XN000022-1988-11-02 — Page 5

WEDNESDAY, NOVEMBER 2, 1988

INCREASE IN BOARD OF REVIEW MEMBERSHIP PROPOSED

*

INTO

THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, INTRODUCED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) A BILL

AMEND INTENDED TO

INLAND THE INLAND REVENUE ORDINANCE TO INCREASE THE MEMBERSHIP OF THE

COLLECTION OF PROFIT'S REVENUE BOARD OF REVIEW AND TO FACILITATE THE TAX FROM NON-RESIDENT PERSONS.

TAXPAYERS

DISSATISFIED

WITH

MOVING THE SECOND READING OF THE INLAND REVENUE (AMENDMENT}

OF REVIEW (NO. 2) BILL 1988, MR JACOBS SAID THE INLAND REVENUE BOARD

DEALING WITH APPEALS WAS AN ADMINISTRATIVE TRIBUNAL RESPONSIBLE FOR FROM

MADE

DETERMINATIONS

BY

THE

COMMISSIONER OF INLAND REVENUE.

THE "AT PRESENT, THERE IS A SUBSTANTIAL BACKLOG IN APPEAL CASES AWAITING HEARING, HE SAID.

NUMBER OF

THE BILL SOUGHT TO INCREASE THE NUMBER OF DEPUTY CHAIRMEN OF MEMBERS THE BOARD FROM SIX TO 10 AND THE MAXIMUM SIZE OF THE PANEL OF FROM 100 TO 150, HE SAID.

"THE INCREASE WILL ENABLE MORE SITTINGS TO BE HELD SO THAT BOARD COULD CARRY OUT ITS WORK MORE EXPEDITIOUSLY."

THE

BE

TURNING TO THE SECOND ASPECT OF THE BILL, MR JACOBS EXPLAINED

THAT

SHOULD THAT THE PRINCIPAL ORDINANCE PROVIDED

NON-RESIDENTS

IN HONG CHARGEABLE TO TAX EITHER DIRECTLY OR IN THE NAME OF AN AGENT KONG.

HOWEVER,

CERTAIN ADMINISTRATIVE DIFFICULTIES HAD ARISEN FINDING AGAINST FOLLOWING A HIGH COURT DECISION IN WHICH THERE WAS A

IN A CASE THE COMMISSIONER OF INLAND REVENUE

WHERE HE SOUGHT ΤΟ TAX A NON-RESIDENT PERSON IN THE NAME OF A HONG KONG COMPANY.

14

TURNED COMMISSIONER

ON ESSENTIALLY THE DECISION AGAINST THE

OF 'AGENT' IN THE INTERPRETATION OF THE DEFINITION

RELATION TO A NON-RESIDENT PERSON UNDER THE ORDINANCE,' HE SAID,

14

THE PROPOSED

AMENDMENT WOULD

ENABLE A

BE

PERSON IN HONG

AGENT

ΤΟ NON-RESIDENT KONG WHERE THAT PERSON,

CHARGED IN THE NAME OF A ALTHOUGH NOT AN PERSON FROM WHOM THE NON-RESIDENT WAS IN RECEIPT OF PROFITS OR ARISING IN HONG KONG.

OF THE NON-RESIDENT, WAS, NEVERTHELESS, A

"

PERSON IT IS ALSO MADE CLEAR THAT A HONG KONG TAX IN RESPECT OF A NON-RESIDENT IS REQUIRED TO DEDUCT AMOUNT PAID OR CREDITED BY HIM TO THE NON-RESIDENT AN PRODUCE THE TAX DUE, HE SAID.

MR JACOBS EMPHASISED THAT THIS AMENDMENT WOULD PRESENT TAXATION POLICY OR ITS APPLICATION.

THE POSITION

INCOME

CHARGEABLE FROM ANY SUM SUFFICIENT TO

ΤΟ

NOT ALTER THE

TO THAT WHICH WAS

IT WAS DESIGNED TO RESTORE THOUGHT TO EXIST PRIOR TO THE HIGH COURT DECISION, HE SAID.

DEBATE ON THE BILL WAS ADJOURNED.

15