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WEDNESDAY, FEBRUARY 6, 1985
HE NOTED THAT UNDER THE ADMINISTRATION'S PROPOSALS, THE COMMISSIONER WOULD CONTINUE TO HAVE THAT OPTION OR TO PERMIT HOLDOVERS BACKED BY THE PURCHASE OF TAX RESERVE CERTIFICATES AND THIS 'BLACK' OR 'WHITE' SITUATION WAS FELT BY THE AD HOC GROUP TO BE TOO INFLEXIBLE.
ELABORATING, MR BROWN SAID: THE AGREED AMENDMENTS REVISE THE OPTIONS AND ADD FLEXIBILITY BY FIRSTLY GIVING THE COMMISSIONER THE OPTION TO ALLOW HOLDOVER WITHOUT THE PURCHASE OF TAX RESERVE CERTIFICATES WITH A PROVISION THAT IN THE EVENT OF AN UNSUCCESSFUL OBJECTION OR APPEAL THE TAXPAYER MUST PAY INTEREST ON THE AMOUNT INVOLVED.
+ THE AGREED AMENDMENTS SECONDLY GIVE THE COMMISSIONER THE OPTION TO PERMIT THE TAXPAYER TO PROVIDE A BANK GUARANTEE IN LIEU OF TAX RESERVE CERTIFICATES PROVIDED THAT THE GUARANTEE COVERS THE AMOUNT OF TAX HELD OVER PLUS INTEREST UNTIL PAYMENT IS MADE IN THE EVENT THE OBJECTION OR APPEAL IS DISALLOWED. +
+TO AVOID ANY CONFUSION AS TO THE CIRCUMSTANCES IN WHICH THE COMMISSIONER WILL EXERCISE HIS DISCRETION TO MAKE AN UNCONDITIONAL HOLDOVER ORDER, WITH INTEREST PAYABLE IF THE OBJECTION OR APPEAL IS ULTIMATELY UNSUCCESSFUL, OR AN ORDER CONDITIONAL UPON THE PURCHASE OF TAX RESERVE CERTIFICATES OR THE PROVISION OF A BANK GUARANTEE, THE COMMISSIONER HAS UNDERTAKEN TO ISSUE AN AMENDED DEPARTMENTAL PRACTICE NOTE LAYING DOWN CLEAR POLICY GUIDELINES APPLICABLE TO EACH CASE,+ MR BROWN ADDED.
HE ALSO MADE IT QUITE CLEAR THAT UNOFFICIAL MEMBERS HAD NO QUARREL WITH THE OBJECT OF THE BILL.
+ IT IS A FACT THAT SIGNIFICANT AMOUNTS OF TAX ARE HELD OVER.
+IT IS A FACT THAT THE VAST MAJORITY OF DEMANDS HELD OVER ARE EVENTUALLY DECIDED IN FAVOUR OF THE INLAND REVENUE DEPARTMENT MEMBERS WILL RECALL THAT THE PUBLIC ACCOUNTS COMMITTEE OF THIS COUNCIL RAISED THIS ISSUE DURING ITS PUBLIC HEARINGS LAST YEAR AND WAS INFORMED THAT OF SOME 20 000 OBJECTIONS LODGED IN ANY ONE YEAR ONLY 300 OR 400 WOULD EVENTUALLY BE DEALT WITH BY THE BOARD OF REVIEW, HE SAID.
HE ADDED THAT IT WAS ALSO A FACT THAT UNDER THE PRESENT SYSTEM THOSE WHO GAINED BY USING DEFERRAL DEVICES WERE MERELY PASSING PART OF THEIR BURDEN ONTO OTHER TAXPAYERS AND IN ALL EQUITY THIS MUST BE STOPPED.
+ALTHOUGH THE ARRANGEMENTS AS NOW AGREED WILL NOT PLEASE EVERYBODY, IT IS NECESSARY TO RECOGNISE THAT THE COMMISSIONER HAS THE POWER TO INSIST ON THE PAYMENT OF TAX WITHOUT ANY HOLDOVER.
+ IN THE ABSENCE OF THE PROVISIONS OF THIS BILL THE ONLY ALTERNATIVE WOULD BE FOR THE COMMISSIONER TO ADOPT A FAR TOUGHER ATTITUDE TOWARDS THE HOLDOVER SYSTEM,+ MR BROWN SAID.
/THE COMPROMISE