2
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l.c.
l.c.
E
difficulties in determining whether such income was of the same nature. After all, most other jurisdictions do not have as
simple a tax structure as Hong Kong.
The Ad Hoc group however received replies from the Administration to the effect that since salaries tax in Hong Kong was generally recognised as substantially similar to income tax elsewhere, the Administration could see few problems arising in the application of this provision. The Administration also advised that the verification of actual tax paid elsewhere would create no practical difficulties.
These assurances, together with the other
clarifications which will be made by way of Practice Notes as mentioned by Mr. Peter POON, make me confident that this Bill is a good one. I am not bothered by the distinction between Hong Kong and non-Hong Kong employments which will continue to be drawn if we maintain our source-based system. The alleged
disadvantages to Hong Kong belongers in comparison to.. expatriates under the scope of this Bill are not of a nature that would suggest a need for a change in the approach.
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