XN000022-1989-03-08 — Page 33

WEDNESDAY, MARCH 8, 1989

31

COUNCILLORS SUPPORT BILL TO PLUG TAX LOOPHOLE

THE INLAND REVENUE (AMENDMENT) (NO. 2) BILL 1988, WHICH TO PLUG A LOOPHOLE IN THE PRINCIPAL ORDINANCE, WAS

*

HON PETER POON AND THE HON TODAY WEDNESDAY).

PETER WONG

IN

THE

SUPPORTED LEGISLATIVE

SOUGHT BY THE COUNCIL

MR POON

NOTED

THAT UNDER THE INLAND REVENUE KONG EARNING ASSESSABLE

NON-RESIDENTS OPERATING IN HONG PROFITS HERE WERE TAXED THROUGH THEIR AGENTS IN HONG KONG,

A

BASIS,

ORDINANCE INCOME OR

PARTIES WERE DEALING A RECENT COURT CASE DECIDED THAT IF THE

DUE TAX

BY THE DIRECTLY ON

PRINCIPAL TO PRINCIPAL WAS NOT RECOVERABLE NON-RESIDENT

BY THE COMMISSIONER OF INLAND REVENUE THROUGH THE PARTY WHO PAID SUCH A NON-RESIDENT.

THE PURPOSE OF THE AMENDMENT

LOOPHOLE.

BILL WAS MAINLY ΤΟ

PLUG THIS

ORIGINAL INTRODUCTION OF THE

SCOPE OF SOME PROVISIONS HARDSHIP AND UNCERTAINTY

MR POON ALSO NOTED THAT SINCE THE BILL, CONCERN HAD BEEN EXPRESSED THAT THE

COULD CAUSE OF THE BILL WAS TOO WIDE AND UNDER CERTAIN CIRCUMSTANCES.

HE SAID A LEGCO HAD BEEN SET UP TO STUDY THE BILL AND VARIOUS REPRESENTATIONS MADE.

AD HOC

GROUP, OF

HAD

WHICH HE WAS CONVENER, CAREFULLY CONSIDERED THE

ON A NUMBER OF COMMITTEE IT HAD AGREED WITH THE GOVERNMENT

THE

OF THE VIEW

AD HOC

WOULD GROUP, STAGE AMENDMENTS WHICH, IN

WOULD NEVERTHELESS ENABLE THE ALLEVIATE THE CONCERNS EXPRESSED BUT AUTHORITIES TO COLLECT TAX DUE BY NON-RESIDENTS.

THE AMENDED BILL HAD BEEN THE LOOPHOLE TO

MR WONG SAID HE WAS PLEASED THAT FOUND ACCEPTABLE TO TAX PRACTITIONERS WHILE CLOSING THE SATISFACTION OF THE INLAND REVENUE DEPARTMENT.

OF INLAND AT THE SAME

HE WAS, HOWEVER, DISAPPOINTED THAT THE COMMISSIONER REVENUE DID NOT SEE FIT TO RELEASE HIS "PRACTICE NOTES" TIME THAT THE AMENDMENT WAS BEING ENACTED.

DETAILS OF HOW THE THE "PRACTICE NOTES" WOULD GIVE THE FULL COMMISSIONER INTENDED TO APPLY THE LAW IN PRACTICE, MR WONG SAID.

THE FINANCIAL SECRETARY,

POON AND MR WONG AD HOC GROUP HAD GIVEN ΤΟ

THE

FOR

FOR

THE

WINDING UP DEBATE ON THE BILL, HON PIERS JACOBS, SAID HE WAS GRATEFUL TO MR THEIR SUPPORT, AND HE ALSO THANKED MEMBERS OF THE THEY THE CAREFUL AND DETAILED CONSIDERATION THAT MEASURE.

/"WITH REGARD

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