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WEDNESDAY, JANUARY 2, 1980
REMINDER ON PAYMENT OF INTEREST TAX
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THE INLAND REVENUE DEPARTMENT TODAY (WEDNESDAY) REMINDED MEMBERS OF THE PUBLIC OF THE IR RESPONSIBILITY IN COMPLYING WITH THE LAW GOVERNING THE PAYMENT OF INTEREST TAX.
A SPOKESMAN FOR THE DEPARTMENT SAID AT PRESENT, 15 PER CENT OF THE INTEREST CHARGEABLE WITH INTEREST TAX MUST BE DEDUCTED BY THE PAYER AT THE TIME HE MAKES THE PAYMENT OR CREDITS THE INTEREST TO THE RECIPIENT.
THEREFORE, HE SAID, THE RECIPIENT SHOULD RECEIVE 85 PER CENT OF THE INTEREST AT THE TIME, EXCEPT FOR CERTAIN EXEMPTIONS PROVIDED UNDER THE INLAND REVENUE ORDINANCE,
WITHIN 30 DAYS OF MAKING THE DEDUCTION, THE PAYER MUST REMIT THE TAX DEDUCTED TO THE GOVERNMENT, ADDRESSED TO THE COLLECTOR, INLAND REVENUE DEPARTMENT, THIRD FLOOR, WINDSOR HOUSE, 311 GLOUCESTER ROAD, HONG KONG.
+ THE PAYER OF THE INTEREST MUST NOT AWAIT THE ISSUE OF AN INTEREST TAX RETURN OR WAIT FOR A NOTICE OF DEMAND FOR THE TAX FROM THE INLAND REVENUE DEPARTMENT, THE SPOKESMAN STRESSED.
THE REMITTANCE SHOULD HAVE A COVERING NOTE GIVING PARTICULARS OF THE NAME AND ADDRESS OF THE RECIPIENT, THE GROSS AMOUNT OF INTEREST, THE NET INTEREST PAID, PERIOD OF ACCRUAL OF THE INTEREST, AND THE DATE OF THE PAYMENT OR CREDIT OF THE NET INTEREST.
THE DEPARTMENT WILL THEN ISSUE A SPECIFIED DEDUCTION CERTIFICATE TO THE PAYER, WHICH SHOULD BE TRANSMITTED TO THE RECIPIENT OF THE INTEREST WITHIN 42 DAYS OF MAKING THE DEDUCTION.
HOWEVER, THE SPOKESMAN SAID, SPECIAL CERTIFICATE ARRANGEMENTS ARE MADE WITH LICENSED BANKS AND CERTAIN SPECIFIED CORPORATIONS.
HE SAID FAILURE, WITHOUT REASONABLE EXCUSE, TO MAKE THE DEDUCTION OR REMIT THE AMOUNT OF THE TAX IS AN OFFENCE AND THE PENALTY, ON CONVICTION, IS A FINE OF $2 000.
+THE DEPARTMENT TAKES A SERIOUS VIEW OF THIS OFFENCE AND WILL, WHERE NECESSARY, TAKE APPROPRIATE LEGAL ACTION, HE SAID.
THE INTEREST TAX SECTION OF THE INLAND REVENUE DEPARTMENT IS ON THE 17TH FLOOR OF WINDSOR HOUSE, 311 GLOUCESTER ROAD, CAUSEWAY BAY, HONG KONG (TEL: 5-7959-5236). ITS POSTAL ADDRESS IS GPO BOX 132, HONG KONG.
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