XN000022-1988-05-19 — Page 5

THURSDAY, MAY 19, 1988

"FINALLY, IT WILL BE NECESSARY TO OPEN A LARGE NUMBER OF NEW FILES FOR MARRIED WOMEN WHOSE EMPLOYMENT INCOME IS CURRENTLY REPORTED IN THEIR HUSBANDS' SALARIES TAX RETURNS (SOME 154,000 AS AT MARCH 31 THIS YEAR).

MR AU YEUNG SAID THE DRAFTING OF TAXATION LEGISLATION HAS NEVER BEEN A SIMPLE TASK AND HASTILY DRAFTED LEGISLATION CAN LEAD ΤΟ UNINTENDED AND USUALLY UNDESIRABLE EFFECTS.

"IT IS THEREFORE ESSENTIAL THAT WHEN SEPARATE TAXATION IS FINALLY IMPLEMENTED THERE BE A SMOOTH TRANSITION FROM BOTH THE LEGISLATIVE AND ADMINISTRATIVE SIDES, HE SAID.

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"CONSIDERABLE TIME WILL BE NEEDED TO PREPARE THE WAY FOR THE CHANGE AND THE NEW SYSTEM COULD ONLY BE IMPLEMENTED AT THE FARLIEST FROM 1990.**

MR AU YEUNG POINTED OUT THAT SEPARATE TAXATION WILL NOT BE INTRODUCED INTO PERSONAL ASSESSMENT BECAUSE IT WOULD GRANT A SECOND CONCESSION TO A GROUP OF TAXPAYERS ALREADY RECEIVING A CONCESSION.

**IT WOULD ALSO LEAD TO TAX AVOIDANCE AND INCOME SPLITTING WHICH THE CURRENT LEGISLATION DOES NOT ENCOURAGE.

"ANTI-AVOIDANCE LEGISLATION TO COMBAT INCOME MANIPULATION WOULD BE DIFFICULT TO DRAFT AND WOULD RESULT IN COMPLEX LEGISLATION THAT IS COSTLY TO ADMINISTER AND PRONE TO DISPUTES, HE SAID.

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CS VISITS COLLEGE OF EDUCATION

COLLEGE

THE CHIEF SECRETARY, SIR DAVID FORD, VISITED NORTHCOTE OF EDUCATION THIS (THURSDAY) AFTERNOON TO SEE HOW TEACHERS ARE PREPARED TO TEACH IN PRIMARY AND SECONDARY SCHOOLS.

LI,

ACCOMPANIED BY THE DIRECTOR OF EDUCATION, MR Y.T. SIR DAVID WAS WELCOMED ON ARRIVAL BY THE ASSISTANT DIRECTOR OF EDUCAT LON (FURTHER), MRS RUBY LAU, AND PRINCIPAL OF THE COLLEGE, MR S.L. HO.

HE WAS BRIEFED ON THE VARIOUS COURSES OFFERED BEFORE PROCEEDING ON A TOUR OF THE CAMPUS,

BY THE COLLEGE

SIR DAVID SAW A DISPLAY ON "CIVIC EDUCATION THROUGH THE TEACHING OF ECONOMIC AND PUBLIC AFFAIRS" AND A LECTURE IN SESSION ON THE ORGANISATION OF EXTRA-CURRICULAR ACTIVITIES IN SCHOOLS IN THE ECONOMIC AND PUBLIC AFFAIRS ROOM.

/THE CHIEF