6. Salaries 4 & PA

6. Salaries 4 & PA - BUSI 0018 Hong Kong Taxation...

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TQ_U6_Salaries_4_PA 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 6 –Salaries Tax (4) and Personal Assessment Question 15 Mr. Mak was employed by Beta Ltd as marketing manager since 1990. Beta Ltd paid Mr. Mak a monthly salary of $50,000 during the year ended 31 March 2010. In addition, he was provided with a flat which was leased by Beta Ltd at a monthly rent of $25,000. The company only charged Mr. Mak $1,000 per month as a deduction from his salary. According to Mr. Mak's employment contract, he was entitled to a commission of 1% on the sales solicited by him during a year. The sales solicited by Mr. Mak during the year ended 31 March 2010 amounted to $4,000,000. On 1 September 2009, Mr. Mak, pursuant to Beta Ltd's staff share option scheme, acquired 10,000 shares in Alpha Ltd at the price of $8 per share (market value on the same day being $10 per share). The option was granted at no cost to Mr. Mak on 31 March 2008, the share market value on that day being $8.5 per share. Alpha Ltd is the holding company of Beta Ltd and is listed in the London Stock Exchange. The shares were all subsequently sold on 1 February 2010 at $12 per share. Mr. Mak was married with two children. His son was 15 and his daughter was 17 on their birthdays during the year of assessment 2009/10. His daughter was married on 20 February 2010 with a Mr. Wong. Mr. Mak had a grandmother living in London and he remitted $2,000 each month to support her living. His grandmother was 60 on her last birthday. Mr. Mak's wife had a part time job in a trading firm and received salary of $50,000 during the
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6. Salaries 4 & PA - BUSI 0018 Hong Kong Taxation...

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