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MONDAY, SEPTEMBER 13, 1993
FS PLEDGES TO KEEP TAX SYSTEM SIMPLE
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HONG
THE TAXATION SYSTEM PLAYS AN IMPORTANT PART IN ENSURING KONG'S CONTINUED ECONOMIC SUCCESS AND ITS ABILITY ΤΟ FUND IMPROVEMENTS TO SOCIAL AND PHYSICAL INFRASTRUCTURE, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (MONDAY).
SPEAKING AT THE ANNUAL LUNCHEON OF THE INLAND REVENUE BOARD OF REVIEW, HE NOTED THAT HONG KONG'S TAXATION SYSTEM WAS SIMPLE AND THE EFFECTIVE TAX RATES WERE AMONG THE LOWEST IN THE WORLD.
IN THIS YEAR'S BUDGET, HE SAID, НЕ TRIED TO SIMPLIFY THE TAXATION SYSTEM FURTHER BY ABOLISHING THE ENTERTAINMENT TAX AND THE DUTY ON COSMETICS.
HE ALSO ANNOUNCED THE INTRODUCTION OF A SYSTEM OF COMPOSITE TAX RETURNS.
ITS PURPOSE WAS TO MAKE LIFE EASIER FOR THE TAXPAYER AND ΤΟ ENABLE THE COMMISSIONER OF INLAND REVENUE TO REDEPLOY MORR RESOURCES TO COMBATING TAX AVOIDANCE AND EVASION, HE EXPLAINED.
HE POINTED OUT THAT IMPORTANT PROGRESS HAD BEEN MADE LAST YEAR IN THE CONTINUOUS BATTLE AGAINST TAX AVOIDANCE.
FIRST WAS THROUGH AN AMENDMENT TO SECTION 21A OF THE INLAND REVENUE ORDINANCE.
WITH THIS AMENDMENT, COMPANIES WOULD NO LONGER BE ABLE TO REDUCE ARTIFICIALLY THEIR PROFITS TAX LIABILITIES BY MAKING CERTAIN PAYMENTS, SUCH AS ROYALTIES FOR THE USE OF INTELLECTUAL PROPERTY, то OVERSEAS ASSOCIATES, HE SAID.
"SECOND, PROCEDURES RELATING TO THE ISSUE OF STOP ORDERS HAVE BEEN CHANGED SO THAT THEY ARE NOW FULLY CONSISTENT WITH THE BILL OF RIGHTS.
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"STOP ORDERS WILL BE ISSUED BY A DISTRICT COURT JUDGE AND AGGRIEVED PARTIES WILL HAVE THE RIGHT OF APPEAL TO THE HIGH COURT,' HE NOTED.
THE THIRD NEW INITIATIVE WAS THE ISSUE BY THE INLAND REVENUE OF A COMPREHENSIVE PRACTICE NOTE ON PROFITS.
COMMISSIONER OF THE LOCALITY OF
MR MACLEOD BELIEVED THE ISSUE OF THE PRACTICE NOTE TO RESOLVE DISPUTES OVER THE COMPLEX ISSUES INVOLVED,
WOULD HELP
HE THANKED MEMBERS OF THE REVIEW BOARD FOR THEIR CONTRIBUTION TO SOLVING SOME VERY DIFFICULT AND CONTENTIOUS TAXATION ISSUES.
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