Upon improving district governance and reforming the District Councils (DCs) in 2023, the seventh term of District Council election was successfully concluded on December 10 last year. The new term of DCs have assumed office since January 1 this year. The Electoral Affairs Commission (EAC) Report on the 2023 District Council Ordinary Election (DCOE) was published today (April 19).
      
     The Report describes the EAC's conduct and supervision of this election at various stages, and provides a detailed account of the related preparatory work, electoral arrangements, complaint handling, etc. The EAC also detailed in its Report their review of the procedures and arrangements for this election, including the investigation findings on the Electronic Poll Register system incident, and put forth specific enhancement recommendations for improving future electoral arrangements.
      
     "We are very grateful to the EAC for their efforts and various arrangements made to ensure the smooth implementation of this election in a fair, just and clean manner, as well as their in-depth and detailed review of various electoral arrangements with respective recommendations," a Government spokesman said.
      
      "The successful conclusion of this DC election is of particular significance. The reformed DCs have greatly benefited the implementation of livelihood-related work, and have been conducive to the welfare of people, enabling them to live and work in contentment. At the same time, the full implementation of the principle of "patriots administering Hong Kong" and the "last piece of the puzzle" of the Hong Kong Special Administrative Region (HKSAR) governance system ensures the steadfast and successful implementation of "one country, two systems", and the long-term stability and safety of the HKSAR. The Government will continue to work closely with the EAC to follow up on the recommendations contained in the report," the Government spokesman continued.
      
     In accordance with the requirements of the Electoral Affairs Commission Ordinance (Cap. 541), the EAC submitted the report on the 2023 DCOE to the Chief Executive on March 8, 2024. In line with the principle of open and transparent elections, the Government agreed with the EAC's recommendation that the report should be made public. The report can be downloaded from the EAC website (www.eac.hk) and is available for viewing at the Registration and Electoral Office and the Home Affairs Enquiry Centres of District Offices.

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     Here is an item of interest to swimmers.

     The Leisure and Cultural Services Department announced today (April 19) that Ping Shan Tin Shui Wai Swimming Pool in Yuen Long District has been temporarily closed for cleaning and superchlorination following the discovery of a small amount of faeces in the pool.

     It will be reopened at 6.30am tomorrow (April 20).

     The department appeals to swimmers to be considerate and to keep the swimming pools clean. They are advised not to swim after a full meal and should use the toilet facilities if necessary before swimming.

     The Secretary for Transport and Logistics, Mr Lam Sai-hung, and the member of the Standing Committee of the Communist Party of China Tianjin Municipal Committee and Executive Vice Mayor of Tianjin, Mr Liu Guiping, today (April 19) witnessed the signing of a Memorandum of Understanding (MOU) between the Transport and Logistics Bureau (TLB) and the Administrative Commission of the Tianjin Dongjiang Free Trade Port Zone to deepen co-operation in the development of the aircraft leasing and financing industries.

     Both Hong Kong and Tianjin have an important role to play in promoting the aircraft leasing and financing industry as well as financial innovation and operation. According to the MOU, the two sides will fully utilise their comparative advantages and join hands to build a regionally linked and complementary aircraft leasing and financing platform to promote co-operation between enterprises of the two places. Relying on the advantages of Hong Kong as an international financial centre and those of Dongjiang in the clustering of players of the aircraft leasing industry, the two sides will forge deeper co-operation in different areas, including financing, business, international competition, publicity, and the promotion of talent exchanges and training.

     Mr Lam said in his speech that the MOU marks a new milestone in the development of aircraft leasing between Hong Kong and Tianjin Dongjiang. The Hong Kong Special Administrative Region Government has been promoting the development of aircraft leasing in Hong Kong in accordance with the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and the report to the 20th National Congress of the Communist Party of China. The Bill to enhance the aircraft leasing preferential tax regime was passed by the Legislative Council in February this year, thereby further strengthening Hong Kong's competitiveness in the global aircraft leasing market. As an international financial centre and an international aviation hub, Hong Kong is well positioned to provide the necessary resources and support to aircraft lessors.

     The Tianjin Dongjiang Free Trade Port Zone has become the largest aircraft leasing hub in China and the second largest in the world after Ireland. With the signing of the MOU, Mr Lam said he looks forward to more aircraft lessors, airlines, as well as organisations and individuals who need to lease aircraft, utilising the joint platforms of the two places for aircraft leasing business.

    

     The China Securities Regulatory Commission (CSRC) issued an announcement today (April 19) about a series of measures to further expand the mutual access between the capital markets of the Mainland and Hong Kong. The measures include (i) expanding the eligible product scope of equity exchange-traded funds (ETFs) under Stock Connect, (ii) including real estate investment trusts (REITs) under Stock Connect, (iii) supporting the inclusion of Renminbi (RMB) stock trading counter under Southbound trading of Stock Connect, (iv) enhancing the arrangements for mutual recognition of funds, and (v) encouraging leading enterprises of industries in the Mainland to list in Hong Kong. The Hong Kong Special Administrative Region (HKSAR) Government warmly welcomes the measures and would like to express sincere gratitude to the Central People's Government for the unwavering support to Hong Kong.

     The Chief Executive, Mr John Lee, said, "The measures announced today are important initiatives to support the further development of Hong Kong's financial markets, increase the number of attractive investment products, provide more investment opportunities to domestic, Mainland and overseas investors, and enhance Hong Kong's status as an offshore RMB business centre. I would like to express my sincere gratitude to the Central People's Government and relevant ministries for their tremendous support for the development of Hong Kong's financial markets. Mr Xia Baolong said in the opening ceremony of National Security Education Day, "As long as Hong Kong asks, the motherland will surely respond. No matter what difficulties and challenges Hong Kong encounters, the backing and support from the motherland will only increase and will not weaken." This further expansion of mutual access between the financial markets of the Mainland and Hong Kong encapsulates our country's firm support for Hong Kong to enhance its status as an international financial centre and fully demonstrates our country as the biggest backing for the development of Hong Kong's financial industry. The HKSAR Government will continue to enhance the competitiveness of Hong Kong's financial markets, proactively contribute to our country's development as a financial powerhouse, commit to our international characteristics, and increase the impetus for growth."

     The Financial Secretary, Mr Paul Chan, said, "Each of the measures to expand the mutual market access will further strengthen Hong Kong's role to connect the Mainland and international capital markets, enable us to better perform our function as a unique platform for attracting capital and high-quality enterprises from both directions, enrich the asset allocation options for Mainland and international investors, and provide more investment options for offshore RMB, thereby contributing to the steady and prudent advancement of RMB internationalisation. Our country's support for leading Mainland enterprises of industries to list in Hong Kong will benefit Hong Kong's initial public offering market. The increase of listed companies with long-term growth and return potential in Hong Kong will also drive the development of our secondary market. The further expansion of product coverage under mutual market access will broaden investment options for domestic, Mainland and overseas investors and facilitate their asset allocation. This will attract more capital to the Mainland and Hong Kong markets and benefit long-term market development. Moreover, enabling Mainland investors to trade Hong Kong stocks using RMB through the Southbound trading of Stock Connect will enhance the investment function of RMB offshore."

     Mr Chan continued, "We would like to express our sincere gratitude to the Central People's Government for the strong support, and the relevant Mainland ministries and institutions for their collaboration and assistance. We will closely liaise with the ministries and institutions to implement the measures as soon as possible. In parallel, we will take forward relevant supporting measures at full speed, including waiving the stamp duty payable on the transfer of REIT units, extending the Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts, enhancing the regulatory regime for collective investment schemes and REITs, etc. Furthermore, we will strengthen our efforts to attract enterprises and open up new capital sources, and enhance the development momentum of Hong Kong's financial markets continuously."

     According to the announcement, the regulators of the two places will work together towards the early implementation of the measures mentioned above. 

     A property agent was convicted on March 15 at the District Court of evading tax. She was sentenced today (April 19) to seven months' immediate imprisonment and fined $240,000 ($20,000 for each charge).

     The defendant, aged 66, was a licensed property agent and operated a property agency company. She pleaded guilty to 11 charges of evading tax wilfully with intent and one charge of making an incorrect return without reasonable excuse. The tax evasion charges comprised seven counts of omitting the rental income from her tax returns for the years of assessment 2008/09 to 2014/15; two counts of giving false answers in writing to a request by the Inland Revenue Department (IRD) for rental information for the years of assessment 2009/10 and 2011/12; two counts of making false statements in connection with a claim for a deduction of home loan interest for the year of assessment 2014/15, contrary to section 82(1)(a), 82(1)(e) and 82(1)(c) respectively of the Inland Revenue Ordinance (IRO) (Cap. 112). For the charge of making an incorrect return, the defendant understated her rental income for the year of assessment 2015/16, contrary to section 80(2)(a) of the IRO. 

     The court heard that the defendant owned 12 properties, 10 of which were for letting purposes, during the relevant period. The defendant did not report any rental income in her tax returns for the years of assessment 2008/09 to 2014/15, and reported the rental income of only one of her letting properties in her tax return for the year of assessment 2015/16. The IRD issued written enquiries to the defendant in respect of the non-reporting of rental income in her tax returns for the years of assessment 2009/10 and 2011/12. The defendant stated in her written replies that she did not have any letting property in the two years of assessment concerned. In addition, the defendant claimed deduction of home loan interest in respect of her letting property in the tax return for the year of assessment 2014/15 and an application form, and stated therein that she occupied that property as her residence for the whole year. 

     An investigation by the IRD revealed that tenants were solicited by the defendant or property agents appointed by her for her 10 letting properties (four of which were partitioned into subdivided units). The rents were deposited into the bank accounts of the defendant, her family members or her company. Furthermore, the defendant falsely declared twice that she resided at her letting property for the whole year during the year of assessment 2014/15 and claimed deduction of home loan interest on it. The total rental income omitted and understated for the years of assessment 2008/09 to 2015/16 was $4,605,711, and the tax undercharged amounted to $534,840. The amount of home loan interest falsely claimed by the defendant for the year of assessment 2014/15 was $10,534 with evaded tax of $1,790. 

     A spokesman for the IRD reminded taxpayers that tax evasion is a criminal offence under the IRO. Upon conviction, the maximum penalty for each charge is three years' imprisonment and a fine of $50,000 plus a further fine of three times the amount of tax evaded. Furthermore, a person who, without reasonable excuse, makes an incorrect return shall be guilty of an offence and is liable to a maximum fine of $10,000 and a further fine of three times the amount of tax undercharged for each charge.