BEA offers haven against 'shameful' death tax | SCMP

Bank of East Asia (BEA) chairman David Li Kwok-po yesterday invited Hong Kong's wealthy to shield their assets from "shameful" local death duties by setting up offshore trusts.

Under Hong Kong's territorially based estate duty, tax is payable on all properties in Hong Kong, irrespective of nationality, residence or domicile.

Estates valued at between $7.5 million and $9 million pay a rate of 5 per cent; those valued between $9 million and $10.5 million pay 10 per cent and those of more than $10.5 million pay 15 per cent.

"If the government does not abolish the estate duty, I would like to welcome you to visit your nearest Bank of East Asia branch," Mr Li said in a lunch address to the American Chamber of Commerce. "We will be most happy to help you restructure your holdings to avoid this shameful tax."

......"The message is clear: keep your money in Hong Kong only as long as you are hale and hearty. At the first hint of a heart murmur, sell," he said.

...... for a fee of about $350,000, Hong Kong's wealthy residents could set up an offshore trust that would put their assets out of the government's reach.

"Not only will you be putting your affairs in order for your family, you will hasten abolition of the duty and support the desire of our Chief Executive to make Hong Kong the Switzerland of Asia," he said.......

more from SCMP