3. Section 23 of the principal Ordinance provides that by the end of the first month of a quarter all Urban Council rates lawfully demanded in the previous quarter are to be paid to the Urban Council. Thus, assuming e quarter January March, the amount demanded in the period 1 January 31 March must be paid by 30 April. In practice what occurs is that, under section 20 of the Public Finance Ordinance (Cap. 2), an advance is made to the Urban Council in January which approximates to the Urban Council rates for that quarter. In the example this figure would be adjusted in April and a further advance made for the quarter April June. The reason for this advance is to assist the Urban Council with its cash flow problems.
4. From 1 May 1986 all refunds, rate relief, surcharges etc. will apply to all rates and be borne or credited, as the case may be, proportionately as between general rates and Urban Council/Regional Council rates. This Ordinance amends the principal Ordinance to require the Collector of Rates (Director of Audit) to pay the Urban Council and Regional Council rates to the Urban and Regional Councils on a rate collected basis. Thus, using the example above, he is gequired to pay all Urban Council and Regional Council rates (plus or minus surcharges, refunds etc.) to the respective Councils by 30 April. Again it is proposed that, in practice, payments will be made in advance to assist the Councils as mentioned above.
5. The Ordinance makes no transitional arrangements. As there will be a number of payments made after 1 April which relate to the previous quarter, all payments received and refunds made after 1 April will be treated as if due in the quarter in which they are in fact paid. It is accepted that this will involve a double payment to the Urban Council and this has been taken into account in assessing its share of rates.
6. Before the Governor assented to the Bill in the name and on behalf of Her Majesty, the Attorney General advised that he could properly do so.
February 1986.
ATTORNEY GENERAL'S CHAMBERS,
HONG KONG.
edant
Law Draftsman.
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