TNAG-1855-FCO40-2630-Legislative-Council-of-Hong-Kong-memoranda-and-minutes-of-me-1989 — Page 170

HONG KONG LEGISLATIVE COUNCIL --8 March 1989

香港立法局

————一九八九年三月八日

43

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

PUBLIC HEALTH AND MUNICIPAL SERVICES (AMENDMENT) BILL 1989

Resumption of debate on Second Reading which was moved on 15 February 1989

Question proposed, put and agreed to.

Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

Committee stage of Bills

Council went into Committee.

INLAND REVENUE (AMENDMENT) (NO.2) BILL 1988

Clauses 1, 2 and 5

FINANCIAL SECRETARY: Sir, I move that clauses 1, 2 and 5 of the Bill be amended as set out in the paper circulated to Members.

Members will recall of the Inland Revenue (Amendment) Bill 1989 seeking to amend two aspects of the principal Ordinance. The first involves the Inland Revenue Board of Review and the second involves the collection of profits tax from non-resident persons. It is with regard to the second aspect that concerns were expressed that the scope of the original Bill might have been too wide, thereby carrying unintended taxation implications for those Hong Kong persons who have business dealings with non-residents.

Following consultation with the ad hoc group and with members of the accounting and legal professions, I am proposing amendments to limit the scope of the operation of the new provisions to a specified and restricted class of non- residents. The proposal is designed to ensure that the new provisions in respect of the collection of profits tax from non-resident persons will apply only to situations where persons in Hong Kong, who are not agents, deal with a