Hong Kong Taxation

Mr. Chu is an accounting manager of an investment company. During the year ended 31 March 2020, his income and expenses are as follows: Income: 1. Salary: $800,000 2. Bonus: S100,000 3. Home purchase allowance: $120,000 4. Dividend from private company: $11,000 5. Bank interest: $50,000 $2,100 $1,450 Expenses: 1. Annual subscription to (1) Hong Kong Institute of Certified Public Accountants (ii) Association of Chartered Certified Accountants 2. Fees for attending an accounting update course organized by Hong Kong Baptist University 3. Cash donations to Po Leung Kuk 4. Fees paid to a recognized residential care home which provided residential care to his grandmother who is aged 85 5. Mortgage interest paid to Hang Seng Bank in respect of his place of residence $4,000 $45,000 $48,000 $180,000 You have also been supplied with the following information for Mrs. Chu for the year ended 31 March 2020: 1. Rental income of her solely owned property $96,000 (Rates and management fees paid by tenant) 2. Mortgage interest paid to Hong Kong Bank in respect of the loan to finance the purchase of the rental property $30,000 $50,000 3. Mortgage interest paid to Bank of China in respect of her other property occupied by her parents 4. Cash donations to the Hong Kong Community Chest (Other than those allowed under profits tax) $10,000 Mrs. Chu is also the sole proprietress of a florist shop and partner in a beauty center. The results of the businesses for the year of assessment 2019/20 are as follows: 1. Sole proprietress business: Assessable profit of $180,000 (after deduction of approved charitable donations of $20,000) 2. Partnership business: Share of agreed partnership loss of $100,000 3. Mrs. Chu has a loss brought forward of $300,000 under personal assessment from 2018//19. Required: Assuming Mr. and Mrs. Chu have elected for personal assessment for the year of assessment 2019/20 on a jointly basis, compute the total tax payable for for Mr. and Mrs. Chu for the year of assessment 2019/20. Show all your workings and ignore provisional tax. (Total: 25 marks) Mr. Chu is an accounting manager of an investment company. During the year ended 31 March 2020, his income and expenses are as follows: Income: 1. Salary: $800,000 2. Bonus: S100,000 3. Home purchase allowance: $120,000 4. Dividend from private company: $11,000 5. Bank interest: $50,000 $2,100 $1,450 Expenses: 1. Annual subscription to (1) Hong Kong Institute of Certified Public Accountants (ii) Association of Chartered Certified Accountants 2. Fees for attending an accounting update course organized by Hong Kong Baptist University 3. Cash donations to Po Leung Kuk 4. Fees paid to a recognized residential care home which provided residential care to his grandmother who is aged 85 5. Mortgage interest paid to Hang Seng Bank in respect of his place of residence $4,000 $45,000 $48,000 $180,000 You have also been supplied with the following information for Mrs. Chu for the year ended 31 March 2020: 1. Rental income of her solely owned property $96,000 (Rates and management fees paid by tenant) 2. Mortgage interest paid to Hong Kong Bank in respect of the loan to finance the purchase of the rental property $30,000 $50,000 3. Mortgage interest paid to Bank of China in respect of her other property occupied by her parents 4. Cash donations to the Hong Kong Community Chest (Other than those allowed under profits tax) $10,000 Mrs. Chu is also the sole proprietress of a florist shop and partner in a beauty center. The results of the businesses for the year of assessment 2019/20 are as follows: 1. Sole proprietress business: Assessable profit of $180,000 (after deduction of approved charitable donations of $20,000) 2. Partnership business: Share of agreed partnership loss of $100,000 3. Mrs. Chu has a loss brought forward of $300,000 under personal assessment from 2018//19. Required: Assuming Mr. and Mrs. Chu have elected for personal assessment for the year of assessment 2019/20 on a jointly basis, compute the total tax payable for for Mr. and Mrs. Chu for the year of assessment 2019/20. Show all your workings and ignore provisional tax. (Total: 25 marks)