WEDNESDAY, FEBRUARY 19, 1992
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I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK THE PROVISIONAL LIQUIDATOR AND THE SPECIAL MANAGERS FOR THEIR PAINSTAKING EFFORTS OVER THE LAST FEW MONTHS IN SECURING AND SAFEGUARDING THE ASSETS OF THE BANK AND IN THEIR COMPLEX TASK OVER THE NEGOTIATIONS FOR A POSSIBLE CASH AMOUNT TAKEOVER, OVER $5 BILLION HAS SINCE BEEN RECOVERED AND A
INTEREST OF OVER $4 BILLION REMAINS ON DEPOSIT LOCALLY AND IS EARNING
EFFORT AT PREVAILING RATES. I WOULD ALSO LIKE TO PAY TRIBUTE TO THE
THE TAKEOVER AND SINCERITY OF THE HONGKONG CHINESE BANK THROUGHOUT NEGOTIATIONS.
FORWARD IT 18 A GREAT PITY THAT THINGS CANNOT BE TAKEN BECAUSE OF CIRCUMSTANCES BEYOND THE CONTROL OF BOTH PARTIES.
NOW BE THE
MR DEPUTY PRESIDENT, THE PROVISIONAL LIQUIDATOR WILL APPLYING TO THE COURT FOR DIRECTIONS AS TO THE FURTHER CONDUCT OF "WINDING-UP PETITION.
SPEECH OF FS IN DEBATE ON TAXATION REVIEW AT LEGCO
MR DEPUTY PRESIDENT,
MR. LI WAH-MING'S MOTION CALLS ON THE GOVERNMENT TO SET UP A COMMITTEE, WITH MEMBERS REPRESENTING A WIDE CROSS-SECTION OF THE COMMUNITY, IN ORDER TO CONDUCT A COMPREHENSIVE REVIEW OF THE TAXATION SYSTEM IN HONG KONG.
THE PHRASE "COMPREHENSIVE REVIEW" HAS SUPERFICIAL ATTRACTIONS. IT SUGGESTS A FRESH START, WITH NEW IDEAS BEING BROUGHT TO BEAR ON OLD PROBLEMS. BUT THESE SUPERFICIAL ATTRACTIONS SHOULD BE RESISTED IF THE AREA TO BE REVIEWED IS ONE WHERE EXISTING POLICY IS WORKING WELL. IF IT'S NOT BROKEN, DON'T FIX IT.
THE QUESTION TO BE ASKED ABOUT HONG KONG'S SYSTEM OF TAXATION IS WHETHER THE FUNDAMENTAL PRINCIPLES ON WHICH IT IS BASED CONTINUE TO SERVE US WELL. I WOULD HIGHLIGHT FOUR SUCH PRINCIPLES. FIRST, WE MUST MAINTAIN A SIMPLE, LOW TAX REGIME. SECONDLY, OUR SYSTEM OF TAXATION MUST BE AS PRODUCTIVE AS POSSIBLE, AND MUST PROVIDE CERTAINTY то TAXPAYERS IN DETERMINING THEIR TAX LIABILITIES. THIRDLY, WE MUST PROVIDE A FISCAL ENVIRONMENT THAT ENCOURAGES INVESTMENT AND RE- INVESTMENT. FOURTHLY, WE MUST CONTINUE TO TACKLE TAX AVOIDANCE AND EVASION.
IN
THERE IS NO DOUBT THAT OUR PRESENT SYSTEM OPERATES ACCORDANCE WITH ALL FOUR OF THESE PRINCIPLES. BOTH INDIRECT AND DIRECT TAXES ARE LOW BY INTERNATIONAL STANDARDS, AND A VERY LARGE NUMBER OF PEOPLE PAY LITTLE TAX. CALCULATING TAX LIABILITY IS STRAIGHT-FORWARD AND GIVES CERTAINTY TO BUSINESSMEN AND INVESTORS. HONG KONG'S STATUS AS AN INTERNATIONAL TRADE AND FINANCIAL CENTRE HAS GROWN ENORMOUSLY OVER THE LAST 20 YEARS, HELPED BY A FRAMEWORK OF LEGISLATION WHICH ENSURES A LEVEL PLAYING-FIELD, BUT DOES NOT OVER- REGULATE. MEASURES TO COUNTERACT AVOIDANCE OF TAX ARE BROUGHT FORWARD TO THIS COUNCIL AS NECESSARY. FOLLOWING THESE PRINCIPLES HAS ENABLED OUR TAX SYSTEM TO ACHIEVE CONSISTENTLY ITS PRIMARY OBJECTIVE, WHICH IS TO RAISE REVENUE SUFFICIENT TO MEET OUR EXPENDITURE REQUIREMENTS BOTH NOW AND IN THE FUTURE.
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