8. Profits 2

8. Profits 2 - BUSI 0018 Hong Kong Taxation Tutorial...

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TQ_U8_Profits_2 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 8 – Profits Tax (2) Question 19 Part I State and explain whether the following items of income derived during the year of assessment 2009/10 are chargeable to Hong Kong profits tax: (a) Interest on money placed on a 24-hour call deposit by the sole proprietor of a bakery business (carried on in Hong Kong) with the Tsimshatsui Branch of Bank of China (Hong Kong). The money was intended for settling the flour bill upon receipt of the demand note from the supplier. The deposit was not used to pledge for any bank borrowing. Instead the sole proprietor had made personal guarantee to the bank for obtaining fund to finance the bakery business. (b) Interest on money placed on call deposit by Tasty Bakery Company Limited with the Shenzhen branch of Bank of China. Tasty Bakery Company Limited carries on business in Hong Kong and the deposit money represents its daily sale money earned from the Hong Kong shops. (c)
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This note was uploaded on 02/23/2012 for the course BUSI 0018 taught by Professor C.ng during the Spring '11 term at HKU.

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8. Profits 2 - BUSI 0018 Hong Kong Taxation Tutorial...

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