Hong Kong has traditionally been seen as a tax haven and the financial hub of Asia, if not the world. Granville Turner, Director Turner Little comments on how political unrest may affect investor confidence and asset protection
Hong Kong is well-known for its no and low taxation on foreign residents and corporations. However, the last six months of social and political unrest in Hong Kong has begun to take a toll on the region’s economy, fuelled by a sceptical audience of both individuals and businesses who are concerned that the continued unrest will have an adverse impact on the use of Hong Kong companies in both trading and asset protection.
Granville Turner, Director at company formation specialists, Turner Little, says: “In the midst of the general unrest in Hong Kong, the big question on everyone’s minds at the moment is ‘has the possibility of draconian measures being imposed by China, caused additional risk?’ As Hong Kong enters its first recession in a decade, the invocation of a draconian law to dissipate months of unrest could plunge the city into a worse crisis.
“Hong Kong has always been seen as having the world’s freest economy with its simple and low tax system, trade freedom, monetary freedom and government integrity. Hong Kong’s status as the financial hub of Asia, has always been protected by its ease of doing business, it’s unique role between China and the rest of the world and the rule of law. But if it loses its status as one of Asia’s top financial centres, it could be disastrous.
Read the full article in the International Accounting Bulletin here