TNAG-2906-FCO40-4180-Hong-Kong-Governor-1993 — Page 28

LINE TO TAKE FOR THE PANEL MEMBERS

THE GOVINDON'S TAX POSITION

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Present Position

We have

reviewed the Governor's tax position very

carefully taking into accent:

(i) The statutory waption from salaries

tax;

(ii) The binding naturs of the Governor's

contract of employment; and

(iii) The important differences between the

Queen's and the Governor's tax position.

We have concluda

I

!

concluded that equity and logic dictate that the status quo be

quo be maintained. since the traditional

terms and conditions of service have been established on

the assumption at

Governor's income is free of

salaries tax,

4

we have concluded that it is only fair and

reasonable that this ressin the position. We firmly that the legal obligations contained in the

believe

contract must stand.

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