Hong Kong


Stuttering SAR

Posted on November 16th, by Global Tax Weekly in Budgets, Citizenship, Currency, Offshore. No Comments

Although Hong Kong’s liberal economic system is regularly praised here, this Special Administrative Region of China, as it is officially known, has not been shown in the best of lights on the world’s television screens over recent weeks as the authorities, both in the SAR and in Beijing, struggle to square China’s One Party mode of government with the democratic demands of Hong Kong’s citizens. Another worrying, but little-reported development came in the form of figures from the Inland Revenue Department last week, which showed tax revenue growth slowing to a virtual standstill thanks to lacklustre economic growth in 2013/14. So, Hong Kong could do with a timely boost, and perhaps it has just got two: the launch of the Shanghai-Hong Kong Stock Connect scheme, which will allow eligible Mainland investors to trade stocks listed on the Stock Exchange of … Read More »


Saving The SAR

Posted on July 16th, by Global Tax Weekly in Budgets, Offshore. No Comments

Writing for another publication not so long ago, an editorial colleague of mine suggested that Hong Kong was finished as a financial center. Well, actually, he didn’t go quite that far. But questions about Hong Kong’s place in the world at present and in the future, now it is nestled firmly in the bosom of communist China, are worth exploring. For a start, it seems incongruous that China should be creating more competition for Hong Kong by establishing financial centers in the mainland, notably Shanghai, where a new free zone for the financial services and investment, commodities trading, and logistics sectors have been created. Then there’s its rivalry with Singapore which has emerged as a regional investment and trading hub par excellence and voted the best place in the world to do business for the sixth year running by the … Read More »


Judge And Jury

Posted on July 13th, by Global Tax Weekly in Banking, Corporation Tax, International Taxation, Tobin Tax. No Comments

One does have a modicum of sympathy for Her Majesty’s Revenue and Customs, albeit a tiny one. Regularly lambasted by Parliament’s Public Accounts Committee (PAC) – led by Labour MP Margaret Hodge, who has emerged as Britain’s answer to Senator Carl Levin in America – and the mainstream media for being soft on corporate tax avoidance and cosying up to large multinationals in a series of so-called “sweetheart” tax rulings, HMRC is also castigated by the same set of critics for an increasingly heavy-handed approach in its numerous tax compliance campaigns. Damned if you do and damned if you don’t, you could say. On the first point, the criticism of the department has been a tad harsh. HMRC can only uphold the laws which are set by parliament in the first place, and a study of five sweetheart deals by … Read More »


Hong Kong Gong

Posted on June 15th, by Global Tax Weekly in Offshore, Trade. No Comments

In a week when international attention was focused, apart from the unavoidable World Cup, on the 25th anniversary of the Tiananmen Square massacre, commemorated this year as every year with a candlelight vigil in Hong Kong, it was praiseworthy of China to issue a “White Paper” lauding Hong Kong’s economic and financial achievements over the 17 years since it returned to Chinese rule. Of course, having Hong Kong on its doorstep is a massive advantage for China, which can use it as a free-market laboratory, as its own private “offshore” center, and as a source of investment funds via Hong Kong stock exchange listings. A slightly more cavalier commentator might wonder about the extent to which Chinese officials and quasi-state business operators might use Hong Kong as a laundry-basket for their wealth: without Hong Kong, they would find it far … Read More »


South China Serendipity

Posted on May 15th, by Global Tax Weekly in Budgets, Individual Taxation, Offshore. No Comments

It seems repetitive to keep on congratulating Hong Kong for sticking to its last, and once again insisting that it will not increase taxes; but to do so against all the pressures for more spending that exist in every State implies a very clear commitment to small government and low taxation. Like Singapore, Hong Kong insists that it will not step onto the primrose path of popular appeasement. There are to be no bread and circuses! In limiting itself to a maximum level of public spending of 20 percent, the administration sets its face against increased debt as much as against increased taxes. For comparison, Denmark spends 67 percent of GDP, and even the USA, which is far from the top of the table, spends 43 percent of GDP, according to OECD figures. And it’s not true that Hong Kong … Read More »





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