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Mr Big, an American, was recruited in Hong Kong by LD (Hong Kong) Limited, a company incorporated in Hong Kong, whose directors' meetings were held
Mr Big, an American, was recruited in Hong Kong by LD (Hong Kong) Limited, a company incorporated in Hong Kong, whose directors' meetings were held in Hong Kong LD is a member of an international group of companies whose main line of business is the production of electronic equipment for the world market. The ultimate parent company of LD is DVD Corporation, a company incorporated in the United States. LD is a regional headquarters for the group in Asia. It has no production activities. Its sole role is to supervise the operations of other group companies in Hong Kong, Singapore, and Malaysia so as to ensure that the policies made by DVD are carried out. All the salaries expenses incurred by LD are reimbursed by DVD with an additional 10 per cent to cover office expenses. Mr Big's designation was internal auditor. His main duty was to audit the books of the group companies in Asia and report his findings to his immediate superior, Mr Fat, the officer in charge of the audit department in LD. Half of Mr Big's salary was paid into his account in New York with the balance paid into his bank account in Hong Kong b) Applying these factors to Mr Big's case, state with detailed reasons whether his employment is sourced in Hong Kong ( 15 points)
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