EN
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FRIDAY, DECEMBER 2, 1983
WHEN AN ELECTION IS MADE FOR SEPARATE ASSESSMENT, EACH SPOUSE WILL ASSUME INDIVIDUAL OBLIGATIONS AND RIGHTS, SUCH AS THE RESPONSIBILITY TO DECLARE THE ACCURATE AMOUNT OF THE SPOUSE'S OWN INCOME AND TO PAY THEIR RELEVANT SHARE OF THE TAX, AND THE RIGHT TO OBJECT IF AGGRIEVED BY THE ASSESSMENT.
IN THE CASE OF PERSONAL ASSESSMENT, WHEN COMPUTING THE TOTAL INCOME OF A SPOUSE, THE EXISTING FACILITY FOR SETTING OFF A LOSS INCURRED IN BUSINESS AGAINST INCOME FROM OTHER SOURCES WOULD REMAIN.
+ HOWEVER, ANY LOSS WHICH EXCEEDED A SPOUSE'S OTHER INCOME FOR A PARTICULAR YEAR WOULD FIRST HAVE TO BE SET OFF AGAINST THE TOTAL INCOME OF HIS OR HER SPOUSE FOR THAT YEAR BEFORE BEING CARRIED FORWARD TO A SUBSEQUENT YEAR, THE SPOKESMAN SAID.
AS REGARDS PROFITS TAX, THE SPOKESMAN EXPLAINED THAT AT PRESENT, A WIFE WAS DEEMED TO BE ONE AND THE SAME PERSON AS HER HUSBAND. THE REMOVAL OF THIS DEEMING SECTION COULD GIVE RISE TO TAX-AVOIDANCE OPPORTUNITIES. HOWEVER, THESE WILL BE COUNTERED BY A NEW PROVISION WHICH WILL PROHIBIT OR LIMIT THE DEDUCTIONS FOR SALARIES, INTEREST AND RENT PAID BY ONE SPOUSE TO THE OTHER AND WILL PERMIT THE COMMISSIONER OF INLAND REVENUE TO SUBSTITUTE MARKET VALUE FOR SALE PRICE ON ASSETS SOLD BY ONE SPOUSE TO THE OTHER.
THE BILL WILL BE SUBMITTED TO THE LEGISLATIVE COUNCIL ON DECEMBER 7. AND IS EXPECTED TO RECEIVE ITS THIRD READING ON DECEMBER 21.
ANYONE WHO WISHES TO COMMENT ON ITS PROVISIONS MAY DO SO IN WRITING TO UMELCO, AT SWIRE HOUSE, 12TH FLOOR, CHATER ROAD, OR TO THE COMMISSIONER OF INLAND REVENUE, AT WINDSOR HOUSE, 26TH FLOOR, 311 GLOUCESTER ROAD, CAUSEWAY BAY, HONG KONG.
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