XN000022-1992-11-25 — Page 5

WEDNESDAY, NOVEMBER 25, 1992

THE INLAND REVENUE ORDINANCE ALLOWS THE COMMISSIONER TO ISSUE A CERTIFICATE TO A DISTRICT JUDGE IN RESPECT OF A PERSON WHO HE BELIEVES IS ABOUT TO, OR IS LIKELY TO LEAVE HONG KONG WITHOUT PAYING ALL TAX ASSESSED UPON HIM.

THE DISTRICT JUDGE MUST THEN ISSUE THE "STOP ORDER" TO THE COMMISSIONER OF POLICE TO TAKE MEASURES AS MAY BE NECESSARY TO PREVENT THE PERSON FROM LEAVING HONG KONG WITHOUT PAYING THE TAX DUE.

MR KWONG SAID SUCH MECHANISM DID NOT PROVIDE A TAXPAYER ANY AVENUE FOR APPEAL.

IN JUNE LAST YEAR, A DISTRICT JUDGE REFUSED ΤΟ ISSUR "STOP ORDERS" SINCE TO DO SO COULD CONTRAVENE THE BILL OF RIGHTS PROVIDES FOR CERTAIN EXCEPTIONS TO THE FREEDOM TO LEAVE HONG WHERE THIS IS IN THE PUBLIC INTEREST.

WITH

THREE

THAT

KONG,

FOR

"THE BILL BEFORE THIS COUNCIL PROVIDES SPECIFICALLY CIRCUMSTANCES UNDER WHICH A 'STOP ORDER' MAY BE REVOKED, MR KWONG

SAID.

**

IT WAS SUGGESTED THAT THE BILL SHOULD GO FURTHER AND TRANSFER ΤΟ THE COURTS THE DISCRETION TO DECIDE WHETHER A "STOP ORDER" SHOULD BE ISSUED IN THE FIRST PLACE.

"SUCH A PROCEDURE WOULD INEVITABLY TAKE A GOOD DEAL OF TIME IN INDIVIDUAL CASES.

"IN THE CASE OF DEFAULTING TAXPAYERS, OR TAXPAYERS WHO MAY INTEND TO DEFAULT, THE ABILITY OF THE GOVERNMENT TO PROTECT THE PUBLIC INTEREST DEPENDS CRITICALLY ON SPEED OF ACTION, HE SAID.

..

MR KWONG SAID TO TRANSFER DISCRETION TO ISSUE "STOP ORDERS" TO THE COURTS WOULD PROVIDE A WINDOW OF OPPORTUNITY FOR PERSONS WITH UNPAID TAX TO ABSCOND AT WILL WHICH WOULD BE AN OPEN INVITATION TO TAX EVASION.

HE SAID THE BILL INTRODUCED PRESERVED THE GOVERNMENT'S ABILITY ΤΟ PROTECT PUBLIC INTEREST BY TAKING SWIFT AND EFFECTIVE ACTION ΤΟ PREVENT DEFAULTING TAXPAYERS FROM LEAVING THE TERRITORY. IT ALSO STRENGTHENED THE RIGHTS OF INDIVIDUAL TAXPAYERS.

ORDER"

"BY REQUIRING THE COMMISSIONER TO SERVE A COPY OF THE "STOP UPON THE TAXPAYER AND BY PROVIDING PROPER CHANNELS OF APPEAL, IT ENSURES THAT THE RELEVANT PROVISIONS OF THE INLAND REVENUE ORDINANCE WILL BE CONSISTENT WITH THE BILL OF RIGHTS," MR KWONG SAID.

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