TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 258

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In all fairness, there should be a channel for appeal by the taxpayer when the latter has good reasons to believe that there have been unnecessary delay on the part of the tax authority. I sincerely hope that the Administration can respond speedily and establish a system to deal with such appeals. Only with such arrangement, the Government can inspire confidence in the minds of the taxpayers.

To conclude, Sir, I shall reiterate my main objections

to the proposed Bill as it now stands.

Firstly, I feel the taxpayer should always be given the option of choosing between offering a bank guarantee or purchasing Tax Reserve Certificates to cover his payment of tax when the Commissioner considers that the taxpayer's objection against a tax assessment has sufficient merit. Even with this option, this may not be of help to small organisations or individuals who may have difficulties in arranging for a bank

guarantee.

Secondly, the proposed Bill should cater for an appeal procedure for the taxpayer against delay in finalizing an objection by the tax authority, which at present is not

included.

Thirdly, the existing Ordinance already gives the necessary powers to the Commissioner to exercise his

discretion. The additional measure contained in this Bill

serve little purpose.

Sir, Hong Kong is regarded as an international financial centre. To maintain this position, our tax structure must be simple and reasonable. It is therefore important that our tax laws must be fair and equitable. I have reservations on whether the proposed Bill can meet this criteria. In view of this, I object to the motion.