Executive summaryThe Hong Kong Government introduced the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 (the Bill) on 19 March 2021, which addresses the tax implications of court-free amalgamations of companies.1 Subject to the passage of the Bill by the Legislative Council, the provisions of the Bill will be in effect on or after the date when the law is enacted.This Alert summarizes the key provisions of the Bill.Detailed discussionThe key provisions of the proposed tax treatment are:Succession of trading stockIf trading stock succeeded from an amalgamating company continues to be used as trading stock of the amalgamated company (i.e., the surviving...