Q%20and%20A%20ch%2004-all

Q%20and%20A%20ch%2004-all - 14 edition Question 4-x (a)...

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14 edition Question 4-x (a) What is the definition of 'parent of the person or his or her spouse' under the Inland Revenue Ordinance? (5 marks) (b) Under what circumstances shall a dependent parent allowance and an additional dependent parent allowance be granted to a taxpayer? (5 marks) (c) If the Commissioner of Inland Revenue is satisfied that two or more persons are eligible to claim a dependent parent allowance in respect of the same parent, what action shall he take in respect of each of the following circumstances: (i) if the allowance has not yet been granted to any claimant (ii) if the allowance has already been granted to one of the claimants. (3 marks) (Adapted from ACCA/HKSA Paper 2.3H D91 Q5) Answer for Question 4-x (a) 'Parent of the person or his spouse' means: (i) a person of whose marriage , the person, or his or her spouse, is the child; (ii) a parent by whom the person, or his or her spouse, was adopted; (iii) a step-parent of the person or his or her spouse; (iv) the natural father and mother of the person or his or her spouse; or (v) in the case of a deceased spouse, a person who would have been the parent of the person's spouse by reason of sub-paras (i) to (iv) if the spouse had not died. (b) The IRO has provided that dependent parent allowance is to be granted to an individual in any year of assessment if he or she maintains a parent of his or her spouse in the year of assessment and that parent at any time in that year was ordinary resident in Hong Kong and: (i) aged 55 or more; or (ii) being under the age of 55, was eligible to claim an allowance under the Government's Disability Allowance Scheme. A parent will only be treated as being maintained by a person if: i) the parent resides, otherwise than for full consideration, with that person for a continuous period of not less than six months in the year of assessment; or ii) the person contributes not less that $12,000 towards the maintenance of that parent in the year of assessment. An additional dependent parent allowance will be granted if a person in respect of whom the individual is eligible to claim dependent parent allowance for the year of assessment was residing, otherwise than for full valuable consideration, with the claimant continuously throughout the year of assessment. (c) Under the IRO, a dependent parent allowance will not be given to more than one person in any year of assessment in respect of the same parent. However, if the CIR has reason to believe that two or more persons are eligible to claim such an allowance in respect of the same parent for the same year of assessment, the CIR will not consider any claim until he is satisfied that the claimants have agreed which of them is to claim in that year. Where a dependent parent allowance
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This note was uploaded on 09/29/2011 for the course ACCT 3161 taught by Professor Kwong during the Spring '11 term at CUHK.

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Q%20and%20A%20ch%2004-all - 14 edition Question 4-x (a)...

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