Anna Chan, head of the Oldham, Li & Nie’s Tax Advisory & Private Client Departments, provides an overview of tax implications that Hongkongers and expats need to consider when relocating Hong Kong’s tax rate is low, and the system is simple to understand which is one of the reasons many people overlook tax considerations when they are planning a relocation. The hard reality, however, is that popular emigration destinations, such as the UK and Canada, have a much higher tax rate and more complex tax system. For this reason, if you are looking to relocate, you need to set some time aside to work out how to minimise your tax exposure. Many of these tax-saving moves, can only be done while you are still a Hong Kong tax resident. It is therefore advisable to allow sufficient time before your actual departure to consult a tax lawyer. At the very least you will need to update your current market value (CMV) status, have a Will drawn up for Hong Kong assets and find out whether you will be taxed on any Hong Kong salary and assets in your new country of residence. Unlike Hong Kong, most countries impose tax on residents’ worldwide income, meaning that investment gains generated in a foreign location (i.e. Hong Kong) could be subject to local tax. The good news is that most countries do not tax gains that were generated overseas prior to a relocation, as long as you have proof. For those emigrating to Canada and the UK, this would usually mean providing sufficient record to show the CMV of your investments, such as surveyor reports, immediately prior to your relocation. Likewise, any revenue, including salaries from Hong Kong employment or profits from an ongoing Hong Kong business could be subject to local taxes. That being said, in many countries, including the UK, non- domiciles can benefit from special taxation rules on foreign-sourced income. And in Canada, thanks to the Double Tax Agreements (DTA) between Canada and Hong Kong, the local tax is waived. Canadian tax residents with dual residency in Hong Kong are only taxed in Hong Kong on salaries derived from Hong Kong employment. Further, the withholding tax rate on dividends is generally limited to 15%. On another note, if you are relocating temporarily, you have to be cautious about the length of your stay in order to avoid worldwide tax. In Canada, for instance, a continuous stay of over 183 days in a tax year would make you a tax resident and therefore subject to worldwide tax. Hong Kong employers also need to ensure that they have arrangements in place that permit employees to work from overseas. This is because an employee’s activities could be construed as the company having a presence/establishment overseas, and if such activities generate much profit, the employer could be subject to local corporate taxes. Estate duty is another important factor to consider prior to relocation, and you are well advised to have a Will executed for Hong Kong assets. Inheritance tax was abolished in Hong Kong in 2006, but it can be as high as 40% in the UK. While there is no inheritance tax in Canada per se, in effect the tax exists because the Canada Revenue Agency charges on assets at the time of death. A Hong Kong Will allows you to argue that Hong Kong remains your place of domicile and thus no estate duty should be imposed. This argument is especially strong if you are only a tax resident in the country you have relocated to, and you have not made it your permanent home. Anna Chan heads Oldham, Li & Nie’s Tax Advisory & Private Client Departments. She has over 10 years of experience advising on tax issues ranging from pre-immigration tax compliance and planning for tax efficiency to transactional tax structuring. For more information, email Anna at anna.chan@oln-law.com or visit www.oln-law.com

Mark Kirkham, from Soteria Trusts Hong Kong, explains the importance of Inheritance Tax planning for UK expats, as well as anyone with assets in the United Kingdom. In the 2021-22 financial year, taxpayers paid £700 million more Inheritance Tax (IHT) than in the previous year – £6.1 billion of IHT was collected, up 13% on 2020-21. This sudden increase was driven by rapidly increasing UK property prices and the recent freezing of IHT thresholds until 2026. It’s those two factors that have seen more and more estates caught in the IHT net, leaving families with some big decisions around whether they will need to sell the family home to pay the IHT bill. IHT is levied against a deceased person’s estate at the rate of 40% on the value of the excess above the Nil Rate Band (NRB) threshold of £325,000 per individual or £650,000 per couple. There is also an additional Residential NRB of £175,000 if the main residential property is being given to a direct descendant of the deceased. Property prices to blame. In February 2022, the average UK house price was £276,755, with London’s properties averaging £529,882. The UK has seen a 10.8% increase in property prices since February 2021, making it one of the highest growth periods in recent years. This means it’s more difficult for families to decrease their exposure unless they use certain tax planning strategies. What else is taxable? There are still many UK investment property owners who are unaware of IHT, and others who think that it doesn’t apply to them. An estate that is subject to IHT, not only consists of the family home but also investment properties, as well as any stocks, non-property investments and cash. Subject to the domicile of the individual, IHT can extend to all foreign-owned assets such as businesses and property anywhere in the world. Mistakes to avoid. Plenty of people make costly mistakes by not taking proper advice and trying to mitigate the tax burden themselves. One such mistake is using life insurance proceeds to pay the IHT bill. This is because the proceeds will also be subject to IHT unless the life insurance policy is written in Trust. Out of the 22,100 estates that paid IHT in 2018/19, over 6,000 of them paid IHT on proceeds of life insurance policies that the deceased owned. IHT mitigation. One solution that Soteria Trusts recommend is a QNUPS (Qualifying Non-UK Pension Scheme). Assets within an overseas pension are exempted from IHT from day one, whereas other IHT solutions rely on the owner living a further seven years from any ownership changes. There is no lengthy probate process for the deceased’s family to follow, and therefore they can access the funds in the QNUPS immediately. Although a QNUPS is a pension, it differs from traditional UK domestic pensions in the way that it can hold within it multiple asset classes, including investment property, cash, art, wine etc. The investments are also income tax and capital gains tax free. It takes time to understand the intricacies of this IHT mitigation strategy. To start that process off, you can arrange an introductory call or meeting with us to discuss your individual needs, establish your current and future liabilities, and agree an action plan. Soteria Trusts Hong Kong helps you manage, grow and protect your assets via a versatile range of trusts, international retirement solutions and tax advisory services. Visit us at www.soteriatrusts.com or contact us via enquires@soteriatrusts.com to arrange next steps.

Discovery Bay International School (DBIS) has confirmed that fees across the school – from Nursery to Year 13 – will not increase for the new academic year in light of the impact the pandemic continues to have on families in Hong Kong. This is the third year in a row that school fees have remained unchanged. Annual school fees at DBIS, which range from
 HK$113,300 in Nursery to HK$185,500 in Year 13,
include significant items such as examination fees
and extracurricular activities. Access to iPads in
Early Years and Chromebooks in Primary is also included. Membership to the school’s active, community-focused PTSA is free, and parent involvement is welcomed. The only school in DB to offer IGCSEs, A Levels and BTEC, DBIS provides a British curriculum with an international flair. Languages play a prominent role in a DBIS education, with Mandarin taught throughout the school, while French and Spanish are studied from Year 7 onwards. Small class sizes allow learning to be personalised according to individual students’ needs, and the school’s three dedicated campuses in DB enable extensive outdoor experiential learning opportunities. In January, DBIS will be welcoming a new Head of School, Mr Marc Morris, who is returning to Hong Kong after having spent a number of years at other top international schools in Asia and the Middle East. Head of School Mr Stuart Bridge will remain in post until the end of 2022, ensuring continued stability for the school into the new academic year. To find out more, visit www.dbis.edu.hk . PHOTO COURTESY OF DBIS

Long-time DB resident Richard Gordon is one of the featured photographers in Remembering and Storytelling, part of the Recovery, Resilience, Resurgence exhibition running through June 5 at the Asia Society’s Chantal Miller, Gallery in Admiralty. His photos, taken earlier this year, document an uncannily deserted HK International Airport. To find out more, visit www.asiasociety.org , to see more of, Richard’s work visit www.richardgordonphotography.com .

The International Proverse Prizes for writing previously unpublished in English are open for entry. Long-time DB residents and publishers of Proverse Hong Kong, Dr Gillian Bickley and Dr Verner Bickley, invite new, emerging and experienced writers aged 18+ to participate. The Proverse Prize for book-length fiction, non-fiction, or poetry offers a cash prize and publication; the Proverse Poetry Prize for single poems offers cash prizes and anthology publication. To enter by June 30, visit www.proversepublishing.com . < photo courtesy of dr gillian bickley.> photo courtesy of dr gillian bickley.>

One World Spirit Association’s (OWS) new series of DB-based international cookery workshops kicked off with a dumpling-making workshop in May. “We are inviting DB chefs of different nationalities to share their cooking skills and food culture stories to help connect people in the community,” says OWS founder Shirlee L. Dickert. To sign up for an upcoming workshop with Northern Chinese Chef Lolo to make Xian Bing (meat pie) and Cong You Bing (scallion pancake), head to https://fb.me/e/cM8iXCor0 . < photo courtesy of ows.> photo courtesy of ows.>

Check out local artist Michelle Fung’s latest collection of eco-minded art prints, Hong Kong 2084, which celebrates the natural beauty of our hometown, while highlighting the ever-increasing issue of plastic pollution. 20% of sales from the six art prints will be donated to DBbased Plastic Free Seas (PFS). “I wanted to pay Hong Kong tribute and raise money for a charity that speaks to me,” says Michelle of the beautiful new collection. Hong Kong 2084 reimagines the city’s fantastical sustainable future, where historical, contemporary and futuristic green buildings co-exist, and where endangered animals flourish. If the artist had a magic wand, this is how she would have her city in 2084. Marine plastic pollution has long been an issue close to the artist’s heart. Her body of work Plastic, plastic, everywhere! (2015-2019) has garnered multiple local and international awards as a short film, an illustrated book and installations. PFS believes that art can raise awareness and even promote behaviour change, and they have been following Michelle’s work for years. “It is a pleasure to partner with Michelle on this project which ultimately speaks to our mission to reduce the use of single-use plastic for the health of our planet – the ocean, the animals, the plants and the people,” says PFS Director Dana Winograd. To purchase a Hong Kong 2084 print, visit www.michelleksfung.com/hongkong2084 . To find out more about Plastic Free Seas, visit www.plasticfreeseas.org .

In partnership with Hong Kong Shark Foundation, DB teens Mimi Smith and Krishiv Khatri, and fellow West Island School student King Hin Lau, have set up The Shark Sanctuary, an NFT collection of 8,888 sharks. The aim is to raise awareness and fundraise on the issue of shark finning, which kills over 100 million sharks annually. An initial drop of 888 NFTs began on April 15. To do your bit, adopt a shark at the-shark-sanctuary.webflow.io . < photo courtesy of the shark sanctuary.> photo courtesy of the shark sanctuary.>

In May, Discovery Bay Golf Club (DBGC) presented its first-ever Honorary Membership to homegrown DB golfer Taichi Kho, to recognise his dedication, passion and pursuit of excellence in golf, and to celebrate what he has achieved for golf both in Hong Kong and internationally. “I am truly honoured to receive the Honorary Membership; my first memory of golfing was playing 9 holes on Ruby at DBGC,” Taichi said in his acceptance speech. “What I have accomplished is truly a whole team effort; a big part goes to my parents, for what they do and sacrifice. It is also a team effort with DBGC because I got the privileges and facilities and the support from everyone at the club.” Eddie Chan, DBGC’s General Manager said, “We are proud of the golfer spirit Taichi represents. Our club has long been dedicated to nurturing young and talented golfers, and it has been a great honour to support Taichi’s passion and professional development since he first joined us at five years old.” Over the years, DBGC has witnessed the professional development of Taichi from junior golfer, to now the highest ranked amateur golfer in Hong Kong. The runner-up in last year’s Asia-Pacific Amateur Championship, Taichi will be the first Hong Kong golfer to play in the Qualifying Series of The Open, which takes place in St Andrews, Scotland in July 2022. < photos courtesy of dbgc.> photos courtesy of dbgc.>

There won’t be much dragon boat racing during Tuen Ng Festival (June 3) this year, but teams across DB are already training hard for the rescheduled race day on October 9. LBC Pirates (pictured) holds dragon boat training sessions at Tai Pak Wan in the evenings on weekdays and early on Sunday mornings. The team is open for DB residents to join, and no experience is needed. To get involved, send an email to paddling-chair@lantauboatclub.com . < photos BY ="BY" Richard="Richard" Gordon="Gordon" - www.richardgordonphotography.com.=">www.richardgordonphotography.com."> photos>

ALL YOU NEED TO KNOW ABOUT LAB-CREATED DIAMONDS PHOTOS BY pexels Diamonds are the most preferred gemstone, which is no wonder dealers go to any length to source them, and users would do anything to buy them. Diamonds are loved for their sparkle and radiance, high quality and all-time classic feel. While more mined diamonds are being rigorously sourced, the ecosystem is experiencing a share of notable dangers. Mining factories are polluting the environment with dangerous exhausts. But all these still doesn't take away the fact that people desire diamonds. Recently, to meet the ever-increasing demand for diamonds, there has been widespread popularity in the purchase of lab-grown diamonds for use as jewellery. Lab-grown diamonds are heavily portrayed as eco-friendly and sustainable. This article explains why they are thought so and why they are safer for the environment. They are Eco-Friendly Whether we admit it or not, activities like mining are causing significant environmental damage that is already taking a toll on the ecosystem. As nations join hands to raise a global cry against ecological degradation, the world is encouraged to embrace eco-friendly production mechanisms. Lab-grown diamonds override the natural processes that occur in the production of mined diamonds and the mining process it takes to reach them. There is no need for any lands to be dug out, not to talk of restoration acts. All production processes occur in a factory, and by comparison, there is far less pollution to go into the environment. For a long time standing, mining has been associated with environmental degradation. Most of the damage done is never really restorable. Even when they are, it takes years for the environment to return to its original state. They are Sustainable There is a far lesser risk of environmental degradation due to pollution with lab-grown diamonds. No more lands need to be destroyed from mining, and our trees can remain to contribute their positive quota to the ecosystem. Other negative impacts of mining diamonds include soil erosion, water and air pollution, and carbon emission increase. With mined diamonds come issues like the sale of fake diamonds. Once these items are detected, they have no use but to be discarded, further contributing to the carbon footprint. Asides from worrying environmental impacts, the consciousness that natural diamonds take billions of years to form is quite alarming. We may be exploiting these rare gems faster than the earth can replenish. Natural diamonds may become even scarcer in years to come after all reserves have been exhausted. Indeed, lab-grown diamonds are eco-friendly, and producing them significantly decreases all of these issues and more. They have created a more environmentally friendly and sustainable way of producing diamonds. They Don’t Destroy Natural Habitat The production of lab-grown gemstonesbarely has an impact on the immediate environment. No forest trees are felled, and no animals are displaced. The issue of deforestation and animal displacement associated with mining is fast causing the extinction of biodiversity. At other times, the purity of the immediate environment becomes so disturbed that animals and vegetation may not survive. They Consume Less Energy Mining diamonds requires heavy machinery that consume an equal amount of heavy energy. Energy from fossil fuels and natural gas are non-renewable and therefore very unsustainable. Moreover, as these energies are consumed, they lead to a high dump of emitted carbon, greenhouse gases, and other unwanted chemical substances into the environment. Emissions like this cause smog and cause health problems for humans, plants, and animals. Laboratory production of diamonds requires less energy that can be readily sourced from renewable energy sources. These energy sources are not only renewable but also without dangerous emissions. The difference in carbon emitted by the production of mined and lab-grown diamonds is at 5700 grams to 0.02 grams per carat. Such huge differences make lab production a highly needed alternative for energy conservation and environmental health. Conclusion There is an increasing rise in the world's preference for eco-friendly products, and lab-grown diamonds have not been left out. When compared to mined diamonds, they are eco-friendly in every sense. Lab diamonds are not only eco-friendly but also ethical and sustainable. We can comfortably maintain our glow with them while still wearing a confident smile, knowing that our environment is safe.

Teacher and artist – or is it artist and teacher? – Fiona Kennedy Altoft embarks on a new adventure with a decidedly DB perspective to guide her. Elizabeth Kerr reports PHOTOS BY Baljit Gidwani - www.evoqueportraits.com When Discovery College Head of Visual Arts, art teacher and artist Fiona Kennedy Altoft parks herself in front of her computer for yet another video chat, she’s the first to admit she’s of two minds about the phenomenon that has quickly jumped from the realm of sci-fi to daily life. She’ll cop to the fact that for the bulk of the past two years, her laundry has been heavy on shirts. Really, who’s needed fresh trousers every day? Fiona is what you might expect of a working artist. Her blonde hair is offset by bright teal glasses and she’s sitting in her studio with canvases scattered in the background. A laptop tour reveals more of them, some being packed up for the move back to Australia this coming summer. The conversation jumps around, from creating art in the digital age and what exactly NFT art is (the jury’s still out on full comprehension of that one), to how quickly we’ve all adapted to life online. “You get into habits fast,” Fiona says with a chuckle. “I was always saying I didn’t want to go online but then I found that teaching remotely has its advantages. I would look at the clock and say, ‘Oh, I’ve got a 40-minute gap, I’ll just have a lie down.’ You can’t do that at school.” EDUCATOR Fiona is a small-town girl, so to speak, and it shows in her gregarious nature and genuine affection for a good jabber. After growing up in Roma, a little town of just under 7,000, she went to secondary school in Toowoomba and then university roughly 500 kilometres away in Brisbane to study art at Queensland University of Technology. The BA in visual arts was followed by a degree in education, because Fiona was convinced teaching was in her future somehow. She was right. She got married to Grant Altoft, also a teacher (also at DC in the Individuals & Societies department) and moved to Gold Coast at 24, where she taught and headed up a few art departments, most prominently at Marymount College Burleigh. “I got lucky with work and wound up as head of several departments at a few schools. was good to teachers. I wanted time to do my art and asked for a year off and they gave it to me,” she recalls. That year off, 2007, was partially successful: Fiona achieved quite a bit but didn’t like it as much as she thought she would. “Art is lonely work, schools are very social,” she says with a laugh. “At home trying to paint by myself all day was isolating. After a few months I was ready to talk to someone, ready to be back in the classroom.” Needless to say, Fiona bristles at the notion of “Those who can, do. Those who can’t, teach.” “You hear that kind of snobbery all the time,” she scoffs. “‘Oh, you’re not an artist, you’re an art teacher.’ It’s why I make my teachers exhibit. The students love it. I think some don’t even realise it’s possible to be a working artist-teacher. I find it exhilarating that they trust me, and that I have certain skills.” That belief slots nicely beside supporting students in their decisions, providing a safe space (her art room) for them to resolve issues and assuring them, at 12 years-old, that there’s plenty of time to blossom into the next Dalí. ARTIST IN RESIDENCE Fiona was 40, when she decided to ditch Gold Coast for DB, proving you’re never too old to switch lanes. After winning Queensland’s Alan Drury Excellence in Teaching Award, she and Grant – now with children Isabella and Harper, 10 and eight at the time – decided a change of pace was in order. “At that stage it was do something drastic or we’ll retire here,” says Fiona. “Gold Coast was great: good school, nice students, great staff; it’s got a beach. There’s no reason to leave other than boredom. I took time off here and there to have kids, to travel, to work on my art. There was 17 years of that.” The Drury prize meant the family could afford to test the waters without fear of not being able to feed the kids. “That was it. We both wanted to teach overseas so we thought let’s do it.” Plans were helped along by an invitation to be artist in residence and teacher at DC, so nine years ago the Altofts made the move to Discovery Bay, where everyone found a liveable balance between small town and big city. Aside from the obvious appeal of jettisoning a sometimes 90-minute commute to work – “We got here and we were so excited to be able to walk to work” – DB ticked boxes for the Altofts from the get-go. “The kids were little and the community was a blessing,” Fiona says. “You soon know everyone in the plaza, and everyone in the pub. It’s very small town, and some people like that. Some don’t. We love it.” PORTRAIT PAINTER Over the years, Fiona has carved out an artistic legacy that has seen her work land in collections in Hong Kong, the UK, Canada, Italy, Thailand and at home in Australia. She’s won awards and exhibited around the world. And her painting, largely acrylics, took a turn after the culture shock she claims she experienced upon arrival in Hong Kong. (When asked about her childhood, she says simply, “I grew up very white.”) Surrounded by people from 80 different nationalities on any given day and what everyone in Hong Kong knows as ‘third-culture kids,’ Fiona found herself exploring issues of race, sexuality and gender through her art. Similarly, she found herself drawn to contemporary artists that explore the same themes: Deborah Roberts, Jordan Casteel, Ben Quilty. Fiona’s portraits, vibrantly coloured collages with bold brush strokes, mix and match her subjects to create new identities and so reinforce the fundamental universality of humanity. Like many artists in the 21st century, Fiona is leaning into the digital domain; check out her website, www.fionakennedyaltoft.com, or find her on Instagram. “Things like Instagram make for a whole new world, and it’s much smaller… There’s always going to be the hold-outs but in the last few years, art has become more about sharing and support,” she says, pointing to personal favourite Deborah Roberts, and how she’s exploited platforms like Instagram to be generous with her time and wisdom, as well as cut out the elite gallery element that demands large chunks of a n artist’s income. All that being said, you can catch Fiona’s work in person this month. Though a spot at the Affordable Art Fair evaporated when the event wound up with less space than it needed, Fiona is showing at Hong Kong Arts Collective’s Square Prints Gen Two, launching May 7 at Musubi Hiro in Central (some sale proceeds are going to Impact Hong Kong). Come summer, the Altofts are heading back to Roma to decompress and think about their next move, possibly to Europe. “We travelled like maniacs when we got here, and in Europe you can hop on a flight for £20 and be in Amsterdam for the weekend just like that. You don’t get anywhere for that in Australia, and it’s so far from everything.” But art isn’t going anywhere, and Fiona is going to continue exploring the ideas she woke up to in Hong Kong. “I remember my sister taking her husband from El Salvador back to the tiny town we lived in and not getting the support she thought she would,” finishes Fiona when asked about the story she’d like her art to tell. “Things are very fluid right now, so I’d like to send a message of acceptance.”