SINCE 21 December 1998, the Inland Revenue Department has reduced the interest rate of the "Pay As you Earn" (PAYE) Scheme from 8.16 per cent per annum to 5.7083 per cent per annum. Obviously, the revised interest rate makes joining the scheme relatively unattractive as compared with some other forms of saving or investment.

If you have good knowledge on investment, it is a desirable option to use your spare money to invest and spend part of the return on tax payment, instead of joining the PAYE Scheme when its interest rate is low. However, it will not be a good idea to invest without that knowledge while hoping that the return can cover your tax payment when it is due.

For example, if you invest in the stock market with the intent of paying your tax when it is due by selling some of the shares, you may be frustrated to find that the fluctuating stock market spoils your plans. As a result, you may have to resort to tax loan and one of your original purposes of investment is defeated.

The PAYE Scheme may in fact be regarded as a regular r saving plan for the specific purpose of tax payment. Those who have joined the scheme with an appropriate amount of monthly saving will readily and happily meet their tax payment.

You should have specific aims in saving and investment and should be persistent once you have started. If you joined the PAYE Scheme when its interest rate was high and then quit when it falls, you may be defeating the original purpose of regular saving for tax payment.

Also, an opportunity cost will be incurred as you change your forms of saving or investment from time to time.

In the end, the PAYE Scheme is only a specific saving plan instead of an investment tool. So maybe you'd better not drop it simply because of its comparatively low interest rate at times.

Things could change.

¡Ð 20/F Police Officers'Mess Restaurant and
'699' Louonge Committee

The decorations may be coming down everywhere else, but Club Members will have plenty of reasons to carry on celebrating in January, Both the TSK Hall and Beat Cafe have exciting new dishes on offer at great low prices, and the Verandah Bar's increasingly popular Happy Hour will continue every evening between 5pm and 8pm ¡Ð only $9 for a bottle of Filipino San Mig. What's more, patrons of the restaurants who spend over $1,000 will receive a complimentary bottle of red wine.
On the subject of wine, the Club Wine Shop is in the process of re-stocking after its return to Club operation. The good news for boasting an increased selection of wines from around the world at the lowest possible prices.

Members are reminded that the winter pool opening hours are from 7am to 2pm on weekdays, and 9am to 4pm on weekends and holidays. Why not try starting your day with a refreshing swim in the Club's beautifully warm water, followed by a hearty breakfast in the Beat Cafe? Western or Chinese style breakfast is available every morning from 7:30am.

The Verandah Bar will be going through a bit of a face-lift in the next few weeks. The pictures of the old boys with large moustaches will be gracefully retired, and replaced with spectacular scenes from around Hong Kong. In addition, the Club is trying to gather as many Formation wall plaques as possible for an "Uphanging" sometine later this month. Pledges of plaques have already been gratefully received from CPB, KEOB, SBU, VIPPU, SDU, PTS, CCB,FPD, EU NTN and MEDIV among others. If your Formation is not in this list but has a plaque, please contact the AM POC, Robbie microbe on 2591-1930.

Leave Homes

FORCE holiday bungalow accommodation is available from January 13 to February 8 for Gazetted and Inspectorate officers and their civilian counterparts as follows:

Interested colleagues should obtain a letter of introduction form the Personnel Services Branch Holiday Facilities Unit and contact the hotels directly for reservations.