2
"off-shore' interest. I am glad that such recommendation has received favourable consideration by the Financial Secretary. Such repeal will remove the 'uncertainty' I referred to earlier and will be welcome by the business community and the legal and the accountancy professions. It is understood that the controversial Practice Note No. 13 will be suitably amended to clarify and reflect the practice of the Inland Revenue Department. I sincerely hope that the amended version would be issued as soon as possible. The cost of repealing the relevant legislation may not be as great as estimated. In fact, if such provisions remain in force, most businesses affected by them will definitely consider shifting their funds to avoid the tax on 'off-shore interest' and new companies which may be unwittingly caught by such legislation will be inclined to avoid Hong Kong as
their base.
Finally, I am pleased to see that Government has responded positively to constructive and helpful suggestions supported by fair and reasoned arguments. The Amendment Bill before us is a demonstration of its avowed intention to keep our tax legislation as simple and effective as possible.
No comments yet.
Private notes are available after approval.