XN000022-1981-05-27 — Page 8

WEDNESDAY, MAY 27, 1981

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TWO-YEAR LAW REVIEW BEHIND STAMP DUTY BILL

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THE STAMP DUTY BILL, WHICH WAS APPROVED WITH SOME AMENDMENTS AT THE LEGISLATIVE COUNCIL TODAY, WAS THE_RESULT OF A CONSIDERABLE LAW REVISION EXERCISE OVER A PERIOD OF TWO YEARS AND WAS A COMPREHENSIVE PIECE OF LEGISLATION WHICH CONSOLIDATED AND UPDATED THE EXISTING ORDINANCES AND REGULATIONS, THE FINANCIAL SECRETARY, THE HON. SIR PHILIP HADDON-CAVE SAID.

REFERRING TO A POINT RAISED BY THE HON JOHN SWA INE, THAT HE WAS DISPOSED TO OFFER RELIEF FOR FUND MANAGERS IN UNIT TRUSTS WHO BUY AND SELL UNITS WITHIN A SPECIFIED PERIOD, HE SAID THAT SUBJECT TO FURTHER RESEARCH, AN AMENDING BILL WOULD BE INTRODUCED LATER THIS YEAR, BEFORE THE IMPLEMENTATION OF PART IV OF THE NEW PRINCIPAL ORDINANCE.

+THE PRECISE FORM OF THE RELIEF WILL NEED TO BE WORKED OUT CAREFULLY, HAVING REGARD TO THE PROCEDURES AND PRACTICES OF THE UNIT TRUST INDUSTRY IN HONG KONG, HE SAID.

REPLYING TO A POINT MADE BY THE HON DAVID NEWBIGGING WITH REGARD TO CONSULTATION, SIR PHILIP SAID THAT THERE WAS CONSULTATION WITH THE LAW SOCIETY ON THE TECHNICAL ASPECTS OF THE BILL, AND THERE WOULD SHORTLY BE CONSULTATION WITH THE UNIT TRUST INDUSTRY ON PROCEDURAL MATTERS.

THE FINANCIAL SECRETARY SAID: HOWEVER, I COULD NOT POSSIBLY AGREE THAT THERE SHOULD BE CONSULTATION WITH INTERESTED PARTIES PRIOR TO THE PUBLICATION OF PROPOSALS FOR TAX REFORM.

+WHILST THE BILL IS LARGELY A CONSOLIDATION EXERCISE, THE PROVISIONS RELATING TO UNIT TRUSTS INVOLVE REFORM, NAMELY, THE INTRODUCTION OF A NEW IMPOST, ALBE IT ONE THAT DOES NO MORE THAN TO PLACE UNIT TRUST HOLDERS IN A SIMILAR POSITION TO THAT OF ALL OTHER PERSONS WHO BUY AND SELL SHARES.

+TO CONCEDE THAT FISCAL PROPOSALS SHOULD BE THE SUBJECT OF ADVANCE NOTICE AND PRIOR CONSULTATION WITH INTERESTED PARTIES WOULD BE TO PROCEED ALONG A SLIPPERY PATH INDEED AND TO RENDER THE DECISION-MAKING PROCESS QUITE INTERMINABLE.+

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