12 (11 marks) Part I (6 marks) Mr Brown is the director of SPACE Ltd, a company carrying on business in Hong Kong. In February 2014, Mr Brown notified SPACE Ltd that he wished to retire from his office. Mr Brown was persuaded to stay in office, and received a 'compensation payment for agreeing not to retire' of $500,000 in March 2014. In May 2014, Mr Brown received his composite tax return for the year of assessment 2013/14 and approached his tax consultant for advice about the taxability of the payment of $500,000. He was told that the payment might not be taxable, and as the IRD would not know about it, he need not report the amount. Mr Brown acted on this advice. Mr Brown subsequently discovered that a salaries tax assessment for the year of assessment 2013/14 had been issued to him, dated 20 August 2014. The assessment included the payment of $500,000. However, he forgot about this and decided to make an objection on 1 October 2014. Required: State the conditions that must be satisfied before an objection against the salaries tax assessment can be lodged and advise Mr Brown whether a valid objection can be lodged in his case. Part II (5 marks) The Board of Inland Revenue exists for the administration of Hong Kong tax law. Required: State the composition and functions of the Board of Inland Revenue