FRIDAY, JULY 6, 1984
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THE EXISTING LEGISLATION IS, HOWEVER, UNCLEAR.
UNCLEAR. THE AMENDMENTS ARE INTENDED TO SPELL OUT CLEARLY THAT, AT THE EXPIRY OF A PERIOD OF SIX MONTHS AFTER A DEFAULT IN PAYMENT, GOVERNMENT MAY IMPOSE A SURCHARGE OF 10 PER CENT ON THE OUTSTANDING AMOUNT OF BOTH THE ORIGINAL AMOUNT IN DEFAULT AND THE SURCHARGE OF FIVE PER CENT IMPOSED AT THE TIME OF DEFAULT: OR IF THE ORIGINAL AMOUNT IS NO LONGER IN DEFAULT (THAT IS IF THAT AMOUNT HAS BEEN PAID DURING THE SIX MONTHS PERIOD) ON THE OUTSTANDING AMOUNT OF THE INITIAL SURCHARGE.
+AS THE SURCHARGE IS SPECIFICALLY INTENDED TO BE A DETERRENT AGAINST LATE PAYMENTS, IT IS AN ANOMALY NOT TO IMPOSE AN ADDITIONAL SURCHARGE ON THE INITIAL FIVE PER CENT SURCHARGE WHICH HAS REMAINED UNPAID+, HE EXPLAINED.
THE TWO BILLS WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON WEDNESDAY (JULY 11) AND ARE EXPECTED TO COMPLETE THEIR THIRD READING ON JULY 25.
ANYONE WHO WISHES TO COMMENT ON THESE PROPOSED LEGISLATIVE AMENDMENTS MAY WRITE TO UMELCO, AT SWIRE HOUSE, 12/F, CHATER ROAD, HONG KONG OR TO THE COMMISSIONER OF INLAND REVENUE, AT WINDSOR HOUSE, 311 GLOUCESTER ROAD, CAUSEWAY BAY, HONG KONG, OR THE DIRECTOR OF ACCOUNTING SERVICES, AT CENTRAL GOVERNMENT OFFICES, WEST WING, 11 ICE HOUSE STREET, HONG KONG.
LEVY PLANNED FOR WAGE PROTECTION
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THE GOVERNMENT INTENDS TO IMPOSE AN ANNUAL LEVY ON BUSINESS REGISTRATION CERTIFICATES FROM OCTOBER 1 THIS YEAR TO FINANCE THE OPERATION OF ITS PLANNED PROTECTION OF WAGES ON INSOLVENCY FUND.
THE BUSINESS REGISTRATION AMENDMENT BILL 1984, GAZETTED TODAY AND TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON WEDNESDAY (JULY 11) MAKES THE NECESSARY AMENDMENTS TO THE BUSINESS REGISTRATION ORDINANCE.
AS RECOMMENDED BY THE WORKING GROUP ON THE PROBLEMS EXPERIENCED BY WORKERS OF COMPANIES IN RECEIVERSHIP, WHOSE REPORT HAS BEEN ACCEPTED IN PRINCIPLE, THE GOVERNMENT INTENDS TO SET UP A PROTECTION OF WAGES ON INSOLVENCY FUND TO MAKE PROMPT PAYMENT OF WAGES OWED BY EMPLOYERS TO THE WORKERS OF COMPANIES IN RECEIVERSHIP. LEGISLATION TO ESTABLISH THE FUND IS CURRENTLY BEING DRAFTED AS A MATTER OF PRIORITY.
THE ANNUAL LEVY PROPOSED ON BUSINESS REGISTRATION CERTIFICATES TO FINANCE THE FUND'S OPERATION WILL INITIALLY BE SET AT $100, IN LINE WITH THE WORKING GROUP'S RECOMMENDATIONS.
/A SPOKESMAN