XN000022-1988-10-28 — Page 11

FRIDAY, OCTOBER 28, 1988

10

MORE EFFECTIVE WAYS TO COLLECT TAXES FROM NON-RESIDENTS

THE COMMISSIONER COLLECT PROFITS TAX FROM HONG KONG.

OF

IN THE INLAND

DUE BY

AN AMENDMENT TO THE INLAND REVENUE ORDINANCE PUBLISHED

ENABLE GAZETTE TODAY (FRIDAY) SEEKS TO

ASSESS AND REVENUE TO MORE EFFECTIVELY CERTAIN NON-RESIDENTS ON PROFITS DERIVED

A

THE INLAND REVENUE (AMENDMENT) (NO.2) BILL 1988 WOULD ENABLE NON-RESIDENT TO BE CHARGED TO TAX IN THE NAME OF A PERSON IN HONG KONG WHOM THE NON-RESIDENT WHO, ALTHOUGH NOT AN AGENT, WAS A PERSON FROM DERIVED HONG KONG PROFITS, A GOVERNMENT SPOKESMAN SAID TODAY.

PROVIDES

THAT

A

NON-RESIDENT **THE EXISTING ORDINANCE CHARGEABLE TO TAX ON HIS HONG KONG PROFITS EITHER DIRECTLY OR IN NAME OF HIS AGENT.

IS

THE

"IN

OTHER WORDS,

CAN

**

BE ASSESSED AN AGENT

THE SPOKESMAN SAID.

TO

PAY

HIS

PRINCIPAL'S TAX LIABILITY,

IS QUITE WIDE AND

"THE DEFINITION OF AGENT FOR THIS PURPOSE INCLUDES ANY PERSON THROUGH WHOM A NON-RESIDENT IS IN RECEIPT OF KONG PROFITS, HE ADDED.

+T

HONG

LICENCE

HOWEVER, IN A RECENT DECISION INVOLVING THE PAYMENT OF

DIRECTLY TO A NON-RESIDENT FEES BY A HONG KONG TELEVISION STATION

DEFINITION DID NOT FILM DISTRIBUTOR, THE HIGH COURT RULED THAT THE

ON NON-RESIDENT WITH HONG KONG DEALING EXTEND TO A PERSON IN PRINCIPAL TO PRINCIPAL BASIS, THE SPOKESMAN EXPLAINED.

HAD

CAUSED

A

CONSIDERABLE HE SAID THE DECISION DIFFICULTIES FOR THE COMMISSIONER OF INLAND REVENUE.

ADMINISTRATIVE

CONSULTANTS

TO DERIVE HONG HONG KONG

"IT IS QUITE COMMON FOR NON-RESIDENT ENTERTAINERS, AND PERSONS IN RECEIPT OF LICENCE FEES AND ROYALTIES

AGENT BUT FROM A KONG KONG PROFITS NOT THROUGH A HONG PRINCIPAL, THE SPOKESMAN SAID.

"I

ON

"IN THESE CASES ASSESSMENTS CAN NOW ONLY BE RAISED DIRECTLY

HAVE NO BUSINESS ESTABLISHMENT

THE NON-RESIDENT WHO WILL GENERALLY OR ASSETS IN HONG KONG.

+

"AS A RESULT THERE MAY BE LITTLE CHANCE OF THE COLLECTED, HE ADDED.

TAX DUE BEING

IN ANY WOULD

THE SPOKESMAN EMPHASISED THAT THE AMENDMENT WOULD NOT, WAY, CHANGE THE PRESENT TAXATION POLICY OR ITS APPLICATION, BUT

то EXIST BEFORE THE RESTORE THE POSITION TO THAT WHICH WAS THOUGHT HIGH COURT DECISION.

1988 IS SCHEDULED

THE INLAND REVENUE (AMENDMENT) (NO.2) BILL TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON NOVEMBER 2.

ON THE MEMBERS OF THE PUBLIC WHO WISH TO COMMENT WRITE TO THE DEPUTY FINANCIAL SECRETARY 4TH FLOOR, CENTRAL

OMELCO, 8 JACKSON OFFICES, LOWER ALBERT ROAD, CENTRAL OR KONG.

BILL SHOULD GOVERNMENT ROAD, HONG

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