Laws of Taxation in the Hong Kong SAR

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