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Which of the following statements is/are CORRECT: 1. Married person's allowance is only available to husband and wife who have elected to be assessed under joint assessment or personal assessment. II. Married person's allowance can only be granted on the condition that the claimant has maintained or supported the other spouse. Personal allowances are available to non-resident taxpayers proportionally based on number of days present in Hong Kong in the year of assessment concerned. III. Select one: O a. None of the above. O b. 1 & Ill only. . I & II only. O d. ll only. Red Ltd commenced its manufacturing business in Hong Kong in June 2008 and closed its accounts annually on 31 March. The following assets are purchased and sold during the year of assessment 2019/20: i. Purchased a computer (Annual Allowance: 30%) $40,000 ii. Bought office furniture (Annual Allowance: 20%) $50,000 iii. Sold old office furniture (original cost $8,000) $10,000 iv. Acquired a motor vehicle (Annual Allowance = 30%) $180,000 The amount of annual allowance which Red Ltd is entitled to claim for the year of assessment 2019/20 is: Select one: O a. $21,600. O b. $162,000. O c. $24,000. O d. None of the above. Marcus is the General Manager of Blue Ltd. In January 2020, Marcus is required to travel to Japan for a business conference. Blue Ltd purchased a business class air ticket for $30,000 for his trip. Marcus exchanged the ticket for 2 economy class tickets and paid $2,000 to the airline company for the transaction. His wife travelled with him on one of the economy tickets. Marcus' income chargeable to salaries tax in respect of the benefit mentioned above for the year of assessment 2019/20 is: Select one: O a $15,000. O b. $14,000. OC. $0. O d. $30,000. Yellow Ltd's accounting profit for the year of assessment 2019/20 is $1,900,000, after charging the following item: Payment for early termination of lease of office, with 5 more years to run to termination: $1,000,000. The termination was driven by the decision to move to a bigger office. In addition, the company also made a payment of $100,000 for purchase of computer hardware and software during the year. Yellow Ltd's assessable profit for the year: Select one: O a. None of the above. O b. $1.9 million. O c. $2.8 million. O d. $3 million. Red Ltd commenced its manufacturing business in Hong Kong in June 2008 and closed its accounts annually on 31 March. The following assets are purchased and sold during the year of assessment 2019/20: i. Purchased a computer (Annual Allowance: 30%) $40,000 ii. Bought office furniture (Annual Allowance: 20%) $50,000 iii. Sold old office furniture (original cost $8,000) $10,000 iv. Acquired a motor vehicle (Annual Allowance = 30%) $180,000 The amount of initial allowance which Red Ltd is entitled to claim for the year of assessment 2019/20 is: Select one: O a. None of the above. O b. $138,000. OC. $30,000. O d. $ 108,000. Which of the following are exempt from stamp duty? 1. A Ltd owns 90% of the share capital of B Ltd and transfers a property located in Hong Kong to B. II. A Ltd owns 80% share capital of B Ltd and owns 50% share capital of C Ltd, which owns 20% share capital of B Ltd; A Ltd transfers a property located in Hong Kong to B Ltd. Mr A owns 100% share capital of B Ltd and leases a property located in Hong Kong to B Ltd. III. Select one: O a. ll only. O b. All of the above. Oc. I and II only. O d. II and III only. Kelly resigned from Sea Ltd and received a gratuity of $360,000 on 15 February 2016 after having served the company for 5 years. Her last date of employment was 31 January 2016. If Kelly elects to relate back the gratuity, the deadline for Kelly to elect for relating back the gratuity is: Select one: O a. 15 February 2017. O b. 31 March 2018. O c. One month after the relevant assessment becomes final and conclusive. O d. 31 March 2019. Miss Li, a Hong Kong resident, is employed by an overseas airline company as air-hostess. She stayed in Hong Kong for 60 days, 48 days and 75 days during the years of assessment 2017/18, 2018/19 and 2019/20 respectively. Her Hong Kong salaries tax position is: Select one: O a. She is liable to salaries tax for the year of assessment 2018/19 and 2019/20. O b. She is liable to salaries tax for all years of assessment. O c. She is not liable to salaries tax for any year of assessment. O d. She is not liable to salaries tax for the years of assessment 2017/18 and 2018/19
