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TX 7X TO
taxation
the War
The
exemption traced back to the introduction of
of earnings and profits into the Hong Kong Law by
Revenue Ordinance (No. 13 of 1940) in 1940. The Governor's exemption from the payment of salaries tax was
inserted in the Ordinance on the instructions of the
Secretary of State. After World War II, the Inland Revenue
Ordinance was introduced and the exemption has been a
feature of the Inland Revenue Ordinance since its enactment
in 1947.
rationale
4.
to
be
The
found in
exemption
from
Crown
for the exemption is, we believe,
privilege. Since the Governor's
salaries tax applies only to official
emoluments, the exemption therefore seems to derive from the tax exempted status of the Sovereign, whom the Governor
represents.
5.
For this exemption to be waived would require an
amendment to delete S. 8 (2) (a) from the Inland Revenue such an amendment, the is statutorily precluded
Ordinance.
In the absence of
Commissioner of Inland Revenue
from raising a salaries tax assessment on the Governor's
official emoluments.
Governor's appointment
6.
The Governor
civil service.
Letters Patent as
Kong.
is not a member of the Hong Kong
He is appointed by the Queen under the representative in Hong
Her
Majesty's
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