WEDNESDAY, JULY 11, 1984
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FEE CALCULATION EXPLAINED
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THE WAY GOVERNMENT DETERMINES THE LEVEL OF FOREBEARANCE FEES PAYABLE WHERE BREACHES OF LEASE CONDITIONS OCCUR WAS OUTLINED IN THE LEGISLATIVE COUNCIL TODAY BY THE ACTING SECRETARY FOR LANDS AND WORKS, THE HON EDDY SHORT.
ANSWER ING A QUESTION FROM THE HON SELINA CHOW, MR SHORT SAID IN LEASE ENFORCEMENT CASES INVOLVING A BREACH OF LEASE CONDITIONS, INCLUDING THE USE OF RESIDENTIAL PREMISES FOR INDUSTRIAL PURPOSES, THE LESSEE IS NORMALLY GIVEN 28 DAYS TO PURGE THE BREACH.
IF THIS CANNOT BE ACCOMPLISHED AND IF THE LESSEE CAN PUT FORWARD ACCEPTABLE REASONS. AN EXTENSION OF THIS PERIOD MAY BE GRANTED SUBJECT TO THE PAYMENT OF A FOREBEARANCE FEE.
+FORE BEARANCE FEES ARE INTENDED TO ENSURE THAT BREACHES OF LEASE CONDITIONS ARE CORRECTED WITHIN THE SHORTEST PRACTICAL TIME AND HAVE THEREFORE BEEN SET WITH THIS OBJECTIVE IN MIND,+ MR SHORT SAID.
WHERE RESIDENTIAL PREMISES ARE USED FOR INDUSTRIAL PURPOSES, FORE BEARANCE FEES TAKE ACCOUNT OF THE AVERAGE RENTAL FOR INDUSTRIAL ACCOMMODATION, HE SAID.
FOR THE FIRST THREE MONTHS, THE FOREBEARANCE FEES ARE CALCULATED AT A MONTHLY RATE OF $21 PER SQUARE METRE ON THE AREA IN BREACH.
FOR THE NEXT THREE MONTHS, THE FEE CHARGED IS EITHER ON THE SAME BASIS OR AT THE RATE OF ONE PER CENT PER MONTH OF THE CAPITAL VALUE OF THE AREA IN BREACH, WHICHEVER IS THE HIGHER.
TWO BILLS ON SURCHARGES INTRODUCED
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TWO BILLS CONCERNING SURCHARGES WERE MOVED THROUGH THE SECOND READING BY THE ACTING FINANCIAL SECRETARY, THE HON DOUGLAS BLYE, IN THE LEGISLATIVE COUNCIL TODAY.
THEY ARE THE INLAND REVENUE (AMENDMENT) (NO. 3) BILL 1984
AND THE RATING (AMENDMENT)(NO. 2) BILL 1984.
BOTH BILLS MAKE IT CLEAR THAT THE INITIAL SURCHARGE OF FIVE PER CENT ON AMOUNTS NOT PAID BY THE DUE DATE IS SUBJECT TO A FURTHER SURCHARGE OF 10 PER CENT ON AMOUNTS IN DEFAULT NOT LESS THAN SIX MONTHS AFTER THE DUE DATE, MR BLYE EXPLAINED.
CLAUSE 2 OF EACH BILL ALSO SEEKS TO VALIDATE THE ADDITIONAL SURCHARGES IMPOSED UNDER THE EXISTING PROVISIONS ON OUTSTANDING SURCHARGES. THE TAX OR RATES IN RESPECT OF WHICH HAD BEEN PAID AT THE TIME THE ADDITIONAL SURCHARGES WERE IMPOSED.
DEBATE ON BOTH BILLS WAS ADJOURNED.
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