XN000022-1979-09-30 — Page 4

SUNDAY, SEPTEMBER 30, 1979

INTEREST PAYERS AND RECIPIENTS REMINDED OF THEIR RESPONSIBILITY

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THE INLAND REVENUE DEPARTMENT TODAY (SUNDAY) REMINDED INTEREST PAYERS AND RECIPIENTS, PARTICULARLY BORROWERS AND MORTGAGORS, OF THEIR RESPONSIBILITY TO COMPLY WITH THE LAW GOVERNING INTEREST TAX.

A SPOKESMAN FOR THE DEPARTMENT SAID INTEREST TAX WAS WITHHOLDING TAX. +CURRENTLY, 15 PER CENT OF THE INTEREST CHARGEABLE WITH INTEREST TAX MUST BE DEDUCTED BY THE PAYER AT THE TIME HE MAKES THE PAYMENT OR CREDITS THE INTEREST TO THE RECIPIENT.+

THEREFORE, THE SPOKESMAN ADDED, THE RECIPIENT SHOULD RECEIVE 85 PER CENT OF THE INTEREST AT THAT TIME.

THEN WITHIN 30 DAYS OF MAKING THE DEDUCTION, THE PAYER MUST PAY THE TAX DEDUCTED TO THE COLLECTOR, INLAND REVENUE DEPARTMENT, THIRD FLOOR, WINDSOR HOUSE, 311 GLOUCESTER ROAD, HONG KONG, HE SAID.

*THE PAYER OF THE INTEREST MUST NOT AWAIT THE ISSUE OF AN INTEREST TAX RETURN OR WAIT FOR A NOTICE OF DEMAND FOR THE TAX FROM THE INLAND REVENUE DEPARTMENT, THE SPOKESMAN STRESSED.

THE REMITTANCE SHOULD HAVE A COVERING NOTE GIVING PARTICULARS OF THE NAME AND ADDRESS OF THE RECIPIENT, THE GROSS AMOUNT OF INTEREST, THE NET INTEREST PAID, PERIOD OF ACCRUAL OF THE INTEREST, AND THE DATE OF THE PAYMENT OR CREDIT OF THE NET INTEREST.

THE INLAND REVENUE DEPARTMENT WILL THEN ISSUE TO THE INTEREST RECIPIENT, THROUGH THE PAYER, A SPECIFIED DEDUCTION CERTIFICATE CONTAINING A RECEIPT BY GOVERNMENT OF THE TAX DEDUCTED.

HOWEVER, THE SPOKESMAN SAID, SPECIAL CERTIFICATE ARRANGEMENTS CAN ALSO BE MADE WITH LICENSED BANKS AND CERTAIN SPECIFIED CORPORATIONS.

THE SPOKESMAN SAID FAILURE TO COMPLY WITH THE LEGAL REQUIREMENTS GOVERNING INTEREST TAX WAS AN OFFENCE AND THE PENALTY, ON CONVICTION, WAS A FINE OF $2 000.

+THE DEPARTMENT TAKES A SERIOUS VIEW OF THIS OFFENCE AND WILL, WHERE NECESSARY, TAKE APPROPRIATE LEGAL ACTION, THE SPOKESMAN SAID.

THE INTEREST TAX SECTION OF THE INLAND REVENUE DEPARTMENT IS LOCATED ON THE 17TH FLOOR OF WINDSOR HOUSE, 311 GLOUCESTER ROAD, HONG KONG (TEL. NO. 5-79595236). THE POSTAL ADDRESS IS G.P.O. BOX 132, HONG KONG.

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