Final tax obligation upon leaving HK - what happens if?

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  1. #1

    Join Date
    May 2004
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    473

    Final tax obligation upon leaving HK - what happens if?

    I believe that if an employer is aware that their soon-to-be-former-employee is planning to leave HK, then they are obligated to ensure that said employee has cleared his/her tax obligations with the IRD before issuing them with their final paycheque.

    Is the loophole then with those unscrupulous persons who don't inform their employers or the IRD that they are planning to leave HK, and in that case the company, in all good faith, issues them a final paycheque and is none the wiser until the end of the year when it comes time to prepare the (ex-) employee's tax returns?

    In that case is it true that the company becomes liable for the tax obligations of the former-employee, who has effectively managed to escape the IRD unless they return to HK? What are the means, if any, available to the company to stop this abuse - if it is indeed so easy for an ex-employee to simply accept the final paycheque and take a one-way trip out of town, and assuming as well the the IRD may only have some provisional tax and MPF contributions to hold onto?


  2. #2

    Join Date
    May 2004
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    Any idea? Emigra??


  3. #3

    Join Date
    Dec 2002
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    IRD has a certificate it will issue.

    http://www.ird.gov.hk/eng/tax/ind_twl.htm

    Welcome back by the way ...


  4. #4
    Emigra

    hello

    Sorry I don't advise on tax only immigration


  5. #5

    Join Date
    Apr 2003
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    Where is Taxigra when you need them?


  6. #6

    Join Date
    May 2004
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    Okay, thanks for the input nonetheless guys. From my little corner of the universe, I suspect the gov't has (rightfully) toughened this requirement or at least raised its profile to companies, so that they are aware of thier obligations and making it harder for those unscrupulous types who may try to leave HK "tax-free". I've at least 2 cases I know of where the co. refused outright to issue the final pay until the IRD certificate was issued.


  7. #7

    Join Date
    May 2004
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    473

    Thanks, its good to be back where the actio is !

    Quote Originally Posted by shri:
    IRD has a certificate it will issue.

    http://www.ird.gov.hk/eng/tax/ind_twl.htm

    Welcome back by the way ...