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(ii) This part is independent of the above requirements: On 1 January 2021, Amy, a staff of AXE Limited, was granted 10,000 shares of AXE

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(ii) This part is independent of the above requirements: On 1 January 2021, Amy, a staff of AXE Limited, was granted 10,000 shares of AXE Limited (the Shares) as share awards with vesting period of one year until 31 December 2021 (the financial year end date of AXE Limited). Amy would be entitled to the entire ownership of the Shares on 31 December 2021 if she remained as an employee of AXE Limited throughout the vesting period. Finally, Amy was vested with the Shares on 31 December 2021. To facilitate the award of the Shares to each of the staff, AXE issued 10,000 new shares to Amy, on 31 December 2021. The price of the share of AXE on 1 January 2021 and 31 December 2021 was HK$7.1 and HK$8.1 respectively. In line with the relevant financial reporting standards, AXE Limited recognised the fair value of the 10,000 new shares issued to Amy in its profit and loss account for the year ended 31 December 2021 as share award expenses. Analyse the salaries tax implications of Amy on her award of shares. (5 marks) [Total for Client 3 AXE Limited: 30 marks]

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