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Laws of Taxation in the Hong Kong SAR offers a socio-economic perspective on Hong Kong tax law. It provides an in-depth study for professionals who are already familiar with HKSAR tax law and wish to further examine the theory behind it. The aim of the book is to critically evaluate the Hong Kong tax system rather than merely providing a detailed description of it.
Topics covered include: tax on land income, tax on salaries income, tax on profits income, and depreciation allowances. There is also a chapter on tax administration and ethics. The book discusses the rationale of tax legislation and its adequacy in achieving equity and fairness and protecting the rights of citizens.
Laws of Taxation in the Hong Kong SAR would be a valuable reference for both accounting and legal professionals as well as useful supplementary material for those studying Hong Kong taxation at postgraduate or advanced undergraduate level.
Chapter I - Theories and structure of taxation
1. Introduction
2. The theoretical framework of taxation
2.1 Definition of tax
2.2 The tax base
2.3 The objectives of taxation
2.4 Sources of revenue and public expenditure in the HKSAR
3. The structure of tax legislation
3.1 The constitutional authority to tax in the HKSAR
3.2 The Basic Law and the power to tax
3.3 The legal framework of tax legislation in the HKSAR
4. The administration and adjudication of tax legislation
4.1 The Inland Revenue Department
4.2 The Board of Inland Revenue
4.3 The Board of Review and the courts
5. Interpretation of tax legislation
5.1 Tax as an autonomous field
5.2 Bilingual legislation
5.3 Interpreting tax legislation
5.4 Approaches to interpretation by the courts
Chapter II - Tax on land income
1. Introduction
2. The tax base for income from property
3. Legislative history: from equitable tax base to regressive system
4. The black letter law of property tax
4.1 Scope of charge
4.2 Assessable value and net assessable value
4.3 Exemptions and reductions
4.4 Planning and collection of property tax
5. A treatise of HKSAR property tax
5.1 Income inequality
5.2 Distributive justice
5.3 An equitable tax rate
5.4 Economic development of the HKSAR
5.5 A broad tax base
6. Conclusion
Chapter III - Tax on salaries income
1. Introduction
2. HKSAR source income
2.1 The deeming provision: HKSAR and non-HKSAR employment
2.2 Factors determining HKSAR source income
3. Income according to common law
3.1 Income must arise from services rendered
3.2 Income must arise beneficially in money or money's worth
4. Income from office and employment
4.1 Common law definition of office
4.2 Common law concept of employment
4.3 Statutory definition of income from office and employment
5. Income from pension
5.1 Source of income from pension
5.2 Retirement schemes
6. Exemptions, deductions and personal allowances
6.1 Exemptions
6.2 Deductions of outgoings and expenses
6.3 Deductions other than outgoings and expenses
6.4 Personal allowances
7. Time-basis assessments
7.1 Accrued income
7.2 Commencing and ceasing deriving income
7.3 Treatment of lump sum receipts
8. Tax administration
8.1 Separate taxation
8.2 Provisional salaries tax
9. Anti-avoidance and tax planning
9.1 General anti-avoidance provisions
9.2 Tax professionals
9.3 Tax planning
Chapter IV - Tax on profits income
1. Introduction
2. The common law concept of profit
2.1 Law and accounting
2.2 The choice of accounting method
2.3 Realization of profit
2.4 Economic reality
3. Capital gains
3.1 The fruit and tree analogy
3.2 Fixed and circulating assets
3.3 Compensation payment
3.4 Towards an equitable tax base
4. The black letter law of profits tax
4.1 Persons
4.2 Exclusion of capital gains from profits
4.3 Trade, profession or business
4.4 Carrying on a trade, profession or business in the HKSAR
4.5 Profits arising in or derived from the HKSAR
4.6 Deeming provisions
4.7 Adjustments
4.8 Period of assessment
4.9 Special taxing units
4.10 Assessable profits of partnerships
4.11 Provisional profits tax
5. Anti-avoidance and tax planning
5.1 Specific anti-avoidance provisions
5.2 General anti-avoidance provisions
6. Conclusion
Chapter V - Depreciation allowances
1. Introduction
2. Depreciation allowances
3. Industrial buildings and structures
4. Commercial buildings and structures
5. Plant and machinery
6. Conclusion
Chapter VI - Tax administration and ethics
1. Tax administration
1.1 Personal assessment and tax returns
1.2 Power to obtain information
1.3 Enforcement and penalties
1.4 Assessment
2. Professionalism and tax ethics
Appendix I
Index
Berry Fong-Chung Hsu, B.Sc., LLM. (Alberta); M.A. (Oregon); Ph.D. (London), is an Associate Professor in Law in the Department of Real Estate and Construction and a Professorial Fellow of the Asian Institute of International Financial Law at The University of Hong Kong. Dr Hsu, a Chartered Engineer of the British Engineering Council, is also a Barrister and Solicitor of the Supreme Court of Victoria and of the High Court of New Zealand. His research interests include law of banking and finance, tax law and the public law of the HKSAR. He is the author of numerous academic papers and books including The Common Law in Chinese Context, Economic Analysis on Canadian Tax Cases, A Guide to Hong Kong Taxation and Laws of Banking and Finance in the Hong Kong SAR.
'Dr Berry Hsu's work presents clearly the details of Hong Kong's tax system and legislation, ..... Scattered throughout the text are many useful insights about how the system has operated. This is an enormously useful piece of work and would be a valuable text for students of taxation and practitioners in search of a convenient tool' ?Professor Richard Wong, Director of School of Business, the University of Hong Kong.
'.......His book is thus a valuable contribution to professional education in accountancy.' - Asia-Pacific Journal of Taxation 2001
