XN000022-1985-03-28 — Page 28

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THURSDAY, MARCH 28, 1985

ON THE PROPOSED TAX CONCESSIONS, MR LAM CONSIDERED THEM AN INDICATION OF GOVERNMENT'S CONCERN FOR THE MIDDLE INCOME TAXPAYERS OR 'SANDWICH CLASS' AND HE HOPED FURTHER CONCESSIONS WOULD BE MADE ON RETURN TO A BALANCED BUDGET.

TURNING TO THE ADDITIONAL ALLOWANCE FOR A DEPENDENT PARENT RESIDING WITH THE TAXPAYER, HE SAID HE WOULD LIKE TO KNOW THE RATIONALE BEHIND IT.

HE POINTED OUT THAT IT WAS UNFAIR TO PENALISE CHILDREN NOT LIVING WITH PARENTS BY GIVING THEM LESS ALLOWANCE UNLESS GOVERNMENT WAS DELIBERATELY ENCOURAGING THE FORMATION OF EXTENDED FAMILIES, 1.E. FAMILIES WITH SEVERAL GENERATIONS LIVING TOGETHER.

+AN ENLIGHTENMENT BY THE GOVERNMENT ON THIS ISSUE WOULD BE MOST APPRECIATED, HE SAID.

FINALLY, MR LAM SAID HE WAS PLEASED TO SEE THE FINANCIAL SECRETARY'S DETERMINATION TO COMBAT TAX AVOIDANCE AND LOOKED FORWARD TO MEASURES WHICH WOULD REDUCE THE LOSS OF PUBLIC REVENUE TO A MINIMUM.

CALL FOR SIMPLE FINANCIAL STATEMENTS

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THE GOVERNMENT SHOULD HAVE A SIMPLE SET OF FINANCIAL STATEMENTS WHICH PEOPLE CAN UNDERSTAND, THE HON CARL TONG SAID IN THE LEGISLATIVE COUNCIL TODAY.

HE ALSO CALLED FOR +A SIMPLE TAX SYSTEM+ TO MAKE LIFE SIMPLER FOR BUSINESS.

HE SUPPORTED FULLY THE VIEWS EXPRESSED BY THE HON LYDIA DUNN IN THE COUNCIL YESTERDAY ABOUT THE INADEQUACIES OF THE GOVERNMENT'S FINANCIAL STATEMENTS.

+ BELIEVE FOR GOVERNMENT TO MAKE TIMELY AND PROPER DECISIONS, WE MUST HAVE AN INFORMATION DATA BASE AND ACCOUNTING SYSTEM THAT CAN PROVIDE TIMELY AND ACCURATE INFORMATION, HE SAID.

HE HOPED THE GOVERNMENT FINANCIAL INFORMATION SYSTEM WOULD BE MUCH STRENGTHENED WHEN THE LEDGER ACCOUNTING AND FINANCIAL INFORMATION SYSTEM (LAFIS) PROJECT WAS FULLY IMPLEMENTED IN ALL GOVERNMENT DEPARTMENTS.

+HOWEVER I UNDERSTAND THAT PROGRESS IS SOMEWHAT HELD BACK BECAUSE OF THE OVERALL DEFICIENCY IN ACCOUNTANTS, HE SAID.

/+I BELIEVE