TNAG-1609-FCO40-22131-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 59

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Legislative

Council

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The Légce Ad Hoc group on this Bill received two representations and had one meeting with the Administration.

We understand that consultation had been undertaken with

various professional and other bodies, including chambers of

commerce, before the Bill was published and the Bill has been

refined as a result of such consultation.

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Our Members are generally satisfied with the

explanations given by the Administration on the points raised

in the representations. One difficulty, however, deserves our concern: the Bill requires that tax should be paid before

relief is given. Because of the difference in the time of assessment or the payment of tax elsewhere, evidence of payment of tax may not be able to be provided by the taxpayer when the

salaries tax assessment is made by the Commissioner of Inland

Revenue in Hong Kong. We are, however, assured that this

technical difficulty can be met by administrative action by the Commissioner. The Commissioner indicated that he will be

prepared, in appropriate circumstances, to hold over such tax

on production of proof of overseas tax liability and discharge the tax on subsequent production of evidence of payment. This solution appears to be fair and acceptable and I hope that the Financial Secretary can confirm the arrangements in his reply.

Finally, we do not consider reasonable or appropriate the suggestion that Hong Kong should give up tax due to it by

Hong Kong employees on income earned for services rendered in

Hong Kong merely because other countries tax them on a

worldwide basis on account of citizenship or residence.

Sir, with these remarks, I support the Bill.

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