CKI records reveal it pays little tax in Hong Kong
Li Ka-shing firm enjoys tax credits of HK$11m in the first half of 2013 as tycoon is accused of dodging taxes in Britain and Australia
Hong Kong tycoon Li Ka-shing is facing claims in Britain and Australia that companies he controls are dodging taxes there, but an analysis of his Hong Kong-listed Cheung Kong Infrastructure reveals it pays only a tiny fraction of the tax that a close competitor here pays.
In the first half of last year, the infrastructure firm enjoyed tax credits of HK$11 million on a pre-tax profit of HK$5.49 billion, which boosted its after-tax profit to HK$5.51 billion.
In comparison, NWS Holdings, a Hong Kong-listed infrastructure firm controlled by another Hong Kong tycoon, Cheng Yu-tung, paid HK$640.9 million tax on a pre-tax profit of HK$4.72 billion for the 12 months to June.
CKI's deferred tax liabilities - a provision for future taxation - jumped 153 per cent to HK$714 million on June 30 from HK$282 million at the end of 2012, according to its 2013 interim report.
NWS had much higher deferred tax liabilities, at HK$2.56 billion for the financial year to June 30, 2012, and HK$2.61 billion for the following year, but they did not grow anywhere near as fast at CKI's.
UK Power Networks has avoided £38 million [in tax] since 2010
CKI's deferred tax liabilities were HK$254 million at the end of 2010 and HK$187 million at the end of 2011, according to its annual reports.