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WEDNESDAY, OCTOBER 17, 1990
'PERQUISITE'
"THE COURT OF APPEAL RULED, HOWEVER, THAT THE WORD IN THE ORDINANCE SHOULD BE GIVEN ITS ORDINARY MEANING, RATHER THAN THE RESTRICTED MEANING RECOGNISED IN THE UNITED KINGDOM.
"IN
LAW, ALL ESSENCE, THE COURT FOUND THAT UNDER THE PRESENT BENEFITS DERIVED BY AN EMPLOYEE FROM HIS EMPLOYMENT WERE CHARGEABLE TO SALARIES TAX," HE SAID.
PARTICULARLY IN
IN VIEW OF THE IMPLICATIONS OF THE DECISION, RELATION TO THE IDENTIFICATION AND VALUATION OF BENEFITS, SAID THE ADMINISTRATION DECIDED THAT THE ORDINANCE SHOULD BE ΤΟ ACCORD WITH THE PRACTICE THE DEPARTMENT FOLLOWED BEFORE AROSE.
"THIS DECISION WAS ANNOUNCED BY THE COMMISSIONER IN STATEMENT ISSUED IN MARCH 1989.
PIERS AMENDED THE CASE
A PUBLIC
TIME THAT PENDING THE "IT WAS ALSO ANNOUNCED AT THE SAME INTRODUCTION OF THE LEGISLATION THE DEPARTMENT WOULD CONTINUE TO APPLY ITS PREVIOUS PRACTICE," HE SAID.
IN THE MEANTIME AN APPEAL HAD BEEN MADE TO THE PRIVY COUNCIL.
SIR PIERS POINTED OUT THAT THE DECISION OF
WIDE IN SCOPE AS THAT IN JANUARY THIS YEAR WAS NOT AS OF APPEAL.
THE
PRIVY COUNCIL OF THE COURT
BY AN "THE PRIVY COUNCIL FOUND THAT NOT ALL BENEFITS DERIVED
UNDER THE PRESENT CHARGEABLE WERE EMPLOYMENT HIS EMPLOYEE FROM LEGISLATION.
OF
"INCONVERTIBLE BENEFITS WHICH DID NOT INVOLVE THE MONEY OR WHICH INVOLVED EXPENDITURE WHICH COULD NOT BE WHOLLY OR PROPORTIONATELY TO ONE EMPLOYEE WOULD NOT BE SAID.
EXPENDITURE ATTRIBUTED
"
CAUGHT, HE
ΤΟ
TAX
THE
THAT IF THE
IN OUT
CONTRAST THAT POINTED HOWEVER,
PIERS SIR DEPARTMENT'S PREVIOUS PRACTICE, THE PRIVY COUNCIL DID NOT ACCEPT AN INCONVERTIBLE BENEFIT WOULD ESCAPE THE CHARGE TO SALARIES
LIABILITY FOR THE EMPLOYER RATHER THAN THE EMPLOYEE HAD THE RELEVANT PAYMENT.
NO
HE ADDED THAT THE DIFFERENCE
PRIVY COUNCIL
CONSIDERED
THAT THERE WAS AN AN EMPLOYEE'S PERSONAL DEBT DISCHARGED BY BETWEEN
FOR THE EMPLOYER PURSUANT TO AN EMPLOYMENT CONTRACT AND MONEY PAID BENEFIT OF THE EMPLOYEE PURSUANT TO THE EMPLOYMENT CONTRACT.
TAXATION
OF FRINGE BEFORE THE CASE
"THE PRIVY COUNCIL DECISION ALLOWS THE BENEFITS ON A WIDER SCALE THAN WAS THE PRACTICE AROSE.
"So,
LONG ACCEPTED THE ORDINANCE NEEDS TO BE AMENDED TO REFLECT
IN ORDER TO BRING THE LAW INTO LINE WITH IN HONG PRACTICE THAT PRACTICE.
KONG,
"WE
DO NOT WISH TO WIDEN THE EXTENT TO WHICH PERQUISITES
SIR PIERS SAID. BEEN TAXED PREVIOUSLY IN HONG KONG,
"
HAVE
DEBATE ON THE BILL WAS ADJOURNED.
0
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