THURSDAY, DECEMBER 26, 1974
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THE FIGURES SHOW THAT IN THE FIRST CASE, THE FINAL TAX PAYABLE, EXPRESSED AS A PERCENTAGE OF THE ACTUAL PROFITS EARNED IN THE YEAR OF ASSESSMENT, WILL ALWAYS BE LESS THAN THE STANDARD RATE OF 15 PER CENT.
HOWEVER, THE BUSINESS IN A FALLING PROFIT SITUATION WILL BE PENALISED BECAUSE ITS TAX PAYABLE WILL ALWAYS BE AT A PERCENTAGE RATE ABOVE THE STANDARD RATE.
THE MORE DRAMATIC THE FALL IN PROFITS, THE MORE PENAL THE EFFECTIVE RATE ON ACTUAL PROFITS BECOMES. THIS IS HIGHLIGHTED BY THE FIGURES FOR THE YEAR ENDED MARCH 31, 1977 (IN THE SECOND EXAMPLE) WHERE A DROP OF 30 PER CENT IN PROFITS RESULTS IN AN EFFECTIVE RATE OF 21.4 PER CENT - MORE THAN 42 PER CENT ABOVE THE STANDARD RATE OF 15 PER CENT.
HOWEVER, UNDER THE PROPOSED NEW SYSTEM, BOTH BUSINESSES, WITH RISING OR FALLING PROFITS, WILL ONLY BE PAYING THE STANDARD RATE AND ON A CURRENT YEAR BASIS.
WATER CUT ***
WATER SUPPLY TO A NUMBER OF PREMISES IN YAU MA TEI WILL BE TURNED OFF FOR FIVE HOURS STARTING FROM 1 A.M. ON SATURDAY (DECEMBER 28) TO ENABLE A LEAKAGE TEST TO BE CARRIED OUT.
THE AREA AFFECTED IS BOUNDED EY SHANGHAI STREET, SAIGON STREET, CANTON ROAD AND KANSU STREET.
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