2
TAX TE
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
in
4.
The
to
be
found
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
Ordinance.
In the absence of such an amendment, the Commissioner of Inland Revenue is statutorily precluded
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
13
CONFIDENTIAL
機密
f