01 Intro to HK taxation system-2014 - s

K and commonwealth countries uk tax cases persuasive

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Unformatted text preview: ies U.K. tax cases (persuasive only) tax Board of Review cases ( Board ) 8 Others Inland Revenue Departmental Interpretation Inland and Practice Notes (DIPN) ( ) - No binding force and the taxpayers can still No have the right to object & appeal against an assessment affected by any of the DIPN. assessment - Up to 7/2012, there are in total 49 DIPN. 9 Merits of Hong Kong taxation system 1. 2. 3. 4. 5. 6. 7. simple and easy to administer generate sufficient recurrent revenue neutral adapt to changing commercial practices combat tax avoidance and evasion equitable between different classes of taxpayers capable to achieve non-fiscal objectives when capable necessary necessary 10 Common features of the Hong Kong Common taxation system - 1 taxation 1. Schedular tax system (see slide no. 13) and no total income concept (exception personal assessment by election) 2. Territorial ( ) source concept and no residence concept (exception- special provisions) 3. Direct assessment from taxpayer concerned 4. Low tax rate, limited to standard11 rate Common features of the Hong Common Kong taxation system - 2 Kong 5. No tax on dividend income No 6. 6. No capital gains tax ( No 7. 7. Husband and wife treated as two independent Husband persons (exception - joint assessment) persons 8. Very few withholding taxes ( 9. Very few anti-avoidance tax legislations 10. Provisional tax assessment system ( Provisional ) ) ) 12 The Schedular Tax System No total income concept Tax is imposed separately for different class of income under 3 headings: Property tax Salaries tax Profits tax 13 Before 1989/90, there were 4 Before headings i.e. property tax, salaries tax, profits tax and interest tax. tax, Exception: personal assessment ( Exception: ) i.e. aggregate the income from different sources; subject to qualifications for election. subject 14 Brief intro. to Inland Revenue Ordinance Historical origin of the Inland Revenue Ordina...
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This document was uploaded on 03/16/2014.

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