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WEDNESDAY, FEBRUARY 6, 1985
SIR JOHN SAID THE NEW LAWS WOULD NOT PENALISE THE GENUINE APPELLANT SINCE, IF HE HAD A GOOD CASE AND WAS ULTIMATELY SUCCESSFUL, HE WOULD RECEIVE INTEREST ON ANY TAX RESERVE CERTIFICATES WHICH THE COMMISSIONER MIGHT HAVE REQUIRED HIM TO BUY AS SECURITY FOR THE TAX IN DISPUTE.
+BUT IF THE OBJECTION IS UNSUCCESSFUL, THE TAX RESERVE CERTIFICATES WILL BE USED TO DISCHARGE THE TAX LIABILITY WITHOUT PAYMENT OF INTEREST, HE SAID.
SIR JOHN CONGRATULATED MR BROWN AND HIS COLLEAGUES IN THE AD HOC GROUP ON THE OPEN-MINDED AND VERY KNOWLEDGEABLE WAY THEY APPROACHED THEIR TASK AND THE SATISFACTORY SOLUTION THAT HAD NOW BEEN REACHED.
+1 AM SORRY THAT MRS FAN IS NOT IN AGREEMENT, BUT UNANIMITY IN THIS COMPLICATED PROFESSIONAL FIELD IS PERHAPS TOO MUCH TO EXPECT, HE SAID.
CIVIL SERVANTS SIMILARLY LIABLE TO TAX
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THERE WAS NO DIFFERENCE IN THE LIABILITY TO TAXATION OF CIVIL SERVANTS AND THE PUBLIC, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY.
IN THE CASE OF HOUSING, ANY BENEFITS PROVIDED BY THE EMPLOYER WERE THUS SUBJECTED TO TAXATION IN THE SAME WAY, SIR JOHN SAID IN REPLY TO A QUESTION BY DR THE HON HENRIETTA IP.
BY VIRTUE OF PROVISIONS CONTAINED IN SECTION 9 OF THE INLAND REVENUE ORDINANCE, WHERE AN EMPLOYEE WAS PROVIDED WITH FREE QUARTERS, THE RENTAL VALUE OF SUCH AN ACCOMMODATION WAS ASSESSED AN EQUIVALENT TO 10 PER CENT OF HIS EMOLUMENTS, SIR JOHN SAID.
WHERE, HOWEVER, AN EMPLOYER PROVIDED A PLACE OF RESIDENCE FOR HIS EMPLOYÉE BUT CHARGED THAT EMPLOYEE A RENT WHICH WAS LESS THAN THE RENTAL VALUE, THE DIFFERENCE BETWEEN THE RENTAL VALUE AND THE RENT SO CHARGED SHOULD BE INCOME OF THE EMPLOYEE, HE ADDED.
NATURALLY, WHEN AN EMPLOYEE RECEIVED A CASH HOUSING ALLOWANCE WHICH HE WAS FREE TO USE IN ANY MANNER HE THOUGHT FIT, SUCH A BENEFIT WOULD BE ASSESSED IN FULL AS PART OF THE EMPLOYEE'S TAXABLE EMOLUMENTS.
AS FOR PASSAGE ALLOWANCES, SIR JOHN SAID CIVIL SERVANTS WHO WERE ENTITLED TO PASSAGE BENEFITS WERE NOT GIVEN A CASH ALLOWANCE.
/INSTEAD, COSTS
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