WEINESDAY
UARY 27, 1985
23
+THE AIM OF THE ADMINISTRATION IS THAT THE TOTAL ESTABLISHMENT BY THE END OF 1985 WILL BE NO GREATER THAN THAT AT THE END OF 1984. THERE IS STILL ALSO SCOPE FOR IMPROVING PRODUCTIVITY IN SOME AREAS. CONSEQUENTLY WHILE WE MUST RECOGNISE THE NEED TO EXPAND SOME SERVICES AND THUS TO PROVIDE ADDITIONAL RESOURCES, OUR AIM FOR THE FUTURE WILL BE TO FIND THESE WITHOUT EXCEEDING OUR CURRENT TOTAL ESTABLISHMENT.
+THIS CAN ONLY BE ACHIEVED BY CUTTING OUT WASTE, BY INCREASING PRODUCTIVITY AND BY ELIMINATING UNNECESSARY WORK EVEN IF IT MEANS RETHINKING POLICIES. IN THIS TASK THE CONTINUING CO-OPERATION OF CONTROLLING OFFICERS IS VITAL, I DO NOT IMAGINE THAT THIS POLICY WILL CHANGE MUCH, IF AT ALL, IN 1986–87,+
LAW TO BEAT TAX EVADERS
***
AN AMENDMENT BILL IS BEING DRAFTED TO COMBAT TAX AVOIDANCE, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
+SUBJECT TO THE APPROVAL OF THE EXECUTIVE COUNCIL
I ANTICIPATE THAT IT WILL BE TABLED IN THIS COUNCIL BEFORE THE CONCLUSION OF THE 1984-85 SESSION, HE SAID.
HE SAID THE OBJECTIVES OF THE BILL WOULD BE
FIRSTLY, TO REPLACE THE EXISTING GENERAL ANTI-AVOIDANCE PROVISIONS CONTAINED IN SECTION 61 OF THE ORDINANCE WITH LEGISLATION WHICH WILL PROVIDE THE COMMISSIONER WITH MORE EFFECTIVE ANTI-AVOIDANCE POWERS;
SECONDLY, TO LIMIT THE OPPORTUNITIES FOR TAX DEFERRAL THROUGH LEVERAGED LEASING ARRANGEMENTS FOR EQUIPMENT USED OFFSHORE AND SO-CALLED +SALE AND LEASE-BACK+ DEVICES IN GENERAL, AND
THIRDLY, TO NARROW THE SCOPE FOR MANIPULATION OF OUR
PROF ITS TAX EXPENSE DEDUCTIONS PROVISIONS FOLLOWING A 1983 PRIVY COUNCIL DECISION.
SIR JOHN NOTED THAT AVOIDANCE OF OUR STILL LOW TAXES+ WAS A MAJOR PREOCCUPATION WITH AN INCREASING NUMBER OF TAXPAYERS.
+ IT IS ALSO CLEAR THAT THE EXISTING LEGISLATION DOES NOT PROVIDE THE REVENUE WITH A TOTALLY EFFECTIVE DEFENCE AGAINST THOSE DETERMINED TO AVOID, HE SAID.
+THIS SIMPLY MEANS INCREASING THE TAX BURDENS ON OTHERS+.
EL CAID