### Inland Revenue Ordinance 《稅務條例》

50AAD. Application of Part 8AA
(1) This Part applies in determining a person’s liability for property tax, salaries tax and profits tax.
(2) In so far as this Part relates to a provision made or imposed as between 2 persons by means of a transaction or series of transactions, subsection (1) has effect—
(a) regardless of whether either person is, or both persons are, chargeable to foreign tax; and
(b) if either person is, or both persons are, chargeable to foreign tax—regardless of whether the foreign tax is chargeable in a DTA territory.
(3) In so far as this Part relates to a non-Hong Kong resident person who has a permanent establishment in Hong Kong, subsection (1) has effect—
(a) regardless of whether the person is chargeable to foreign tax in respect of income attributable to the permanent establishment or of other income; and
(b) if the person is so chargeable to foreign tax—regardless of whether the foreign tax is chargeable in a DTA territory.
(4) Subsections (2) and (3) do not apply to sections 50AAN and 50AAO.

50AAE. Consistency with OECD rules
This Part is to be read in the way that best secures—
(a) consistency between—
(i) the effect given to sections 50AAF, 50AAG, 50AAM and 50AAN; and
(ii) the effect that, in accordance with the OECD rules, is to be given to double taxation arrangements that incorporate the associated enterprises article or any rules in the same or equivalent terms as that article; and
(b) consistency between—
(i) the effect given to sections 50AAK and 50AAO; and
(ii) the effect that, in accordance with the OECD rules, is to be given to double taxation arrangements that incorporate the business profits article or any rules in the same or equivalent terms as that article.

### Inland Revenue Ordinance 《稅務條例》

50AAG. Interpretation: participation condition

50AAH. Interpretation: participation

50AAI. Interpretation: transaction

50AAJ. Interpretation: potential advantage

### Inland Revenue Ordinance 《稅務條例》

50AAL. Interpretation: relevant activities

### Inland Revenue Ordinance 《稅務條例》

50AAS. Obligation to notify breach of critical assumption, etc.
A person in respect of whom an advance pricing arrangement is made—
(a) must notify the Commissioner of a breach of any critical assumption specified in the arrangement within a reasonable time after the breach; and
(b) must provide the Commissioner from time to time with all reports and other information that the person may be required to provide under the arrangement.

50AAT. Record keeping
A person in respect of whom an advance pricing arrangement is made for a period (specified period) must retain, for a period of not less than 7 years after the end of the specified period, all the records and data—
(a) relied on in concluding the arrangement;
(b) used in applying for the arrangement; and
(c) referred to in any reports and other information provided to the Commissioner under the arrangement.

### Inland Revenue Ordinance 《稅務條例》

50AAU. Advance pricing arrangement and double taxation arrangements
(1) If an advance pricing arrangement being applied for—
(a) either—
(i) is to cover a transaction in respect of which an applicant for the arrangement or an associated person of the applicant is likely to be liable to tax in a DTA territory; or
(ii) relates to the attribution of income or loss to a permanent establishment in Hong Kong of an applicant for the arrangement and the applicant is likely to be liable to tax in a DTA territory; and
(b) is relevant to the question how the applicant or the associated person is to be taxed (whether in Hong Kong or the territory) so as to accord with the double taxation arrangements concerned,
the Commissioner may resolve the question with the competent authority of the territory through the mutual agreement procedure mentioned in section 50AAB before making the advance pricing arrangement.
(2) If a mutual agreement referred to in section 50AAB is not consistent with the terms of an advance pricing arrangement already made, the Commissioner must revise the arrangement so far as may be necessary for enabling effect to be given to the mutual agreement in relation to the subject matter of the arrangement.

50AAV. Application for advance pricing arrangement and application fees
(1) Schedule 17H provides for an application for an advance pricing arrangement and for fees payable for the application.
(2) The Secretary for Financial Services and the Treasury may by order amend Schedule 17H.

50AAW. Protection of public officer
No liability is to rest on the Government, the Commissioner or any other public officer in respect of the exercise of any power or performance of any duty in good faith in relation to an advance pricing arrangement or an application for the arrangement.

50A. Interpretation
(1) In this Part—

2020-covered institution (2020年涵蓋機構) means a reporting financial institution that is—
(a) a mandatory provident fund scheme registered under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (MPF scheme

### Inland Revenue Ordinance 《稅務條例》

50B. Due diligence obligations on reporting financial institutions
(1) A reporting financial institution must—
(a) establish procedures that are designed to—
(i) identify the jurisdiction of residence of—
(A) the account holder of a financial account maintained with the institution; and
(B) (if the account holder is a passive NFE) the controlling person of the passive NFE;
(ii) identify whether a financial account is a reportable account;
(iii) secure that any evidence relied on, and any record of the steps taken, for carrying out the procedures in relation to a financial account are kept for a period of 6 years beginning on the date on which the procedures are completed; and (Amended 5 of 2018 s. 6)
(iv) enable the institution to identify and collect the required information within the meaning of section 50C(3) (required information); and
(b) incorporate into those procedures the due diligence requirements in Schedule 17D.
(2) A reporting financial institution must maintain and, for carrying out its obligations under this Part, apply the procedures established in compliance with subsection (1)(a) and (b) (required procedures)—
(a) to identify reportable accounts, and to identify and collect the required information; and
(b) to ensure that the purpose mentioned in subsection (1)(a)(iii) can be achieved.
(3) A reporting financial institution may, in carrying out its obligations under this Part, apply the required procedures—
(a) in relation to any financial account, even if—
(i) the account holder of the financial account is a resident for tax purposes in a territory outside Hong Kong that is not a reportable jurisdiction; or
(ii) (if the account holder of the financial account is a passive NFE) any controlling person of the account holder is a resident for tax purposes in a territory outside Hong Kong that is not a reportable jurisdiction; and
(b) for identifying and collecting the required information in respect of any financial account as referred to in paragraph (a).