Submissions and Reports

The Chamber agrees with the Government that there is the need to address the abuse of SIM Cards for criminal purposes, but suggests that consideration should also be given to attendant issues such as data privacy implications and efficacy of a mandatory registration system. In light of the social impact that such regulatory changes may bring, the Chamber recommends that efforts be made to better define the rights and responsibilities of stakeholders, namely, users, operators, and regulators under the proposed programme.

The Chamber agrees with the Law Reform Commission’s proposals to relax the current prohibition of outcome-related fee structures for arbitration to enhance Hong Kong’s competitiveness as an arbitration centre, but suggests that a phased approach be adopted to the implementation of flexible fee structures. Due consideration should also be given to the protection of the interests of smaller businesses opting for such a means of dispute resolution.

The Chamber has made a follow-up response to the Financial Services and the Treasury Bureau based on the latest draft of the Companies (Corporate Rescue) Bill. The response provides further suggestions on the appointment of a provisional supervisor during the corporate rescue procedure and reiterates points made in the Chamber’s earlier submission.

The Chamber supports the Government’s proposal to provide tax concession for carried interest as this could further strengthen Hong Kong’s status as an international asset management hub and has put forward views on the proposed measures in response to an invitation from the Financial Services and the Treasury Bureau.

In response to the Financial Services and the Treasury Bureau’s invitation, the Chamber has submitted its views on the Government’s latest proposals to introduce a statutory corporate rescue procedure and insolvent provisions in Hong Kong. The Chamber believe there is a pressing need to provide companies in financial difficulties with an alternative to liquidation especially under the sustained difficulties that Hong Kong has been experiencing since the middle of last year.

The Chamber supports the government’s continuing efforts to expand Hong Kong’s CDTA network and, to that end, has put forward a number of suggested jurisdictions in response to an invitation from the Financial Services and the Treasury Bureau.

The Chamber has made a number of recommendations to the government on providing tax relief measures to further assist businesses that have been hard-hit by the effects of COVID-19. Although the government has rolled out two rounds of anti-epidemic relief measures, in addition to those announced in this year’s Budget, we believe more could be done in the area of taxation policy to help companies weather the severe economic downturn.

The Chamber has sent its proposals to the Financial Secretary Paul Chan for his upcoming Budget. We urge him to implement measures to help SMEs badly battered by the challenging business environment. We also recommend that the Government should give serious consideration to improving its policy-making process by making it more transparent and inclusive. Read the full report online.

In its submission to the LegCo Bills Committee on implementing a legal framework to combat Base Erosion and Profits Shifting (BEPS) practices in Hong Kong, the Chamber has raised concerns over a number of outstanding issues with the Government’s proposed approach to align with international standards.

The Chamber supports the Government’s pursuit of CDTA especially with jurisdictions that fall within the scope of the Belt and Road Initiative as this could further enhance Hong Kong’s role as a super-connector between Mainland China and economies in Asia, Europe and Africa.