Before you migrate to UK, you are suggested to have a glance at the UK tax system. HM Revenue and Customs (HMRC) is the governmental department in UK (equivalent to Inland Revenue department in Hong Kong) which is responsible for administering and collecting taxes in the UK. The core tax …
Category: Taxation
Incorrectly Claiming Deductions Of Home Loan Interest
A taxpayer was convicted today (February 20) at the Kwun Tong Magistrates’ Courts on three charges in relation to omitting rental income and incorrectly claiming deductions of home loan interest when filing returns for property tax and salaries tax. He was fined $3,000 ($1,000 for each charge) plus a further …
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Failure To Notify Income to IRD
A property investment company was convicted today (March 19) at the Eastern Magistrates’ Courts for failing, without reasonable excuse, to inform the Commissioner of Inland Revenue (CIR) of its chargeability to profits tax for the years of assessment 2006-07, 2007-08, 2008-09 and 2010-11, contrary to sections 51(2) and 80(2)(e) of …
Tax Evasion
A businessman was sentenced to 18 months’ imprisonment and ordered to pay a total fine of $11,700,000, equivalent to approximately 150% of the total tax evaded after being convicted of tax evasion at the Wan Chai District Court today (May 16). The defendant, aged 43, was a director of Company …
Transfer Pricing in Hong Kong
Transfer pricing regulatory regime mandates Hong Kong entities to prepare transfer pricing documentation, namely master file, local file and country-by-country report, requires a Hong Kong entity to articulate and execute a consistent transfer pricing policy and provide the Assessor with useful information for assessing transfer pricing risks. Transfer pricing documentation …
Exchange of Tax Information
Hong Kong, as a responsible member of the international community, is committed to enhancing tax transparency and preventing tax evasion. There are two types of exchange of information instruments: the exchange of information article incorporated in the Comprehensive Double Taxation Agreements / Arrangements (DTAs) and Tax Information Exchange Agreements (TIEAs). …