2012-2013 Hong Kong Tax Newsletters

You will find here all the Hong Kong Tax newsletters released in 2012 and 2013.

Dec. 2013 - Latest view of the Inland Revenue Department on waiver of debt

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The Hong Kong Institute of Certified Public Accountants (HKICPA) holds annual meetings with the Inland Revenue Department (“IRD”) to exchange views to clarify interpretation of practical tax issues which are of interests to taxpayers.

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Nov. 2013 - Holding over of 2013/14 provisional tax

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For taxpayers having financial difficulties due to fall in earnings, other than having the tax paid by instalments or making borrowings, it may also be a solution to have the 2013/14 provisional tax wholly or partly held over.

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Nov. 2013 (special issue) - Nice Cheer!

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The Court of Final Appeal (“CFA”) handed down its judgment in Nice Cheer Investment Limited (“Nice Cheer”) v Commissioner of Inland Revenue (“CIR”) on 12 November 2013, confirming the lower courts’ decision that unrealised gains in respect of Hong Kong listed securities being held for trading were not “profits” chargeable to tax in Hong Kong.

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Oct. 2013 - Case study: Section 82 of the Inland Revenue Ordinance

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The Government has issued a press release concerning a case under Section 82 of the Inland Revenue Ordinance (“IRO”).
A former Senior System Engineer of a bank was convicted on four charges of evading property tax and salaries tax by omitting to report rental income and making false statements in connection with claims for deduction of home loan interest.

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Aug. 2013 - Late filing consequences for overdue tax profits

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Under the 2012/13 block extension scheme, the extended due date for filing the 2012/2013 profits tax return for corporations and partnership businesses with accounting year end dates falling within 1 to 31 December 2012 was 15 August 2013, which has just lapsed.

If you have missed this deadline, what may be the consequences?

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Jun. 2013 - Application for certification of resident status

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Hong Kong has concluded twenty-nine Comprehensive Double Taxation Agreements ("CDTAs") as of the date of this newsletter, with another ten CDTAs being under negotiation with the respective countries / territories.

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May 2013 - Exchange of information regime: further developments in Hong Kong

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In the April 2012 issue of Mazars Hong Kong tax news, we reported that the Global Forum on Transparency and Exchange of Information for Tax Purposes (“The Global Forum”) of the Organization for Economic Co-operation and Development had completed Phase 1 of Hong Kong’s Peer Review on the implementation of international standard on Exchange of Information (“EoI”) (report published in October 2011).

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Apr. 2013 - Inland Revenue Department has issued tax returns for 2012/2013

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The tax filing season for the year of assessment 2012/2013 (i.e. for the fiscal year ended 31 March 2013) has commenced.

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Mar. 2013 - Court of Appeal disallows deduction for moulds used by a hangers supplier in China

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The Court of Appeal (“CoA”) handed down its decision on Braitrim (Far East) Limited (“BFEL”), upholding the decision of the Board of Review that the provision of moulds by BFEL to its contract manufacturers in China constituted a lease arrangement.

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Feb. 2013 - Comprehensive taxation agreements with Canada and Italy

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Hong Kong has signed two comprehensive double taxation agreements (“CDTAs”) with Canada and Italy on 11 November 2012 and 14 January 2013. They are the 26th and 27th CDTAs concluded by Hong Kong.

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