Home' A Plus Magazine : January 2017 Contents FSDC calls for tax rule changes post-Brexit
The Financial Services Development Council called
for Hong Kong’s tax laws to be simplified to attract
international financial institutions to move to the city,
given the changing political environment in Europe.
It proposed to simplify rules for profit tax relating to
financial products trading and new offerings. Com-
panies currently must calculate how much of these
operations are carried out in Hong Kong to determine
their tax rate. “If this could be simplified into a con-
cept of 50:50 onshore and offshore operations for these
companies’ tax payment, it would encourage more
global offerings in Hong Kong,” said Florence Yip,
Convenor of the business committee at the FSDC.
Hong Kong to rank top again for global IPOs
Hong Kong will continue to hold the top ranking glob-
ally for initial public offerings in 2017, with companies
expected to raise up to HK$220 billion, according to
PwC this month. The estimated figure is a 13 percent
increase from last year’s total. Eddie Wong, Partner
at PwC Hong Kong’s Capital Markets Services, told
the South China Morning Post that the estimate did
not include potential mega IPOs of payment service
providers and new economy companies due to their
unconfirmed listing timetables and venues. In 2016, the
city retained the top spot for a second consecutive year.
Toshiba face fresh scandal evidence
A news report that Japanese regulators have new find-
ings alleging that Toshiba’s former top management had
padded profits by ¥40 billion (US$339 million) over a
three-year period saw the conglomerate’s shares dive
as much as 6.9 percent on the morning of 4 January,
before recovering to gain as much as 6.5 percent. The
Asahi newspaper reported a day earlier that Japan’s
Securities and Exchange Surveillance Commission
planned to present the findings to Japanese prosecutors.
Toshiba’s former executives denied any wrongdoing.
The allegation is part of the SESC’s investigation into
the company’s 2015 scandal where it overstated its net
profits by ¥155 billion over seven years.
PCAOB releases guidance for auditors of U.S.- listed Chinese companies
The Public Company Accounting Oversight Board last month published answers to questions
about the obligations of PCAOB-registered firms when performing audits in China. The staff
question and answer document relates to the obligations of auditing firms based outside of
China that provide audit services subject to certain Chinese regulations, Accounting Today
reported. The U.S. audit regulator said it has received questions from firms about how a
2005 Ministry of Finance circular, Interim Provisions on Auditing Operations Conducted by
Accounting Firms Concerning the Overseas Listing of Domestic Chinese Companies, applies
to audits of U.S.-listed Chinese companies by auditors based outside of the Mainland.
January 2017 7
The percentage of respondents
to a Deloitte poll who expect
their organizations to increase
the amount of time and effor t
spent on implementing the new
Financial Accounting Standards
Board and International
Accounting Standards Board
lease standard this year.
The number of years Philadelphia
has been using its accounting
software purchased in 1981.
Rather than moving on to
upgraded high-tech accounting
tools, the city still relies on
Financial Accounting and
Management Information System
to manage its US$4 billion annual
expenditures and revenues,
according to Philly.com.
A world of numbers
The amount Alibaba Group and
its affiliate Ant Financial Services
Group paid in tax in China last year,
according to the e-commerce
giant. The figure marks an
significant increase from the 17.8
billion yuan paid in 2015 and 11
billion yuan in 2014.
Links Archive December 2016 February 2017 Navigation Previous Page Next Page