TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 222

6.2.87

DOUBLE TAXATION

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72

136.

As regards double taxation, Members will

recall that last year the Commissioner of Inland Revenue

was asked to look into this matter and obtain the views of

a number of professional organizations. Whilst all are

agreed that double taxation presently occurs to some

extent, particularly in relation to employees who make

frequent trips to the People's Republic of China, the

extent of the problem, and the cost to the revenue of

possible remedies, has proven difficult to quantify.

question of double taxation is currently being examined

against this background and I am hopeful that some

progress can be made in the not too distant future. But

in the meantime, my proposal to amend the law in relation

to time apportionment cases will provide a measure of

relief to some taxpayers.

The

ANTI-AVOIDANCE LEGISLATION

137.

Finally, I come to a matter which, if left

unchecked, could result in a substantial drain on Profits

Tax yield. I am aware that a growing number of taxpayers

are entering into asset refinancing arrangements which are

variations on "Myer" schemes, so named after an Australian

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