I've been reading: Extracts from the Hong Kong Budget 2016-2017

Over the last few days, I came across a post on Linked In which was submitted by EY which dealt with extracts from  the Hong Kong Budget for 2016-2017. http://www.ey.com/CN/en/Services/Tax/Country-Tax-Advisory/EY-hong-kong-2015-16-budget-insights  Now I am not too familiar with the activities of the Far East, partly due to language barriers (MPGM), lack of knowledge of many areas of operation of those countries, having given up my search of companies listed on the Tokyo (Japanese) Stock Exchange some time ago. My recent areas of learning as an adult were based on interaction with persons who worked for a Chinese company (who provided a bit of insight into their reporting such as the difference in time zones in which they operated as compared to us and to their parent company or from someone who worked with a company where travel to different parts of the world allowed for losing days or gaining days depending on  the location to which they were travelling.  However on researching some of my questions, here is what I learnt:

1. The Hong Kong Fiscal year starts April 1 and ends on March 31, thus their  financial year may precede that of many western countries. This may impact either favourably or negatively on their future and that of other countries as their year starts when other countries are either in the middle of, or  are coming to the end of their financial year, hence the value of reserves, foreign exchange rates and so forth may need to include this type of information when discussing or reviewing them so as to allow for the  information to be relevant or reliable. See the following links for a comparison on the fiscal years of countries. https://en.wikipedia.org/wiki/Fiscal_year
2. According to the opening statement in Forbes' article "Dealing With The China Slowdown: Five Takeaways From The Hong Kong Budget"  Hong Kong is heading into election year and this may have impacted upon the budget which was presented. See the following link for more information on this: http://www.forbes.com/sites/alreyes/2016/02/24/monkey-year-gifts-five-takeaways-from-the-hong-kong-budget/#74a3957c1921. While I am still undecided on that opinion, I especially like Point # 4 on Demographic preparedness. This point  appears to deal with the need to have a different type of health care for a population where there is a large number of older persons who are living longer as compared to a population where there is a growth in births, which can create a demand for pediatrics and other types of support. See the extract on that concept! " 4 Demographic preparedness: Like China, Hong Kong must also deal with ageing demographics, though unlike the mainland, Hong Kong is a wealthy society that can cope with its growing ranks of elderly and spend the money needed to care for senior citizens. Medical and health expenditure in the 2016-17 fiscal year will account for 16.5% of total expenditure, more than 90% the share more than a decade ago. The government has set aside HK$200 billion ($25.7 billion) for a 10-year hospital development program. Hong Kong must be doing something right in the healthcare sector: Life expectancy for men (81 years) and women (87 years) is among the longest in the world. Since 2014, in response to its demographic challenges, the Hong Kong government has been moving forward to develop a comprehensive Population Policy. But the work done so far has been described by one legislator as “thin”."
3.  According to South China Morning Post, there may be a need to find ways to improve the tax system. "Financial Secretary John Tsang Chun-wah admitted on Sunday that the government had to think of ways to improve the tax system as he acknowledged that Hong Kong’s current tax base was rather “narrow”.
   Writing on his online blog, Tsang disclosed that only 40 per cent of the working population in the city paid salaries tax, with 60 per cent of the revenue coming from just 5 per cent of taxpayers." See the following link:  http://www.scmp.com/news/hong-kong/economy/article/1918429/   For information on the  tax profile of Hong Kong as of Nov, 2013  see the Country Tax profile from KPMG, which covers an array of topics, one of which is on the countries with whom Hong Kong has "Income Tax Treaties for the Avoidance of Double Taxation". See the following link for additional information.  http://www.kpmg.com/global/en/services/tax/regional-tax-centers/asia-pacific-tax-centre/documents/countryprofiles/hongkong.pdf

In conclusion, one thing which can put some of  the above points in perspective going forward, is that KPMG creates a weekly tax update which provides insight on the  possible tax changes of several countries which occurred over a week. This will provide updates over the next year which will allow us to track comparability of financial sysytems, growth in the various countries and changes which may help us all.  So perhaps writing to the various tax providers for opinions on the various transactions which one may enter into, in a country whiich may be foreign to you and I, may be a good start  for all of us!! See the following link for access to one of the providers: https://home.kpmg.com/xx/en/home/insights/2016/02/tnf-kpmg-week-in-tax-22-26-february-2016.html. P.S. I have included the link to another tax provider at the start of the post. © Jennifer Bailey jennifernbailey24d@gmail.com

Learning and Developing

In my early career, some of the companies  for which we  did work, utilised as part of their system of documentation a combination of Software, printed reports and manually prepared registers. This was the start of a love affair for me as  I started learning all about the types of errors which can be made in accounting (when I was in school) such as:

Errors Which do not Affect the Trial Balance

Accounting errors that do not affect the trial balance fall into one of six categories as follows:

1. Error of Principle in Accounting
2. Errors of Omission in Accounting
3. Error of Commission
4. Compensating Error
5. Error of Original Entry
6. Complete Reversal of Entries

(See the link for more information on this concept if you are interested. http://www.double-entry-bookkeeping.com/bookkeeping-basics/accounting-errors/.)

Going forward in  time I learnt about using spreadsheets to capture information, to use them as a replacement for the 7 column page or the 14 column page  to which I had been accustomed using in work to capture information on tests. These sheets were specially designed to create conformity of work papers in one industry  which was located in many countries which had a common bond in thinking and knowledge.  There was to be conformity of design to promote comprehension of concepts, collaboration as to best practice and  growth and development of persons. This was the essence on which the spreadsheets were built. Yes, there was knowledge which was specialized, however due to learning and a supportive background which was in place,  there was the potential  to work with clients whose area of operation allowed those companies to  operate either vertically or horizontally to support other companies'  operating activity.

Then one day my learning and use of spreadsheets expanded as I was exposed to the use of spreadsheets to capture another type of information, which could be used to create multiple reports on data,  without creating a single graph, or bar chart. Yes, Excel has that capability also. Since then, most of the knowledge which I have gained over the years on data, the storage of data, has fed into the possible uses of spreadsheets and what can be gained from their use. While my knowledge is limited in lots of ways as there are many areas of learning which I have not pursued, such as programming which can provide knowledge of running queries on data; or learning to design the style of screens or how to source information within a programme to generate  reports, I can bypass those steps in  the design of software and capture the information well enough to allow for comparative purposes which suits me right about now!

© Jennifer Bailey jennifernbailey24d@gmail.com

Budget (Statement) of the Republic of Trinidad and Tobago 2016

Many times we refer to the Budget Statement which  is usually presented by the Minister of Finance as "The Budget" either because we have calculated the maths on the probability of :

• The Statement being adopted  by those who belong to the party which is in power and, or 
• Who  in the Opposition and in the Independent Senators will support the position being outlined,
• How close are we to the next elections and the general feeling of the population towards the accomplishments of the Govt. which is in power

In real terms the Statement is a proposed piece of legislation which has to be read, debated and approved with references to the Acts which are being impacted upon and the Acts which are to be amended. This process can take three months in some instances and this can be a time of agony, especially in a year when a Tax Amnesty is proposed.
This concept of a Tax Amnesty  is one which produces anxiety as the period between the approval and the conclusion  of the amnesty is so  short. So much so that persons (clients) may not commit to certain types of work at the earliest time when the due date is almost six months down the road. This is true when they have other commitments within their company for which they may have budgeted and for which they may  have received approval. Thus usually the scope of work which is allowed by a Tax Amnesty may need special approval from a Board or Committee so much so that the client  may seek tentative approval at the earliest opportunity, subject to the approval of the Budget i.e. the Act of Parliament.
 On the side of the accountants, they may want to maximise their clients cash flow, yet manage the commitments with respect to their staff. This is important for several reasons in that:

• There are clients whose work have been scheduled  months in advance and to whom commitments have been made. These clients may be their bread and butter clients and who may have their own commitments and deliveries and thus these clients may be the priority for some persons.
• Usually  there are long lines at the Board of Inland Revenue close to the due date for filing of any document and persons work through a two step process where  a voucher is approved by a clerk  which allows the transaction to be entered into the system.
• The next step is the acceptance of the payment and the issuance of the official receipt.

Anyway in real terms, here is a link to the Budget Statement  for 2016 and some of the points which  now appeal to me: http://finance.gov.tt/wp-content/uploads/2015/10/Budget-Speech-2016.pdf

1. Agricultural Incentives: " Madam Speaker, consistent with our 2015 Election Manifesto promise, in pursuit of our objective for achieving food security, we will exempt from all duties and taxes, inputs into the agricultural sector, including approved chemicals, pest control, approved vehicles, approved fishing vessels and equipment. These measures will take effect from January 1, 2016."
2. Public Services:" Madam Speaker, we are improving and facilitating the delivery of public services, commencing with the reintroduction of a 10-year validity period for passports, for adults over the age of 18, as well as removing the requirement for our citizens to complete immigration forms at all official ports of entry. This measure will take effect on January 1, 2016."
3. Infrastructure Incentives: "Madam Speaker, the present tax incentive framework for the construction of facilities necessary for national development such as affordable housing, recreational, sporting and community facilities and multi-storey car parks has proven to be largely ineffective. We need to motivate the private sector to invest in the construction of public facilities, in particular car parks in urban areas, in order to generate employment and economic activity and to provide much needed public amenities. After consultation with all of the major stakeholders and in particular the construction industry, I propose to introduce a comprehensive and workable tax incentive framework for such facilities at the time of the mid-year review of the fiscal year 2016 Budget."
4. Transfer Pricing "Madam Speaker, we intend to secure our revenue base. A significant leakage in our revenue stream is our inability to capture the full potential of the tax liability of foreign branches of multinational corporations operating in Trinidad and Tobago. A majority of the volume and value of global trade in goods and services is transacted through branches and subsidiaries of multinational corporations. Intragroup trade poses significant challenges to taxing authorities as the multinational corporations seek to minimise their global tax liabilities. Transfer pricing rules with the application of the principle of arms-length transactions represent modern, fair and transparent practices utilised by taxing authorities. These rules will determine the tax liabilities of branches and subsidiaries of multinational corporations thereby constraining multinational corporations to utilise tax mitigating structures, including moving transactions to lower tax jurisdictions with lower tax rates. Almost one hundred advanced, emerging and developing countries have adopted transfer pricing rules based on a model pioneered by the Organisation of Economic Cooperation and Development (OECD). We are advancing work on the introduction of transfer pricing legislation which will represent another mechanism in our thrust to optimise our tax revenue."
5. Taxes on Receipts: "BUSINESS FUND LEVY Madam Speaker, in order to spread the burden of adjustment across the society, I propose to increase the Business Levy from 0.2 percent per quarter to 0.6 percent per quarter. This measure will increase revenue by $327.5 million and will take effect from January 1, 2016. • GREEN FUND LEVY Madam Speaker, for similar reasons, I propose to increase the rate of contribution to the Green Fund from 0.1 percent per quarter to 0.3 percent per quarter. This measure will increase revenue by $544.5 million and will take effect on January 1, 2016"
6. Value Added Taxes: " Madam Speaker, the base and efficiency of the Value Added Tax regime have been consistently eroded since its establishment in 1990. I propose to improve efficiency in collection and to broaden the base by reviewing and adjusting exemptions and zero-rated items which are associated with nonessential or luxury items, and which are not critically important to the livelihoods and basic cost of living of our citizens. And consistent with our 2015 Election Manifesto Promise, I propose to reduce the Value Added Tax rate from 15.0 percent to 12.5 percent. The combination of widening the base, increasing collection and compliance, and reducing the rate is expected to yield approximately $4.0 billion. Further, for better administrative efficiency, I also propose to increase the threshold for Value Added Tax registration from $360,000 to $500,000. These measures will take effect on January 1, 2016."
7. Personal Deductions from Annual Emoulment Income: "Madam Speaker, consistent with our 2015 Election Manifesto Promise, I propose to provide relief to working families by increasing the personal income tax exemption limit from $60,000 to $72,000. All taxpayers earning $6,000 a month or less will now be exempt from tax and will not be required to file tax returns. This will put additional income into the pockets of these individuals by reducing personal tax revenue by $250.0 million. This measure will take effect on January 1, 2016."

© Jennifer Bailey jennifernbailey24d@gmail.com

Republic Day 2015

In many parishes in Trinidad and Tobago there is a  fair amount of respect for the country in which the parish operates, so much so that when masses are held either on a public holiday or close to one, the national anthem is sung during the mass. This tradition may have arisen from having so many priests function as school teachers during their careers so that the practices of the school come through into the life of the parish. Whatever the reason for or origin of  the practice, this morning on Republic day, it felt good to sing the national anthem.  I had  started the day with a bit of hangover from the day before, after celebrating the feast day of St. Pio so much so that I wanted to be in a state of grace and continue the year in that state. Having the anthem sung during the mass brought about a bit of remembrance of Dr. Eric Williams ( dec'd),  our country's first prime minister who like His Grace Archbishop Anthony Pantin ( dec'd) was another first for me. So much so that I was extremely mellow during mass.  Also being close to the Finbar Ryan Geriatric Home brought about a sense of reverence for both the Archbishop who held the post before Archbishop Pantin as well as his Auxilliary Bishop who laid the cornerstone at St. Finbars RC church'.  While they may have died before I was born, there are so many positive memories of them in persons who I encounter, that I am sorry that I may have overlooked them and their contribution to our society.  And then life returned to normal as I visited the Chapel of St Catherine of Sienna for a brief stay.... Here's to hoping that:

• A soup kitchen is opened in the area as there are a fair number of older persons who reside within close proximity to the area and this service will be of benefit to them. That we ask for contributions to maintain the kitchen, so as to provide employment to persons in the community and build a life "style" in the parish.
• We start a meditation area in that location and  in the surrounding areas as this will allow for the maintenance of mellow feelings. If meditation sessions are scheduled at regular intervals, there will be a flow of persons to the areas which will bring about a boost in foot traffic and in mellow feelings!
• We start yoga sessions so that persons can learn mindfulness and all of the other benefits associated with yoga!
• We start a mediation area to allow for the learning of new skills for everyone. This too will enhance the skills of both the receiver and the giver!
• We start saying the national pledge to bring about a sense of continuity of who we were in school into our adulthood.  See the National Pledge below!
• We document as much as possible on the lives of our priests, so that we keep information that will be soon gone in a state of readiness for the next generation. 

Here is a copy of the pledge, which you can say:
..


https://www.google.tt/search?q=The+national+pledge+of+trinidad+and+tobago&rlz=1C1TSNO_enTT512TT512&es_sm=93&tbm=isch&imgil=0M1uA-jYXLQLoM%253A%253BiKIie4Kbm6ey5M%253Bhttps%25253A%25252F%25252Fwww.pinterest.com%25252Fcaraibconnexion%25252Ftrinidad-tobago%25252F&source=iu&pf=m&fir=0M1uA-jYXLQLoM%253A%252CiKIie4Kbm6ey5M%252C_&biw=1600&bih=799&usg=__ikdrkqtPp2sGRGGsvbEzgZp_-0c%3D&ved=0CDkQyjdqFQoTCNvdlvXHkMgCFYc8HgodVZML2A&ei=_GMEVtvvBof5eNWmrsAN#imgrc=0M1uA-jYXLQLoM%3A&usg=__ikdrkqtPp2sGRGGsvbEzgZp_-0c%3D

© Jennifer Bailey jennifernbailey24d@gmail.com

Some things I would do and continue to do going forward!!

Recently I saw a post on changes to the color of the sky over a city  which occurred over a period of weeks. Having not saved the post nor the name of the city, I would hesitate to  go into the details of the change, however in light of my desire to embrace going green some more, here are things that I would like to do:

1. Have more plants around me! These would be hanging in baskets,  in addition to being kept in containers and growing in the ground.
2. Grow more of my own food. This would entail growing green figs (bananas), plantains, bananas in the area where I live. Also I would consider growing beans, cucumbers, pumpkins on trellises!.. 
3. Consider the period for  which I am making decisions. In real terms, this would mean enquiring about options should I acquire a home in a community with shared  or community space. It would also mean looking at the space which is available  and to which I am committing as in the medium to long term, the land which is available around the home would allow for more plants and a different life style. When I saw the gardening options in Cayman Islands, I realised that the supply of green bananas may be possible due to the availability of plants, however to reduce the cost of the investment, I would need land on which  to plant the trees. Think Pastelles and Paimi.See the attached link, http://www.powerflower.ky/gallery.
4. Revisit the activities in which I am engaged... After viewing the blog from which the following extract was taken, I realised that  the activities which are available to support green initiatives offered opportunities for a life style challenge 

• " We are located at #35 Doubloon Drive in the Bodden Town District. Doubloon Drive is just off Shamrock Drive exit between Beach Bay Road and the Northward (Prison ) Road. Shamroock Drive is the main road to the eastern districts of Bodden Town, North Side and East End. 
• We are open every Sunday 2-5pm during which time you may tour the Gardens and purchase freshly picked items at our Sunday Green Market. 
• Also, a Fruit/Produce Tasting Event is held on the first Sunday of each month, 5-6pm. 
• Come and savour what's in season and learn more about what you are tasting in a eco-friendly agri-tourism setting. 
• We also attend the Farmers Market at The Grounds in Lower Valley Bodden Town, every Saturday 7am-12 noon."

Plantation House Garden Tours

http://plantationhouse.blogspot.com/




4. Attend Farmer's Markets and Up Markets. This would allow me to support an industry and events where the development of markets, portable and otherwise would be taking place. While I was introduced to the concept of the Upmarket in Trinidad, I am discovering markets in other places such as the one which is available in Melbourne. Also there is a page of events which makes both the upmarket and the area very appealing as you can see what is happening for the months to come. See the following links:
 http://www.thatsmelbourne.com.au/Whatson/Shopping/Pages/300213c5-27c0-43c7-a0ca-852e38864ca1.aspx http://www.thatsmelbourne.com.au/Whatson/Shopping/Pages/Shopping.aspx

The Growing Friends Group holds two public plant sales each year. These are the only opportunities for members of the public to buy rare plants propagated from the Gardens' stock.
© Jennifer Bailey jennifernbailey24d@gmail.com

Perceptions

:

The photos show different spots in the same body of sea/ocean...  While both are taken to capture the color and perspective of the sea, be it the waves in the first one, versus the painting like quality of the second, or the tones in the color indicating movement in the first one, or the painting like quality of the second, both do not reveal either the depth of the sea or the ease of getting into  or out of the water in these areas....

In the midst of the reports of  drownings of so many children, due to accidents with the boats when they were crossing from Syria,  the flooding in Japan brought about by Typhoon Etau and the flooding in Dominica brought about by the passing of Tropical Storm Erika, this is a reminder that it is the same sea that unites us, with the lands separating us,  So perhaps we should take care of it... See links to some of the articles on the topics mentioned above.

http://www.theatlantic.com/photo/2015/09/typhoon-etau-triggers-flooding-in-japan/404719/

http://www.telesurtv.net/english/news/Dominica-Survivors-Recount-Horrors-of-Tropical-Storm-Erika--20150914-0032.html

http://abcnews.go.com/International/dozens-refugees-die-boat-sinks-off-coast-greece/story?id=33748347

Taxation 101

Having some experience in the preparation, review or printing of tax returns in various positions which I have held and having worked on the audit of a company which  had subsidiaries which operated in CARICOM countries, I pay attention to various tax matters such as Tax Amnesties, the National Budget, access to information on Tax matters such as the availability of tax returns online and so forth. So it was with glee that I discovered the website for the St Lucia's Inland Revenue was wonderfully updated and there were many similarities with respect to (wrt) the information which was available on the Trinidad site. Here are some of the areas of access:

http://www.irdstlucia.gov.lc/index.php/employers  This area deals with the concepts and applications with respect to employers and compliance. More importantly, the application of the concepts allows for a steady inflow of funds to the BIR/ Ministry of Finance on a monthly basis or as often as persons other than employees are paid ( which is my understanding of the way one of  these  concepts was applied) as outlined in the following extract from the site:

"EMPLOYERS

Employers may have tax obligations for employees and contractors working in their business.

These obligations may include:

• Pay As You Earn (PAYE) deductions
• Contract tax deductions

These responsibilities begin from the day the employee or contractor starts employment to the day they stop. There are also some responsibilities if the business stops being an employer altogether."

Also, my exposure and understanding of the application of withholding tax has developed over the years. It is an area where great care is to be exercised as there may be a need to consider the application of the concept dealing with withholding tax  on a transaction by transaction basis.
There is at least one case, (which was decided in the court(s)) between a joint venture  which operated in  Trinidad and Tobago and the Board of Inland Revenue which provides insight  as to the thinking of the judge(s), and the arguments put forward by the attorneys on both side. Access to that opinion  should be made available on a pay per view, as it offers so many options on the way we think and alternatives which are available.
However, in practical terms, with respect to the application of withholding tax, some of my ease of understanding of the concept came about through  dealing with a section on the Trinidad and Tobago corporation tax return which was one of the most time consuming sections to prepare on the return depending on the operating activity of the company:

SCHEDULE I GROSS PAYMENTS AND DISTRIBUTIONS (TT$ ONLY) (See Instruction No. 20)  The following categories are to be completed:

• Total Payments 
• Payments to Residents 
• Payment to Non-Residents 
• Amount of Withholding Tax deducted and paid to the Board of Inland Revenue 
• Receipt No. and Date 

The above was extracted from the 2014 corporation tax return, and is available via the link below.  http://www.ird.gov.tt/Media/Default/IRDForms/2014/F-500CTR--2014.pdf

In addition to the above, the following  link  provides information on some  of the areas which support the concepts and deliveries of such:

"NON-RESIDENT

• Withholding Tax
• Withholding Tax bulk upload
• Double Taxation Treaties"

 http://www.ird.gov.tt/

Funnily enough, if you understand the concepts with respect to payments made to individuals and corporations, then it is easy to apply  the concepts to the income side of the transaction :)