TNAG-2905-FCO40-4179-Hong-Kong-Governor-1993 — Page 15

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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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