example%20ch%2006-all

example%20ch%2006-all - 14 th edition Example 6-1 Mr. Chan...

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14 th edition Example 6-1 Mr. Chan rents a piece of loan from the HKSAR Government and uses a land as a car park for rental income. He is an owner for property tax purposes because he is a lessee of the HKSAR Government. The rental income which he derives from the letting of the land is subjected to property tax. Example 6-2 Mr. A Wong sets up a trust whereby he appoints Mr. Luk as a trustee to hold his flat at South Horizons for the benefit of his son, Mr. B Wong, for Mr. B Wong’s life. Though Mr. Luk’s name appears in the Land Office as the registered owner of the flat at South Horizons, the declaration of the trust executed by Mr. Luk will show that Mr. Luk is only holding the property for the benefit of the life tenant, Mr. B. Wong. Mr B. Wong, the person holding the equitable interest in the flat, will be regarded as the owner for property tax purposes. Mr. Luk, as the executor, is also liable for property tax. HK Government will try to collect property tax from either Mr.B Wong or Mr. Luk Example 6-3 By his last will made in year -3, Mr. S. Cheung appointed Mr. Ho to be the executor of his estate and gifted all his properties, including a flat in Kowloon, to his son Mr. T Cheung. The flat has been let for rental income since 1 April year -05. Mr. S Cheung died on 15 February year -2. The flat was distributed by Mr. Ho to Mr. T Cheung on 1 May year 0. Mr. S Cheung was an owner for property tax purposes in respect of the rental income for the period from year of purchasing to 15 February year -2 (the date of death). Mr. Ho, as the executor of the deceased’s estate, was chargeable to property tax in respect of the rental income for the period from 16 February year -2 to 30 April year 0. Mr. T Cheung has been the beneficial owner of the flat since 16 February year -2. As the flat was distributed to Mr. T Cheung on 1 May year 0, Mr. T Cheung has been the beneficial owner of the flat since 16 February year -2. As the flat was distributed to Mr. T Cheung on 1 May year 0, Mr. T Cheung is solely liable to property tax in respect of respect of rental income derived from 1 May year 0.
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example%20ch%2006-all - 14 th edition Example 6-1 Mr. Chan...

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