XN000022-1976-08-31 — Page 6

TUESDAY, AUGUST 31, 1976

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THIRD INLAND REVENUE ORDINANCE REVIEW COMMITTEE

WELCOMES VIEWS ON TAXATION MATTERS

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A SPOKESMAN FOR THE THIRD INLAND REVENUE ORDINANCE REVIEW COMMITTEE SAID TODAY (TUESDAY), THAT THE COMMITTEE WAS STILL SITTING, AND AS SUCH IT WAS STILL ACCEPTING SUBMISSIONS FROM MEMBERS OF THE PUBLIC WHO WISHED TO WRITE TO IT EXPRESSING THE IR VIEWS ON TAXATION MATTERS.

THE COMMENTS, HOWEVER, HE POINTED OUT, MUST BE RELATED TO MATTERS OF TAXATION AS SET OUT IN THE COMMITTEE'S TERMS OF REFERENCE, AND CAN COME FROM ANY INDIVIDUAL, OR PROFESSIONAL BODY, TRADE ASSOCIATION OR ANY OTHER INTERESTED ORGANISATION.

LETTERS SHOULD BE SENT TO THE SECRETARY, THE THIRD INLAND REVENUE ORDINANCE REVIEW COMMITTEE, ROOM 118, CENTRAL GOVERNMENT OFFICES, 1ST FLOOR, EAST WING, LOWER ALBERT ROAD, HONG KONG. THE COMMITTEE'S TERMS OF REFERENCE ARE : -

HAVING REGARD TO THE ECONOMIC CIRCUMSTANCES OF HONG KONG WHICH

DICTATE-

(A) A COMPARATIVELY LOW LEVEL OF DIRECT TAXATION,

(B) THAT THE SYSTEM AT GIVEN TAX RATES SHOULD BE AS PRODUCTIVE

OF REVENUE AS POSSIBLE, AND

(C) THAT THE RELEVANT LEGISLATION SHOULD BE SIMPLE AND

INEXPENSIVE TO ADMINISTER,

TO CONSIDER THE PRESENT SYSTEM OF TAXATION OF PROFITS AND OTHER FORMS OF INCOME CONTAINED IN THE INLAND REVENUE ORDINANCE,

AND IN PARTICULAR-

(A) THE SYSTEM OF VOLUNTARY AGGREGATION UNDER PERSONAL

ASSESSMENT,

(B) THE TAXATION OF HUSBANDS AND WIVES,

(C) THE TREATMENT OF DIVIDENDS AND ITS RELATION TO THE TAXATION

OF CORPORATE PROFITS,

(D) THE TREATMENT OF INTEREST AND THE RELIEF FOR INTEREST PAID, (E) THE TERRITORIAL AMBIT OF THE VARIOUS CHARGES (HAVING REGARD,

INTER ALIA, TO THE EFFECTS OF CHANGING COMMERCIAL PRACTICES AND RECENT CASE LAW),

(F) THE TAXATION OF BENEFITS IN KIND,

(G) THE NOTIONAL BASIS OF THE PROPERTY TAX CHARGE,

(H) THE TAXATION OF SPECIFIC CLASSES OF TAXPAYER, INCLUDING

PROFITS FROM SHIPPING, AND

(1) THE ADEQUACY OF EXISTING RELIEF FOR EXPENSES INCURRED BY

BUSINESSES AND EMPLOYEES.

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