XN000022-1989-05-12 — Page 12

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FRIDAY, MAY 12, 1989

TO

IN CASES WHERE ONE SPOUSE'S INCOME IS NOT SUFFICIENTLY HIGH ABSORB ALL OF HIS OR HER ALLOWANCES, THE SPOKESMAN SAID THAT A SYSTEM OF JOINT ASSESSMENT WOULD APPLY.

"THIS WILL MEAN THAT ANY MARRIED COUPLE WHERE ONE SPOUSE NAS ALLOWANCES GREATER THAN HIS OR HER INCOME MAY ELECT. ON AN ANNUAL BASIS, TO CONTINUE TO HAVE THEIR SALARIES TAX LIABILITY COMPUTED ON THEIR JOINT AGGREGATED INCOMP. IN VERY MUCH THE SAME WAY AS AT PRESENT, IF THIS WILL RESULT IN THE FAMILY'S OVERALL TAX BURDEN BEING REDUCED. HE POINTED OUT.

INTO

CONCURRENTLY WITH THE IMPLEMENTATION OF SEPARATE TAXATION SALARIES TAX THE PERSONAL ASSESSMENT LEGISLATION. AS IT APPLIES TO MARRIED COUPLES + IS ALSO TO BE AMENDED.

"IN FUTURE, WHERE ONLY A HUSBAND OR WIFE DERIVES INCOME, HE OR SHE WILL INDIVIDUALLY ELECT TO BE PERSONALLY ASSESSED AND BE SOLELY RESPONSIBLE FOR THE PAYMENT OF THE TAX CHARGED.

"WHEN BOTH THE HUSBAND AND THE WIFE HAVE EACH DERIVED CHARGEABLE INCOME THEY MUST JOINTLY ELECT TO BE PERSONALLY ASSESSED.

"WHEN A JOINT PERSONAL ELECTION IS MADE THE COUPLE'S RESPECTIVE INCOMES WILL BE AGGREGATED TOGETHER INTO ONE COMPOSITE AMOUNT TO CALCULATE THEIR TAX LIABILITY.

ASSESSMENT

"EACH SPOUSE WILL THEN RECEIVE A SEPARATE NOTICE OF IN RESPECT OF THE APPORTIONED TAX ATTRIBUTABLE ΤΟ HIS OR HER COMPONENT OF THEIR TOTAL INCOME." HE SAID.

"

THE INLAND REVENUE (AMENDMENT) (NO. 31 BILL IS SCHEDULED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON MAY 31.

IF ENACTED, THE SEPARATE TAXATION PROVISIONS WOULD BE APPLICABLE TO 1989-90 FINAL SALARIES TAX ASSESSMENT ISSUED ON OR AFTER APRIL 1. 1990.

MEMBERS OF THE PUBLIC WHO WISH TO COMMENT ON THE BILL SHOULD WRITE TO THE SECRETARY FOR THE TREASURY, FOURTH FLOOR, CENTRAL GOVERNMENT OFFICES, LOWER ALBERT ROAD, CENTRAL OR TO OMELCO, 8 JACKSON ROAD, HONG KONG.

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