EPD convictions in November
Forty-nine convictions were recorded in November 2023 for breaches of legislation enforced by the Environmental Protection Department. Eleven of the conv… read more
Forty-nine convictions were recorded in November 2023 for breaches of legislation enforced by the Environmental Protection Department. Eleven of the conv… read more
The Secretariat of the Green Tech Fund (GTF) said today (December 21) that a total of eight projects have been approved in the third round of applications, involving a grant of around $30 million. Together with the first and second rounds of applications, the GTF has so far approved 30 projects, involving a total grant of around $130 million.
Eighty applications were received in the third round of applications from December 2022 to March 2023. The eight research and development (R&D) projects approved in this round cover research projects on promotion of new energy technology, energy saving and green building, turning waste into resources and green transport. They are:
Attention TV/radio announcers: Please broadcast the following as soon as possible: Here is an item of interest to swimmers. The Leisure and Cultural Services Department announced today (December 21) that… read more
The Government today (December 21) launched a consultation exercise to gather views on the implementation details of the global minimum tax under Pillar Two of the international tax reform proposals drawn up by the Organisation for Economic Co-operation and Development (OECD) to address base erosion and profit shifting risks arising from the digitalisation of the economy (commonly known as BEPS 2.0).
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “As an international financial centre and a responsible member of the international community, Hong Kong has all along been supportive of international efforts to enhance tax transparency and combat tax evasion. To fulfil our obligation as a co-operative player in international tax co-operation and safeguard Hong Kong’s taxing rights, Hong Kong is fully committed to implementing Pillar Two of BEPS 2.0 in accordance with international consensus.”
The BEPS 2.0 package was promulgated by the OECD in October 2021. The goal of the global anti-base erosion (GloBE) rules under Pillar Two of the package is to ensure that large multinational enterprise (MNE) groups with consolidated annual revenue of at least 750 million euros pay a global minimum tax of at least 15 per cent on income derived by their constituent entities in every jurisdiction where they operate, thereby putting a floor on competition over corporate income tax. The implementation of the global minimum tax will reduce the latitude for jurisdictions to introduce tax exemption or extremely low preferential tax rate as a means to enhance their tax competitiveness in future, thus creating a more level playing field in terms of taxation. In 2021, Hong Kong joined more than 130 jurisdictions in committing to implementing BEPS 2.0.
As announced by the Financial Secretary in the 2023-24 Budget, Hong Kong will apply the global minimum effective tax rate of 15 per cent on in-scope MNE groups starting from 2025 onwards. Only in-scope large MNE groups will be subject to the global minimum tax. The vast majority of corporate taxpayers, including local small and medium enterprises, will not be affected.
Under the global minimum tax, if the effective tax rate of an in-scope MNE group in Hong Kong is lower than 15 per cent, other relevant jurisdictions have the right to collect top-up tax in respect of the low-taxed Hong Kong MNE entities concerned. To preserve Hong Kong’s taxing rights with respect to such entities instead of ceding them to other jurisdictions, Hong Kong will apply the Hong Kong minimum top-up tax (HKMTT) to in-scope MNE groups starting from 2025 onwards so that the effective tax rate of these entities will be brought up to 15 per cent. By introducing the HKMTT, in-scope MNE groups will be spared the need to pay top-up tax in every jurisdiction where they operate. This will help reduce their compliance burden.
“It would be in Hong Kong’s best interest to implement the HKMTT to fulfil Hong Kong’s international tax commitment and preserve its taxing rights,” Mr Hui said.
Hong Kong will need to amend the Inland Revenue Ordinance (Cap. 112) to implement the global minimum tax and the HKMTT. To take forward the legislative exercise, a consultation exercise will be launched. A consultation paper has been published today to explain the concepts of the GloBE rules, which will be strictly followed by Hong Kong and other jurisdictions, and the HKMTT, and seek views on specific implementation issues. Such issues include:
Hong Kong Customs on November 21 detected a large-scale seaborne drug trafficking case and seized about 228 kilograms of suspected cannabis buds with an estimated market value of about $52 million at the Kwai Chung Customhouse Cargo Examination Compound. Three men suspected to be connected with the case were arrested.
Through risk assessment, Customs on that day selected a seaborne container, declared as carrying tyres and arriving in Hong Kong from Canada, for inspection. Upon examination, 98 pieces of tyres were found in the container and 73 of them concealed a total of about 228kg of suspected cannabis buds. The batch of dangerous drugs was packed in plastic bags and concealed inside the hollow space of the tyres.
Upon a follow-up investigation, Customs officers conducted controlled delivery operations and arrested a 65-year-old man and a 58-year-old man, who claimed to be a driver and a company owner respectively, on November 21. On December 6, Customs further arrested a 47-year-old male driver receiving the drugs.
The three arrested men have been released on bail pending further investigation.
An investigation is ongoing.
Customs reminds members of the public to stay alert and not to participate in drug trafficking activities for monetary return. They must not accept hiring or delegation from another party to carry controlled items in and out of Hong Kong. They are also reminded not to carry unknown items for other people, nor to release their personal data or home address to others for receiving parcels or goods.
Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.
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Members of the public may report any suspected drug trafficking activities to Customs’ 24-hour hotline 2545 6182 or its dedicated crime reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).