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WEDNESDAY, MARCH 6, 1991

WITH REGARD TO THE LEGAL AVOIDANCE OF TAX IN HONG KONG, SIR PIERS SAID POWERS OF A GENERAL NATURE WERE GRANTED TO THE COMMISSIONER IN 1986 TO ASSIST HIM IN COUNTERING THE PROBLEM.

RECENTLY, HOWEVER, SCHEMES HAD EMERGED WHICH CLEARLY PLACE

SUBSTANTIAL AMOUNTS OF REVENUE AT RISK.

IT

THE

"SOME OF THESE SCHEMES ARGUABLY FALL OUTSIDE THE SCOPE OF OUR GENERAL ANTI-AVOIDANCE PROVISIONS. SO, FOR THE SAKE OF CERTAINTY, IS

ΤΟ NECESSARY

INTRODUCE SPECIFIC LEGISLATION TO SAFEGUARD REVENUE, HE STRESSED.

SUBJECT ΤΟ THE ADVICE OF EXECUTIVE COUNCIL, THE FINANCIAL SECRETARY SAID HE INTENDED TO INTRODUCE INTO THE LEGISLATIVE COUNCIL A BILL SEEKING AMENDING LEGISLATION FOR LIMITING THE USE OF LEVERAGED LEASING SCHEMES AS TAX SHELTERS LATER IN THE PRESENT SESSION.

"MEMBERS OF THIS COUNCIL HAVE FROM TIME TO TIME CALLED FOR A REVIEW OF OUR WHOLE TAX SYSTEM.

"FOLLOWING THE UNDERTAKING I GAVE AT THE CONCLUSION OF THE BUDGET DEBATE

ON LAST YEAR, I INVITED THE JOINT LIAISON COMMITTEE TAXATION TO EXAMINE A WIDE RANGE OF REVENUE MEASURES.

"THIS EXAMINATION WAS NOT RESTRICTED TO MATTERS COVERED BY INLAND REVENUE ORDINANCE," SIR PIERS SAID.

THE

HIM

AT THE BEGINNING OF THIS YEAR, HE SAID THE COMMITTEE GAVE SOME INITIAL VIEWS ON GROUP LOSS RELIEF, TAXATION OF PROFITS FROM SHIPPING, STAMP DUTY, TAX TREATIES, SOURCE OF PROFITS AND INDIRECT TAXATION.

"I AM MOST GRATEFUL FOR THE SUGGESTIONS THE COMMITTEE HAS SO FAR.

EVEN WHERE I HAVE NOT FELT IT APPROPRIATE TO TAKE ACTION THIS STAGE, ALL SUGGESTIONS ARE BEING CONSIDERED.

MADE

AT

"I LOOK FORWARD TO A CONTINUING DIALOGUE WITH THIS HELPFUL GROUP FROM THE PRIVATE SECTOR, HE SAID.

"

THE FINANCIAL SECRETARY PROPOSES REVENUE MEASURES

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS TODAY (WEDNESDAY) PROPOSED MEASURES WHICH WILL YIELD ABOUT $4 BILLION IN NEW REVENUE IN 1991-92, INCLUDING AN ADDITIONAL YIELD FROM GENERAL RATES, AND APPROXIMATELY THE SAME IN A FULL YEAR.

HE ALSO PROPOSED TAX AND DUTY CONCESSIONS WHICH WOULD COST ABOUT $840 MILLION IN 1991-92, AND $980 MILLION IN A FULL YEAR.

/PRESENTING HIS

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