9. SPACE has been carrying on business in Hong Kong for many years. For the year of assessment 2015/16, it has the following sources of income: (1) 5% interest charged on overdue trade debts from a customer in Hong Kong (2) Exchange gains arising from conversion of Rmb transactions with Mainland suppliers (3) Profits from the sale of shares quoted on the London Stock Exchange. The shares were held as long term investments (4) Dividends from quoted shares of its Hong Kong subsidiary listed on the Hong Kong Stock Exchange Which of the above four sources of income is NOT assessable for Hong Kong profits tax? A) 2 only B) 3 only C) 3 and 4 only D) 1, 2, 3 and 4 10. 11. Which of the following is NOT true regarding election for personal assessment? A) The election for personal assessment must be in writing B) The elector must be aged 18 or above. C) An individual can elect for personal assessment if he/she is a permanent or temporary resident of Hong Kong. D) The taxpayer must lodge the application with the CIR within 2 years after the end of the year of assessment in which the election is made or 1 month after any assessment on income forming part of the total income has become final and conclusive, whichever is the later. 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 machinen 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 it true? A) A hotel building does not qualify as an industnal 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 assetsable profits at some time in an earlier rear of assessment C) A showroom qualifies as an industrial building D) Different industrial buildings can be pooled together to calculate industrial building allowance 12