XN000022-1983-12-02 — Page 5

FRIDAY, DECEMBER 2, 1983

SEPARATE TAX ASSESSMENT BILL

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LEGISLATION GIVING EFFECT TO THE PROPOSALS BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH THIS YEAR TO ALLOW SEPARATE ASSESSMENT OF TAX FOR MARRIED WOMEN HAS BEEN DRAFTED AND IS PUBLISHED TODAY IN THE GAZETTE AS THE INLAND REVENUE (AMENDMENT) (NO. 5) BILL 1983.

IN HIS SPEECH, THE FINANCIAL SECRETARY EXPLAINED THAT HIS PROPOSALS, IF ENACTED, WOULD MEET THE COMPLAINTS THAT THE PRESENT LEGISLATION WAS AN AFFRONT TO WOMEN IN THAT IT RENDERED THEM SECOND CLASS CITIZENS. ALTHOUGH THE MEASURES WOULD NOT GIVE RISE TO ANY TAX SAVINGS IN INDIVIDUAL CASES, THEY WOULD ACCORD LEGAL PERSONALITY TO WOMEN WHICH HAD BEEN A MAIN PREOCCUPATION OF THOSE SEEKING AMENDMENTS TO THE INLAND REVENUE ORDINANCE.

THE BILL NOW PROPOSED, IF ENACTED, WOULD COME INTO EFFECT ON APRIL 1 NEXT YEAR AND ELECTION FOR SEPARATE ASSESSMENT WOULD BE PROVIDED FOR IN THE RETURN REQUIRED FOR SALARIES TAX OR FOR PERSONAL ASSESSMENT BEGINNING FROM THE YEAR OF ASSESSMENT 1984-85.

A GOVERNMENT SPOKESMAN EXPLAINED THAT THE BILL WOULD REMOVE THOSE PROVISIONS IN THE PRESENT LEGISLATION WHICH WERE CONSIDERED OUTDATED AND OFFENSIVE.

UNDER THE EXISTING PROVISIONS, THE INCOME OF A WIFE IS DEEMED TO BE THAT OF HER HUSBAND FOR THE PURPOSES OF SALARIES TAX AND PERSONAL ASSESSMENT, AND THE WIFE IS DEEMED TO BE ONE AND THE SAME PERSON AS HER HUSBAND FOR THE PURPOSES OF PROFITS TAX.

THE BILL WILL REPEAL ALL THESE AND WILL INSTEAD RECOGNISE EACH SPOUSE AS A SEPARATE INDIVIDUAL CHARGEABLE TO TAX. INCOMES OF THE SPOUSES WILL BE AGGREGATED FOR SALARIES TAX AND PERSONAL ASSESSMENT,

*IF THE SPOUSES JOINTLY ELECT FOR SEPARATE ASSESSMENT FOR SALARIES TAX, THEY WOULD HAVE TO DECLARE THEIR RESPECTIVE INCOMES IN A JOINT RETURN AND WOULD BE SERVED WITH A NOTICE OF ASSESSMENT AND DEMAND REQUIRING PAYMENT OF THEIR INDIVIDUAL SHARE OF THE TOTAL TAX PAYABLE.+

+THE HUSBAND WOULD REMAIN LIABLE TO SUBMIT THE JOINT RETURN IN TIME, THE SPOKESMAN SAID.

ANY ONJECTION OR APPEAL AGAINST THE ASSESSMENT OF TAX WILL BE REGARDED AS BEING MADE JOINTLY, AS IT COULD AFFECT THE JOINT LIABILITY OF THE SPOUSES.

PROVISIONAL TAX WILL STILL BE PAYABLE AND IF THERE WAS SEPARATE ASSESSMENT, THE TAX WILL BE APPORTIONED BETWEEN THE SPOUSES BY REFERENCE TO THEIR RESPECTIVE SHARES OF THE INCOME OF THE PRECEDING YEAR, THE SPOKESMAN ADDED.

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