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CONFIDENTIAL
GOVERNOR'S TAX POSITION
Q & A
Q.1 Were Ministers consulted?
A.1
Q.2
A.2
Q.3
A.3
8.4
A.4
0.5
A.5
This is a matter for the Hong Kong Government which pays the Governor's salary. Ministers are aware of the position but took no part in the decision-making process.
But are they happy with the outcome?
They regard it as a matter for the Hong Kong Government. But clear that HKG have arranged for the issue to be examined thoroughly and independently. The three mambers of the Panel are senior, well-respected figures, all with direct experience of public sector terms and conditions of service. Unsurprising, therefore, that their assessment should carry weight and be accepted by the Executive Council and the Administration.
Does British Government pay anything?
Passages on first appointment to Hong Kong and on departure, and baggage allowance.
Why just passages and baggage?
This arrangement was in the Governor's letter of appointment and has applied in the case of previous Governors.
Since the Governor is The Queen's representative in Hong Kong, why are the Governor's salary, allowances and taxes not borne by HMG?
Although the Governor is the titular representative of The Queen in Hong Kong, he provides his service to Hong Kong. Like everyone else who provides a public service to Hong Kong, his official emoluments are borne by the Hong Kong Government. [For information: It is common practice in self-supporting dependent British territories for the salary and allowances of a Governor to be paid in the territory in which he is serving and that he is not liable to income tax.]
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