XN000022-1972-05-24 — Page 14

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Wednesday, May 24, 1972

RESOLUTION TO EXTEND OPERATION OF TWO SECTIONS

Of The Inland Revenue Ordinance

The Financial Secretary, the Hon. C.P. Haddon-Cave, today moved

a resolution in the Legislative Council to extend the operation of two

sections which had been added to the Inland Revenue Ordinance in 1969.

Section 51A and Section 51B which are due to expire on June 19

this year are designed to assist in the investigation of tax evasion.

Section 51A gives the Commissioner of Inland Revenue the power

to require a statement of assets and liabilities from a person, if he is

of the opinion that the person has made, without reasonable excuse an

incorrect return or supplied false information with a view to understating

his assessable income or profits.

Section 51B empowers a magistrate to issue a search warrant on

application by the Commissioner or an authorised officer, if he is satisfied

that a person has not submitted a return when required by the Commissioner,

or that a person has made an incorrect return or supplied false information

with the intention of evading tax.

Moving the resolution, the Financial Secretary said when those two

sections had been first proposed, it had been generally felt that an excessive

and arbitrary use of those powers might be detrimental to the business community.

The two sections had been given, therefore, a statutory life of three

years in the first instance, with a proviso that they could be extended by

resolution of the Legislative Council at the end of that period.

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