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WEDNESDAY, JUNE 18, 1975.
PROPOSED NEW POWERS FOR 1.R.D. MODIFIED
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SEVERAL MODIFICATIONS ARE TO BE MADE TO THE PROPOSED NEW POWERS OF THE COMMISSIONER FOR TILAND REVENUE AS OUTLINED IN THE INLAND REVENUE (AMENDMENT) (NO. 2) BILL WITCH PROVIDES STIFFER PENALTIES AGAINST TAX EVADERS.
THE CHANGES WERE SUGGESTED BY UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL VIO, ALTHOUGH FULLY SUPPORTING THE BILL IN PRINCIPLE, FELT THAT THE PROPOSED NEW POVERS SHOULD NOT UNNECESSARILY INFRINGE ON THE RIGHTS OF HINCCENT CITIZENS.
UNDER THE FIRST AMENDMENT, A PERSON SUSPECTED OF SUBMITTING INCORRECT TAX RETURNS VILL HAVE NO RIGHT TO OBJECT TO THE COMMISSIONER'S DEMAND FOR A STATEMENT OF HIS ASSETS AND LIABILITIES ONLY IF THE COMMISSIONER'S DEMAND FOR SUCH A STATOHENT IS UPHELD BY A SPECIAL PANEL OF THE INLAND REVENUE BOARD OF REVIEW.
AS THE BILL NOW STANDS. THE COMMISSIONER NEED NOT EXPLAIN HIS CASE FOR SUCH A DEMAND TO A REVIEW BOARD.
THE SECOND MODIFICATION, INVOLVED CLAUSE 4 OF THE BILL WHICH ENABLES THE COMMISSIONER, WITH A MAGISTRATE'S WARRANT, TO ENTER AND SEIZE BOCKS, RECORDS, ACCOUNTS OR DOCUMENTS DELONGING TO A PERSON SUSPECTED OF TAX EVASION, AS WELL AS THOSE BELONGING TO SOMEONE ELSE.
AS A COMPROMISE, THE UNOFFICIALS PROPOSED THAT INSTEAD OF SEIZING THE BOOKS AND RECORDS, ONLY COPIES OF BOOKS AND RECORDS NOT BELONGING TO THE SUSPECT AND DIRECTLY RELATED TO THE SUSPECT'S TRANSACTIONS MAY BE TAKEN.
IN ADDITION, THE $1,000 FINE PRESCRIBED IN THE ORDINANCE FOR AN OFFENCE OF BREACH! OF SECRECY WILL BE RAISED MUCH HIGHER AS SUGGESTED BY THE UNCFFICIALS.
COMMENTING DURING THE RESUMED DEBATE ON THE BILL'S SECOND READING, THE HON. LEE QUO-VEI SAID THE PROVISIONS IN THE BILL **ARE ESSENTIAL FOR THE SAKE NOT ONLY OF COLLECTING OUR MUCH NEEDED REVENUE, APRTICULARLY IN THESE HARD TIMES, BUT ALSO TO AVOID THE HONEST TAXPAYERS HAVING OTHERVISE TO PAY AT A HIGHER RATE OF TAX IN ORDER TO MEET OUR EVER INCREASING DEMANDS FOR PUBLIC EXPENDITURE."
HE NOTED THAT THE PERCENTAGE OF UNDERSTATEMENT OF EARNINGS AND PROFITS IN CASES FINALISED BY THE INVESTIGATION SECTION OF THE INLAND REVENUE DEPARTMENT FOR THE YEAR ENDING MARCH 31, 1974, WAS AS HIGH AS 79.2 PER CENT.
/+THESE FIGURES ....
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