XN000022-1991-11-15 — Page 6

FRIDAY, NOVEMBER 15, 1991

5

REGARDING

THE

EFFORTS MADE TO ADDRESS THE CONCERNS OF

AGREED ENVIRONMENTALISTS, THE SPOKESMAN NOTED THAT THE GOVERNMENT HAD

BE APPROACH SHOULD

ADOPTED THAT, AS FAR AS POSSIBLE, AN INTEGRATED FOR CO-ORDINATING THE IMPLEMENTATION OF ECOLOGICAL MITIGATION MEASURES RECOMMENDED UNDER VARIOUS PORT AND AIRPORT STRATEGY STUDIES.

A

ANY PERSON WHO CONSIDERS HE HAS AN INTEREST, RIGHT OR EASEMENT

AND SEABED AFFECTED MAY SUBMIT IN OR OVER THE AREA OF FORESHORE CLAIM BEFORE NOVEMBER 14 NEXT YEAR TO THE DIRECTOR LANDS, MURRAY BUILDING, GARDEN ROAD, HONG KONG.

+

OF

BUILDINGS AND

0

GOVT INTRODUCES MEASURES TO TACKLE TAX AVOIDANCE

*

A

BILL,

WHICH

INVOLVING

THE SUCH AS

SFEKS TO STOP TAX AVOIDANCE PURCHASE OF INTELLECTUAL PROPERTY AND THE LEASING OF ITEMS SHIPS AND AIRCRAFT, IS GAZETTED TODAY (FRIDAY).

1

THE FIRST PART OF THE INLAND REVENUE (AMENDMENT) (NO. 5) BILL, 1991 SEEKS TO AMEND SECTION 16E OF THE INLAND REVENUE ORDINANCE.

A GOVERNMENT SPOKESMAN SAID THIS SECTION WAS DESIGNED TO

OF TECHNOLOGY ENCOURAGE THE UPGRADING

IN HONG KONG BY ALLOWING PATENT DEDUCTION FOR CAPITAL EXPENDITURE INCURRED ON THE PURCHASE OF RIGHTS, OR RIGHTS TO ANY TRADE MARK OR DESIGN.

"BUT IT HAS BECOME CLEAR THAT THE MEASURE HAS BEEN EXPLOITED AS

A TAX AVOIDANCE SCHEME," HE SAID.

OF AMENDMENTS DEFINE MORE STRICTLY THE TYPES THE WHICH QUALIFY FOR DEDUCTION.

WOULD DEDUCTIONS

IN

EXPENDITURE

BE FUTURE

RESTRICTED

ΤΟ

OF

ESSENCE, IN EXPENDITURE ON PATENT RIGHTS, OR EXPENDITURE ON INDUSTRIAL INFORMATION AND TECHNIQUES LIKELY TO ASSIST IN THE MANUFACTURE OR GOODS AND MATERIALS.

PROCESSING

DEDUCTIONS WOULD NOT BE ALLOWED IN RESPECT OF TRANSACTIONS BETWEEN ASSOCIATED PARTIES.

THE SPOKESMAN SAID THE FINANCIAL SECRETARY GAVE CLEAR NOTICE OF THESE MEASURES IN THE LEGISLATIVE COUNCIL ON APRIL 17 THIS YEAR CONCLUDING THE 1991-92 BUDGET DEBATE.

WHEN

"HE

INDICATED THAT THE AMENDMENTS WOULD APPLY TO TRANSACTIONS ENTERED INTO AFTER THAT DATE, HE SAID.

TE

1986, FOR

THE SECOND PART OF THE BILL DEALS WITH LEVERAGED LEASING. LEGISLATION WAS INTRODUCED TO RESTRICT DEPRECIATION TAX PURPOSES WHERE SHIPS AND AIRCRAFT HAD BEEN ACQUIRED THROUGH LEVERAGED LEASE TRANSACTIONS AND THE USER OF THE SHIP OR AIRCRAFT NOT A HONG KONG OPERATOR.

IN

ALLOWANCES

WAS

/"SINCE 1986