XN000022-1985-07-19 — Page 7

FRIDAY, JULY 19, 1985

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UMELCO AD HOC INLAND REVENUE REVIEW GROUP

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UMELCO ANNOUNCED TODAY (FRIDAY) THE FORMATION OF AN AD HOC INLAND REVENUE REVIEW GROUP TO STUDY THE GENERAL ISSUE OF TAX AVOIDANCE AND TO CONSIDER THE DRAFT BILL PUBLISHED BY THE GOVERNMENT TODAY, TAKING INTO CONSIDERATION ANY FURTHER REPRESENTATIONS THAT MAY BE FORWARDED BY THE PUBLIC.

THE GROUP WILL ALSO LOOK INTO THE FEARS AND RESERVATIONS EXPRESSED BY SOME SECTORS OF THE COMMUNITY THAT THE CUMULATIVE EFFECTS OF RECENT AMENDMENTS TO EXISTING INLAND REVENUE LEGISLATION MIGHT HAVE A DETRIMENTAL EFFECT ON BUSINESS CONFIDENCE AND INVESTMENT INTEREST IN HONG KONG.

THE TERMS OF REFERENCE OF THE GROUP ARE :-

HAVING REGARD TO HONG KONG'S LONG STANDING POLICY OF MAINTAINING A SIMPLE AND STABLE TAX ENVIRONMENT CONDUCIVE TO INVESTMENT AND CONFIDENCE, THE AD HOC GROUP WILL:

(1) EXAMINE THE INLAND REVENUE (AMENDMENT) ORDINANCE 1984

AND THE RELEVANT PRACTICE NOTE TO ASCERTAIN WHETHER THEY CONFORM WITH THE DECLARED INTENTION AND SPIRIT OF THE ORDINANCE;

(2) EXAMINE THE DRAFT BILL PUBLISHED ON FRIDAY, 19.7.85

(TODAY) ON ANTI-AVOIDANCE MEASURES:

(3) EXAMINE THE CUMULATIVE EFFECTS OF RECENT AMENDMENTS TO THE INLAND REVENUE ORDINANCE TO ASCERTAIN THEIR EFFECT ON THE ECONOMY AND BUSINESS CONFIDENCE;

(4) CONSULT WIDELY AND RECEIVE FURTHER REPRESENTATIONS

FROM THE PUBLIC: AND

(5) REPORT TO UMELCO BY 10TH SEPTEMBER,

COMMUNITY, INCLUDING BANKING,

MEMBERS OF THE GROUP COME FROM VARIOUS SECTORS OF THE

INCLUDING BANKING, INDUSTRY, BUSINESS, THE PROFESSIONS AND SOCIAL SERVICES. THEY ARE: HON 3.W. LEE, HON PETER POON, HON LI FOOK-WO, HON M.G.R. SANDBERG, HON ALLEN LEE, HON ANDREW SC, HON WONG PO-YAN, HON W.C.L. BROWN, HON K. C. CHAN, HON J. J. SWAINE, HON STEPHEN CHEONG, HON CHEUNG YAN-LUNG, HON MRS RITA FAN, DR HON KIM CHAM AND HON CARL TONG.

HON Q.W. LEE WILL SERVE AS CONVENER AND HON PETER POON AS DEPUTY CONVENER. THE GROUP WILL REPORT ITS CONCLUSIONS TO UMELCO ON SEPTEMBER 10.

THE AD HOC GROUP WELCOMES PUBLIC COMMENTS AND VIEWS ON THE SUBJECT. AS THE AD HOC GROUP WILL HAVE TO COMPLETE ITS REPORT BY SEPTEMBER 10, MEMBERS OF THE PUBLIC ARE INVITED TO FORWARD THE IR REPRESENTATIONS TO THE UMELCO OFFICE AS SOON AS POSSIBLE.

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