{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


G in a year separate period a 3 months partners x and

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: fferent Periods, e.g. in a year Separate Period A [3 months]: Partners X and Y Period B [5 months]: Partners X; Y and Z Period C [4 months]: Partners Y and Z 1. Profits for the year split into 3 periods; 2. Profit for each period allocated to the partners of that period; 3. Sum up the profits entitled by each partner Unit 8 ­ Partnership Unit Tax Liability When a partner has elected personal assessment, When his share of profits will not be taxed under profits tax tax The partners are jointly and severally liable to the The jointly profits tax outstanding, except in a limited partnership partnership IRD is entitled to recover the outstanding profits IRD tax from any partner in a partnership [s.22(4) & tax s.22(4) s.56A] s.56A Unit 8 ­ Insurance Company Unit Assessing Insurance Corporations Expenditures are contingent with uncertainty Life insurance corporations – s.23 Other than life insurance corporations – s.23A Mutual insurance corporation – s.23AA [Note: an insurance company can have business in Life Insurance and Non­life Insurance at the same time. Each will be assessed separately.] Unit 8 ­ Insurance Company Unit Assessable Profit of HK Life Insurance Corporations under s.23 is 5% of ‘HK Premium’ OR ‘Adjusted Surplus’ plus following adjustments + ‘Deficit of previous period’ [ or ­ Surplus of previous period] + Disallowable expenses per s.16 & s.17 + Profits not credited to life insurance fund + Appropriation of profit + Balancing Charge ­ Dividends exempted under s.26(a) Unit 8 ­ Insurance Company Unit HK Premium includes Premium received in HK from HK residents or non­HK residents; & Premium received overseas from HK residents (proposal made previously in HK) ‘Adjusted surplus’ is where life insurance fund > estimated liability Unit 8 ­ Insurance Company Unit Assessment of life insurance company in HK is Normally at 5% on premium first; or Elect alternate method with no time limit Based on latest actuarial report [s23(2)].; to be submitted no later than 2 years from end...
View Full Document

{[ snackBarMessage ]}