Hong Kong and Barbados Sign Comprehensive Double Taxation Agreement to Enhance Bilateral Trade and Investment.

Hong Kong and Barbados enter into tax pact

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, had a bilateral meeting with the Ambassador of Barbados to China, Mr Hallam Henry, in Beijing today (March 19) and signed on behalf of the Hong Kong Special Administrative Region (HKSAR) Government a comprehensive avoidance of double taxation agreement (CDTA) with the Government of Barbados.

Mr Hui said, "This is the 57th CDTA that Hong Kong has concluded and also the second one this year. We will continue to pursue the signing of CDTAs with more tax jurisdictions with a view to consolidating and enhancing Hong Kong's status as an international financial and trade centre as well as expanding our circle of friends with the global community."

At the meeting, Mr Hui highlighted to Mr Henry Hong Kong's "dual superpower" as a "super connector" and "super value-adder" between the Chinese Mainland and the rest of the world. He welcomed Barbadian enterprises, talent and capital to establish their presence and expand their business in Hong Kong, and take advantage of Hong Kong's financial stability with a high standard of professional services to enter the Chinese Mainland market.

Mr Hui added, "The CDTA sets out the allocation of taxing rights between Hong Kong and Barbados, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and avoid double taxation. This will foster a more attractive business environment for the two places, promoting bilateral trade and investment."

Under this CDTA, any tax paid by Hong Kong residents in Barbados will be allowed as a credit against the tax payable in Hong Kong in respect of the same income, subject to the provisions of the Inland Revenue Ordinance (Cap. 112) (IRO). In addition, Barbados will exempt Hong Kong residents from withholding tax on dividends, which is currently 5 per cent in general.

The CDTA will come into force after completion of ratification procedures by both sides. In Hong Kong, the Chief Executive in Council will make an order under the IRO, which will be tabled at the Legislative Council for negative vetting. Details of the CDTA are available on the Inland Revenue Department’s website.

Hong Kong and Barbados enter into tax pact Source: HKSAR Government Press Releases

Hong Kong and Barbados enter into tax pact Source: HKSAR Government Press Releases

Hong Kong and Barbados enter into tax pact Source: HKSAR Government Press Releases

Man jailed for conspiracy to defraud

A 76-year-old man charged with one count of conspiracy to defraud was convicted and sentenced to 18 months' imprisonment by Shatin Magistrates' Courts yesterday (March 18).

The Outside Investigation Section of the Immigration Department (ImmD) through intelligence analysis suspected the defendant had contracted a bogus marriage for obtaining residence status in Hong Kong. After a comprehensive investigation, the defendant was found to have conspired with his Mainland resident son and married his former sister-in-law, a Hong Kong resident, in 2011 under the arrangement of his son. By virtue of the marital relationship, the defendant and his son settled in Hong Kong and obtained residence status in Hong Kong in 2017 and 2021 respectively. The defendant divorced his bogus spouse after settling in Hong Kong.

The defendant was subsequently arrested by the ImmD and charged with one count of conspiracy to defraud. After trial, the defendant was convicted and sentenced to 18 months' imprisonment yesterday. The investigation of other suspects is still underway, and the ImmD does not rule out the possibility of further arrests.

"The ImmD has been very concerned about non-Hong Kong residents staying in Hong Kong by means of a marriage of convenience, and will continue to spare no effort in combating the related illicit activities. For people who have obtained their residence in Hong Kong by fraudulent means, their Hong Kong identity card and residence status will be invalidated according to the laws of Hong Kong. They will also be subject to removal back to their place of origin," the ImmD spokesman stressed.

"According to the Immigration Ordinance, any person who makes any statement or representation which he knows to be false or does not believe to be true to immigration officers commits an offence. Offenders are liable to prosecution and, upon conviction, face a maximum fine of $150,000 and imprisonment for 14 years. Aiders and abettors are also liable to prosecution and the same penalties. Moreover, according to the Crimes Ordinance, anyone who commits the offence of conspiracy to defraud is liable to prosecution and, upon conviction, the maximum penalty is imprisonment for 14 years," the ImmD spokesman warned.

Source: AI-found images