XN000022-1991-04-17 — Page 9

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WEDNESDAY, APRIL 17, 1991

"DEDUCTIONS WILL BE DENIED IN RESPECT OF TRANSACTIONS ASSOCIATED PARTIES, THE FINANCIAL SECRETARY SAID.

SAID 1991,

PROVIDED THE LEGISLATION WAS PASSED IN THIS COUNCIL, IT WOULD APPLY TO CONTRACTS ENTERED INTO ON OR AFTER THAT WAS, TOMORROW,

BETWEEN

SIR

APRIL

PIERS 18

OUT THAT BY A

ON THE TOPIC OF TAX AVOIDANCE GENERALLY, HE POINTED THIS HAD BECOME, UNFORTUNATELY, A FAST GROWING INDUSTRY SERVED LARGE NUMBER OF PROFESSIONAL ADVISERS.

"SECTIONS 61 AND 61A OF THE INLAND REVENUE ORDINANCE

TO BE A VISIBLE DETERRENT TO THOSE WHO MIGHT

ENTERING INTO TAX AVOIDANCE ARRANGEMENTS.

INTENDED CONTEMPLATE

ARE

OTHERWISE

"TAXPAYERS AND THEIR ADVISERS SHOULD NOT DOUBT

DEPARTMENT'S RESOLVE PO STUDY VERY CAREFULLY ANY

WHICH COME TO NOTICE IN CASE REMEDIAL ACTION

REVENUE ARRANGEMENTS

REQUIRED,

中中

SIR PIERS SAID.

THE INLAND

SUCH

IS

OF

SENIOR

ON

COMMENTING ON THE MANY POINTS MADE BY MEMBERS IN THE COURSE THE BUDGET DEBATE. THE FINANCIAL SECRETARY NOTED THAT THE MEMBER AND SOME OTHERS COMPLAINED OF A CONTINUING LACK OF RESPONSE THE PART OF THE ADMINISTRATION TO COMMENTS FROM MEMBERS COUNCIL MADE IN PREVIOUS BUDGET DEBATES.

OF THIS

"I WAS A LITTLE DISAPPOINTED TO HEAR THIS BECAUSE THIS YEAR QUITE DELIBERATELY RESTRUCTURED MY SPEECH TO GIVE PRIORITY ΤΟ THE CONTROL OF PUBLIC EXPENDITURE, WHICH WAS ONE OF THE MAIN THEMES OF THE DEBATE LAST YEAR.

"MANY MEMBERS THEN EXPRESSED CONCERN ABOUT THE GROWTH OF PUBLIC SECTOR EXPENDITURE, AND I FELT IT NECESSARY THIS YEAR TO GIVE PROMINENCE

SOME NOT ONLY TO THE FIGURES BUT TO HOW WE ACTUALLY EXERCISE CONTROL, HE EXPLAINED.

FIRST

TURNING TO THE SUBSTANCE OF THE DEBATE, THE FINANCIAL SECRETARY REVERTED TO HIS BUDGET STRATEGY AND THE JUSTIFICATIONS FOR VARIOUS TAX MEASURES.

THE

IN RELATION TO EXPENDITURE, SIR PIERS SAID THE STARTING POINT MUST BE WHAT THE ECONOMY COULD AFFORD.

++

*IN MY BUDGET SPEECH I SPOKE ABOUT TREND GROWTH RATES AND THE MEDIUM RANGE FORECAST.

AND

L

I EXPLAINED HOW OUR VARIOUS BUDGETARY PLANNING MECHANISMS WORK HOW WE PROJECT BASELINE EXPENDITURE AND FIND SCOPE FOR NEW OR IMPROVED SERVICES.

יי

I WENT ON AT SOME LENGTH TO DESCRIBE HOW WE SET PRIORITIES.

"OUR PRIME AIM REMAINS THAT, TAKING ONE YEAR WITH ANOTHER, PUBLIC EXPENDITURE SHOULD NOT EXCEED THE GROWTH IN THE ECONOMY MEASURED BY THE GROSS DOMESTIC PRODUCT (GDP), HE SAID.

AS

/THE FINANCIAL