Announcement

Khattar Wong & Partners has been awarded a licence to practise in mainland China. Their China office, located in the Pudong District of Shanghai, will be headed by Yang Lih Shyng. The Shanghai office will provide legal and business support services to clients in Singapore and other parts of the world.

Tax Rebates in Shenzhen Attract More Foreign Investment

China — The inspection branch for foreign business under the Administration of Local Taxation of Shenzhen Municipality revealed that more than 20 foreign invested companies there had received tax rebates of more than RMB10m by the end of June. The tax breaks were given because these foreign companies had invested more than they originally planned into the city.

China is using tax incentives to attract more foreign investment and mainly to encourage foreign investments in areas of research and development of high technology, biotechnology and new material sectors.

The Municipality believes that the decisions of these 20 foreign invested companies to increase their investment is a vote of confidence in Shenzhen’s sound investment environment and definitely gives a positive impact on those intending to invest in Shenzhen. (Source: www.isinolaw.com)

Investors Should do Business in Approved Zones

China — The Chinese government has urged foreign investors to do business in the authorised zones and warned investors not to be lulled by ‘too good to be true’ preferential policies being offered elsewhere.

A senior official of the Ministry of Land and Resources said that a large scale national inspection would be conducted on land use in various development zones and industrial parks. Various government departments had been despatched on a ten-day mission.

For those foreign investors that had set up businesses in unauthorised zones having been lured by local government, would have their cases individually examined and their rights and interests would be respected. (Source: www.isinolaw.com)

Supreme Court Rules in Favour of a Common Code

India — The Indian Supreme Court has recently ruled that a common code would help national integration in India. At present, the Indian Constitution allows members of different faiths to follow their own religious laws.

The court was ruling on a petition filed by a Christian priest relating to property rights. Under the present laws, Christians are forbidden from donating inherited property for charitable purposes. In ruling, the court stated that all citizens should be bound by the same laws with regards to civil issues such as marriage, divorce and property rights. The court was of the opinion that ‘a common civil code will help the cause of national integration by removing the contradictions based on ideologies’.

Having said that, the court’s ruling could only become legislation if it were initiated and approved by the Federal Parliament. (Source: news.bbc.co.uk)

Plastic Bags Outlawed

India — Under a new law, anyone carrying a plastic bag in Himachal Pradesh could face up to seven years behind bars or a fine of Rs100,000.

Politicians, fed up with the polythene pollution of their picturesque state, have directed enforcement officers to apply the law strictly. The new law bans production, storage, use, sale and distribution of the polythene bags. Himachal Pradesh is the first state in India to have implemented the law. (Source: news.bbc.co.uk)

Tax Evaders to Face Criminal Charges

Malaysia — Amendments to the Income Tax Act 1967 (‘Act’) expected to be passed after September would allow the Inland Revenue Board (‘IRB’) to charge ‘serious’ tax defaulters under criminal law.

IRB chief executive, Tan Sri Zainol Abidin Rashid, said that the amendment is meant to tighten the loose ends in the Act and through this amendment, tax defaulters could be charged under criminal law. At present, cases against tax evaders are governed by civil law.

In an effort to recoup unpaid taxes, the amendment to the Act would also see tax evaders face heftier fines and jail terms. Also in serious cases, criminal investigation units could be mobilised. (Source: www.thestar.com.my)

Concerns Over Householders Rights

UK — Householders in the UK are concerned with their right to protect their homes in light of the Tony Martin case. Martin, a householder, shot to death a teenager and wounded his accomplice when they broke into his home. Martin was convicted and jailed.

Martin was convicted based on the test of reasonableness, when the jury did not find his beliefs to be reasonable. However, many countries in Europe and states in the US have laws that are more slanted towards the householder’s right to protect his property.

Martin’s MP, Henry Bellingham, believes that the government needs to look at changing the law in relation to self-defence. Presently, the law in the UK is such that if a householder takes any action against an intruder, the householder is prosecuted.

Constitutional Affairs Secretary, Lord Falconer, said that the government would consider changing the law to strike the right balance in cases like Martin’s. The Home Secretary is looking at the law in the context of circumstances where reasonable self-defence could nevertheless lead to somebody being pursued in the civil courts. The Home Secretary is also looking at whether there is a need to amend the Criminal Justice Bill. (Source: news.bbc.co.uk)