I was delighted to receive a question from a reader of my ‘Rants’. I have to admit that I was more surprised to learn that people read my blog rather than the fact that people would like to have questions answered.
The reader rightly enquired whether Government employees/ legislative councilors clearly using Government vehicles for their personal benefit, i.e. being driven from their homes to the Government offices, were subject to tax on this benefit. Whilst people may feel aggrieved by this use of taxpayer’s money this ‘perk’ is not taxable as it does not represent an assumption of a personal liability of the employee, nor is it a benefit capable of being turned into cash or a benefit derived from a sacrifice of a part of the employee’s income.
Hong Kong has a tax system that legally provides opportunities for employees to receive many benefits from their employment in a tax free manner. These perks can include the provision of housing, the payment of utilities, medical care, pension contributions, motor vehicles etc. It is simply a question of an employer being willing to do this for the employee.
If you have any questions about which you would like to seek my opinion please email me on roddy.sage@afpglobal.com
