XN000022-1989-03-01 — Page 33

WEDNESDAY, MARCH 1, 1989

27

DURING THE CURRENT LEGISLATIVE SESSION, A BILL ΤΟ AMEND THE INLAND REVENUE ORDINANCE WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL TO GIVE EFFECT TO THE TAX CONCESSIONS PROPOSED, MR JACOBS SAID.

HE

OTHER INCREASES IN FEES AND CHARGES WOULD BE IMPLEMENTED DURING THE YEAR WHEN THE RELEVANT COSTING REVIEWS WERE ADDED.

COMPLETED,

PROPOSALS ON SEPARATE TAXATION EXPECTED LATER THIS YEAR

THE FINANCIAL SECRETARY. THE HON PIERS JACOBS, SAID TODAY (WEDNESDAY) THAT SUBJECT TO THE ADVICE OF THE EXECUTIVE COUNCIL HE HOPES TO BE ABLE TO PUT TO THE LEGISLATIVE COUNCIL LATER THIS YEAR DETAILED PROPOSALS ON SEPARATE TAXATION FOR MARRIED WOMEN.

ASSUMING THAT THIS TIMETABLE COULD BE MET, IT SHOULD BE POSSIBLE TO GIVE EFFECT TO THE PROPOSALS IN FINAL TAX ASSESSMENTS FOR 1989-90, MR JACOBS SAID IN HIS BUDGET SPEECH.

HE RECALLED THAT IN HIS SPEECH CONCLUDING THE DEBATE ON LAST YEAR'S BUDGET, HE UNDERTOOK TO INTRODUCE SEPARATE TAXATION AS SOON AS PRACTICABLE, HOPEFULLY DURING 1990.

SINCE THEN, MUCH WORK HAD BEEN DONE ON ADMINISTRATIVE AND LEGAL ARRANGEMENTS, HE SAID.

THE NECESSARY

TURNING TO OTHER TAXATION MATTERS, MR JACOBS NOTED THAT THERE HAD BEEN CALLS FOR AN AMENDMENT TO THE INLAND REVENUE ORDINANCE TO ALTER THE DEFINITION OF SECURITIES SO THAT A WIDER RANGE OF PROFITS MADE BY AUTHORISED UNIT TRUSTS WAS EXCLUDED FROM PROFITS TAX.

"I HAVE ALSO RECEIVED REPRESENTATIONS THAT MUTUAL FUND CORPORATIONS BE EXEMPTED FROM PROFITS TAX IN A SIMILAR MANNER то UNIT TRUSTS, HE SAID.

IT

THERE HAD ALREADY BERN CONSULTATION WITH THE SECURITIES INDUSTRY, AND THE GOVERNMENT WAS GIVING FURTHER THOUGHT ΤΟ THESE PROPOSALS, HE SAID.

THAT THE

UNITED STATES

ON TAXATION OF THE SHIPPING INDUSTRY, MR JACOBS SAID GOVERNMENT HAD IN RECENT MONTHS CONSULTED WITH THE AUTHORITIES AS TO HOW THE LOCAL SHIPPING INDUSTRY MIGHT OVERCOME THE PROBLEMS POSED BY THE 1986 U.S. TAX REFORM ACT.

"WE HAVE AGREED THAT THE BEST WAY TO RESOLVE THE PRESENT DIFFICULTIES IS TO FORMALISE ARRANGEMENTS POR THE RECIPROCAL TAX EXEMPTION OF INCOME DERIVED FROM THE INTERNATIONAL OPERATION OF SHIPS,

/"I HOPE