Tuesday 5th March 2013

Dear Reader,

NEW ARTICLE
The dividend tax myth
We correct the Financial Secretary's latest gaffe and explain why a further tax on corporate profits in the form of a dividend tax would necessitate a steeper salaries tax, a capital gains tax, a tax on worldwide investment income and ultimately a loss of economic output and revenue. It is a myth that dividends are tax-free. (5-Mar-2013)

RECENTLY ON WEBB-SITE
A secret mile-high stake in Pico (0752)
We name and shame Denver Investments, a US-based fund manager, for failing to disclose its stake in Pico for 13 months. We explain why they are unlikely to face prosecution. (28-Feb-2013)

Double stamp duty
We explain the fallacy in the proposed so-called "demand-side" measures announced on Friday. Higher transaction costs reduce volumes, not prices, and affect both buyers and sellers. We ask whether this is really worth trashing HK's reputation as a free and open economy and what this meddling is trying to achieve. (25-Feb-2013)

The alternative Budget Speech, 2013: Prosperity through Reform
Webb-site reveals the Hong Kong Budget Speech which should be delivered next Wednesday. (22-Feb-2013)

IN OTHER NEWS
Trio face court for alleged champerty over HK$7m civil claims
ICAC, 4-Mar-2013
Once again, the medieval law against contingent legal fees (a piece of the action) swings into action. Solicitors and their clients should be free to negotiate any basis of payment that they choose. The same law was abolished in England in 1967.

Court freezes assets in HK$156m misappropriation case
SFC, 1-Mar-2013

Of privacy and opacity
Economist, 1-Mar-2013

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