XN000022-1981-07-01 — Page 3

WEDNESDAY, JULY 1, 1981

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REMINDER ON INTEREST TAX PAYMENT

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MEMBERS OF THE PUBLIC WERE TODAY REMINDED BY THE INLAND REVENUE DEPARTMENT OF THE NEED TO COMPLY WITH THE LAW CONCERNING PAYMENT OF INTEREST TAX.

FAILURE TO COMPLY COULD LEAD TO LEGAL ACTION AGAINST THE OFFENDER, A SPOKESMAN FOR THE IRD SAID.

FIFTEEN 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.

THE RECIPIENT SHOULD, THEREFORE, RECEIVE 85 PER CENT OF THE INTEREST AT THE TIME, EXCEPT FOR CERTAIN EXEMPTIONS LAID DOWN UNDER THE INLAND REVENUE ORDINANCE, THE SPOKESMAN EXPLAINED.

THE PAYER MUST REMIT THE TAX DEDUCTED TO THE COLLECTOR, INLAND REVENUE DEPARTMENT, THIRD FLOOR, WINDSOR HOUSE, 311 GLOUCESTER ROAD, WITHIN 30 DAYS OF MAKING THE DEDUCTION.

+THE PAYER OF INTEREST MUST NOT WAIT FOR THE ISSUE OF AN INTEREST TAX RETURN NOR A NOTE OF DEMAND FOR THE TAX FROM THE INLAND REVENUE DEPARTMENT, HE NOTED.

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

THE INLAND REVENUE DEPARTMENT WILL THEN ISSUE TO THE PAYER A SPECIFIED CERTIFICATE FOR TRANSFER TO THE RECIPIENT OF INTEREST WITHIN 42 DAYS OF THE DEDUCTION.

HOWEVER THERE ARE SPECIAL CERTIFICATE ARRANGEMENTS WITH LICENSED BANKS AND CERTAIN SPECIFIED CORPORATIONS.

FAILURE WITHOUT REASONABLE EXCUSE, TO MAKE DEDUCTION OR REMIT AMOUNT OF TAX IS AN OFFENCE AND THE PENALTY ON CONVICTION IS A FINE OF $2 000,

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 5-79595236), AND THE POSTAL ADDRESS IS GPO BOX 132 HONG KONG.

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