FRIDAY, OCTOBER 28, 1988
10
MORE EFFECTIVE WAYS TO COLLECT TAXES FROM NON-RESIDENTS
THE COMMISSIONER COLLECT PROFITS TAX FROM HONG KONG.
OF
IN THE INLAND
DUE BY
AN AMENDMENT TO THE INLAND REVENUE ORDINANCE PUBLISHED
ENABLE GAZETTE TODAY (FRIDAY) SEEKS TO
ASSESS AND REVENUE TO MORE EFFECTIVELY CERTAIN NON-RESIDENTS ON PROFITS DERIVED
A
THE INLAND REVENUE (AMENDMENT) (NO.2) BILL 1988 WOULD ENABLE NON-RESIDENT TO BE CHARGED TO TAX IN THE NAME OF A PERSON IN HONG KONG WHOM THE NON-RESIDENT WHO, ALTHOUGH NOT AN AGENT, WAS A PERSON FROM DERIVED HONG KONG PROFITS, A GOVERNMENT SPOKESMAN SAID TODAY.
PROVIDES
THAT
A
NON-RESIDENT **THE EXISTING ORDINANCE CHARGEABLE TO TAX ON HIS HONG KONG PROFITS EITHER DIRECTLY OR IN NAME OF HIS AGENT.
IS
THE
"IN
OTHER WORDS,
CAN
**
BE ASSESSED AN AGENT
THE SPOKESMAN SAID.
TO
PAY
HIS
PRINCIPAL'S TAX LIABILITY,
IS QUITE WIDE AND
"THE DEFINITION OF AGENT FOR THIS PURPOSE INCLUDES ANY PERSON THROUGH WHOM A NON-RESIDENT IS IN RECEIPT OF KONG PROFITS, HE ADDED.
+T
HONG
LICENCE
HOWEVER, IN A RECENT DECISION INVOLVING THE PAYMENT OF
DIRECTLY TO A NON-RESIDENT FEES BY A HONG KONG TELEVISION STATION
DEFINITION DID NOT FILM DISTRIBUTOR, THE HIGH COURT RULED THAT THE
ON NON-RESIDENT WITH HONG KONG DEALING EXTEND TO A PERSON IN PRINCIPAL TO PRINCIPAL BASIS, THE SPOKESMAN EXPLAINED.
HAD
CAUSED
A
CONSIDERABLE HE SAID THE DECISION DIFFICULTIES FOR THE COMMISSIONER OF INLAND REVENUE.
ADMINISTRATIVE
CONSULTANTS
TO DERIVE HONG HONG KONG
"IT IS QUITE COMMON FOR NON-RESIDENT ENTERTAINERS, AND PERSONS IN RECEIPT OF LICENCE FEES AND ROYALTIES
AGENT BUT FROM A KONG KONG PROFITS NOT THROUGH A HONG PRINCIPAL, THE SPOKESMAN SAID.
"I
ON
"IN THESE CASES ASSESSMENTS CAN NOW ONLY BE RAISED DIRECTLY
HAVE NO BUSINESS ESTABLISHMENT
THE NON-RESIDENT WHO WILL GENERALLY OR ASSETS IN HONG KONG.
+
"AS A RESULT THERE MAY BE LITTLE CHANCE OF THE COLLECTED, HE ADDED.
TAX DUE BEING
IN ANY WOULD
THE SPOKESMAN EMPHASISED THAT THE AMENDMENT WOULD NOT, WAY, CHANGE THE PRESENT TAXATION POLICY OR ITS APPLICATION, BUT
то EXIST BEFORE THE RESTORE THE POSITION TO THAT WHICH WAS THOUGHT HIGH COURT DECISION.
1988 IS SCHEDULED
THE INLAND REVENUE (AMENDMENT) (NO.2) BILL TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON NOVEMBER 2.
ON THE MEMBERS OF THE PUBLIC WHO WISH TO COMMENT WRITE TO THE DEPUTY FINANCIAL SECRETARY 4TH FLOOR, CENTRAL
OMELCO, 8 JACKSON OFFICES, LOWER ALBERT ROAD, CENTRAL OR KONG.
BILL SHOULD GOVERNMENT ROAD, HONG
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