2012 Unit 5 Profit computation - s

Montana lands ltd 1968 1 hktc 334 cir 8 purchase of

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Unformatted text preview: td (1968) 1 HKTC 334). (CIR 8 Purchase of Uncompleted Building Where a property developer sells units in a Where property building before completion of the building, before No profit is taken into account at the time of entering into sale and purchase agreement according to acceptable agreement accounting principles. Credit for the full profit will be brought into Credit full account in the basis period in which the occupation permit is issued. occupation 9 Interest Income Interest Interest does not accrue until the payee Interest has a right to demand payment i.e. right generally the date of maturity or the due date. The actual date of payment may not be The the date of accrual for tax purpose. 10 Con’t Con’t In the case of time deposit, the interest should In time the arise on the date the deposit matures because the matures depositor is not entitled to any interest before that date. However in the case of savings account interest, However savings it accrues from day to day as the holder is accrues entitled to the interest on a day to day basis. It appears that IRD will tax i...
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This note was uploaded on 04/02/2013 for the course ECON 20222 taught by Professor Junelau during the Spring '13 term at City University of Hong Kong.

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