Hi, can you answer this question in more detail?

Subject: Hong Kong Taxation and Estate Planning

Q3. D

Mr. B is a HKPR and does not own any residential property in Hong Kong. On 1 December 2016, he entered into an agreement for sale to acquire a residential property at a purchase price of $25M. On 30 December 2016, his spouse Ms. C, who is a HKPR and owned a residential property in Hong Kong on that date, was added in the assignment as one of the joint owners of the property. Both Mr. B and Ms. C acted on their own behalf in acquiring the property.

(a) Calculate the stamp duty payable and elaborate the answers in detail.

(b) Same as part (a), but Ms. C is not Mr. Bs close relative. What is the amount of AVD payable? Show the calculations and elaborate your answer.

(c) Mr. F is a HKPR who owns a single residential property (the original property) in Hong Kong. On 20 November 2016, he entered into a PASP to acquire another residential property (the new property) at a purchase price of $6M. On 15 May 2017, he entered into a PASP to dispose of the original property. Can Mr. F claim a partial refund of the AVD paid? If yes, show the calculations and elaborate your answer; if no, explain why not.

Stamp Duty Rate (Scale 2) - Amount or Value of Consideration. Duty Payable- $1 - $2,000,000 $100- $2,000,001 - $2,351,760- $100+ [(consideration - $2,000,000) x 10%] $2,351,761 - $3,000,000 Consideration x 1.5%- $3,000,001 - $3,290,320. $45,000+ [(consideration - $3,000,000) x 10%] - $3,290,321 - $4,000,000 Consideration x 2.25%- $4,000,001 - $4,428,570 $90,000+ [(consideration - $4,000,000) x 10%]- $4,428,571 - $6,000,000- Consideration x 3%- $6,000,001 - $6,720,000 $180,000+ [(consideration - $6,000,000) x 10%]- $6,720,001 - $20,000,000 Consideration x 3.75%- $20,000,001 - $21,739,120- $750,000+ [(consideration - $20,000,000) x 10%]- $21,739,121 and above- Consideration x 4.25%- t + t Stamp Duty Rate (Scale 1). Flat rate: 15%- Special Stamp Duty Holding Period 6 months or less- 12 months or less- 36 months or less- Rate of special stamp duty- 20% 15% 10% Buyer's Stamp Duty: 15%