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Inland Revenue (Amendment) (No 3) Bill: new clause

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the second reading to add a new clause to the Inland Revenue (Amendment) (No 3) Bill 1996 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that new Clause 4 as set out in the paper circulated to Members be read the second time.

The new clause seeks to amend section 26A(1A) of the Inland Revenue Ordinance to provide that sums received by or accrued to a mutual fund corporation or trustees of a unit trust established outside Hong Kong or a similar collective investment scheme, where the Commissioner of Inland Revenue is satisfied that the mutual fund corporation, unit trust or collective investment scheme is a bona fide widely held investment vehicle which complies with the requirements of a supervisory authority within an acceptable regulatory regime, will not be included in the profits of the corporation or trustees or the person chargeable to tax for the profits of the collective investment scheme, as the case may be. As I undertook during the debate on the resumption of the second reading of the Bill, the Commissioner of Inland Revenue will issue a Practice Note to clarify the interpretation of such terms as "supervisory authority" and "acceptable regulatory regime" under the new clause.

Mr Chairman, I beg to move.

End

Inland Revenue (Amendment) (No 3) Bill: third reading

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the third reading of the Inland Revenue (Amendment) (No 3) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

The Inland Revenue (Amendment) (No 3) Bill 1996 has passed through Committee Stage with amendments. I move that this Bill be read the third time and do pass.

End