17
WEDNESDAY, FEBRUARY 6, 1985
THE COMPROMISE NOW AGREED SEEMED TO STRIKE A FAIR BALANCE AND FOR THIS REASON HE SUPPORTED THE MOTION.
ALSO SPEAKING IN SUPPORT OF THE BILL, HON PETER POON SAID THE PROPOSED AMENDMENTS WERE BOTH NECESSARY AND TIMELY+.
HE SAID THAT THE PROVISIONS OF THE BILL WOULD GREATLY STRENGTHEN THE COLLECTION OF TAX BY THE COMMISSIONER IN PRACTICE, THOUGH IN LAW HE ALREADY HAD ABSOLUTE DISCRETION NOT TO GRANT ANY HOLD OVER.
+THERE HAS, HOWEVER, BEEN SOME CONCERN EXPRESSED THAT IN SOME CASES WHERE THE TAXPAYER WINS THE OBJECTION, HE MAY ONLY EET COMPENSATION FROM THE INTEREST ON THE TAX RESERVE CERTIFICATE, PRESENTLY AT 5.52 PER CENT, BUT HIS COST OF RAISING FUNDS TO PURCHASE SUCH TAX RESERVE CERTIFICATE WILL PROBABLY BE DOUBLE THAT RATE.
+FURTHER, AT SUCH LOW INTEREST, THERE IS NO INCENTIVE FOR THE INLAND REVENUE DEPARTMENT TO EXPEDITE THE FINALISATION OF OBJECTIONS WHICH MAY DRAG ON FOR A LONG TIME TO THE DISADVANTAGE OF THE TAXPAYER, IN NOT GETTING HIS MONEY BACK EARLIER AND ONLY BEING COMPENSATED BY LOW INTEREST, MR POON SAID.
HE THEREFORE SUGGESTED THAT THE COMMISSIONER SHOULD CONTINUE TO EXERCISE HIS DISCRETION TO HOLDOVER TAX UNDER DISPUTE IF A TAXPAYER'S CASE HAD SUFFICIENT MERIT AND PROPER GUIDELINES BE GIVEN TO HIS STAFF IN THIS RESPECT.
FINALLY, MR POON SAID HE BELIEVED THE BILL WOULD GREATLY REDUCE THE NUMBER OF FRIVOLOUS OBJECTIONS, IMPROVE TAX COLLECTION AND GO SOME WAY TO ALLEVIATE THE ADMINISTRATIVE BURDEN AND BACKLOG OF OBJECTION CASES.
MOVING THE THIRD READING, THE FINANCIAL SECRETARY,
SIR JOHN BREMRIDGE, SAID THAT THE AMENDMENTS THAT HAD RESULTED FROM THE ENDEAVOURS OF THE UNOFFICIALS HAD, HE BELIEVED SERVED TO BROADEN AND STRENGTHEN IT.
THIS, HE SAID, WAS AN IMPORTANT PIECE OF LEGISLATION.
+IT IS DESIGNED TO DISCOURAGE THE GROWING PRACTICE OF ENTERING OBJECTIONS OR APPEALS SOLELY FOR THE PURPOSE OF DEFERRING PAYMENT OF TAX.
+THERE IS AT PRESENT NEARLY $3 BILLION OF TAX HELD OVER MUCH OF WHICH SHOULD NEVER HAVE BEEN THE SUBJECT OF AN APPEAL IN THE FIRST PLACE.
+CLEARLY IT IS TIME TO BRING TO AN END OVER-GENEROUS TREATMENT ACCORDED TO APPELLANTS BY THE INLAND REVENUE DEPARTMENT.
+THE NEW LEGISLATION WILL ENABLE THE COMMISSIONER TO APPLY A MORE REALISTIC APPROACH IN DECIDING WHICH CASES MERIT HOLD OVER AND WHICH DO NOT, HE SAID.
SIR JOHN