TNAG-1449-FCO40-1953-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1986 — Page 205

UMELCO

DRAFT SPEECH BY HON PETER POON, MBE LEGISLATIVE COUNCIL - 12.3.1986

JP

9

Put (Lega)

HKR 011/3

RECEIVED IN REGISTRY

Inland Revenue (Amendment) Bill 1986

2 1 MAR 1986

Sir,

INDEX

PA

UNTAY

Moduir Tüken,

AjB Q

I shall speak briefly on the Inland Revenue (Amendment) Bill 1986 which contains a number of important amendments to our tax legislation. In July 1985, Government published the Bill in draft form. This is highly commendable because it has enabled full consideration of the proposed measures and its implications by all affected by the change. The UMELCO Ad Hoc Inland Revenue Review Panel formed soon after to study that Bill invited and in fact received over forty representations, many of which contain constructive criticisms and valuable suggestions. Meetings were held with interested parties and the Administration resulting in the Group making a number of recommendations on the draft Bill. Practically all of these recommendations, I am happy to say, have been accepted by the Administration. The Bill before us was published on 17th January 1986. A LegCo Ad Hoc Group was formed to study the Bill. Eight representations have since been received, most of which are highly complimentary of the Bill in its revised form but some have made further suggestions. The Group has carefully studied all such suggestions and has had discussions with the Administration.

Apart from the minor amendment to Clause 4 of the Bill on deductions allowed in respect of interest on debentures or similar instruments, it is felt that there are no new evidence or special circumstances which would justify further amendments.

Many of the clauses of the Bill contain anti-avoidance

I have no wish provisions which are extremely difficult to draft.

The to bore Members with the technical details this afternoon. legislation have been thoroughly reviewed during a period of nearly eight months. I am reasonably satisfied that the Bill in

its present form will be able to achieve three main objectives.

Firstly, it is relatively simple and conforms with Hong Kong's tax

UMELCO