PU
WEDNESDAY, MARCH 12, 1986
THIS, HE SAID, WOULD EXTEND DEDUCTIBILITY TO INTEREST PAID WHERE THE MONEY BORROWED ORIGINATED IN THE ISSUE BY AN ASSOCIATED CORPORATION OF MARKETABLE, THOUGH UNLISTED, +COMMERCIAL PAPER.+
+THIS IS THE LOGICAL REFINEMENT TO THE EXTENSION TO SECTION 16(2) PROPOSED IN THE BILL AND SHOULD HELP FOSTER HONG KONG'S POSITION AS A MAJOR FINANCIAL CENTRE, SIR JOHN SAID.
OTHER REFINEMENTS WERE MINOR CHANGES TO ENSURE THAT THE SECTION COULD APPLY TO ISSUES BY CORPORATIONS WHOSE ORDINARY BUSINESS WAS NOT THE RAISING OF FUNDS, AND TO TREAT EQUALLY ISSUES WHICH WERE MARKETABLE IN APPROVED FINANCIAL CENTRES WITH THOSE WHICH WERE MARKETABLE IN HONG KONG, HE SAID.
EXPRESSING GRATITUDE FOR THE UMELCO SUPPORT, SIR JOHN SAID: +BOTH THEY AND THE PUBLIC AT LARGE ARE WISE ENOUGH NOT TO BE UNDULY PERTURBED BY THE SNARLING OF VARIOUS VESTED INTERESTS AS THEY PROWL THROUGH THE JUNGLES OF OUR TAX LAW,+ SIR JOHN SAID,
TAX BILL DEMONSTRATES SUCCESS OF CONSULTATION ******
THE INTRODUCTION OF THE INLAND REVENUE (AMENDMENT) BILL 1986 WAS DESCRIBED AS A DEMONSTRATION OF SUCCESSFUL CONSULTATIVE PROCESS.
SPEAKING IN SUPPORT OF THE MOTION AT THE RESUMED DEBATE OF THE BILL IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE HON PETER POON SAID THE COMBINED EFFORTS OF THE ADMINISTRATION, THE UMELCO AD HOC INLAND REVENUE REVIEW PANEL AND THE PUBLIC THROUGH REPRESENTATIONS HAD RESULTED IN A PIECE OF LEGISLATION WHICH HE FELT WAS BOTH +ACCEPTABLE AND SUITABLE TO HONG KONG+.
+ THE NEW LEGISLATION WILL GO A LONG WAY TO REDUCE TAX AVOIDANCE OPPORTUNITIES WHICH HAVE HITHERTO BEEN CONSIDERABLE UNDER OUR SIMPLE TAX LAW, + HE SAID.
MR POON SAID HE BELIEVED THAT THE BILL IN ITS PRESENT FORM WOULD BE ABLE TO ACHIEVE THREE MAIN OBJECTIVES.
+FIRSTLY, IT IS RELATIVELY SIMPLE AND CONFORMS WITH HONG KONG'S TAX PHILOSOPHY.
+SECONDLY, IT GIVES THE COMMISSIONER OF INLAND REVENUE ADEQUATE POWER TO TACKLE TAX-AVOIDANCE SCHEMES OR TRANSACTIONS.
/+LASTLY, BUT