TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 63

the

cases, involve claims that certain income from employment should be excluded from assessment. As the law now stands, question to be

be considered in each claim for time apportionment is essentially one of fact, involving examination of all the

circumstances surrounding the employment of, and the duties performed by, the employee.

134.

Because

considerable amount of time is spent by the Inland Revenue Department, the Inland Revenue Board of Review

and indeed by taxpayers themselves in seeking to resolve

disputed cases, I propose, subject to the advice of the

Executive Council, to amend the Inland Revenue Ordinance to provide for the automatic granting of time apportionment where, in a year of assessment, an employee renders services outside

Hong Kong for a period of more than 60 days in total. At the

same time I propose that, where services are rendered outside

Hong Kong for 60 days or less, the whole of the income from that

employment shall be regarded as arising from services rendered in Hong Kong and no time apportionment will be permitted. I

estimate the cost to the revenue of these amendments which I propose will take effect from the year of assessment 1987-88 to

be about $25 million in the year of implementation and $35 million in a full year.

TAXATION OF MARRIED WOMEN

135.

I turn now

the difficult and sensitive subject of separate taxation for married women. It is complicated, as my predecessor explained in his 1983 Budget Speech (54). Members of this Council and various interested groups have made a number of proposals in recent weeks, and the media have also taken an active interest. I believe, however, that my proposed personal tax concessions, which benefit all rather than any particular group of salaries taxpayers, rate a higher priority and will be more widely acceptable. Members will recall that the cost of

(54) 1983 Budget Speech, paragraph 137.

42

/introducing