Hi, can you answer this Multiple-Choice Questions?
Subject: Taxation and Estate Planning
Choose the BEST answers
1. Which of the following parties are exempted from property tax? (i) Approved charitable institutions or trusts of a public character. (ii) The Hong Kong SAR Government. (iii) Subsidized schools in Hong Kong. (iv) Consular for property used for consular purposes or residence of consular employees. (A) (C) (E) (i), and (ii) only. (i), (iii), and (iv) only. (i), (ii), (iii) and (iv). (B) (D) (i), and (iii) only. (i), (ii), and (iv) only. 2. Which of the following statements about property tax are correct? (i) For anyone owns property situated in Hong Kong, he/she should pay property tax. (ii) If you have derived rental income from letting properties situated in Hong Kong, you should fulfill your property tax obligations. (iii) The amount of property tax is computed at both standard rate and progressive rate on the net assessable value of the chargeable property. (iv) All land and building situated in Hong Kong, including the New Territories, are chargeable to property tax. (v) Land and buildings include piers, wharves and other structures. (A) (C) (E) (i), (ii) and (iii) only. (ii), (iii), and (iv) only. (i), (ii), (iii), (iv) and (v). (B) (D) (i), (ii) and (iv) only. (ii), (iv), and (v) only. 3. Which of the following statement is incorrect? (A) The law governing the imposition of income based taxes in Hong Kong is contained in the Inland Revenue Ordinance and its subsidiary legislation, the Inland Revenue Rules, and in various orders made by the Chief Executive in Council. (B) When interpreting laws, we should not have presumption. (C) The Inland Revenue Ordinance (IRO) contains similar, and in some cases, identical wording to taxation legislation currently in use in the UK, Australia, China, South Africa and various other Commonwealth countries, which is why interpretation of the IRO is influenced by legal decisions in those countries. (D) The Inland Revenue Department from time to time issue documents explaining their views on statutory provisions. Such documents, when dealing with matters under the IRO are known as Departmental Interpretation and Practices Notes (DIPNS) and when dealing with matters under the Stamp Duty Ordinance (SDO) are known as Stamp Office Interpretation and Practice Notes (SOPNS). (E) DIPNs and SOPNs purport to have no binding force in law and are issued only for the information and guidance of taxpayers. But if revenue authority makes a statement of practice which taxpayers could legitimately expect would be followed, the revenue authority is bound by such statement of practice. 4. Which of the following statements are correct? (1) Territorial source concept refers to income taxes are charged on income which has a Hong Kong source; and stamp duty is charged on instruments which relate to Hong Kong assets. (ii) Direct assessment refers to all income taxes charged under the Inland Revenue Ordinance (IRO) are directly assessed and demanded from the taxpayer concerned, except for profits tax on certain income of non-residents, such as royalties and income received by an agent where the tax is collected from the payer or agent. (iii) Compare with other developed countries, Hong Kong's tax rates are relatively low. (iv) In Hong Kong, there is no capital gain tax, but there are taxes on dividend income. (A) (C) (E) (i), and (ii) only. (i), (ii), and (iii) only. (i), (ii), (iii), and (iv). (B) (D) (i), and (iii) only. (i), (iii), and (iv) only. 5. Which of the following statements about salaries tax are incorrect? (i) Salaries tax is charged on every person in respect of his income arising in, or derived from Hong Kong from employment, an office and any pension. (ii) If the employment is located in Hong Kong, the income is fully taxable even though the taxpayer carried all of his services outside Hong Kong. (iii) If the employment is located outside Hong Kong, the income will fall outside the Hong Kong tax net; therefore, the employees do not have to pay tax in Hong Kong in all circumstances. (A) (C) (E) (ii) only. (i) and (ii) only. (i), (ii) and (iii). (B) (iii) only. (D) (ii) and (iii) only. 1. Which of the following parties are exempted from property tax? (i) Approved charitable institutions or trusts of a public character. (ii) The Hong Kong SAR Government. (iii) Subsidized schools in Hong Kong. (iv) Consular for property used for consular purposes or residence of consular employees. (A) (C) (E) (i), and (ii) only. (i), (iii), and (iv) only. (i), (ii), (iii) and (iv). (B) (D) (i), and (iii) only. (i), (ii), and (iv) only. 2. Which of the following statements about property tax are correct? (i) For anyone owns property situated in Hong Kong, he/she should pay property tax. (ii) If you have derived rental income from letting properties situated in Hong Kong, you should fulfill your property tax obligations. (iii) The amount of property tax is computed at both standard rate and progressive rate on the net assessable value of the chargeable property. (iv) All land and building situated in Hong Kong, including the New Territories, are chargeable to property tax. (v) Land and buildings include piers, wharves and other structures. (A) (C) (E) (i), (ii) and (iii) only. (ii), (iii), and (iv) only. (i), (ii), (iii), (iv) and (v). (B) (D) (i), (ii) and (iv) only. (ii), (iv), and (v) only. 3. Which of the following statement is incorrect? (A) The law governing the imposition of income based taxes in Hong Kong is contained in the Inland Revenue Ordinance and its subsidiary legislation, the Inland Revenue Rules, and in various orders made by the Chief Executive in Council. (B) When interpreting laws, we should not have presumption. (C) The Inland Revenue Ordinance (IRO) contains similar, and in some cases, identical wording to taxation legislation currently in use in the UK, Australia, China, South Africa and various other Commonwealth countries, which is why interpretation of the IRO is influenced by legal decisions in those countries. (D) The Inland Revenue Department from time to time issue documents explaining their views on statutory provisions. Such documents, when dealing with matters under the IRO are known as Departmental Interpretation and Practices Notes (DIPNS) and when dealing with matters under the Stamp Duty Ordinance (SDO) are known as Stamp Office Interpretation and Practice Notes (SOPNS). (E) DIPNs and SOPNs purport to have no binding force in law and are issued only for the information and guidance of taxpayers. But if revenue authority makes a statement of practice which taxpayers could legitimately expect would be followed, the revenue authority is bound by such statement of practice. 4. Which of the following statements are correct? (1) Territorial source concept refers to income taxes are charged on income which has a Hong Kong source; and stamp duty is charged on instruments which relate to Hong Kong assets. (ii) Direct assessment refers to all income taxes charged under the Inland Revenue Ordinance (IRO) are directly assessed and demanded from the taxpayer concerned, except for profits tax on certain income of non-residents, such as royalties and income received by an agent where the tax is collected from the payer or agent. (iii) Compare with other developed countries, Hong Kong's tax rates are relatively low. (iv) In Hong Kong, there is no capital gain tax, but there are taxes on dividend income. (A) (C) (E) (i), and (ii) only. (i), (ii), and (iii) only. (i), (ii), (iii), and (iv). (B) (D) (i), and (iii) only. (i), (iii), and (iv) only. 5. Which of the following statements about salaries tax are incorrect? (i) Salaries tax is charged on every person in respect of his income arising in, or derived from Hong Kong from employment, an office and any pension. (ii) If the employment is located in Hong Kong, the income is fully taxable even though the taxpayer carried all of his services outside Hong Kong. (iii) If the employment is located outside Hong Kong, the income will fall outside the Hong Kong tax net; therefore, the employees do not have to pay tax in Hong Kong in all circumstances. (A) (C) (E) (ii) only. (i) and (ii) only. (i), (ii) and (iii). (B) (iii) only. (D) (ii) and (iii) only
