XN000022-1981-01-04 — Page 3

N

SUNDAY, JANUARY 4, 1981

REMINDER ON PAYMENT OF INTEREST TAX ******

MEMBERS OF THE PUBLIC ARE REMINDED OF THEIR RESPONSIBILITY TO COMPLY WITH THE LAW GOVERNING THE PAYMENT OF INTEREST TAX.

A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT POINTED OUT THAT AT PRESENT, 15 PER CENT OF THE INTEREST CHARGEABLE WITH INTEREST TAX MUST BE DEDUCTED BY THE PAYER AT THE TIME THE INTEREST IS PAID OR CREDITED TO THE RECIPIENT,

THEREFORE, THE RECIPIENT SHOULD RECEIVE 85 PER CENT OF THE INTEREST AT THE TIME, EXCEPT FOR CERTAIN EXEMPTIONS PROVIDED UNDER THE INLAND REVENUE ORDINANCE, HE SAID.

WITHIN 30 DAYS OF MAKING THE DEDUCTION, THE PAYER OF THE INTEREST MUST REMIT THE TAX DEDUCTED TO THE GOVERNMENT, ADDRESSED TO THE COLLECTOR, INLAND REVENUE DEPARTMENT, 3RD FLOOR, WINDSOR HOUSE, 311 GLOUCESTER ROAD, HONG KONG.

+HE MUST NOT WAIT FOR THE ISSUE OF AN INTEREST TAX RETURN OR FOR A DEMAND NOTICE FOR THE TAX, THE SPOKESMAN STRESSED.

THE REMITTANCE SHOULD BE ACCOMPANIED BY A COVERING NOTE GIVING 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 DEPARTMENT WILL THEN ISSUE A +DEDUCTION CERTIFICATE+ TO THE PAYER, WHICH SHOULD BE TRANSMITTED TO THE RECIPIENT OF THE INTEREST WITHIN 42 DAYS OF MAKING THE DEDUCTION.

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

FAILURE WITHOUT REASONABLE EXCUSE TO MAKE THE DEDUCTION OR REMIT THE AMOUNT OF THE TAX WITHIN THE SPECIFIED PERIOD IS AN OFFENCE, AND THE PENALTY ON CONVICTION IS 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 ON THE 17TH FLOOR OF WINDSOR HOUSE, 311 GLOUCESTER ROAD, CAUSEWAY BAY, HONG KONG (TEL: 5-7959-5236). ITS POSTAL ADDRESS IS GPO BOX 132, HONG KONG.

/3

E