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WEDNESDAY, MARCH 9, 1983
* WHERE PROVISIONAL PROPERTY TAX IS PAID BY AN OWNER AND A REFUND BECOMES PAYABLE AFTER THE PROPERTY HAS PASSED INTO THE OWNERSHIP OF A SUBSEQUENT OWNER, SUCH REFUND WILL BE MADE TO THE ORIGINAL OWNER AND WILL NOT BE
APPLIED AGAINST ANY LIABILITY TO TAX OF THE SUBSEQUENT OWNER.
OTHER POINTS WHICH EMERGED DURING THE COURSE OF EXAMINATION OF THE BILL, AND THE STUDY OF REPRESENTATIONS RECEIVED BY THE UNOFFICIALS, INCLUDED THE PROPOSAL THAT PREMIA FOR THE GRANT OF LEASES BE SPREAD OVER THE LIFE OF SUCH LEASES OR FOR A PERIOD OF THREE YEARS WHICHEVER IS THE SHORTER.
+WHILE SOME RESERVATIONS REMAIN REGARDING THE EQUITY OF THIS ARRANGEMENT, MR BROWN SAID, +WE ACCEPT THAT LONG LEASES ARE UNUSUAL FOR DOMESTIC PREMISES OWNED BY PRIVATE LANDLORDS.
+MOST LONG LEASES ARE FOUND IN THE CORPORATE SECTOR AND THERE IS OF COURSE NO PROVISION TO SPREAD SUCH BENEFITS RECEIVED WHEN HAVING REGARD TO PROF ITS TAX.+
TURNING TO CLAIMS THAT THE BILL COULD CAUSE UNDUE HARDSHIP FOR LANDLORDS, MR BROWN SAID HIS GROUP HAD BEEN ASSURED THAT DEMAND NOTES FOR THE 1983/84 PROVISIONAL PROPERTY TAX WOULD BE ISSUED BETWEEN JULY AND MID-AUGUST THIS YEAR, WITH DUE DATES FOR PAYMENT FALLING BETWEEN NOVEMBER 1, 1983 AND FEBRUARY 29, 1984.
+THIS CONFIRMS WITH THE DUE DATE PATTERN ADOPTED FOR 1982/83 AND EARLIER YEARS, HE ADDED.
+THE 1983/84 PROVISIONAL ASSESSMENTS WILL USE 1982/83 ASSESSABLE VALUES AND THERE IS A PROVISION IN THE BILL - CLAUSE 18 NEW SECTION 63(0) - FOR THE PROVISIONAL TAX TO BE HELD OVER WHERE THE FINAL 1983/84 LIABILITY IS LIKELY TO BE LESS THAN THE AMOUNT PROVISIONALLY ASSESSED.+
DR THE HON HENRY HU AND THE HON K.C. CHAN ALSO SPOKE ON THE BILL.
DR HU EXPRESSED CONCERN THAT THERE MIGHT BE CONFUSION IN ASCERTAINING +CONSIDERATION+ BECAUSE IN CERTAIN CIRCUMSTANCES, THE COST OF MANAGEMENT WAS INCLUDED IN THE CONSIDERATION+ WHILE IN OTHERS IT WAS NOT.
HE ALSO THOUGHT THAT THERE SHOULD BE NO CHARGE TO PROPERTY TAX ON THE AMOUNT PAYABLE TO THE LANDLORD FOR THE USE OF FURNITURE,
EXPLAINING THE TRADITIONAL DEFINITION OF
CONSIDERATION+,
DR HU SAID: IT IS 'SOMETHING OF VALUE IN THE EYE OF THE LAW' GIVEN OR ACCEPTED IN RETURN FOR A PROMISE.
+ IT FOLLOWS THAT IF THE MANAGEMENT FEE AND/OR THE FURNITURE ELEMENT FORM PART AND PARCEL OF THE TENANCY, IT WOULD BE BETTER NOT TO DESCRIBE AN AMOUNT AS 'CONSIDERATION" FROM WHICH THE FURNITURE ELEMENT AND/OR THE MANAGEMENT FEE ARE DEDUCTED.+
/IN VIEW