23
WEDNESDAY, FEBRUARY 6, 1985
SHE BELIEVED ONLY WITH THE ESTABLISHMENT OF SUCH AN APPEAL ARRANGEMENT, THE GOVERNMENT COULD INSPIRE CONFIDENCE IN THE MINDS OF TAXPAYERS.
BILL.
MRS FAN STATED HER THREE MAIN OBJECTIONS TO THE PROPOSED
+FIRSTLY, I FEEL THE TAXPAYER SHOULD ALWAYS BE GIVEN THE OPTION OF CHOOSING BETWEEN OFFERING A BANK GUARANTEE OR PURCHASING TAX RESERVE CERTIFICATES TO COVER HIS PAYMENT OF TAX WHEN THE COMMISSIONER CONSIDERS THAT THE TAXPAYER'S OBJECTION AGAINST A TAX ASSESSMENT HAS SUFFICIENT MERIT,
+EVEN WITH THIS OPTION, THIS MAY NOT BE OF HELP TO SMALL ORGANISATIONS OR INDIVIDUALS WHO MAY HAVE DIFFICULTIES IN ARRANGING FOR A BANK GUARANTEE, SHE SAID.
+SECONDLY, THE PROPOSED BILL SHOULD CATER FOR AN APPEAL PROCEDURE FOR THE TAXPAYER AGAINST DELAY IN FINALISING AN OBJECTION BY THE TAX AUTHORITY, WHICH AT PRESENT IS NOT INCLUDED.
+THIRDLY, THE EXISTING ORDINANCE ALREADY GIVES THE NECESSARY POWERS TO THE COMMISSIONER TO EXERCISE HIS DISCRETION.
+ THE ADDITIONAL MEASURE CONTAINED IN THIS BILL SERVE LITTLE PURPOSE,+ SHE ADDED.
MRS FAN SAID SHE FULLY APPRECIATED THAT DUE TO THE WIDE RANGING POWER GIVEN TO THE COMMISSIONER OF INLAND REVENUE UNDER THE EXISTING LAW, HE HAD TO EXERCISE HIS POWER WITH CARE, SO AS NOT TO BE DRACONIAN.
THE PROPOSED BILL. HOWEVER ENABLED THE COMMISSIONER TO REQUIRE THE TAXPAYER TO PURCHASE TAX RESERVE CERTIFICATES, IRRESPECTIVE OF THE MERIT OF THE TAXPAYER'S OBJECTION OR APPEAL.
ANOTHER POINT WHICH WAS OF GREAT CONCERN TO THE TAXPAYER WAS THE TIME TAKEN TO FINALISE AN OBJECTION AND MANY PUBLIC ORGANISATIONS HAD DRAWN UMELCO'S ATTENTION TO THIS FACT, SHE SAID.
SHE CONCEDED THAT THERE MIGHT BE VALID REASONS FOR THE LONG PERIOD NEEDED TO SETTLE A CASE BUT POINTED OUT THE CONSIDERABLE TIME TAKEN WAS NOT DUE TO UNNECESSARY DELAY CAUSED BY THE TAXPAYERS.
+BECAUSE IN SUCH EVENTS, THE COMMISSIONER OF INLAND REVENUE CAN EXERCISE HIS POWER PRESCRIBED BY SECTION 71 SUBSECTION (3) AND DEMAND IMMEDIATE PAYMENT FROM THE TAXPAYERS.
+WHAT RECOURSE IS THERE FOR THE TAXPAYER TO SPEED UP THE PROCESS OF REACHING A DECISION, ESPECIALLY WHEN THE TAXPAYER'S FUNDS ARE TIED UP IN THE TAX RESERVE CERTIFICATES, OR THE TAXPAYER IS PAYING THE BANK CHARGES FOR THE BANK GUARANTEE?+ SHE ASKED.
SHE SAID