XN000022-1987-02-25 — Page 31

WEDNESDAY, FEBRUARY 25, 1987

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HE ALSO PROPOSED THAT WHERE SERVICES WERE RENDERED OUTSIDE HONG KONG FOR 60 DAYS OR LESS, THE WHOLE OF THE INCOME FROM THAT EMPLOYMENT SHOULD BE REGARDED AS ARISING FROM SERVICES RENDERED IN HONG KONG AND NO TIME APPORTIONMENT WOULD BE PERMITTED.

MR JACOBS ESTIMATED THAT THE COST TO THE REVENUE OF THESE AMENDMENTS WHICH HE PROPOSED TO TAKE EFFECT FROM THE YEAR OF ASSESSMENT 1987-88 TO BE ABOUT $25 MILLION IN THE YEAR OF IMPLEMENTATION AND $35 MILLION IN A FULL YEAR.

ON DOUBLE TAXATION, HE SAID WHILE IT WAS AGREED THAT DOUBLE TAXATION AT PRESENT OCCURRED TO SOME EXTENT, PARTICULARLY IN RELATION TO EMPLOYEES WHO MADE FREQUENT TRIPS TO THE PEOPLE'S REPUBLIC OF CHINA, THE EXTENT OF THE PROBLEM, AND THE COST TO THE REVENUE OF POSSIBLE REMEDIES, HAD PROVEN DIFFICULT TO QUANTIFY.

*THE QUESTION OF DOUBLE TAXATION IS CURRENTLY BEING EXAMINED AGAINST THIS BACKGROUND AND I AM HOPEFUL THAT SOME PROGRESS CAN BE MADE IN THE NOT TOO DISTANT FUTURE, HE SAID.

TOTAL EXPENDITURE OF $10.7 BILLION PROPOSED

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THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, TODAY (WEDNESDAY) PROPOSED A TOTAL EXPENDITURE OF $10.7 BILLION FOR THE VARIOUS FUNDS FROM WHICH EXPENDITURE OF A CAPITAL NATURE WAS FINANCED, COMPARED WITH A REVISED ESTIMATE OF $9 BILLION FOR THE CURRENT YEAR.

HE ATTRIBUTED THE GROWTH IN EXPENDITURE PARTLY TO THE FURTHER EQUITY INJECTION OF $1 BILLION INTO THE MASS TRANSIT RAILWAY CORPORATION, WHICH THE GOVERNMENT WAS COMMITTED TO MAKE IN 1987-88.

IT ALSO REFLECTED PROVISION FOR HIGHER CAPITAL EXPENDITURE, HE SAID.

POINTING OUT THAT CAPITAL SPENDING HAD FALLEN SUBSTANTIALLY IN RECENT YEARS, MR JACOBS SAID THERE WAS NOW SOME SCOPE FOR TACKLING THE LIST OF OUTSTANDING PROJECTS.

+WHILST I HAVE REGARD TO THE RECURRENT CONSEQUENCES OF PROJECTS ONCE COMPLETED, I PROPOSE TO ALLOCATE $6 BILLION FOR NEW PROJECTS STARTING IN 1987-88, WHICH IS $1.2 BILLION MORE THAN FOR THE CURRENT YEAR.+

/ALLOWING FOR