Group members: Stella Tsoi, Sarah Wong

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Welcome

• Group members Stella Tsoi, Sarah Wong
• Presented by Stella Tsoi
• 5th May 2001

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• Introduction to E-commerce

? Business-to-Business (B2B) ? Business-to-Consum
er (B2C)
? Expected spending via Internet between USD7 to
USD32 billion by the year 2001
? Around USD76 to USD186 billion by the year 2005
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Development of e-commerce in Hong Kong

• Examples Auction in the Internet
• http//www.go2hk.com/
• http//www.red-dots.com/

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• Background of the existing
• Tax System

? Person carrying on a trade
? Profit arising in or derived from HK
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PROBLEM ARISING IN E-BUSINESS
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• PROBLEMS

• Source of Profit
• ? HK based e-business selling to customers
  outside HK
• ? E-business conduct outside HK selling to
  customers located in HK

• Carry on Business
• ? oversea e-tailers sell goods to HK customer
• ? No physical representation by or on behalf
  of the vendor in HK

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SUGGESTED SOLUTIONS
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• Suggested Solutions

• In Short Term

J Consumption Tax ? Imposed GST on final
consumption in HK ? Charged GST on all goods
services supplied within HK
J Smart Server ? Audit trail
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• Suggested Solutions (Cont.)

• In Long Term

J Monitoring ? IRD need to monitor all
developments in e-commerce
J International co-operation ? Work through
OECD for improve exchange of information with
the tax authority
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Question Answer
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Thank You !