XN000022-1987-11-25 — Page 7

WEDNESDAY, NOVEMBER 25, 1987

6

INLAND REVENUE AMENDMENT BILL SUPPORTED

AND

SUPPORT OF THE TO EXEMPT FROM PERSON DERIVED BE ESTABLISHED

TWO MEMBERS OF THE LEGISLATIVE COUNCIL, THE HON PETER POON DR THE HON HELMUT SOHMEN, TODAY (WEDNESDAY) SPOKE IN INLAND REVENUE (AMENDMENT) (NO. 2) BILL WHICH SOUGHT LIABILITY TO HONG KONG SALARIES TAX ANY INCOME THAT A FROM SERVICES RENDERED OUTSIDE HONG KONG 1F IT COULD THAT TAX HAD BEEN PAID THERE IN RESPECT OF SUCH INCOME.

BILL,

SPEARING IN THE COUNCIL, DURING THE RESUMED DEBATE ON THE

OF DOUBLE MR POON SAID THE BILL WAS FAIR AS IT TOOK AWAY THE ELEMENT TAX IMPOSED BY HONG KONG.

MR POON, CONVENOR OF THE AD HOC GROUP THAT STUDIED THE BILL, WITH SAID THE GROUP RECEIVED TWO REPRESENTATIONS AND HAD ONE MEETING

MEMBERS WERE

SATISFIED THE ADMINISTRATION.

GENERALLY

WITH THE ADMINISTRATION ON THE POINTS RAISED IN

EXPLANATIONS GIVEN BY THE THESE REPRESENTATIONS.

MEMBERS ALSO UNDERSTOOD THAT CONSULTATION HAD WITH VARIOUS PROFESSIONAL AND OTHER BODIES, INCLUDING CHAMBERS OF COMMERCE, BEFORE THE BILL WAS PUBLISHED AND THE BILL HAD BEEN AS A RESULT OF SUCH CONSULTATION.

"ONE

HOWEVER, DIFFICULTY,

DESERVES OUR

BEEN UNDERTAKEN

REFINED

CONCERN: THE

BILL

REQUIRES THAT TAX SHOULD BE PAID BEFORE RELIEF IS GIVEN.

OF

ASSESSMENT

OR THE BE ABLE 18

IN HONG KONG, MR POON

取車

"BECAUSE OF THE DIFFERENCE IN THE TIME PAYMENT OF TAX ELSEWHERE, EVIDENCE OF PAYMENT OF TAX MAY NOT

SALARIES TAX ASSESSMENT TO BE PROVIDED BY THE TAXPAYER WHEN THE MADE BY THE COMMISSIONER OF INLAND REVENUE EXPLAINED.

HAD ASSURED THE AD HOC GROUP NEVERTHELESS, THE COMMISSIONER

OVER THAT HE WOULD BE PREPARED, IN APPROPRIATE CIRCUMSTANCES, TO HOLD

ON SUCH TAX

PRODUCTION OF PROOF OF OVERSEAS TAX LIABILITY AND DISCHARGE THE TAX ON SUBSEQUENT PRODUCTION OF EVIDENCE OF PAYMENT.

ACCEPTABLE AND I CAN CONFIRM THE ARRANGEMENTS IN

HOPE HIS

"THIS SOLUTION APPEARS TO BE FAIR AND THAT THE FINANCIAL SECRETARY REPLY. MR POON SAID.

SERVICES

HE ADDED THAT THE AD HOC GROUP DID NOT CONSIDER APPROPRIATE THE SUGGESTION THAT HONG KONG SHOULD GIVE UP IT BY HONG KONG EMPLOYEES ON INCOME EARNED FOR HONG KONG MERELY BECAUSE OTHER COUNTRIES TAXED BASIS ON ACCOUNT OF CITIZENSHIP OR RESIDENCE.

REASONABLE OR TAX DUE TO RENDERED IN

THEM ON A WORLDWIDE

LONG WAY ΤΟ CREATING,

WENT A

MANNER

EQUITABLE

DR SOUMEN SAID THE PROPOSED LEGISLATION

IN AN ACHIEVING DOUBLE TAXATION RELIEF HOPEFULLY, FEWER ADMINISTRATIVE DIFFICULTIES.

ON THE