Hong Kong Regulations

LEGAL AID (ASSESSMENT OF RESOURCES AND CONTRIBUTIONS) REGULATIONS,LEGAL AID (ASSESSMENT OF RESOURCES AND CONTRIBUTIONS) REGULATIONS - SCHEDULE 1

(Past version on 03/07/2000).
(Past version on 30/06/1997).

[regulations 4(a) & 7(1)]

PART I

RULES FOR COMPUTING INCOME

1. The income of the person concerned from any source shall be taken to be the
income which that person may reasonably expect to receive

(in cash or in kind) during the period of computation, that income in the
absence of other means of ascertaining it being taken to be the income
received during the preceding year.

2. The income in respect of any emolument, benefit or privilege receivable
otherwise than in cash shall be estimated at such a sum as in all the
circumstances is just and equitable.

3. (1) The income from a trade, business or gainful occupation other than an
employment at a wage or salary shall be deemed to be the profits therefrom
which have accrued or will accrue to the person  concerned in respect of the
period of computation, and, in computing such profits, the Director may have
regard to the profits of the last accounting period of such trade, business or
gainful occupation for which accounts have been made up.

(2) In ascertaining the profits for the purpose of paragraph (1) there shall
be deducted all sums necessarily expended to earn those profits, provided that
no deduction shall be made in respect of the living expenses of that person or
any member of his family or household, except in so far as such member of his
family or household shall be wholly or mainly employed in such trade or
business and such living expenses form part of his remuneration.

4. In computing the income from any source there shall be disregarded such
amount, if any, as the Director considers to be reasonable having regard to
the nature of the income or to any other circumstances of the case.

PART II

DEDUCTIONS IN COMPUTING DISPOSABLE INCOME

5. Where the income of the person concerned consists, wholly or in part, of a
wage or salary from employment there shall be deducted, if it is reasonable to
do so, an amount to provide for-

   (a)  the expenses for the care of a dependant who is- (L.N. 224 of 2005)

        (i)    an infant; or

        (ii)   unable to take care of himself by reason of his mental or
               physical condition, during the time that that person is at work
               (whether that person is absent from home or not); (L.N. 224 of
               2005)

   (b)  any payment made by that person by way of contribution to a pension or
        retirement scheme; and (L.N. 224 of 2005)

   (c)  any payment made by that person for salaries tax. (L.N. 195 of 1992)

5AA. Where the income of the person concerned consists, wholly or in part, of
profits from a trade, business or gainful occupation other than an employment
at a wage or salary, there shall be deducted, if it is reasonable to do so,
the expenses to provide for the care of a dependant who is-

   (a)  an infant; or

   (b)  unable to take care of himself by reason of his mental or physical
        condition, during the time that that person is at work (whether that
        person is absent from home or not). (L.N. 224 of 2005)

5A. Income arising from any capital asset which has been included in the
computation of the disposable capital of the person concerned, shall not be
taken into account in the computation of the disposable  income of the
person concerned. (L.N. 195 of 1992)

6. (1) Where the person concerned is a householder, there shall be a deduction
in respect of rent of his main or only dwelling of the amount of the net rent
payable, or such part thereof as is reasonable in the circumstances: Provided
that-

   (a)  the deduction shall not exceed one half of the income of the
        person concerned unless the Director is satisfied that in the
        circumstances of the case it is reasonable to deduct a greater sum;

   (b)  where any person or persons other than the person concerned, his or
        her spouse or any dependant of his or hers is accommodated, otherwise
        than as a sub-tenant, in the premises for which the rent is paid, the
        Director may deem the rent to be reduced by an amount reasonably
        attributable to such other person.

(2) In this rule- "net rent" (租金淨額) means the rent less any proceeds
of sub-letting any part of the dwelling in respect of which the said rent is
paid or the outgoings incurred; "rent" (租金) means-

   (a)  the rent payable in respect of a year; and

   (b)  a sum in respect of the yearly outgoings borne by the person 
        concerned including, in particular, rates, insurance and any annual
        instalment (whether of interest or capital) payable in respect of a
        mortgage debt charged on the dwelling or on any interest therein.

7. If the person concerned is not a householder, there shall be a deduction in
respect of the cost of his living accommodation of such amount as is
reasonable in the circumstances.

8. (1) An amount equivalent to the 35-percentile household expenditure shall
not be taken into account in relation to the person  concerned and his
dependants, if any.

(2) For the purposes of this rule-

   (a)  the expression "35-percentile household expenditure"
        (住戶開支第35個百分 值) means the level of expenditure of
        households of a particular size, excluding expenditure for rent, as
        obtained in the 5-yearly Household Expenditure Survey conducted by the
        Census and Statistics Department, so that 35% of the households of
        that size have household expenditure below that level and 65% of the
        households have household expenditure above that level;

   (b)  the household expenditure obtained in the 1994-1995 Household
        Expenditure Survey shall, until the results of the next Household
        Expenditure Survey are obtained, be adjusted in accordance with
        subparagraph (c), on the coming into operation of the Legal Aid
        (Assessment of Resources and Contributions) (Amendment) Regulation
        2000 (L.N. 148 of 2000);

   (c)  the amount that, in any particular year, shall not be taken into
        account for a particular household size shall be calculated in
        February of that particular year according to the following formula
        rounded to the nearest $10 amount-

        Ei × CPI(A) excluding rent component, j-l / 100 Where-

        (i)    "Ei" is the 35-percentile household expenditure (excluding
               expenditure for rent) for a particular household size "i" based
               on the results of the latest round of the Household Expenditure
               Survey conducted by the Census and Statistics Department;

        (ii)   "CPI(A) excluding rent component, j-l" is the average monthly
               Consumer Price Index (A) which excludes the result derived from
               the item for "rent, including rates and government rents" in
               year "j-l", with the base period of the Index being the same as
               the survey period of the Household Expenditure Survey mentioned
               in sub-subparagraph (i);

        (iii)  "j" represents that particular year;

   (d)  only the person concerned and his dependants, if any, are to be taken
        into account in determining the size of household; and

   (e)  in ascertaining whether a person is a dependant, regard shall be had
        to his income and other resources. (L.N. 148 of 2000)

9. (1) Subject to paragraphs (2) and (3), where the person  concerned makes
regular payments for the maintenance of-

   (a)  a spouse living separate and apart or a former spouse; or

   (b)  a child, there shall be a deduction in respect of those payments.

(2) The deduction under paragraph (1) may only be made if the spouse or child
(as the case may be) is not taken into account as a dependant of the
person concerned in calculating the amount equivalent to the 35-percentile
household expenditure referred to in rule 8(1).

(3) The amount to be deducted under paragraph (1) shall be-

   (a)  where the payment is made under a court order, the amount actually
        paid; or

   (b)  in any other case, the amount specified in paragraph (4).

(4) The amount to be deducted under paragraph (3)(b) shall be such amount as
the Director considers to be reasonable having regard to the circumstances of
the case, but shall not exceed whichever is the lower of the following-

   (a)  the amount actually paid as maintenance;

   (b)  the 35-percentile household expenditure differential.

(5) In this rule, “35-percentile household expenditure differential”
(住戶開支第35個百分值差額) means the difference in amount between
the 35-percentile household expenditure (calculated in accordance with rule
8(2)) in-

   (a)  the case where the person or persons (as the case may be) for whose
        maintenance the payment is made, is or are regarded as the only
        dependant or dependants of the person concerned; and

   (b)  the case where the person concerned is regarded as having no
        dependant. (L.N. 224 of 2005) (L.N. 105 of 1988)