On the Source and Taxation of Royalties in Hong Kong

This article challenges the scholarly and judicial focus on the deeming provisions of section 15 of the Hong Kong Inland Revenue Ordinance to treat income arising from certain intellectual property rights as having a source, and therefore being taxable, in Hong Kong. The author examines the place of the trade or business test in section 14 of the Ordinance, and how it should be applied to contemporary transactions involving intellectual property rights.