Introduction

HKG queries on 1992-93 Outturn

Treatment of Tax Liability

Annex H

j

which axe

costs. Various

Annex B, paragraph 3

paragraph 3 of the DCA deals with various

not to be included as part OF the Garrison

taxes, including Hong Kong salaries tax, are

among chose specifically excluded.

A Locally Enlisted Personnel (LEP) recently appealed to a Member OS Parliment

over the non-award of a UK passport under the Nationality Scheme claiming that he paid UK income tax. A subsequent clarification from HQBF (Ref 20780/2 JI MS dated 26 February) suggested that the LEP's pay, net of the notional Hong Kong salaries tax, is grossed up to reflect

to reflect the full British tax

payable.

Garrison and shared 65:35 in accordance with the DCA.

This is apparently included in the cost of the

HKG Queries

5.

actual

helpful

It may well be that HKG'S interpretation of the situation is not entirely correct.

It would be

to the

if HKG could be given a detailed description of how

UK end HK taxes and charges are assessed and taken into

account in the calculations of costs attributable

Carrison under the DCA. If there are differences

LEPS, LECS, servicemen, etc. these should be separately described. How does the situation under the 1988 DCA differ (if at all) from that prevailing under the 1981 DCA?

between

(S365)

G

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