XN000022-1986-11-05 — Page 30

28

WEDNESDAY, NOVEMBER 5, 1986

+THE LOGIC OF ARGUING FOR A SYSTEM THAT WILL TEND TO FACILITATE INTERFERENCES, AS A MEANS OF PROTECTION AGAINST THAT VERY INTERFERENCE TOTALLY ESCAPES ME,+ HE SAID.

MR SOHMEN DID NOT BELIEVE THAT IT MATTERED WHETHER THERE WERE DIRECT ELECTIONS FOR PART OR FOR THE WHOLE OF THE LEGISLATIVE COUNCIL.

+THE PRACTICAL EFFECTS OF A CHANGE THAT TOUCHES THE ESSENCE OF OUR TRADITIONAL SYSTEM AND THE FABRIC OF OUR SOCIETY, AND WHICH WOULD CERTAINLY BE IRREVERSIBLE EVEN IF WE LATER DISCOVERED THAT IT WAS ALL A BAD MISTAKE, WILL BE THE SAME WHETHER WE ELECT TWO, 20 OR ALL OF THE COUNCIL MEMBERS BY UNIVERSAL SUFFRAGE ORGANISED ON A GEOGRAPHIC CONSTITUENCY BASIS, HE SAID.

+

TURNING TO THE SETTING UP OF AN AUTONOMOUS SHIPPING REGISTER IN HONG KONG, MR SOHMEN SAID THAT A SIGNIFICANT DIFFERENCE OF OPINION STILL EXISTED BETWEEN THE SHIPOWNERS AND THE ADMINISTRATION ON THE QUESTION OF TAXATION.

HONG KONG SHIPOWNERS HAD PROPOSED THAT INSTEAD OF TAXING PROFITS, REVENUE SHOULD BE COLLECTED BY THE IMPOSITION OF INITIAL REGISTRATION FEES AND ANNUAL TONNAGE DUES ON EACH SHIP REGISTERED IN HONG KONG.

MR SOHMEN EXPLAINED THAT THIS APPROACH HAD THE BENEFIT OF CERTAINTY AND PREDICTABILITY FOR BOTH SHI POWNERS AND INLAND REVENUE, AND PROVIDED FOR EFFICIENT AND ECONOMIC TAX COLLECTION AND FOR GREAT FAIRNESS.

+ IT IS THE SYSTEM ADOPTED IN THE LARGEST FLAG COUNTRIES AND THUS KNOWN TO MANY OF THE SHIPOWNERS WHOM THE NEW HONG KONG REGISTER WOULD WISH TO ATTRACT.

+ DEPENDING ON THE TOTAL SIZE OF THE FLEET THE REVENUE GENERATED FROM TAXATION ON THE SHIPS THEMSELVES CAN BE QUITE SUBSTANTIAL.

+AND THE SIMPLER THE TAX TREATMENT THE MORE ACCEPTABLE THE REGISTER WILL BE TO THE USERS,+ HE SAID.

HE RECOMMENDED THAT THIS SUBJECT BE FURTHER REVIEWED.

1

/29

Page 30Page 31