TNAG-1609-FCO40-22131-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 62

SPEECH BY THE HONOURABLE FINANCIAL SECRETARY

IN LEGISLATIVE COUNCIL: WEDNESDAY 25 NOVEMBER 1987

Inland Revenue (Amendment) (No. 2) Bill 1987

Resumption of Second Reading

FINANCIAL SECRETARY:

Mr.

Sir, I am grateful for the comments made this

afternoon by Mr. Peter Poon and Dr Helmut Sohmen and for their

support.

Sc x.

Mr, Poon has referred to a difficulty which might

arise where the time Hong Kong tax is assessed, foreign

tax, although chargeable, has not actually been paid. I

can confirm that in this situation, the Commissioner of

Inland Revenue will, where justified, apply the

discretionary powers he has under the Ordinance to hold

over payment of the Hong Kong tax. Upon application, the l.c. Commissioner will hold over payment of that part of the

tax assessed which is attributable to services rendered in

the foreign territory. Once the foreign tax has been paid

and proof thereof submitted by the taxpayer, the Hong Kong

tax will be discharged.

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