RoddysRant.com > 2

Misled By The Inland Revenue Department?

November 18, 2009

When I arrived in Hong Kong in the early 1980’s obtaining a copy of the Inland Revenue Department’s Assessor’s Manual was considered essential, but extremely difficult to acquire.  Gradually the Assessor’s Manual has been replaced by a series of Departmental Interpretation and Practice Notes (DIPNs).  Whereas the Assessor’s Manual had [...]

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2010 Budget Wish List

November 9, 2009

With Hong Kong’s budget only four months away, give or take a few weeks, now is the time to make your own views known to the Financial Secretary, Mr John Tsang.
People may consider this a futile exercise, but in my opinion this is far from being the case.  The 2009 budget lacked substance, or at [...]

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Source of Profits - DIPN 21 Needs Amendment

October 22, 2009

Disagreements between the Inland Revenue Department (”the Department”) and taxpayers as to whether a particular source of profit accruing to a business carried on in Hong Kong is derived from Hong Kong, and therefore taxable, arise all to frequently. It would be foolish to believe that this uncertainty is ignored by persons contemplating establishing [...]

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Why Reduce The Tax Rate?

October 6, 2009

I read with interest that the Hong Kong General Chamber of Commerce believes that it is essential to reduce the rate of profits tax, the tax on business profits, to 15% in order to enhance Hong Kong’s competitive position. I question whether a reduction in the rate of profits tax is that important in [...]

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US tax snoops zero in on Hong Kong? Let’s be realistic.

September 28, 2009

Nick Westra’s article in this week’s Sunday Morning Post (September 27th, 2009) must have pleased the IRS.  If anything is going to raise concern amongst US citizens living in Hong Kong it is exactly this type of suggestion that a foreign authority will have unrestricted access to information.  The article appears to ignore the fact [...]

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Datatronic Limited Saga Part2 - Manufacturers Claim Hundreds of Firms Hit by Unfair Tax Rule

September 25, 2009

I refer to Mr Sun’s comments in Denise Tang’s article “Manufacturers claim hundreds of firms hit by unfair tax rule” published in the Wednesday 23rd September edition of the South China Morning Post.
I whole heartedly support Mr Sun’s views and indeed I have been very frustrated with the Inland Revenue Department’s (“the Department”) intransient stance [...]

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Expat trapped in Hong Kong

September 25, 2009

Is it time for Hong Kong to overhaul its tax collection methods? Multi million dollar losses suggest it is.

The article, ‘Expat Trapped in Hong Kong over unpaid tax bill’ that appeared in last week’s issue of The Sunday Morning Post highlighted an interesting problem for the Hong Kong Inland Revenue Department.
The piece tells the story [...]

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Frustrated with Cathay Pacific and British Airways

September 1, 2009

A purely personal rant.
My frustration with Cathay Pacific and British Airways reached an all time high last night.  Having had to plead with the British Airways ground crew to allow my 12 year old daughter one small additional check-in bag, I watched as other children who were returning to school in the UK repacked suitcases [...]

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Who is required to file a Hong Kong Profits Tax return?

August 31, 2009

I am frequently asked, primarily by overseas companies, under what circumstances a company, whether registered in Hong Kong or in an overseas jurisdiction, is required to file a Hong Kong profits tax return and to have its annual accounts audited.
Under Section 51 Inland Revenue Ordinance, an assessor may issue a profits tax return to any [...]

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Hong Kong’s anti-avoidance provisions

August 27, 2009

The judgement by Mr Justice Ribeiro PJ in the Court of Final Appeal case of Ngai Lik Electronics Company Limited and the Commissioner of Inland Revenue provides very clear guidance as to the correct approach to take when applying Hong Kong’s general anti-avoidance legislation, Section 61A Inland Revenue Ordinance.
Mr Justice Ribeiro PJ criticised the approach [...]

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