14
WEDNESDAY, OCTOBER 30, 1985
+WE SHALL NOT DEPART FROM THAT POLICY, WHICH IS IMPORTANT TO THE ECONOMIC HEALTH OF HONG KONG, HE SAID.
THERE WERE, HOWEVER, LOOPHOLES IN THE SYSTEM WHICH THOSE WITH ACCESS TO SOPHISTICATED FINANCIAL DEVICES COULD EXPLOIT. THEY WERE THUS ABLE, WITHIN THE LAW, TO AVOID PAYING THE TAXES THEY WERE MEANT TO PAY, AND THE BURDEN OF THAT UNPAID TAX THEN FELL ON OTHERS, THE GOVERNOR SAID,
PROPOSED AMENDMENTS TO THE INLAND REVENUE ORDINANCE, DESIGNED TO CLOSE THE MOST READILY EXPLOITABLE OF THE LOOPHOLES, HAD RECENTLY BEEN EXAMINED BY THE AD HOC PANEL OF UMELCO.
THE GROUP HAD CONSULTED WIDELY WITH THE PROFESSIONS AND THE PUBLIC, AND HE WAS CONFIDENT THAT, AS A RESULT, THE WELL-CONSIDERED PROPOSALS WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL DURING THIS SESSION, SIR EDWARD SAID.
PROPOSALS ON BETTER BANK ING CONTROL SOON READY
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PROPOSALS FOR IMPROVEMENT OF THE SYSTEM OF SUPERVISORY CONTROL OVER BANK ING OPERATIONS WERE NEARING COMPLETION AND WOULD BE PUT TO THE EXECUTIVE COUNCIL AS SOON AS POSSIBLE, THE GOVERNOR, SIR EDWARD YOUDE, SAID TODAY.
THEY WOULD SEEK TO PROVIDE A GREATER MEASURE OF PROTECTION TO DEPOSITORS TO ENSURE SOUND BUSINESS PRACTICE AMONG FINANCIAL INSTITUTIONS - WHILE LEAVING FULL ROOM FOR FINANCIAL AND COMMERCIAL ENTERPRISE, THE GOVERNOR SAID.
AN IMPORTANT TASK FOR THE GOVERNMENT, SIR EDWARD STRESSED, WAS TO MAINTAIN CONFIDENCE BOTH INTERNATIONALLY AND LOCALLY IN HONG KONG AS A FINANCIAL CENTRE.
THIS REQUIRED AN EFFORT TO IMPROVE THE LEGAL AND
INSTITUTIONAL FRAMEWORK IN WHICH THE FINANCIAL AND ALLIED SERVICES INDUSTRIES OPERATED.
SIR EDWARD SAID THAT EVENTS OF RECENT YEARS, BOTH HERE AND IN OTHER MAJOR FINANCIAL CENTRES, INDICATED THAT THE MERE LOGGING OF TECHNICAL COMPLIANCE WITH STATUTORY REQUIREMENTS WAS NOT ENOUGH TO ENSURE THAT FINANCIAL INSTITUTIONS WERE PRUDENTLY MANAGED.
+NO SYSTEM OF PRUDENTIAL SUPERVISION CAN PREVENT ALL IRREGULARITIES, PARTICULARLY WHERE THERE IS FRAUD. BUT THE AIM OF THE PROPOSED MEASURES WILL BE TO ASSIST IN THE TIMELY IDENT IF ICATION OF BAD, IMPRUDENT OR FRAUDULENT MANAGEMENT, WHICH CAN THREATEN THE HEALTH AND REPUTATION OF THE SYSTEM AS A WHOLE,+ THE GOVERNOR SAID,
/THE STANDING