XN000022-1977-12-02 — Page 12

FRIDAY, DECEMBER 2, 1977

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ALLEGATIONS ON TAX REFUNDS NOT TRUE

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THE INLAND REVENUE DEPARTMENT TODAY DENIED THE ALLEGATIONS THAT THE 70,000 TAX REFUND CASES DURING THE FINANCIAL YEAR OF 1976/77 WERE NECESSARY BECAUSE OF ERRORS OR MISTAKES MADE ON THE PART OF THE DEPARTMENT.

REFERRING TO A RECENT STATEMENT ON TAX REFUNDS BY THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE IN THE LEGISLATIVE COUNCIL, A SPOKESMAN FOR THE DEPARTMENT SAID THE STATEMENT HAD BEEN MISCONSTRUED BY SOME SECTIONS OF THE PRESS WHICH ALSO SUGGESTED THAT THERE ARE MANY PEOPLE WHO, THROUGH IGNORANCE OF THE LAW. HAVE OVERPAID TAXES AND ARE UNAWARE THAT THEY ARE ENTITLED TO REFUNDS.

THE SPOKESMAN SAID, WHILST IT MUST BE CONCEDED THAT A VERY FEW MISTAKES ARE MADE IT IS NOT TRUE TO SAY THAT THE 70,000 REFUNDS IN 1976/77 WERE ISSUED IN ORDER TO CORRECT ERRORS.

+THE MAJORITY OF REFUNDS OCCURRED AS A RESULT OF VOLUNTARY ELECTIONS, MADE BY TAXPAYERS, TO BE PERSONALLY ASSESSED - THEREBY OBTAINING RELIEF FROM TAX AT THE STANDARD RATE, THROUGH THE GRANTING OF PERSONAL ALLOWANCES.+

HE SAID TAX IS ASSESSED AT THE STANDARD RATE IN THE FIRST INSTANCE ON BUSINESS PROFITS, PROPERTY AND INTERST, BUT THE INLAND REVENUE ORDINANCE PERMITS A TAXPAYER TO ELECT FOR PERSONAL ASSESSMENT AT ANY TIME UP TO TWO YEARS AFTER THE END OF THE YEAR OF ASSESSMENT.

OF THE 70,000 REFUNDS REFERRED TO ABOVE NEARLY 46,000 RELATED TO PERSONS WHO HAD TAKEN ADVANTAGE OF THE BENEFITS OF PERSONAL ASSESSMENT.

IN ADDITION, OVER 5,500 REFUNDS WERE MADE TO PROPERTY OWNERS CLAIMING OWNER-OCCUPIER EXEMPTION OR VACANCY RELIEF AFTER THE ISSUE OF PROPERTY TAX ASSESSMENTS NEARLY 6,000 BUSINESSES OBTAINED REFUNDS ARISING OUT OF RELIEF FOR BUSINESS LOSSES, ETC.- AND MORE THAN 11,000 SALARIES TAX PAYERS OBTAINED REFUNDS FOR A VARIETY OF REASONS, FOR EXAMPLE, BY VIRTUE OF MARRIAGE, OR THE BIRTH OF A CHILD DURING THE YEAR OF ASSESSMENT.

WITH REGARD TO THE SUGGESTION THAT MANY PEOPLE ARE OVER-TAXED, THE SPOKESMAN SAID THE COMMISSIONER OF INLAND REVENUE WISHES TO ASSURE THE PUBLIC THAT OFFICERS OF THE DEPARTMENT MAKE EVERY ENDEAVOUR TO ENSURE THAT TAXPAYERS ARE ASSESSED IN THE CORRECT AMOUNTS DUE UNDER THE LAW - NO MORE AND NO LESS.

FURTHERMORE, ANY TAXPAYER WHO DISAGREES WITH, OR DOES NOT UNDERSTAND, AN ASSESSMENT MADE UPON HIM, NOT ONLY HAS THE PROTECTION OF A RIGHT OF APPEAL TO THE COURTS IF NEEDS BE - BUT IS ALSO WELCOME TO CALL OR WRITE FOR A FULL EXPLANATION OF HIS CASE.

/ALL NOTICES OF