Deacons Corporate Commercial Newsletter, June 2016

Submitted by Firm:
Firm Contacts:
Cynthia Chung
Article Type:
Legal Update

Hong Kong’s Simple Tax Code Days Are Over? – The Coming Storm

Stefano Mariani

What is BEPS?

Much has been said in both professional and commercial circles on the imminent introduction in Hong Kong of the Common Reporting Standard (CRS) regime for the automatic exchange of tax information between participating jurisdictions. There is, however, a much lesser awareness of the commitments undertaken by the Government to the new Organisation for Economic Co-operation and Development (OECD) standard to combat base erosion and profits shifting (BEPS). Navigating the currents of the OECD alphabet soup of acronyms can be frustrating; conceptually, BEPS has two limbs: base erosion refers to the artificial reduction of one jurisdiction’s tax base by shifting profits (hence, the second ‘profits shifting’ limb) from the jurisdiction where the profits were economically generated to a jurisdiction with a lower rate of tax.  Full article »

Forget the Fines (for now): How Much will a Competition Law Investigation Cost your Business?

Wendy Thian

Competition law enforcement worldwide is increasingly responsive and intrusive, and businesses can expect much of the same from the Hong Kong Competition Commission (HKCC). Since 14 December 2015, all companies with business interests in Hong Kong must operate in compliance with the new local competition rules (set out in the Competition Ordinance (CO)), or face exposure to potentially significant costs.  Full article »

Confidential Information: What You Need to Know When Employees Leave

Cynthia Chung

Preventing Employees from Competing

The extent to which an employer can prevent employees from competing varies, depending on whether it is during employment or post-employment. During employment, employees have a duty of fidelity and good faith not to act in conflict with the interest of their employer. This includes not engaging in a competing business. Outside employment that is not related to and/or not inconsistent with the current employer can only be bound by express contractual provisions. The duty of fidelity will also extend to keeping company information confidential and not soliciting/inducing customers or clients to cease using the employer's service.  Full article »