2
FRIDAY, SEPTEMBER 21, 1990
BE
ON
A
CHILD
SCHOLARSHIP "IF THE
IS AWARDED TO THE EMPLOYEE IT WILL EXEMPT FROM SALARIES TAX. NOR WILL ANY SALARIES TAX BE IMPOSED CHILD OF AN EMPLOYEE WHO RECEIVES A SCHOLARSHIP. AS FAR AS THE IS CONCERNED IT IS NOT INCOME FROM EMPLOYMENT.
"HOWEVER, A SCHOLARSHIP PROVIDED BY REASON OF EMPLOYMENT TO A CHILD OF AN EMPLOYEE WILL, LIKE OTHER EDUCATION BENEFITS, CONSTITUTE CHARGEABLE INCOME OF THE EMPLOYEE, HE SAID.
MR AU-YEUNG POINTED OUT THAT IF BY COINCIDENCE A SCHOLARSHIP FOR HAPPENED TO BE AWARDED BY AN EMPLOYER TO A CHILD OF AN EMPLOYEE REASONS COMPLETELY UNCONNECTED TO EMPLOYMENT, FOR EXAMPLE, THE AWARD WAS A RESULT OF AN OPEN COMPETITION IN THE COMMUNITY, THE SCHOLARSHIP
REGARDED AS CHARGEABLE INCOME EMPLOYEE.
THEN WOULD NOT BE
OF
THE
OUTLINING THE DECISIONS IN THE GLYNN CASE BY THE COURT OF APPEAL AND THE PRIVY COUNCIL, MR AU-YEUNG POINTED OUT THAT IT WAS CLEAR FROM THE DECISIONS THAT THE SCOPE OF THE CURRENT LEGISLATION WAS WIDER THAN THE DEPARTMENT UNDERSTOOD IT TO BE PRE-GLYNN ADMINISTRATION HAD DECIDED THAT THE ORDINANCE SHOULD BE THAT IT REFLECTED THE DEPARTMENT'S PRE-GLYNN PRACTICE.
AND AMENDED
"CONTRARY TO FEARS EXPRESSED BY SOME IN THE MEDIA, WE ARE VIEW THAT OUR OBJECTIVE CAN BE ACHIEVED WITHOUT RESORTING LEGISLATION OF EPIC PROPORTIONS, THE COMMISSIONER SAID.
THE
n
WE
THE
SO
OF
TO
"THE PROPOSED LEGISLATION DOES NOT ATTEMPT TO ENUMERATE EACH PARTICULAR TYPE OF BENEFIT THAT IS TO BE TAXABLE. INSTEAD,
HAVE GONE THE OTHER WAY, TAKING WHAT I CONSIDER TO BE A FAR MORE PRAGMATIC APPROACH, HE SAID.
OF INCOME
ANY
LIABILITY
DEFINITION THIS WAS DONE BY EXCLUDING FROM THE BENEFIT WHERE THE RELEVANT PAYMENT WAS MADE IN RESPECT OF A OF THE EMPLOYER, HE EXPLAINED.
EXPENSES,
"THUS, WHERE THE EMPLOYER IS LIABLE FOR THE RELEVANT BENEFITS SUCH AS THE USE OF COMPANY CARS AND BOATS AND THE PROVISION OF UTILITIES WILL BE COVERED BY THE EXCLUSION, MR AU-YEUNG SAID.
"I
"PAYMENTS MADE TO DISCHARGE LIABILITIES OF EMPLOYEES WILL,
NOT BE COVERED BY THE EXCLUSION AND WILL
TO CONTINUE
OF BB
JUST AS THEY WERE PRE-GLYNN," HE ADDED.
COURSE, CHARGEABLE
HOWEVER, THE COMMISSIONER SAID THE EXCLUSION PROVIDED WAS SUBJECT TO ANOTHER NEW PROVISION WHICH WAS TO ENSURE THAT CONVERTIBLE SALE, BENEFITS, SUCH AS ASSETS WHICH COULD BE CONVERTED INTO MONEY BY AND EDUCATION BENEFITS REMAINED CHARGEABLE TO SALARIES TAX.
"I WOULD NOT LIKE PRACTITIONERS TO THINK THAT THE COURSE THE ADMINISTRATION IS TAKING PERMITS EMPLOYERS то STRUCTURE EMPLOYEE PACKAGES ALONG ARTIFICIAL LINES.
"
"WHILST WE ARE SEEKING PEACEFUL CO-EXISTENCE, WILL NOT BE ABLE TO DISREGARD SECTION 61A OF THE ORDINANCE (TRANSACTIONS DESIGNED TO AVOID LIABILITY FOR TAX), I
CONFIDENT COMMON SENSE WILL PREVAIL, MR AU-YEUNG SAID.
THE
DEPARTMENT
AM
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