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Unformatted text preview: Unit 1 Unit Hong Kong Taxation System Taxation
( ) 1 LEARNING OBJECTIVES
After this lecture, you should be able to: Describe the basic features of Hong Kong Describe taxation system taxation Explain the sources of Hong Kong tax law Name the three direct taxes in the Inland Name Revenue Ordinance (IRO) Organisation structure of IRD Administrative and judicial organisations
2 Meaning of tax
Oxford Dictionary “contribution levied on persons, property, or business, for property, support of government.” support
3 Types of Tax ( Types ) s2(1) of Inland Revenue Ordinance salaries tax / provisional salaries tax profits tax / provisional profits tax property tax / provisional property tax property additional taxes……. 4 Types of Tax Revenue
Direct Tax ( Direct )
is – ) Tax demanded from the person who it Tax intended should pay it e.g. employees intended HK – Inland Revenue Ordinance HK Salaries Tax ( ), Property Tax ( ), and Profits Tax ( ) and Estate Duty Ordinance – Estate Duty ( ) (abolished effective Feb. 11, 2006) (abolished 5 Indirect Tax ( Indirect )-1 )-1 Tax demanded from one person in the Tax expectation and intention that he shall indemnify himself at the expense of another. E.g. excise ( cigarette) and customs( services charge, VAT( services e.g. beer & ), hotel ), sales tax.
6 Indirect Tax ( ) -2
( HK – Betting Duty Ordinance HK ) – Bets and sweep tax Bets Hotel Accommodation Ordinance ( Hotel ) – hotel accommodation tax hotel Stamp Duty Ordinance – Stamp Stamp Duty ( )
7 Sources of Hong Kong Tax Sources Law ( ) Statute law Statute Inland Revenue Ordinance Inland (Chapter 112) (Chapter Inland Revenue (Amendment) Inland Ordinance Ordinance Inland Revenue Rules ( Inland )
8 Case law ( Case ) Hong Kong Tax Cases U.K. and Commonwealth U.K. countries tax cases countries Board of Review cases Board
9 ( Others Inland Revenue Departmental Inland
Interpretation and Practice Notes (DIPN) ( ) 10 10 Characteristics of Hong Kong Characteristics taxation system taxation
1. 2. 3. 4. 5. 6. 7. simp...
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- Spring '09
- Financial Accounting