ACCT3161_ass5_1011_2nd_Answer

ACCT3161_ass5_1011_2nd_Answer - the notice of objection...

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THE CHINESE UNIVERSITY OF HONG KONG School of Accountancy ACCT 3161 – Taxation ( 2 nd Term , 20 10-2011 ) (Second Term, 2005-2006) Assignment 5 Solution Question 1 (a) No stamp duty (b) Stamp duty = 4.25% of $40,000,000 or $$1,700,000 (c) Stamp duty = 0.2% of $300,000 or $600 (d) Stamp duty = 0.5% of annual rental + 4.25% of premium = 0.5% X $120,000 + $30,000 X 4.25% = $600 + $1,275 or totally $1,875 (e) Stamp duty = based on $6,000,000 compute the stamp duty or $180,000 (f) Stamp duty = 1% of annual rental + 4.25% of premium BUT as one part is Hong Kong Government so that only 50% of the stamp duty is required from the “other “ party Stamp Duty payable to Hong Kong Government = 50% ($1,200,000 X 1% + $200,000 X 4.25%) = 50% ( $12,000+$8,500) = $10,250 (g) Use market value ($55) to compute stamp duty for the transfer of shares Stamp duty payable = $55 X 2,000 X 0.2% + $5 = $225 Question 2 Mr Wong can lodge an objection against the notice of salaries tax assessment. The requirements of a valid objection as specified under s64 of the Inland Revenue Ordinance are:
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Unformatted text preview: the notice of objection must be in writing the notice of objection must be received by the Commissioner of Inland Revenue within one month from the date of issue of the notice of assessment the notice of objection must state precisely the ground of objection in the case of an estimated assessment raised in the absence of a return, a properly completed return must be accompanied with the notice of objection or within such further period as the Commissioner of Inland Revenue may allow However, if the person is prevented from giving notice of objection within the one month period because: he was absent from Hong Kong he was sick of any other reasonable cause the Commissioner may extend the one-month limit for lodging an objection as may be reasonable in the circumstances ***END*** DFILE: KSK/TM/ACY3161ass1_05062ndans.doc Data file: ch/ ACCT3161_ass5_1011_2nd_Answer Page 1...
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