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ANSWER ALL QUESTIONS Given that Mary is the landlord of a Hong Kong property. The at has been successfully rented out to a tenant from

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ANSWER ALL QUESTIONS Given that Mary is the landlord of a Hong Kong property. The at has been successfully rented out to a tenant from 1st April 2018. Her husband provides below background information for Mary to compute her Hong Kong property tax computation. Mary fully trusts her husband and will use the below information for her Hong Kong property tax computation. The background information is as below: Yearly rent receivable HK$ Premium received HK$ Repairs borne by tenant HK$ Rate by owner (per quarter) HK$ Rate by tenant (per quarter) HK$ Statutory allowance Tax rate Rental year from 1st April Year 1 20,000 9,600 600 300 200 0% 6% Her husband reminds Mary that the rate can be fully deductible and the premium is regarded as a fully deductible item in a particular year of assessment. Required: a) Discuss Mary's Hong Kong property tax computation including the discussion of taxable and deductible items for the year of assessment of 2019/20 if Mary prepares it based on her husband approach. (30%) b) Based on the above information. justify whether the information provided by her husband is correct or not, and state the correct treatment for any incorrect information. (40%) c) Discuss any issue related to tax administration for the case of Mary and any possible consequences Mary may face if she submits her property tax return based on (a) answer. -END- (30%)

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