XN000022-1987-11-25 — Page 8

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WEDNESDAY, NOVEMBER 25, 1987

ON THE ONE HAND, PROVISIONS IN THE BILL WERE MORE PRECISE

FOR

TO AUTOMATIC TIME APPORTIONMENT

PERSONS SUBJECT RENDERING SERVICES OUTSIDE HONG KONG FOR MORE THAN 60 DAYS

PROVISIONS

SALARIES

IN TOTAL.

THAN TAX

IN

MET,

A

SWEEPING BILL WERB

WERE MORE ON THE OTHER HAND, THE SENSE, SINCE ONCE THE CONDITIONS IN SECTION 2 OF THE HONG KONG TAX RELIEF WAS FULLY AVAILABLE IRRESPECTIVE QUANTUM OF TAX PAID IN THE OTHER JURISDICTION, DR SOHMEN NOTED.

"WHILE

LAWS TAX

OF THE ACTUAL

COMMENTED

UPON OR REGULARLY MORE

THE POSITION OF THE TAXPAYERS, AS THAT PROPOSED TAX LEGISLATION

ARE DEFENDING CRITICISED BY THOSE LEGISLATORS WE MUST ASSURE OURSELVES

ALSO ADEQUATELY PROTECTS THE REVENUE," HE CONTINUED,

AS SUCH, HF

WAS

CONCERNED

THAT

THE

TERMINOLOGY

IN

CLAUSE NATURE AS

IN

2(C)(1) OF THE BILL, REFERRING TO

REFERRING TO "SUBSTANTIALLY THE SAME SALARIES TAX" WHEN DESCRIBING THE INCOME CHARGEABLE TO TAX BLSEWHERE

INTERPRETATIVE DIFFICULTIES MIGHT CREATE

THROUGH LOOPHOLES DETERMINING WHETHER SUCH INCOME WAS OF THE SAME NATURE.

"AFTER ALL, MOST OTHER JURISDICTIONS DO NOT HAVE TAX STRUCTURE AS HONG KONG," HE NOTED.

THE AD

HOC GROUP,

HOWEVER,

AS SIMPLE A

FROM THE WAS

REPLIES RECEIVED ADMINISTRATION TO THE EFFECT THAT SINCE SALARIES TAX IN HONG KONG GENERALLY RECOGNISED AS SUBSTANTIALLY SIMILAR TO INCOME TAX ELSEWHERE, THE APPLICATION THE ADMINISTRATION COULD SEK FEW PROBLEMS ARISING IN OF THIS PROVISION.

MOREOVER, THE ADMINISTRATION ADVISED THAT THE ACTUAL TAX PAID ELSEWHERE WOULD CREATE NO PRACTICAL DIFFICULTIES.

TOGETHER

VERIFICATION OF

CLARIFICATIONS MR PETER

**THESB ASSURANCES,

WITH THE OTHER WHICH WILL BE MADE BY WAY OF PRACTICE NOTES AS MENTIONED BY POON, MAKE ME CONFIDENT THAT THIS BILL IS A GOOD ONE.

WILL CONTINUE

BETWEEN HONG KONG AND ΤΟ BE DRAWN IF WE

"I AM NOT BOTHERED BY THE DISTINCTION NON-HONG KONG EMPLOYMENTS WHICH MAINTAIN OUR SOURCE-BASED SYSTEM.

HONG TO

KONG

IN BELONGERS ALLEGED DISADVANTAGES "THE

OF A COMPARISON TO EXPATRIATES UNDER THE SCOPE OF THIS BILL ARE NOT

IN THE APPROACH," DR NATURE THAT WOULD SUGGEST A NERD FOR A CHANGE SOHMEN CONCLUDED.

MADE BY

WINDING UP THE DEBATE ON THE BILL, THE FINANCIAL SECRETARY, THE HON PIERS JACOBB, SAID THAT HE WAS GRATEFUL FOR THE COMMENTS MR POON AND DR SOHMEN, AND FOR THEIR SUPPORT.

HONG ARISE WHERE AT THE TIME ALTHOUGH CHARGEABLE, HAS NOT ACTUALLY BEEN PAID.

TO A DIFFICULTY WHICH MIGHT HE SAID: "MR POON HAS REFERRED

KONG TAX

FORBIGN IS ASSESSED,

TAX,

/"I CAN