TNAG-1789-FCO40-2549-Hong-Kong-Vietnamese-refugees-general-1989 — Page 308

HONG KONG LEGISLATIVE COUNCIL —— 2 November 1988

香港立法局

一九八八年十一月二日

45

interpretation of the definition of "agent" in relation to a non-resident person under the Ordinance.

The amendment contained in clause 2 of the Bill will enable a non-resident to be charged in the name of a person in Hong Kong where that person, although not an agent of the non-resident, is, nevertheless, a person from whom the non- resident is in receipt of profits or income arising in Hong Kong. It is also made clear that a Hong Kong person chargeable to tax in respect of a non-resident is required to deduct from any sum paid or credited by him to the non-resident an amount sufficient to produce the tax due.

I should emphasize, Sir, that the amendment in relation to the taxation of non-resident persons does not alter the present taxation policy or, indeed, its application. What it is designed to achieve is to restore the position to that which was thought to exist prior to the High Court decision.

Sir, I move that the debate on this motion be adjourned.

Question on adjournment proposed, put and agreed to.

MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) BILL 1988

THE SECRETARY FOR TRANSPORT moved the Second Reading of: 'A Bill to amend the Motor Vehicles (First Registration Tax) Ordinance.

He said: Sir, I move the Second Reading of the Motor Vehicles (First Registration Tax) (Amendment) Bill 1988.

The purpose of this Bill is twofold. The first is to impose first registration tax on special purpose vehicles. The second is to exempt buses used solely for the training of bus drivers from such a tax.

Special purpose vehicles are used primarily for purposes other than the carriage of goods or persons. They include such vehicles as mobile cranes, bulldozers and fork lift trucks. They were formerly included in the general definition of "motor vehicle" under the Motor Vehicles (First Registration Tax) Ordinance and subject to a 15% first registration tax. On 13 May 1983, separate definitions for different classes of vehicles were introduced into the Ordinance, but the definition for special purpose vehicles was unintentionally omitted. This