WEDNESDAY, MARCH 12, 1986
REVENUE BILL A SANE, MODERATE COMPROMISE
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SIR JOHN
THE FINAL OUTCOME FROM CONSULTATIONS ON THE INLAND REVENUE (AMENDMENT) BILL 1986 WAS +A SANE AND MODERATE COMPROMISE THAT SERVES THE INTERESTS OF THE WHOLE COMMUNITY, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, SAID TODAY.
SPEAKING JUST BEFORE MOVING SOME AMENDMENTS AT THE COMMITTEE STAGE AND THIRD READING OF THE BILL, SIR JOHN EXTENDED HIS GRATITUDE TO THE HON PETER POON AND THE HON RITA FAN ON THEIR SPEECHES ON THE BILL AND TO THE UMELCO COMMITTEE IN GENERAL FOR THEIR CONSTRUCTIVE AND PROFESSIONAL APPROACH TO THE BILL.
THE BILL, HE SAID, HAD BEEN SUBJECT TO THE CLOSEST EXAMINATION SINCE IT WAS PUBLISHED IN JULY LAST YEAR, AND SUBSTANTIAL AMENDMENTS HAD BEEN INTRODUCED IN RESPONSE TO MANY RECOMMENDATIONS MADE TO UMELCO AND THE ADMINISTRATION BY THE BUSINESS AND PROFESSIONAL COMMUNITY.
+THIS HAS CLEARLY DEMONSTRATED THE EFFECTIVENESS OF THE CONSULTATIVE PROCESS AND THE INCREASINGLY IMPORTANT ROLE THAT UNOFFICIAL MEMBERS ARE PLAYING IN EXAMINING NEW LEGISLATION,+ SIR JOHN SAID.
HE AGREED THAT THE BILL REPRESENTED A REASONABLE BALANCE+ BETWEEN THE NEED ON THE ONE HAND TO INCREASE THE POWERS OF THE COMMISSIONER OF INLAND REVENUE TO COMBAT TAX AVOIDANCE AND ON THE OTHER TO ENSURE THAT THERE WERE SUFFICIENT SAFEGUARDS TO PROTECT THE LEGITIMATE INTERESTS OF TAXPAYERS.
SIR JOHN SAID THAT THE COMMISSIONER WOULD BE ISSUING PRACTICE NOTES COVERING THE NEW LEGISLATION +HOPEFULLY BEFORE THE END OF APRIL,+ DESIGNED TO REFLECT THE LAW BOTH IN LETTER AND SPIRIT.
HE ALSO CONFIRMED THAT SECTIONS 61A AND B WOULD ONLY BE USED TO STRIKE DOWN BLATANT AND CONTRIVED SCHEMES WHERE THERE WAS +A CLEAR AND DOMINANT TAX AVOIDANCE PURPOSE.+
+ IT IS NOT THE INTENTION TO USE THE LAW TO PENALISE GENUINE COMMERCIAL TRANSACTIONS, HE SAID.
REFERRING TO COMMITTEE STAGE AMENDMENTS HE PROPOSED, SIR JOHN SAID THEY WERE RELATIVELY MINOR AMENDMENTS TO SECTION 16(2)(F) AND COMPRISED THREE REFINEMENTS TO THE PROPOSED EXTENSION OF THE CONDITIONS UNDER WHICH INTEREST PAID BY CORPORATIONS WOULD BE DEDUCTIBLE FOR PROFITS TAX PURPOSES.
THE MOST IMPORTANT, HE SAID, WAS AMENDMENT TO SECTION 16(2)(F) (III).
/THIS, HE