+
WEDNESDAY, MARCH 18, 1987
- 17
IF THE PRESENT SITUATION WAS ALLOWED TO CONTINUE, THE COST OF IMPLEMENTING SEPARATE TAXATION WOULD INCREASE EVERY YEAR AND GOVERNMENT WOULD HAVE MORE EXCUSES FOR NOT ADDRESSING THE PROBLEM, HE SAID.
HE SAID DESPITE THE FACT THAT THE ALLOWANCE FOR MARRIED COUPLES WAS SLIGHTLY MORE THAN DOUBLE THAT FOR A SINGLE PERSON, A WORKING WIFE HAD ADDITIONAL EXPENSES TO INCUR AND YET SHE WAS PENALISED FOR EARNING INCOME AS A WIFE INSTEAD OF AS A SINGLE PERSON.
HE THEREFORE ASKED THE FINANCIAL SECRETARY TO GIVE SERIOUS CONSIDERATION TO THIS AND INTRODUCE IT IN HIS NEXT BUDGET EVEN IF HE COULD NOT ACCEDE TO THE REQUEST FOR SEPARATE TAXATION FOR MARRIED WOMEN FOR THE TIME BEING.
+THIS IS IN LINE WITH THE RECOMMENDATIONS OF THE THIRD INLAND REVENUE REVIEW COMMITTEE AND INVOLVES LITTLE EXPENSE TO IMPLEMENT UNDER THE PRESENT COMPUTERISED SYSTEM OF ASSESSMENT.
+THOUGH THERE CAN NEVER BE ABSOLUTE FAIRNESS TO ALL TAXPAYERS UNDER ANY TAX SYSTEM, I URGE STRONGLY THAT THE MATTER SHOULD BE GIVEN SYMPATHETIC AND EARLY CONSIDERATION,
HE SAID.
+
TURNING TO THE QUESTION OF DOUBLE TAXATION, MR POON SAID HE WAS PLEASED THAT PROGRESS HAD BEEN MADE IN REVIEWING THIS, PARTICULARLY IN RELATION TO EMPLOYEES OF HONG KONG COMPANIES WHO MADE FREQUENT TRIPS TO CHINA.
HE SAID THE PROBLEMS ARE BEING QUANTIFIED AND THE PROPOSED LEGISLATION ON TIME-APPORTIONMENT SHOULD REDUCE SOME OF THESE PROBLEMS.
*NO DOUBT BUSINESS AND PROFESSIONAL ORGANISATIONS WILL BE ABLE TO CONTRIBUTE INFORMATION AND EVIDENCE OF ALLEGED HARDSHIP SO THAT SUCH LEGISLATION CAN QUICKLY DEAL WITH THE IMMEDIATE SITUATION PENDING FURTHER STUDY OF THE DOUBLE TAXATION PROBLEM,
HE NOTED.
+
MR POON POINTED OUT THAT AT PRESENT, HONG KONG HAD NO DOUBLE TAX AGREEMENT WITH ANY COUNTRY AND IT HAD NOT BEEN NECESSARY SINCE HONG KONG'S RATES WERE LOW AND OTHER COUNTRIES NORMALLY GRANTED RELIEF OR REBATE FOR TAX PAID IN HONG KONG IN RELEVANT CIRCUMSTANCES.
ON ANTI-AVOIDANCE LEGISLATION, MR POON SAID HONG KONG SHOULD BE CAREFUL NOT TO INTRODUCE ANY COMPLICATED LEGISLATIONS WHICH MIGHT HAMPER LEGITIMATE OR NORMAL BUSINESS ACTIVITIES.
+ I AM SURE THAT. AS IN THE CASE OF THE GENERAL ANTI-AVOIDANCE LEGISLATION INTRODUCED LAST YEAR, THERE WOULD BE PROPER CONSULTATION TO AVOID SUCH A DANGER, HE ADDED.
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