Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dickson Smith, a Canadian, was appointed as the Chief Executive Officer of Forever (HK) Ltd (Forever), a company carrying on business in Hong Kong, on

image text in transcribed
Dickson Smith, a Canadian, was appointed as the Chief Executive Officer of Forever (HK) Ltd (Forever), a company carrying on business in Hong Kong, on 1 April 2017. The following information is available for the year ended 31 March 2018: 1. Dickson received a monthly salary of $100,000. 2. Forever provided Dickson with a car and a driver. The car was rented by Forever at an annual rental of $36,000. The driver was hired by Forever at $3,000 per month Dickson received a total reimbursement of $3,600 from Forever to cover the petrol costs of the car for the year. 3. For the month of April 2017, Dickson was given a cash allowance of $20,000 to cover his accommodation costs. From 1 May 2017 onwards, he was provided with a house owned by Forever, and 5% was deducted from his monthly salary. Forever also employed an amah for Dickson at a cost of $2,000 per month and paid Forever's utilities bills for the house of $12,000 for the year. 4. Dickson made a gain on share option of $249,000. 5. Dickson is studying for a DBA degree at the University of Hong Kong. During the year, he paid a tuition fee of $85,000 and books for the course of $4,000. 6. Dickson purchased a laptop computer for $10,000 and used it both for work and private purposes. 7. Dickson's wife is a housewife. They have two sons, aged 20 and 13. The elder son is attending a full-time bachelor degree course at a UK university. 8. Dickson's mother, aged 68, lives in Guangdong. His mother has a Hong Kong identity card but seldom travels to Hong Kong. (1) 9. Dickson contributed $19,000 to the MPF. (2) NO The F a Required: (a) Prepare a Salaries Tax Computation to calculate Hong Kong salaries tax payable by Dickson, if any. for the year of assessment 2017/18. Ignore provisional salaries tax and tax rebate or reduction, if any. (12 marks) (b) Explain the tax treatment of the above items (2). (5) and (6). (3 marks) (3) D P: WE po

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Restaurant Financial Management

Authors: Hyung-il Jung

1st Edition

1774631431, 978-1774631430

More Books

Students also viewed these Finance questions

Question

Describe the four points of principled negotiation.

Answered: 1 week ago

Question

What is the effect of word war second?

Answered: 1 week ago