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Please refer to Appendix A for relevant Hong Kong tax rates, deductions and personal allowances. Question B1 Benson is employed by Global Ltd as chief

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Please refer to Appendix A for relevant Hong Kong tax rates, deductions and personal allowances. Question B1 Benson is employed by Global Ltd as chief architect since 2008. Global Lid is a company incorporated and carrying on business in Hong Kong with a subsidiary, World Ltd, incorporated and wholly managed in Japan. During the year ended 31 March 2020, Benson received / paid the following: (1) Annual salary: $848,000 from Global Ltd. (2) Director's fee: $50,000 from World Ltd. (3) Reimbursement of salary to domestic helper: $28,800 (being 40% of the $48,000) from Global Ltd. Benson paid the remaining 60%. (4) Rental reimbursement: Benson paid $24,000 per month to rent a flat in Wan Chai and was reimbursed by Global Lid for $22,000 per month upon submission of receipt each month. (5) Other reimbursement: Global Lid allows Benson to use the company's car for private use for free and reimbursed him $10,000 in respect of the petroleum used. The car is acquired in the current year at a cost of $350,000. The current market value at 31 March 2020 of the car is around $200,000. (6) MPF contribution (including both Mandatory and Tax-Deductible voluntary contributions): $82,400. (7) Membership fees: $3,000 and $3,500 to Hong Kong Institute of Architects and Hong Kong Institute of Urban Design, respectively. (8) Tuition fee: $108,000 for a Master Degree Programme in Urban Design organized by the University of Hong Kong. (9) Donations: $8,000 cash to Hong Kong Red Cross and $2,800 toys to Po Leung Kuk. (10) Benson's wife, Rose, is a housewife. Benson's eldest son (aged 24) is working in an audit firm and the younger son (aged 22) is studying full time at a university in Taiwan. Benson's mother (aged 64) lived with Benson's family throughout the year. Benson's father (aged 66) lived in Beijing and received $2,000 per month from Benson. Required: Calculate the Hong Kong salaries tax liability of Benson for the year of assessment 2019/20. Ignore provisional tax and any tax rebates. (18 marks)Table 1 of 3: Personal allowances and deductions 2019/20 Personal Allowances Basic 132,000 Married person 264,000 Single Parent 132,000 Child lst to 9th child (each) 120,000 Additional allowance in the year of birth (each) 120,000 Dependent parent / grandparent Basic (each) 50,000 Age between 55 to 59 25,000 Additional (for each dependant residing with taxpayer) 50,000 Age between 55 to 59 25,000 Dependent brother I sister (each) 37,500 Disabled dependent (each) X Personal disability allowance (each) 75,000 Deductions Self-education expenses 100,000 Home loan interest 100,000 Elderly residential care expenses 100,000 Contribution to MPF / MPF~exempt retirement scheme 18,000 Health insurance premiums 8,000 Qualifying annuity premiums / MPF voluntary contributions 60,000 A . roved charitable donations 35.0% Table 2 of 3: Progressive tax rates Year of Assessment 2019/20 Rate On the First $50,000 2% On the Next $50,000 6% On the Next $50,000 10% On the Next $50,000 14% Remainder 17% Table 3 of 3: Standard tax rates Year of Assessment 2019/20 Salaries tax, property tax and personal assessment 15.0% Profits Tax Corporation 16.5% Others 15.0%

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