{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

09 - BUSI 0018 Hong Kong Taxation Tutorial Questions Unit 9...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
TA_U9_Profits_3 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 9 – Profits Tax (3) Answer 21 Mr. Lee’s Business Computation of Hong Kong Profits Tax Year of Assessment 2007/08 Basis Period: Year ended 31 December 2007 $ $ Net Profit per account 1,154,000 Less: Non-taxable income Interest from deposits in Singapore 40,000 Interest from local deposits 16,000 Debentures interest 8,000 Offshore commission 55,000 Profit on disposal of fixed assets 15,000 Dividends 10,000 144,000 1,010,000 Add: Non-deductible expenses Travelling expenses of offshore commission 10,000 Solicitor fees and stamp duty for assignment of new office 45,000 Solicitor fees for recovery of staff loan 3,000 Interest paid to Mr. Lee 25,000 Decoration of new office 150,000 Salaries to proprietor 162,000 Customer loans written off 10,000 Staff loans written off 5,000 Increase in general provision for bad debt 10,000 Depreciation 85,000 Donations 6,000 Traffic fines 2,000 513,000 1,523,000 Less: Depreciation allowance 92,000 1,431,000 Less: Approved charitable donations 1,000 Assessable Profit 1,430,000 Profits tax thereon @16% 228,800* * Profits tax for 2007/08 is reduced by 75% or $25,000, whichever is the less. Therefore, the profits tax liability is $228,800 - $25,000 = $203,800
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon