WEDNESDAY, JANUARY 10, 1979
25
INLAND REVENUE (AMENDMENT) BILL 1979
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A BILL WAS INTRODUCED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PROPOSING TO EXEMPT FROM PROPERTY TAX ANY PROPERTY OWNED AND OCCUPIED BY CLUBS, TRADE ASSOCIATIONS AND CLANS, FAMILIES OR T'ONGS.
SPEAKING AT THE SECOND READING OF THE INLAND REVENUE (AMENDMENT) BILL 1979, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THE EXEMPTION WAS ONE OF THE RECOMMENDATIONS OF THE THIRD INLAND REVENUE ORDINANCE REVIEW COMMITTEE THAT CLUBS OR SIMILAR INSTITUTIONS, NOT DEEMED TO BE CARRYING ON A BUSINESS, SHOULD BE TREATED ON A SIMILAR BASIS AS OWNERS OF PRIVATE RESIDENCES, AND SHOULD BE EXEMPT FROM PROPERTY TAX IN RESPECT OF PREMISES NOT EXPLOITED COMMERCIALLY.
ON TRADE OR PROFESSIONAL ASSOCIATIONS, MR. HADDON-CAVE SAID THE VAST MAJORITY OF THEM WERE CHARGEABLE TO PROFITS TAX AND LIKE THOSE CLUBS WHICH WERE SO CHARGEABLE, THESE ASSOCIATIONS EFFECTIVELY ESCAPED LIABILITY TO PROPERTY TAX.
+EXCEPTIONALLY, HOWEVER, A FEW SUCH ASSOCIATIONS, WHICH DO NOT MEET THE CRITERIA WHICH DEEM A BUSINESS TO BE CARRIED ON, REMAIN FULLY LIABLE TO PROPERTY TAX,+ MR. HADDON-CAVE SAID.
ON PROPERTIES OWNED BY CLANS, FAMILIES OR T'ONGS SUCH AS CHI TONGS (ANCESTRAL HALLS) AND SHUE SHATS (STUDY LIBRARIES), MR. HADDON- CAVE SAID THAT TO QUALIFY FOR EXEMPTION, THESE PROPERTIES WOULD NEED TO BE CERTIFIED, BY THE SECRETARY FOR HOME AFFAIRS OR BY THE SECRETARY FOR THE NEW TERRITORIES AS APPROPRIATE, TO BE THE ANCESTRAL PROPERTY OF THE CLAN OR FAMILY OR THE PROPERTY OF THE TRONG.
MR. HADDON-CAVE SAID THE BILL SOUGHT TO BRING THE PROPOSED EXEMPTIONS INTO EFFECT FROM APRIL 1, 1979, FOR THE YEAR OF ASSESSMENT 1979-80, WHICH MEANT THAT THE CURRENT YEAR 1978-79 WOULD BE THE LAST YEAR FOR WHICH CLUBS OR SIMILAR INSTITUTIONS WOULD BE LIABLE TO PROPERTY TAX, UNLESS THEIR PREMISES WERE EXPLOITED COMMERCIALLY.
+THE ANNUAL LOSS OF REVENUE INVOLVED FROM 1979-80 ONWARDS WILL BE OF THE ORDER OF $2 MILLION, HE SAID.
MR. HADDON-CAVE ADDED THAT THE BILL ALSO CONTAINED A QUI TE SEPARATE AND MINOR AMENDMENT TO A SECTION OF THE PRINCIPAL ORDINANCE DESIGNED TO CLARIFY THE APPLICATION OF THAT SECTION TO THE CONCEPT OF NET ASSESSABLE VALUES FOR PROPERTY TAX PURPOSES.
DEBATE ON THE BILL WAS ADJOURNED.
0
/26.