08 - BUSI 0018 Hong Kong Taxation Tutorial Questions Unit 8...

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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 Discuss if the following activities amount to trading: (a) Mr. Lau is an employee of an Art Gallery. He bought two paintings at an attractive price. One of them was sold at a profit two weeks after the purchase. Another one was sold ten years afterwards. (b) Mr. Poon bought a flat in Pokfulam Gardens and intended to move into the flat with his fiancée, Miss Wong, when they get married by the end of the year. However, she did not like the flat and so he sold the flat at a profit. (c) Mr. Wong, a police constable, operates an illegal casino inside a police station during his off duty hours, and makes a profit therefrom. (d) Within a period of fifteen months, Johnny Wong established three restaurants and then sold them. He made a profit of $300,000. Part II Discuss whether or not the compensation payment received by a company in respect of the following is taxable: (a) Insurance compensation received in respect of the cost of trading stock
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This note was uploaded on 04/07/2012 for the course TAX 101 taught by Professor Ng during the Spring '12 term at HKU.

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08 - BUSI 0018 Hong Kong Taxation Tutorial Questions Unit 8...

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