XN000022-1979-03-14 — Page 2

WEDNESDAY, MARCH 14, 1979

1

TAX APPEAL BILL

***

A BILL WHICH SEEKS TO FACILITATE JUDICIAL PROCEEDINGS BETWEEN TAXPAYERS AND THE COMMISSIONER OF INLAND REVENUE HAD ITS SECOND READING IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE INLAND REVENUE (AMENDMENT) (NO. 3) BILL, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID +CLAUSE 3 OF THE BILL INTRODUCES A NEW PROCEDURE WHEREBY DIRECT APPEAL AGAINST THE COMMISSIONER'S DETERMINATION MAY BE MADE TO THE HIGH COURT, IF THE PARTIES CONCERNED ARE IN AGREEMENT.+

HE SAID THE PROPOSAL TO PROVIDE FOR THE RIGHT OF DIRECT APPEAL, BY-PASSING THE BOARD OF REVIEW, WAS MADE IN THE INTERESTS OF BOTH THE COMMISSIONER OF INLAND REVENUE AND TAXPAYERS.

+THE COMMISSIONER WISHES TO SEE THAT, IN CASES WHICH INVOLVE IMPORTANT OR DIFFICULT POINTS OF LAW, BINDING JUDICIAL PRECEDENTS ARE ESTABLISHED AS SOON AS POSSIBLE.+

THE FINANCIAL SECRETARY SAID THE TAXPAYERS ALSO WISHED TO SEE THAT THE IR EXPENSES ARE MINIMISED.

WHERE LARGE SUMS ARE IN DISPUTE, A TAXPAYER OFTEN ENGAGES AT HIS EXPENSE, A TAX LAWER TO REPRESENT HIM BEFORE THE BOARD BECAUSE ADVERSÉ DECISIONS BY THE BOARD, PARTICULARLY ON QUESTIONS OF FACT, ARE VERY DIFFICULT TO UPSET THE SUBSEQUENT APPEALS TO THE COURTS.

+IN SUCH CASES, IT OUGHT TO BE POSSIBLE, IF THE PARTIES SO PREFER, TO HAVE THE APPEAL ARGUED BEFORE THE HIGH COURT. +

MR. HADDON-CAVE SAID AT PRESENT AND NOT INFREQUENTLY, CASES CONCERNING IMPORTANT QUESTIONS OF THE LAW, AS DETERMINED BY THE BOARD, +ARE SUBSEQUENTLY TAKEN ON APPEAL TO THE HIGH COURT.+

+HOWEVER, NO SUCH ENABLING PROVISIONS IS CONTAINED IN THE PRESENT SUPREME COURT ORDINANCE. CLAUSE 5 OF THE BILL PROPOSES TO RESTORE A PROCEDURE WHICH EXISTED PRIOR TO THE ENACTMENT OF THE SUPREME COURT ORDINANCE IN FEBRUARY 1976, WHEREBY AN APPEAL AGAINST A DECISION OF THE BOARD OF REVIEW MAY BE MADE DIRECT TO THE COURT OF APPEAL WITHOUT GOING THROUGH THE HIGH COURT FIRST, SUBJECT TO THE LEAVE OF THE COURT OF APPEAL.

+FINALLY, CLAUSE 2 OF THE BILL SEEKS TO INTRODUCE TWO MINOR TECHNICAL AMENDMENTS TO SECTION 63C(1) OF THE PRINCIPAL ORDINANCE TO MAKE IT CLEAR THAT IN ASSESSING PROVISIONAL SALARIES TAX FOR ANY YEAR OF ASSESSMENT, LOSSES AVAILABLE FOR SET-OFF IN THAT YEAR WILL BE TAKEN INTO ACCOUNT.

+ BUT, NEEDLESS TO SAY, LOSSES TAKEN INTO ACCOUNT IN THE PRECEDING YEAR WILL NOT AGAIN BE AVAILABLE FOR SET-OFF IN THAT YEAR OF ASSESSMENT. CLAUSE 2 ALSO PROVIDES THAT THE STANDARD RATE. APPLICABLE TO PROVISIONAL SALARIES TAX WILL BE THE RATE PREVAILING IN THE YEAR OF ASSESSMENT. +

HADDCN-CAVE..