XN000022-1987-02-25 — Page 30

WEDNESDAY, FEBRUARY 25, 1987

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MR JACOBS ALSO PROPOSED THAT THE DUTY FREE LIMIT ON GIFTS BE INCREASED FROM $50 000 TO $100 000 TO TAKE ACCOUNT OF INFLATION.

+THE COST TO THE REVENUE OF THESE TWO PROPOSALS WILL BE APPROXIMATELY $25 MILLION BOTH IN 1987-88 AND IN SUBSEQUENT YEARS,+ HE SAID.

TAX CONCESSIONS BENEFITTING ALL +A HIGHER PRIORITY+

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THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID TODAY (WEDNESDAY) HE BELIEVED THAT HIS PROPOSED PERSONAL TAX CONCESSIONS WHICH WOULD BENEFIT ALL RATHER THAN ANY PARTICULAR GROUP OF SALARIES TAXPAYERS, RATED A HIGHER PRIORITY AND WOULD BE MORE WIDELY ACCEPTABLE.

MR JACOBS WAS REFERRING TO THE +DIFFICULT AND SENSITIVE SUBJECT OF SEPARATE TAXATION FOR MARRIED WOMEN WHEN DELIVERING HIS BUDGET SPEECH.

HE NOTED THAT THE COST OF INTRODUCING SEPARATE TAXATION FOR MARRIED WOMEN WOULD BE SOME $400 MILLION PER ANNUM AT 1986-87 LEVELS OF INCOME. AND THE COST OF ADMINISTERING THE SYSTEM COULD AMOUNT TO $17 MILLION.

+ IT SEEMS TO ME THAT EVEN IF THE REVENUE WERE ABLE TO FOREGO A FURTHER SUM OF THIS MAGNITUDE, IT WOULD BE PREFERABLE THAT THE BENEFIT SHOULD BE SPREAD AMONGST PERSONAL TAXPAYERS GENERALLY RATHER THAN BE ENJOYED BY ANY PARTICULAR GROUP.+

MR JACOBS, HOWEVER, PROPOSED TO AMEND THE LAW ON TIME APPORTIONMENT+ CASES, WHICH INVOLVED THE ASSESSMENT TO SALARIES TAX OF EMPLOYEES WHO RENDERED SERVICES BOTH WITHIN AND OUTSIDE HONG KONG.

IN VIEW OF THE CONSIDERABLE AMOUNT OF TIME SPENT BY THE AUTHORITIES AND THE TAXPAYERS INVOLVED IN THESE CASES, HE PROPOSED TO AMEND THE INLAND REVENUE ORDINANCE TO PROVIDE FOR THE AUTOMATIC GRANTING OF TIME APPORTIONMENT WHERE, IN A YEAR OF ASSESSMENT, AN EMPLOYEE RENDERED SERVICES OUTSIDE HONG KONG FOR A PERIOD OF MORE THAN 60 DAYS IN TOTAL.

HE ALSO

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