XN000022-1981-05-13 — Page 12

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WEDNESDAY, MAY 13, 1981

THE BILL ALSO DEALS WITH THE EXEMPTIONS OF RATE TO ENSURE AS FAR AS POSSIBLE THAT TENEMENTS WHICH BY THE IR NATURE ARE ALWAYS LIKELY TO BE EXEMPT ARE EXEMPTED FROM ASSESSMENT TO RATES, WHILE THOSE WHICH ARE BY THEIR NATURE RATEABLE, BUT ARE TEMPORARILY EXEMPT DUE TO THE MODE OF THE IR OCCUPATION, ARE EXEMPTED ONLY FROM THE PAYMENT OF RATES.

A NUMBER OF OTHER AMENDMENTS ARE PROPOSED TO ENSURE CONSISTENCY IN TERMINOLOGY, TO CLARIFY THE LAW AND TO REGULARISE CURRENT PRACTICE. THESE INCLUDE THE TIME LIMIT FOR ISSUING DECISIONS ON PROPOSALS IS EXTENDED FROM THREE TO SIX MONTHS IN THE FIRST YEAR OF A NEW VALUATION LIST AND EXTENDING THE PERIOD FOR MAKING AN APPEAL BY RATEPAYERS FROM 21 TO 28 DAYS FROM THE DATE OF SERVICE OF THE NOTICE FROM THE COMMISSIONER OF RATING AND VALUATION.

TWO OTHER BILLS WHICH SEEK TO GIVE LEGISLATIVE EFFECT TO THE BUDGET PROPOSALS ANNOUNCED BY THE FINANCIAL SECRETARY WERE ALSO INTRODUCED INTO THE COUNCIL. THEY ARE THE STAMP (AMENDMENT) BILL 1981 TO RAISE THE CONCESSIONARY RATE OF DUTY OF CONVEYANCE AND THE INLAND REVENUE (AMENDMENT) (NO. 3) BILL 1981 TO IMPLEMENT THE PERSONAL TAXATION CONCESSIONS.

DEBATE ON ALL THREE BILLS WAS ADJOURNED.

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DEBATE ON INLAND REVENUE (AMENDMENT)(NO.2) BILL RESUMED

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DEBATE WAS RESUMED IN THE LEGISLATIVE COUNCIL TODAY ON THE INLAND REVENUE (AMENDMENT)(NO.2) BILL WHICH SEEKS, AMONG OTHER THINGS, TO REMOVE THE PRESENT LOOPHOLE IN THE LAW AND TO RENDER LIABLE TO TAX THE SURPLUS ACCRUED ON THE REDEMPTION OR REALISATION OF CERTIFICATES OF DEPOSIT AND SIMILAR MONETARY INSTRUMENTS.

SPEAKING AT THE RESUMED DEBATE THE HON PETER C. WONG NOTED THAT THE LEGISLATION SCRUTINY GROUP OF UNOFFICIALS HAD DISCUSSED THE LEGAL AND TECHNICAL ASPECTS OF THE BILL WITH SENIOR GOVERNMENT OFFICIALS.

THE GOVERNMENT IS PREPARED TO MEET THE OBJECTION THAT THE BILL OUGHT NOT BE RETROSPECTIVE, HE SAID.

+REPRESENTATIONS HAVE BEEN MADE TO UNOFFICIAL MEMBERS THAT THE EFFECTS OF THE BILL SHOULD BE CONFINED TO CERTIFICATES OF DEPOSIT AND BILLS OF EXCHANGE ISSUED AFTER APRIL 1, 1981.

+ALTERNATIVELY, THE IMPACT OF THE BILL SHOULD BE LIMITED TO GAINS ACCRUING AFTER APRIL 1, 1981.

+GOVERNMENT HAS AGREED TO ACCEPT THE LATTER SUGGESTION AND WILL MOVE AMENDMENTS AT THE COMMITTEE STAGE TO VEST THE COMMISSIONER OF INLAND REVENUE WITH THE APPROPRIATE STATUTORY AUTHOR ITY TO ESTABLISH A BASE DATE VALUE AS AT APRIL 1, 1981 ON A DESIGNATED LIST OF CERTIFICATES OF DEPOSIT AND BILLS OF EXCHANGE EXTANT AT THAT DATE, MR WONG SAID.

/ANOTHER COUNCILLOR