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WEDNESDAY, MARCH 9, 1983
IN VIEW OF THIS RATHER NARROW AND PECULIAR MEANING OF +CONSIDERATION+ USED IN THE BILL, HE SUGGESTED THAT A SEPARATE DEFINITION OF THE TERM SHOULD BE INSERTED UNDER THE PRINCIPAL ORDINANCE SPECIFYING THE SPECIAL MEANING OF CONSIDERATION+ FOR THE PURPOSE OF PROPERTY TAX EVALUATION SO THAT THE RIGHTS AND DUTIES OF A TAXPAYER COULD BE PLACED IN A MORE CLEAR PERSPECTIVE.
MR CHAN SAID THE BILL WOULD CHANGE THE CONCEPT OF +ASSESSABLE VALUE OF PROPERTIES FOR PROPERTY TAX PURPOSES TO +ACTUAL RENTAL INCOME+.
THE INCREASED REVENUE FROM PROPERTY TAX WOULD ALSO HELP TO AUGMENT THE PUBLIC COFFERS IN THE COMING FINANCIAL YEAR, HE ADDED.
HE DISMISSED THE DOUBTS THAT THERE WOULD BE ABUSE IN REPORTING A +FALSE+ RENTAL WHICH WAS LOWER THAN THE ACTUAL RENTAL BY THE LANDLORD IN COLLABORATION WITH THE TENANT.
+1 NOTE THAT BESIDES THE USUAL STIFF PENALTIES FOR THE EVASION OF TAX, THERE IS A BUILT-IN SAFEGUARD IN A LANDLORD AND TENANT RELATIONSHIP IN THAT ONCE A RENT RECEIPT ON THE LOWER RENTAL IS SIGNED, THE LANDLORD WOULD BE PENALISED BY THE TENANT WHO WILL THEREAFTER PAY THE FORMER THE LOWER 'FALSE' RENTAL,+ SAID MR CHAN.
MOVING THE SECOND READING OF THE BILL, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE THANKED MR BROWN, DR HU AND MR CHAN FOR THEIR THOUGHTFUL COMMENTS.
HE REFERRED TO DR HU'S SUGGESTION THAT THE TERM +CONSIDERATION+ SHOULD BE DEFINED MORE PRECISELY. AND SAID HE WAS ADVISED THAT IT WOULD BE VERY DIFFICULT TO PRODUCE A SATISFACTORILY EXHAUSTIVE DEFINITION.
+ANY ATTEMPTED ONE WOULD ALMOST CERTAINLY PRESENT OPPORTUNITIES FOR TAX AVOIDANCE, HE ADDED.
MR BREMRIDGE LATER MOVED FOUR AMENDMENTS TO THE BILL IN THE COMMITTEE STAGE AS FOLLOWS:
* CLAUSE 4 - AMENDED TO PROVIDE RELIEF TO A LANDLORD WHO
PAYS THE RATES.
* CLAUSE 6 AMENDED TO MAKE IT CLEAR THAT MANAGEMENT FEES PAID BY THE TENANT TO THE LANDLORD ARE TAXABLE UNDER THE NEW SYSTEM.
* CLAUSE 18 - TO CORRECT A MINOR TYPOGRAPHICAL ERROR. A NEW
CLAUSE, NUMBER 18A, ADDED TO THE BILL TO MAKE IT AN OFFENCE LIABLE TO PENALTY IF A LANDLORD FAILS TO KEEP SUFFICIENT RECORD OF THE RENT HE RECEIVES FROM THE TENANT.
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