How history has shaped the Hong Kong revenue regime

Abstract

The development of Hong Kong’s British influenced Revenue Regime is remarkable. The early configuration of that system was a direct product of what is sometimes referred to as the first era of globalization, which was a profoundly energized by European colonization and empire building. The aggressive, ultimately violent, Japanese response to that European example drove further changes in the Hong Kong Tax System. Yet, the system which emerged in Hong Kong after World War II looked a lot like a recreation from a 19th century Tax Museum. This, more by accident than design, proved especially well suited to fostering Hong Kong’s dramatically successful integration into the post-war, world trading system as the modern era of globalization began. Today, Hong Kong’s Tax System is adapting further to newer regional and global trading relationships.