Question No.2
HKK गila......
RECEN DR
21 FEE 1985
Could Government inform this Council to what extent and in what manner are the following fringe benefits! taxable:-
(a) all types of housing benefits for private
sector and civil service employees?
(b)
all types of passage allowances for private sector and civil service employees?
REPLY BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL: WEDNESDAY 6 FEBRUARY 1985
Sir,
There is no difference in the liability to taxation of civil servants and the public.
In the case of housing, any benefits provided by the employer are thus subject to taxation in the same way.
By virtue of provisions contained in Section 9 of the Inland Revenue Ordinance where an employee is provided with free quarters, the rental value of such an accommodation is assessed as equivalent to 10% of his emoluments. Where, however, an employer provides a place of residence for his employee but charges that employee a rent which is less than the rental value, the difference between the rental value and the rent so charged shall be income of the employee.
Naturally when an employee receives a cash housing allowance which he is free to use in any manner he thinks fit, such a benefit will be assessed in full as part of the employee's taxable emoluments.
As for passage allowances, civil servants who are entitled to passage benefits are not given a cash allowance.
/Instead,