6. 7. 8. In relation to claiming of expenses under salaries tax, which of the following statement is false? A) The payment to the employment agency for introducing a job is not allowable. B) The payment of school fees to study for the HKICPA qualification, so as to maintain qualifications as an accounting manager, is not allowable. C) The payment of travelling from home to office is not allowable. D) The payment of annual subscriptions to professional associations is allowable, provided that the retention of membership in the body is a prerequisite of the employment. Which of the following statements is correct? A) If an income is capital in nature, it is chargeable to profits tax. B) If an expense is revenue in nature, it is disallowable under profits tax. C) The sales revenue earned by a person carrying on a business in Hong Kong is a trading receipt and is chargeable to profits tax. D) Interest income derived from Hong Kong is chargeable to profits tax. Which of the following is not true regarding election for personal assessment? A) If a husband and wife have income arising in Hong Kong, and both are eligible for election, both spouses must elect for personal assessment jointly. B) The election for personal assessment must be in writing. C) A married individual can elect for personal assessment if his/her spouse is a permanent or temporary resident of Hong Kong. D) The elector must be aged 18 or above. Which of the following does not constitute qualifying expenditure of plant or machinery for the purpose of claiming depreciation allowance? A) Expenditure on alternations to an existing building incidental to the installation of the plant or machinery B) Financial interest incurred on loan for purchasing the plant or machinery before the plant or machinery is put into use C) The purchase cost of the plant or machinery D) Expenditure which has been allowed as research and development expenditure Which of the following statements is true? A) A hotel building does not qualify as an industrial building. B) Annual allowance of plant and machinery is granted on assets that are owned and have not been in used in the production of assessable profits at some time in an earlier year of assessment C) A showroom qualifies as an industrial building. D) Different industrial buildings can be pooled together to calculate industrial building allowance. 9. 10