT THEIR PROPERTY.
HOWEVER, HE ADDED, PROPERTY TAX WAS NOT PAYABLE ON PROPERTIES WHICH ARE OWNER-OCCUPIED. THEREFORE, THE SPOKESMAN SAID, OWNER-OCCUPIERS CAN CLAIM EXEMPTION.
EXEMPTION COULD ALSO BE CLAIMED, THE SPOKESMAN ADDED,
IF THE PREMISES WERE OWNED AND OCCUPIED BY A BUSINESS CONCERN AS PART OF ITS BUSINESS OPERATIONS, ON WHICH PROFITS TAX IS PAID.
AS FOR PEOPLE WHOSE ONLY INCOME IS DERIVED FROM COLLECTING RENTS ON THEIR PROPERTY, THE SPOKESMAN POINTED OUT THAT THESE PEOPLE COULD OPT FOR WHAT IS COMMONLY KNOWN AS +PERSONAL ASSESSMENT.+
THIS MEANS THAT ALL HIS INCOME, FROM WHATEVER SOURCE, IS PUT TOGETHER, AND THE USUAL ALLOWANCES WHICH APPLY TO SALAR IES TAX ARE DEDUCTED BEFORE TAX IS ASSESSED.
FOR EXAMPLE, IF A MAN AND WIFE, WITH NO DEPENDENT CHILDREN,. WHOSE ANNUAL INCOME FROM ALL SOURCES, INCLUDING RENTS FROM HIS PROPERTY, DO NOT EXCEED $20,000, THE COUPLE WOULD NOT HAVE TO PAY ANY TAX AT ALL.
THE SPOKESMAN SAID THAT THE INTRODUCTION OF PROPERTY TAX IN TSUEN WAN WOULD ONLY AFFECT LANDLORDS OF PROPERTIES WHO ARE NOT ALREADY PAYING TAX ON THEIR RENTAL INCOME IN THE FORM OF BUSINESS PROFITS TAX.
+PROPERTY OWNERS IN THE SAME CATEGORY ON HONG KONG ISLAND AND KOULOON HAVE BEEN PAYING SUCH TAX FOR MANY YEARS, AND IT SEEMS UNFAIR THAT THEIR COUNTERPARTS IN TSUEN WAN AND TSING YI SHOULD GET AWAY SCOT FREE,+ THE SPOKESMAN SAID.
THE GOVERNMENT, HE SAID, WAS TRYING TO ENSURE THAT THE MASSIVE HOUSING PROGRAMME AND OTHER SOCIAL SERVICES ARE NOT TO BE SLOWED DOWN FOR LACK OF THE NECESSARY FUNDS.
+NOW, MORE THAN AT ANY OTHER TIME,+ HE ADDED, +PEOPLE WHO OUGHT TO BE CONTRIBUTING TO GOVERNMENT REVENUE SHOULD NOT WISH TO AVOID THEIR OBLIGATIONS TO THE REST OF THE COMMUNITY.+
THE SPOKESMAN REMINDED RESIDENTS OF TUSEN WAN WHO HAVE RECEIVED DEMAND NOTES TO CHECK WHETHER OR NOT THEY QUALIFY FOR EXEMPTION ON THE GROUNDS MENTIONED.
COMMENTING ON THE ACTION OF THOSE 1,800 WHO RETURNED THE FORMS TO THE INLAND REVENUE DEPARTMENT, THE SPOKESMAN SAID THIS WOULD NOT REMOVE THEIR OBLIGATION TO PAY TAX AND THAT UNDER THE INLAND REVENUE ORDINANCE, A SURCHARGE OF 5% WILL BE IMPOSED ON LATE PAYMENT, AND ANOTHER 10% WILL BE IMPOSED AFTER SIX MONTHS.
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