mini-case ans

mini-case ans - BUSI 0018 Hong Kong Taxation Mini Case Unit...

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Case_U3_Salaries_1_Ans 1 BUSI 0018 – Hong Kong Taxation Mini Case Unit 3 – Salaries Tax (1) Suggested Main Points for Discussions Salaries Tax is charged on income from office, employment and pension arising in or derived from Hong Kong, that is, on income sourced in Hong Kong (S.8(l)). The phrase "arising in or derived from Hong Kong" is not defined in the IRO and is to be interpreted according to case law and Board of Review decisions. Source of income from employment In determining the source of the employment, the Board of Review has, in the past, taken the view that it had to be decided on the totality of facts of each case, which took into consideration the following factors: (1) the place where the contract, whether verbal or written, is enforceable; (2) the exact nature of the taxpayer's duties, i.e. the job he is remunerated for; (3) whether the taxpayer serves, or holds office in, or has employment with, a Hong Kong company, organization or establishment in Hong Kong for a non-resident business; (4) who remunerates the taxpayer and where the cost of this remuneration or of his service is ultimately borne; (5) whether the remuneration or cost forms an ultimate or direct part of the expenses or cost of a Hong Kong company or establishment; (6) whether the duties performed by the taxpayer during his temporary absence from Hong Kong is incidental to his employment or office in Hong Kong or is clearly defined in his job. However, following the decision in CIR v George Andrew Goepfert (2 HKTC 210), it is now established that in looking for the source of employment, three factors are mainly to be considered: (1) the place where the contract of employment was negotiated, entered into and enforceable;
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This note was uploaded on 04/07/2012 for the course TAX 101 taught by Professor Ng during the Spring '12 term at HKU.

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mini-case ans - BUSI 0018 Hong Kong Taxation Mini Case Unit...

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