Wake Up !!!!
It is pointless talking about what happened in the past.
It is pointless talking about want happens in Australia.
It is pointless talking in tax language.
THE POINT IS.
From 1st Oct 2007 : Those based in UK will have UK PAYE removed from their salary at source, in other words they will never see, touch or taste that money, it goes straight from Cathay or Dragonair to the pocket of the UK taxman.
Also :
The employee must pay Hong Kong Tax, roughly 17% of salary.
Those are the facts.
Some may be able to claim the Hong Kong tax back later, perhaps if they spend less than 60 days in 1 year and 120 in two years ,they can. In mucho years in Hong Kong I have never got it back. Also if you live in another tax system and pay tax there you may be able to claim some or all the HK tax back. Basically if you want to know go to a tax lawyer/advisor/accountant.
Those who live in the UK, will have to pay the paye. Those who live outside the UK MAY be able to get a no tax code, or at least claim it back if they meet non-resident status. The rules for non-residency are very strict and get stricter all the time.
Following is an example for a married FO living in uk starting on a salary of 45,900 as quoted.Figures from listen to the taxman.com.
Salary ......................45.900.
Tax Free Allowances.... 5,225.
PAYE........................ 9,774.
National Insurance...... 3,371.
Total Deductions........13,145. (all gone in tax)
Net Salary................ 32,755.
Then the HKG tax 17% /45,900 is 7803stg leaves you with a net salary of 24,592, or 2,079 a month. Until you can claim back you HKG tax if you live in the UK. Also there are severe penelties for not paying HK tax on the due dates.
Cash Flow problems or what.