Hong Kong has rapidly been expanding its network of tax treaties, particularly with its main trading and investment partners, and the main motivation for signing this treaty appears to be the improvement of Canadian trade relations.
“Many Canadian businesses, including the Investment Industry Association of Canada, had lobbied extensively for a treaty with Hong Kong,” said Brandon Siegal, of McCarthy Tetrault, who noted that despite it being a lower tax jurisdiction, the OECD does not consider Hong Kong a tax haven and that other G8 countries such as France, the UK and Japan have negotiated similar treaties in the past few years.
“For Canada, having good trade relations with Hong Kong is especially important as Canada’s second largest trading partner is China and the Hong Kong Special Administrative Region is seen as the gateway to Chinese trade,” added Siegal. “Notably, [Canadian] Prime Minister Harper travelled to Hong Kong to witness...
This article is available to subscribers of International Tax Review only. Please log in to read the rest of this article.
If you would like to gain access to additional related content, please upgrade your current subscription.
This article is available to subscribers only. To read the rest of this article please subscrbe.