Knowledge

Exchange of Information

Exchange of 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). …

Certificate of Resident Status

Certificate of Resident Status

A Certificate of Resident Status is a document issued by the Hong Kong competent authority to a Hong Kong resident who requires proof of resident status for the purposes of claiming tax benefits under the Comprehensive Double Taxation Agreements / Arrangements (DTAs). The Certificate of Resident Status should constitute a …

Transfer pricing regulatory regime in Hong Kong

Transfer pricing regulatory regime 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 …

Businessman imprisoned and fined for tax evasion

Businessman imprisoned and fined for 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 …

Failure to notify chargeability to tax

Failure to notify chargeability to tax

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 …