國富浩華 ( 香港 ) 會計師事務所有限公司 Crowe Horwath (HK) CPA Limited Member Crowe Horwath International Newsletter 2013 9 This issue of Newsletter published by Crowe Horwath (HK) CPA Limited provides an update on tax, financial reporting, other technical issues, as well as the company activities and our community involvement. Please click http:// to access the latest issue available in the Insights section of our website. You can also click the back issues of all prior News Express and Newsletter for review. http:// Content I.T. Security Services for Information Privacy & Data Protection 2 Statutory Obligations on Hong Kong Listed Companies to Disclose 2 Inside Information Speaking on HKTDC s Seminars to Introduce Hong Kong s 3 Professional Services Seminar on Customs and Foreign Exchange Issues for PRC 4 Cross-Border Transactions 100th Anniversary Dinner of The Society of Chinese Accountants & 5 Auditors Meet Our New International Liaison Director 6 Co-organizing Seminar on Mainland Enterprises Seeking Listing 6 in Hong Kong Launch of Japan Desk 7 Ruihua Ranks Top 3 CPA Firm in China 7 Concern for Fostering Young Generation 7 8 8 dsf 9 sdfds 10 100 10 fsaf 10 11 sdfds 11 11 11 Disclaimer: The content in this publication is of general information only. It is not offered as advice and should not be taken as such. We expressly disclaim all liabilities to any person for any reliance placed on the contents of this publication. No client or other reader should act or refrain from acting on the basis of the contents of this publication without seeking specific professional advice. Crowe Horwath (HK) CPA Limited is a member of Crowe Horwath International, a Swiss verein (Crowe Horwath). Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Horwath (HK) CPA Limited and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. 2013 Crowe Horwath (HK) CPA Limited 2013 1
Newsletter I.T. Security Services for Information Privacy & Data Protection According to a recent British newspaper report, the former US CIA worker Edward Snowden leaked the confidential documents which indicated that the Obama Administration empowered the National Security Agency to collect telephone records and internet activities of individuals and organizations/ companies around the world through NSA programs for the so-called national security. The incident has shocked the world and triggered a controversial debate on privacy and security. More importantly, it has raised the awareness of security of government information, and data concerning its citizens as well as private companies/organizations. Data is the property of a government, a person and a private company/ organization. For example, we cannot afford to have our bank customers data be easily accessed and collected without any consent. Data leakage will inevitably bring a disastrous damage to a company/organization in its reputation and business. Further, the BYOD (Bring- Your-Own-Device) practices and cloud computing have also brought new challenges and risks to the companies/ organizations. It is a complicated business and management issue rather than just a technology matter. To safeguard the company s/ organization s information and personal data, a proper cyber security protection plan, periodic review and assessment are required. Our I.T. security specialists can work with you to face this multidimensional problem and provide a win-win solution to both the organization and the workforce for mitigating risks of data leakage of a company. Our services in this area include the following: Risk Assessment and Testing Information and data security Security architecture review Application security Mobile devices vulnerabilities assessment Information Privacy and Data Protection Counter eavesdropping operation Application security risk management Policies and procedures review Mobile devices risk management Training Awareness training to senior executives and operating staff Ms Ester Ip Director of I.T. Audit & Consultancy Services Tel: +852 2894 6191 e-mail: ester.ip@crowehorwath.hk. Statutory Obligations on Hong Kong Listed Companies to Disclose Inside Information With the enactment of the Securities and Futures (Amendment) Ordinance 2012 (the Amendment Ordinance ) on 1 January 2013, it imposed a statutory obligation on Hong Kong listed companies to disclose price sensitive or inside information ( PSI ) by, among other provisions, adding Part XIVA (the Inside Information Provisions ) to the Securities and Futures Ordinance (the SFO ). Prior to the enactment of the Amendment Ordinance, the PSI disclosure requirement was set out under Chapter 13 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Listing Rules ). To align with the new statutory disclosure requirements provided in the SFO, the Listing Rules were amended to avoid duplication of its obligations and of the new regulation. By adding the Inside Information Provisions ( IIP ) to the SFO, the Securities and Futures Commission of Hong Kong (the SFC ) is empowered to institute disclosure proceedings directly in the Market Misconduct Tribunal in case any breach of a disclosure requirement has or may have occurred. Alleged breaches will be subject to civil sanctions including a regulatory fine up to HK$8 million on the listed company, each of its directors and/or its chief executive respectively. (Please refer to the Insights section of for full text) 2
Newsletter Speaking on HKTDC s Seminars to Introduce Hong Kong s Professional Services Mr Charles Chan sharing his professional experience in assisting Chinese enterprises conducting outbound investment at a TDC event in Los Angeles. Upon invitation from the Hong Kong Trade Development Council (HKTDC), our Chairman and CEO Mr Charles Chan delivered speeches at two seminars in North America, and was interviewed by the media to introduce the strengths of Hong Kong's professional services. By joining HKTDC s Hong Kong- Guangdong Joint Investment Mission, Mr Charles Chan travelled to New York to attend the Think Asia, Think Hong Kong (TATHK) campaign, a large Hong Kong s services promotion symposium held there on June 11. The delegation then flew to Toronto, where Mr Chan spoke at the seminar held during the Hong Kong-Guangdong Outbound Investment Business Matching Session on June 12. He gave an overview on the challenges and opportunities for Chinese investment into Canada. The seminar was well-attended by nearly 200 entrepreneurs and representatives from different organizations. Continuing the delegation s trip to Los Angeles, Mr Chan gave a talk at the thematic seminar "The Gateway for Chinese Outbound Investments" held there on June 14. This seminar was one of the programmes held during the TATHK symposia organized by HKTDC. TATHK was the largest-ever Hong Kong services promotion campaign organized by HKTDC. It showcased to the American companies the strengths of Hong Kong as a business platform and attracted over 3,000 American corporate leaders, professional service providers and government representatives. More than 900 business-matching meetings were arranged. In addition, some 500 distinguished guests attended the dinner held in New York. Chief Executive of the HKSAR Mr C Y Leung also led a delegation of more than 200 government officials and business leaders to participate in the TATHK. Mr C Y Leung, together with HKTDC Chairman Mr Jack So, and the U.S. Under Secretary of Commerce for International Trade Mr Francisco J. Sánchez, jointly officiated at the opening session in New York. Mr Chan's speeches got the media attention. After returning to Hong Kong, he was invited for interviews with several Guangdong TV programmes, including Today s Concern of Guangdong TV Station Pearl River Channel and News Channel, News Front Line of Mr Charles Chan being interviewed by Ms Vivian Ma, presenter of Today s Concern, Guangdong TV Station. 3
Newsletter Mr Charles Chan (middle, front row) and our Director Ms Pammy Fung (3rd left, front row) with the presenters and production crews of the TV programmes. Guangdong TV Station News Channel, and Economy News of Guangzhou TV Station Economy Channel. Mr Chan shared his views and experience in assisting mainland enterprises to raise capital and invest overseas. In addition, the Programme News Front Line of Guangdong TV Station News Channel interviewed our Audit Director Ms Yvonne Sze talking about the challenges encountered by audit practitioners. The TV programmes were broadcasted in late August to promote HKTDC s trade fair SmartHK which was held in Guangzhou on 28 and 29 August 2013. Seminar on Customs and Foreign Exchange Issues for PRC Cross-Border Transactions The topics include: (1) Cross-border processing trade arrangements and related customs procedures in Mainland China; (2) Implications to the contractual parties under different processing trade models; Mr Wilson Tam (right) at the Q&A session with Ms Hidy Chan (left) as the seminar s Chairperson in the capacity of SME Sub-committee s Co-Chairman of ACCA Hong Kong. Crowe Horwath (HK) CPA Limited and the SME Sub-committee of ACCA Hong Kong jointly organized a seminar on Tactfully Handling Customs and Foreign Exchange Issues for PRC Cross-Border Transactions at Conrad Hong Kong Hotel on 30 July 2013. The seminar provided an opportunity to Hong Kong enterprises with investment in and operations with Mainland China to understand the latest development of China s relevant supply chain regulations, the relevant approaches of tactfully and properly handling customs and foreign exchange issues for PRC cross-border transactions with an aim at meeting their commercial goals and complying with the relevant regulations. The seminar was well-received with more than 130 attendees from ACCA members, senior management personnel including company directors, CFOs, financial controllers, finance managers, as well as other professionals (i.e. bank officers and lawyers). Executive Director of Crowe Horwath Tax Services (HK) Limited Mr Wilson Tam was the speaker. He gave a detailed presentation on a number of topics under the seminar s main theme. Our Principal, Practice Development Ms Hidy Chan chaired the seminar in the capacity of SME Sub-committee s Co-Chairman of ACCA Hong Kong. (3) Recent development of foreignexchange management reforms on product trade/servicing and their impacts on foreign investors; (4) Typical issues on customs and foreign exchange for PRC crossborder transactions including fund repatriation and the relevant management techniques; (5) Utilization of special zones and case studies; (6) Cross-border transfer of intellectual properties and case studies; and (7) Future development trends and planning strategies for Hong Kong enterprises investing in China. 4
Newsletter 100th Anniversary Dinner of The Society of Chinese Accountants & Auditors Mr Charles Chan (2nd left) receiving the diamond sponsor souvenir from The SCAA. As a professional accounting firm, we have been actively supporting the activities of various professional accounting bodies to facilitate exchange opportunities in the industry. As this year is the Centenary of The Society of Chinese Accountants & Auditors (SCAA), we sponsored the 100th Anniversary Dinner of The SCAA as one of the diamond sponsors. Organising Committee Member. Chief Executive of the HKSAR Mr C Y Leung and Deputy Director of the Liaison Office of The Central People s Government in the Hong Kong SAR Mr Wang Zhimin were invited as the officiating guests and Chief Executive Mr C Y Leung also delivered a speech at the occasion. The President of The SCAA Mr Nelson Lam, together with some 60 guests and The SCAA s past presidents, council members and honorary advisors performed the cake-cutting and toasting ceremony on the stage. About 1,200 members, accounting professionals, principal officials from various departments of the PRC and Hong Kong governments participated in this remarkable event of the Society. The 100th Anniversary Dinner was held at the Hong Kong Convention and Exhibition Centre on 24 May 2013. Our Chairman and CEO Mr Charles Chan, with about 20 members including our Directors Ms Ivy Chua, Mr Albert Cheung, Ms Ester Ip, Mr Raymond Tsui, Mr Warren Leung, our managers and Executive Director of Crowe Horwath Tax Services (HK) Limited Mr Wilson Tam attended the dinner to celebrate the event. Ms Ivy Chua is also The SCAA s Past President and Committee Member, SCAA s 100th Anniversary Organising Committee Member and Gala Dinner Mr Charles Chan (2nd right) posing for a photo with Chief Executive of the HKSAR Mr C Y Leung (14th right) and other attending representatives. 5
Newsletter Meet Our New International Liaison Director Effective 31 October 2013, Ms Delores Teh will be retiring from her role as the International Liaison Officer for Crowe Horwath (HK). Delores wishes to be able to travel more regularly to visit with her family. We are pleased to announce that Ms Mary Ho, Associate Director in the Tax Department will replace Delores and take up the additional role as International Liaison Director ( ILD ) effective 1 November 2013. Some of you may have been acquainted with Mary as a result of working with her. Mary is experienced in handling international enquires. She has been working with many network firms in cross-border assignments, including cross-border corporate tax planning, expatriate tax planning, offshore fund exemption planning, transfer pricing and tax due diligence. She has assisted a number of clients to set up establishments in China and design tax strategies for repatriation. During the transitional period between now and end of October, Delores will work closely with Mary to transition her into the ILD role. Ms Mary Ho International Liaison Director Tel: +852 2894 6603 E-mail: international.liaison@crowehorwath.hk Co-organizing Seminar on Mainland Enterprises Seeking Listing in Hong Kong Mr Rao Yong (left) and Mr Charles Chan (right) at the seminar. How to encourage enterprises to list in Hong Kong. Our Chairman and CEO Mr Charles Chan introduced from various perspectives the information about listing, including the listing requirements in Hong Kong, problems that mainland enterprises encountered when seeking listing in Hong Kong and the solutions, as well as cross-border tax issues. Besides, our Director Ms Ivy Chua introduced the collaboration plans between the two firms for assisting mainland enterprises to list in overseas markets. To further enhance our professional standard, we co-organized with Crowe Horwath China CPAs the seminar Mainland Enterprises Seeking Listing in Hong Kong, which was held in Shenzhen on 25 April 2013. About 60 professionals from the two firms attended the seminar to exchange opinions and share experiences. The Managing Partner of South China Region of Crowe Horwath China CPAs Mr Rao Yong served as the seminar moderator and spoke on the topic The attendees found the seminar fruitful as it facilitated exchange and communication among the personnel of the firms. It also helped deepen their understanding on different markets and broaden their visions. 6
Newsletter Launch of Japan Desk Our newly launched Japan Desk is to support Japanese enterprises planning to enter into the markets in Hong Kong, China and the world to establish their presence. The mission of our Japan Desk is to support the growth of Japanese enterprises in Asia. Our professional accountant is well-versed in Japanese business culture and understands the needs of Japanese enterprises. The Japan Desk of Crowe Horwath is staffed with Certified Public Accountants. To assist Japanese corporations which are looking to set up presence in Hong Kong, we provide a full range of services including audit and IPO, tax, due diligence, risk management and advisory, trust and estate planning, corporate restructuring and insolvency, company secretarial services, IT audit and consultancy, and China business services. Ms Hidy Chan Principal, Practice Development Head of Japan Desk Tel: +852 2894 6693 E-mail: hidy.chan@crowehorwath.hk Ruihua Ranks Top 3 CPA Firm in China Ruihua Certified Public Accountants, established with the merger of Crowe Horwath China CPAs and RSM China CPAs in April 2013, is a mega accounting firm. Ruihua s annual revenue has reached RMB2.86 billion and the firm has over 9,000 staff, 2,600 CPAs and 320 partners. According to the 2013 Top 100 CPA firms published by the Chinese Institute of Certified Public Accountants in June 2013, Ruihua ranks top 3 among all accounting firms in the PRC, being ahead of Ernst & Young and KPMG. Ruihua also ranks number 1 among local firms. It is the first time a local accounting firm is one of the top 4 in the list of Top 100 CPA firms in China, breaking up the prolonged dominance of the international Big Four CPA firms. Concern for Fostering Young Generation As a responsible and caring corporate citizen, we have been supporting the nurturing of young generation and assisting the accounting industry to train younger professionals. Recently we worked together with HKSKH Kowloon City C&Y Integrated Service Centre for arranging a group of students to visit our company and to learn about the accounting industry. organizational structure and training. Through the visit, the students got an initial understanding of operation of a CPA firm. They were also enthusiastic to make enquiries about the career prospect and development of the accounting profession. The group of 14 secondary students from various schools visited our company on 31 July 2013. Our Senior Manager of Technical & Training Department Mr Edmund Li gave the students a briefing on our company s Mr Edmund Li (1st right) with the visiting students. 7
公司通訊 2013 年 9 月 網絡安全服務加強私隱及資料保障 : / BYOD +852 2894 6191 ester.ip@crowehorwath.hk 上市公司披露內幕消息已列為法定責任 2 0 1 2 2013 1 1 ) XIVA / 8
公司通訊 2013 年 9 月 擔任貿發局論壇講者介紹香港專業服務優勢 6 14 3,000 900 500 200 Francisco J. Sanchez 8 8 28 29 6 11 6 12 200 9
10 公司通訊 2013 年 9 月新任國際聯繫董事 2013 10 31 2013 11 1 10 贊助香港華人會計師公會 100 周年晚會 100 2013 5 24 20 60 1,200 對華跨境交易涉及海關及外匯管理問題之研討會 ACCA 2013 7 30 130 ACCA : 1 ; 2 ; 3 ; 4 / ; 5 ; 6 ; 7
公司通訊 2013 年 9 月 國內企業前往香港上市研討會 2013 4 25 60 新設日本業務部 +852 2894 6693 hidy.chan@crowehorwath.hk 瑞華晉身全國排名第三會計師事務所 2013 4 28.6 9,000 2,600 320 2013 6 2013 關注培育年青一代 2013 7 31 11
For more information, please contact: 如欲索取更多有關資料, 歡迎聯絡 : 國富浩華 ( 香港 ) 會計師事務所有限公司 Crowe Horwath (HK) CPA Limited Member Crowe Horwath International 9/F Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong 77 9 E-mail : info@crowehorwath.hk Telephone : +852 2894 6888 Facsimile : +852 2895 3752 Service Hotline : +852 2894 6611 About Crowe Horwath International 國富浩華國際簡介 公司通訊 2013 年 9 月 Crowe Horwath International is ranked among the top 10 global accounting networks with more than 150 independent accounting and advisory services firms with 670 offices in over 100 countries around the world. Crowe Horwath International's member firms are committed to impeccable quality service, highly integrated service delivery processes and a common set of core values that guide decisions daily. Each firm is well-established as a leader in its national business community and is staffed by nationals, thereby providing a knowledge of local laws and customs which is important to clients undertaking new ventures or expanding into other countries. Crowe Horwath International member firms are known for their personal service to privately and publicly held businesses in all sectors and have built an international reputation in the areas of audit, tax and advisory services. Information can be obtained at: www.crowehorwath.net 150 670 100 www.crowehorwath.net Our People and Contacts 我們的人員 Professional Services 專業服務 Contact Person 聯絡人 Telephone 電話 E-mail 電郵 Audit & Assurance Ms Ivy Chua +852 2894 6789 ivy.chua@crowehorwath.hk Audit & Technical Support Mr Raymond Tsui +852 2894 6661 raymond.tsui@crowehorwath.hk Business & Accounting Services Ms Penny Chan +852 2894 6896 penny.chan@crowehorwath.hk Business Operations Ms Pammy Fung +852 2894 6861 pammy.fung@crowehorwath.hk China Tax, International Tax Mr Wilson Tam +852 2894 6603 wilson.tam@crowehorwath.hk Company Secretarial Services, Greater China One-Stop Business Service Ms Wendy Tam +852 2894 6840 co.sec@chg.hk HK IPO Mr Charles Chan +852 2894 6828 charles.chan@crowehorwath.hk Hong Kong Tax, International Tax Mr Albert Cheung +852 2894 6875 albert.cheung@crowehorwath.hk Internal Control, Corporate Governance & Risk Management Mr Eddy Yan +852 2894 6661 eddy.yan@crowehorwath.hk International Liaison Ms Mary Ho +852 2894 6603 international.liaison@crowehorwath.hk IT Audit & Consultancy Ms Ester Ip +852 2894 6191 ester.ip@crowehorwath.hk Japan Desk Ms Hidy Chan +852 2894 6693 hidy.chan@crowehorwath.hk Transaction Advisory Mr C S Lam +852 2894 6603 cs.lam@crowehorwath.hk Trust and Estate Planning Mr C Yuen +852 2894 6875 chung.yuen@crowehorwath.hk US Listing Audit Ms Sharon Sum +852 2894 6603 sharon.sum@crowehorwath.hk 12