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WEDNESDAY, MAY 13, 1981
+ IN ENGLAND, HE SAID, THE STAMP DUTIES MANAGEMENT ACT, 1981 AND THE STAMP ACT, 1891, AS AMENDED BY VARIOUS FINANCE AND REVENUE ACTS, NOTABLY THE FINANCE ACTS, 1949, 1970 AND 1971, CONSTITUTE THE PRESENT LAW ON THE SUBJECT OF STAMP DUTIES.
+THE BILL NOW BEFORE COUNCIL BRINGS UNDER ONE UMBRELLA THE EXISTING STAMP ORDINANCE AND THE STAMP DUTIES MANAGEMENT ORDINANCE.
+ IN THIS RESPECT, WE ARE, FOR A CHANGE, AHEAD OF ENGLISH LEGISLATION.+
MR WONG SAID THE BILL ALSO REMOVES A LONG-STANDING ANOMALY BY EXPRESSLY PROVIDING FOR UNIT TRUSTS, DEPOSITARY RECEIPTS AND WARRANTS ENTITLING THE HOLDER TO SUBSCRIBE FOR SHARES.
UNDER THE BILL, THERE ARE NOW TO BE ONLY FOUR HEADS OF CHARGE, NAMELY HONG KONG IMMOVABLE PROPERTY, HONG KONG STOCK, HONG KONG BEARER INSTRUMENTS, AND DUPLICATES AND COUNTERPARTS OF CHARGEABLE INSTRUMENTS,
ANOTHER AMENDMENT CONCERNED CLAUSE 15 OF THE BILL WHICH DEALS WITH THE NON-ADMISSIBILITY OF INSTRUMENTS NOT DULY STAMPED.
ALTHOUGH SUBSECTION 3 OF SECTION 7 OF THE EXISTING STAMP ORDINANCE GIVES THE COURTS A DISCRETION TO ADMIT INSTRUMENTS WHICH ARE NOT DULY STAMPED AND PROVIDES SAFEGUARDS TO ENSURE PROPER STAMPING AND PAYMENT OF PENALTY IN DUE COURSE, MR WONG NOTED THIS DISCRETION IS NOT RETAINED IN CLAUSE 15.
+HOWEVER, IN RESPONSE TO VIEWS EXPRESSED BY THE LEGISLATION SCRUTINY GROUP, THE GOVERNMENT HAS NOW AGREED TO AMEND CLAUSE 15 SO THAT THE COURTS WILL RETAIN THIS DISCRETION.
+THIS PROVISION IS IMPORTANT AS IT WILL FACILITATE COURT PROCEEDINGS.
+THE RETENTION OF SUCH DISCRETION IS IN LINE WITH THE CURRENT PRACTICE IN ENGLISH COURTS, HE SAID.
THE HON JOHN SWAINE, SAID THE GOVERNMENT WOULD PROPOSE A FORM OF RELIEF FROM STAMP DUTY FOR FUND MANAGERS OF UNIT TRUSTS WHO BUY AND SELL UNITS WITHIN A SPECIFIED PERIOD OF UP TO TWO MONTHS, +IF THIS PERIOD IS SHOWN TO BE APPROPRIATE FOR HONG KONG.+
+AMENDING LEGISLATION WILL BE INTRODUCED BEFORE PART IV OF THE PRESENT BILL COMES INTO OPERATION, HE SAID.
+ IT IS NOT INTENDED THAT THE CANCELLATION OF UNITS IN A UNIT TRUST SHALL ATTRACT DUTY, AND THE CONCEPT OF 'DISPOSAL' IN CLAUSE 19(11) AND THAT OF 'CANCELLATION' ARE MUTUALLY EXCLUSIVE.
+IF, AS A RESULT OF THE REVIEW NOW IN PROGRESS, A DECISION IS TAKEN TO EXEMPT FOREIGN CURRENCY DEPOSITS FROM INTEREST TAX, STEPS WILL BE TAKEN TO ENSURE THAT ASIAN DOLLAR BONDS ISSUED IN HONG KONG ARE REL IEVED FROM STAMP DUTY.+
/MR SWLINE