THURSDAY, JUNE 23, 1983
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BILL TO PROVIDE FOR MORE TAX CONCESSIONS
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THE INLAND REVENUE (AMENDMENT) (NO. 3) BILL 1983, TO BE GAZETTED TOMORROW (FRIDAY), MAKES PROVISION FOR A PROFITS TAX CONCESSION AND FOR AN ADDITIONAL DEPENDENT PARENT ALLOWANCE.
THIS PROVISION IS IN LINE WITH THE BUDGET PROPOSALS MADE BY THE FINANCIAL SECRETARY IN HIS SPEECH ON FEBRUARY 23 WHEN HE MOVED THE SECOND READING OF THE APPROPRIATION BILL 1983 IN THE LEGISLATIVE COUNCIL.
THE ADDITIONAL DEPENDENT PARENT ALLOWANCE OF $2 000 WILL BENEFIT THE TAXPAYER WITH DEPENDENT PARENTS RESIDING WITH HIM THROUGHOUT THE RELEVANT YEAR OF ASSESSMENT.
ALSO UNDER THE BILL, EXPENDITURE INCURRED ON THE PURCHASE OF PATENT RIGHTS OR RIGHTS TO ANY TRADE MARK OR DESIGN FOR USE IN THE PRODUCTION OF CHARGEABLE PROFITS WILL BE DEDUCTIBLE FOR THE PURPOSES OF PROFIT TAX ASSESSMENT.
PROVISION IS MADE FOR THE APPORTIONMENT OF THE EXPENDITURE WHERE THE RIGHTS ARE ACQUIRED FOR USE PARTLY IN AND PARTLY OUT OF HONG KONG.
THE BILL ALSO PROVIDES FOR THE PROCEEDS OF THE SALE OF SUCH RIGHTS TO BE TREATED AS A TRADING RECEIPT.
THESE PROPOSALS WERE GENERALLY WELL RECEIVED BY THE PUBLIC WHEN THEY WERE ANNOUNCED BY THE FINANCIAL SECRETARY IN FEBRUARY, A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT SAID.
+THE COST TO THE GENERAL REVENUE OF CONCESSIONS PROPOSED BY THE BILL IS ESTIMATED AT $24 MILLION IN THE 1983-84 FINANCIAL YEAR AND THEREAFTER AT $14.5 MILLION A YEAR AT PRESENT LEVELS OF CHARGEABLE INCOME,+ THE SPOKESMAN SAID.
THE BILL IS SCHEDULED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JUNE 29, WITH THE RESUMED DEBATE, COMMITTEE STAGE AND THIRD READING TO BE HELD ON JULY 13, 1983.
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