XN000022-1985-03-28 — Page 20

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THURSDAY, MARCH 28, 1985

ON GOVERNMENT FINANCE, SHE SAID THE PROGRESSIVE REDUCTION OF OUR DEFICITS WAS A REMARKABLE ACHIEVEMENT AND COMMENDED THE GOVERNMENT FOR HAVING ADOPTED STEADY AND WELL-PLANNED MEASURES.

+ IT IS BELIEVED THAT THE RESTRAINT ON GROWTH OF PUBLIC SECTOR EXPENDITURE HAS PLAYED A VERY EFFECTIVE PART IN REDUCING THE DEFICIT AND SUPPRESSING INFLATION, SHE SAID.

TO HOLD THE GROWTH OF PUBLIC SECTOR EXPENDITURE WELL BELOW THE RATE OF GROWTH IN GDP, MRS NG SAID DEPARTMENT HEADS MUST HAVE MADE STRENUOUS EFFORTS TO RESTRICT THE DEPARTMENTAL EXPENDITURE AND THE GROWTH OF MANPOWER.

I AM VERY PLEASED TO NOTE THAT THE CONCEPT OF VALUE FOR MONEY HAS BECOME A STRICT GUIDELINE FOR THE PUBLIC SECTOR,+ SHE SAID. THE GROWTH OF THE CIVIL SERVICE HAD BEEN SUCCESSFULLY RESTRICTED, AND WORK EFFICIENCY ENHANCED WHEREVER POSSIBLE, SHE SAID.

"TAX LAW SHOULD NOT HURT INNOCENT"

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LEGISLATION AGAINST TAX-AVOIDANCE SHOULD AIM AT CASES WHERE THERE WAS AN INTENTION TO EVADE TAX AND SHOULD AVOID CATCHING THE INNOCENT AS WELL AS THE GUILTY, THE HON PETER POON SAID.

SPEAKING ON THE SECOND DAY OF THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY), HE SAID HE FULLY SUPPORTED THE FINANCIAL SECRETARY'S PROPOSAL TO INTRODUCE LEGISLATION AGAINST TAX AVOIDANCE AND AGREED THAT THE PROPOSED LEGISLATION WOULD CLEARLY REQUIRE THE MOST CAREFUL DRAFTING AND SHOULD BE THE SUBJECT OF EQUALLY CAREFUL SCRUTINY BY THE LEGISLATURE.

MR POON AN ALYSED THE THREE OBJECTIVES OF THE FINANCIAL SECRETARY'S PROPOSALS AND PINPOINTED SOME OF THE DEFICIENCIES IN THE EXISTING ANTI-AVO1 DAN CE PROVISIONS IN THE INLAND REVENUE ORDINANCE.

COMMENTING MORE SPECIFICALLY ON ANTI-AVOIDANCE LEGISLATION, HE SAID EVEN THOUGH LEGISLATION AGAINST TAX EVASION WERE CALLED ANTI-AVOIDANCE LEGISLATION, TAX AVOIDANCE, WHICH MIGHT BE LAWFUL, MUST BE CLEARLY DISTINGUISHED FROM TAX EVASION WHI CH WAS ILLEGAL,

/+IT USED

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