48 -
Apart from increasing the maximum statutory penalties, the Bill also seeks to plug an existing loophole in the Ordinance. Clause 4 seeks to ensure that persons managing a body corporate or a partnership found engaged in copyright infringement activities are liable to the same penalties.
Mr President, owing to its more intangible nature, the importance of protecting intellectual property rights is not as readily appreciated as, for example, the importance of protecting real property rights. Nevertheless, protection of intellectual property rights is crucial to the continuous development of our society in that without such protection, scientific invention and artistic creation will be stifled. Trade, investment and technology exchange will be diverted from Hong Kong and Hong Kong's international reputation will suffer. It is therefore vitally important that we make every effort to ensure that we have the necessary legislative tools to fight copyright piracy. The proposed amendments to increase the statutory maximum penalties for possessing or producing infringing copies of copyrighted works are moves in this direction. Mr President, I recommend this Bill to this Council.
End/Wednesday, March 29, 1995
Inland Revenue (Amendment) Bill 1995
*
Following is the speech by the Acting Secretary for the Treasury, Mr Mike Rowse, in moving the second reading of the Inland Revenue (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President.
I move that the Inland Revenue (Amendment) Bill 1995 be read a second time.
It is a principle of our taxation system that individuals have the right to order their affairs so as to pay the least tax consistent with their legal obligations. At the same time, however, we must act to close tax loopholes as they emerge, because the net result of tax avoidance is to shift the burden of financing public services unfairly on to the rest of the community.
In the 1994 Budget Speech, the Financial Secretary highlighted the widespread use of service companies to avoid or significantly reduce tax liability, and announced our intention to remedy the situation by legislation.