XN000022-1980-06-11 — Page 9

WEDNESDAY, JUNE 11, 1980

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TAX AVOIDANCE DEVICE COUNTERED

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THE USE OF CONTRIVED CESSATIONS OF BUSINESSES TO AVOID TAX WILL BE COUNTERED BY THE INLAND REVENUE (AMENDMENT) (NO 2) BILL 1980, THE ACTING CHIEF SECRETARY, THE HON SIR PHILIP HADDON-CAVE TOLD THE LEGISLATIVE COUNCIL THIS AFTERNOON.

SPEAKING AT THE SECOND READING OF THE BILL, SIR PHILIP POINTED OUT THAT PROVISIONS IN THE MAIN ORDINANCE TO HELP BUSINESSES WHOSE ACCOUNTING PERIODS END OTHER THAN ON MARCH 31, HAVE BEEN EXPLOITED BY SOME LARGE PROPERTY DEVELOPERS AT A CONSIDERABLE COST TO THE REVENUE.

+IN 1979-80 THE LOSS MIGHT HAVE BEEN AS MUCH AS $50 MILLION, + HE SAID.

+AS THERE IS NO TIME LIMIT ON THESE CONTRIVED CESSATIONS OF BUSINESS, WITHOUT CORRECTIVE LEGISLATION NOW, CONSIDERABLE SUMS OF FUTURE REVENUE WILL REMAIN AT RISK, HE ADDED.

DEBATE ON THE BILL WAS ADJOURNED.

GAS SMELLS NOT HAZARDOUS

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ONE THING DEFINITELY ESTABLISHED BY THE SEARCHES AND INVESTIGATIONS INTO REPORTS OF GAS SMELLS IN SCHOOLS IS THAT WE ARE NOT DEALING WITH A GAS THAT IS PRESENT IN ANYTHING APPROACHING HAZARDOUS CONCENTRATIONS, THE SECRETARY FOR THE ENVIRONMENT, THE HON DEREK JONES SAID IN THE LEGISLATIVE COUNCIL TODAY.

IN REPLY TO A QUESTION RAISED BY THE HON T.S. LO, MR JONES SAID THE PRESS REPORTS REFERRING TO 'TOXIC' GASES, GASSING' INCIDENTS AND CHILDREN BEING OVERCOME ARE THEREFORE, IN THESE CIRCUMSTANCES, EXAGGERATED AND MISLEADING AND ARE LIABLE TO LEAD TO UNNECESSARY ALARM,

MR JONES SAID THE INVESTIGATIONS WERE CONTROLLED AND CO-ORDINATED BY A COMMITTEE OF SENIOR REPRESENTATIVES OF ALL THE DEPARTMENTS CONCERNED UNDER HIS CHAIRMANSHIP.

THE COMMITTEE HEARD AND ASSESSED REPORTS ON THE DAY'S INVESTIGATIONS AND PROVIDED GUIDANCE ON THE DIRECTIONS WHICH FURTHER WORK ON THE PROBLEM SHOULD TAKE.

DESPITE THE THOROUGHNESS OF ALL THESE EFFORTS TO TRACE THE SOURCE OF THE EMISSION, IT WAS NOT POSSIBLE TO DO SO WITH ANY CERTAINTY, ALTHOUGH THERE WERE INDICATIONS THAT LIQUEFIED PETROLEUM GAS MAY HAVE BEEN IMPLICATED IN SOME WAY, MR JONES SAID.

HE WAS INFORMED BY THE GOVERNMENT'S PROFESSIONAL ADVISERS THAT THIS WAS NOT ALTOGETHER SURPRISING, AS, IN THEIR EXPERIENCE, IT USUALLY PROVES IMPOSSIBLE IN CASES OF THIS SORT TO LOCATE THE SOURCE OF THE TROUBLE.

/+THIS IS .....