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Wednesday, March 1, 1972
NEW SYSTEN FOR ASSESSING TAX
Among Financial Secretary's Proposals For 1973-74
The Financial Secretary, Mr. C.P. Haddon-Cave, today proposed a system
of assessing tax for the current year on the actual income or profits earned in
that year.
He announced this and one other tax proposal for 1973/74 when he presented
his Budget in the Legislative Council.
"The target date for the changeover will be April 1, 1973," he said,
He informed Members of the Council that a Bill to change the basis of
assessment to a current year basis would be drafted and introduced into the
Council within the next two or three months.
Mr. Haddon-Cave said the switch over from the present in exact and
artificial basis of assessing tax for the current year with reference to ineone
or profits earned in a preceding period to the proposed system concerned the
last remaining major recommendation of the 1968 Report of the Inland Revenue
Ordinance Review Committee.
This particular recommendation was not included in the Inland
Revenue Ordinance (Amendment) Bill 1971 because of opposition from several trade
and accounting bodies as regards the application of this recommendation to profits
tax, he added.
The income of the year ending March 31, 1973 would be used provisionally
to calculate the tax payable for the year 1973/74. This would only be a provisional
payment and not the tax assessment for that year, he said.
The Financial
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Private notes are available after approval.