04 Profits Tax_Q1

04 Profits Tax_Q1 - BUSI 0018 Hong Kong Taxation Self Test...

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1 BUSI 0018 – Hong Kong Taxation Self Test Question – Profits Tax Computation Question 1 Readers Ltd is a printer and publisher of books carrying on business in Hong Kong. All of its profits have been assessable to Hong Kong profits tax. For the year ended 31 March 2007, the company's profit and loss account shows: $ $ Profit from publishing 4,099,000 Profit from sale of fixed assets 1,000 Compensation for loss of contract (1) 380,000 Interest income (2) 120,000 4,600,000 Less: Interest (3) 280,000 Rent and rates 600,000 Legal fees (4) 54,000 Staff salaries and welfare expenses (5) 680,000 Taxes (6) 63,000 Depreciation 85,400 Compensation for cancellation of contract (7) 70,000 Retirement fund (8) 69,000 Miscellaneous (all allowable) 23,000 1,924,400 Net profit 2,675,600 Notes: (1) Compensation was received from a Singapore customer who terminated a printing contract signed in an earlier year. (2)
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04 Profits Tax_Q1 - BUSI 0018 Hong Kong Taxation Self Test...

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