TNAG-0620-FCO40-768-Annual-accounts-of-Hong-Kong-Government-for-year-ending-1976-1977 — Page 7

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Comments by the Finance Branch of the Government Secretariat on paragraphs in the Report and Certificate of the Director of Audit on the Accounts of the Hong Kong Government for the year ended 31st March 1976

INTRODUCTION

Paragraph 4: Staff

The Director has since been provided with additional staff

to enable him to recommence full audit in areas where restricted

examination was necessary because of staff shortages.

STATEMENT OF RECEIPTS AND PAYMENTS

REVENUE

Paragraph 9: Assessment and collection of revenue

2.

Amending legislation

There are nine outstanding cases. Amending legislation in

two cases has been completed, but implementation has been held up to

allow further representations to be considered; the remaining cases are

being processed. The Finance Branch monitors progress monthly.

Faragraph 10: Arrears of revenue

3.

In the case of Internal Revenue, the arrears of Earnings

and Profits Tax at the end of March 1976 amounted to $157 million and was

a decrease on the corresponding figure of $170 million in the previous

year, despite an increase in tax assessed. The decrease was due partly

to the introduction of the 2-instalment syster for payments of provisional

tax, and partly to increased recovery action. However, the arrears which

remained outstanding at the end of June 1976 were paradoxically up on

the corresponding figure as at 30th June 1975 because of three main factors.

Firstly, there was a significant increase in the number of profits tax

assessments issued by the Investigation Section in the last quarter of

1975-76; these assessments are seldom paid on due dates and payment by

instalments has to be arranged. Secondly, a large number of routine

/estimated...........