XN000022-1974-04-19 — Page 6

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FRIDAY, APRIL 19, 1974

ADDITIONAL TEN PER CENT SURCHARGE PROPOSED

ON LATE PAYMENTS OF EARNINGS AND PROFITS TAXES

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MANUFACTURERS ARE BEING ENCOURAGED TO RE-EQUIP AND UP-GRADE THEIR PLANT AND MACHINERY UNDER A NEW BILL WHICH SEEKS TO IN- CREASE THE INITIAL ALLOWANCE FROM ONE FIFTH TU ONE QUARTER OF THE CAPITAL EXPENDITURE INVOLVED, FOR THE YEARS OF TAX ASSESSMENT |BEGINNING APRIL 1 THIS YEAR.

ANOTHER MAIN PURPOSE OF THE INLAND REVENUE CAMENDMENT) (NO. 2) BILL 1974, GAZETTED TODAY, IS TO DISCOURAGE LATE PAYMENTS OF EARNINGS AND PROFITS TAXES BY IMPOSING A FURTHER SURCHARGE OF UP TO TEN PER CENT ON TAX IN DEFAULT FOR SIX MONTHS.

THE BILL, TO BE TABLED AT THE LEGISLATIVE COUNCIL SHORTLY, IS DESIGNED TO AMEND THE INLAND REVENUE ORDINANCE SO AS TO IMPLEMENT THE. BUDGET PROPOSALS BY THE FINANCIAL SECRETARY ON PLANT AND MACHINERY AND ON SURCHARGES.

IT EMPOWERS THE COMMISSIONER OF INLAND REVENUE TO ADD A FURTHER SURCHARGE OF UP TO 10 PER CENT TO ANY AMOUNT OF TAX IN DEFAULT, INCLUDING THE ORIGINAL FIVE-PER-CENT SURCHARGE, SIX MONTHS AFTER THE DATE ON WHICH THE TAX WAS DUE FOR PAYMENT.

THIS MEASURE IS TO COME INTO EFFECT FROM JULY 1 THIS YEAR.

BUT TO ENSURE THAT ANY TAX IN DEFAULT FOR MORE THAN SIX MONTHS BEFORE JULY 1 IS NOT EXEMPTED FROM THIS PROVISION, THE BILL ALSO ENABLES THE COMMISSIONER TO LEVY THE SURCHARGE OF UP TO TEN PER CENT IN THESE CASES EVEN THOUGH THE DUE DATE MAY BE BEFORE JULY 1.

BESIDES RAISING THE LEVEL OF INITIAL ALLOWANCE FROM ONE FIFTH TU A QUARTER, THE BILL WILL ALSO AMEND THE ORDINANCE TO MAKE SIMILAR PROVISION FOR PLANT AND MACHINERY ACQUIRED UNDER A HIRE PURCHASE AGREEMENT. THE INCREASE OF THE INITIAL ALLOWANCE WILL BE AT A COST OF $10 MILLION TO THE REVENUE.

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NEW NAME FOR ESTATE POST OFFICE ******

THE POST OFFICE TODAY ANNOUNCED THAT THE NAME OF THE LO FU NGAM PUST OFFICE IN THE LOK FU HOUSING ESTATE IN KOWLOON WILL BE CHANGED TO LOK FU POST OFFICE AS FROM MAY 1, 1974.

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