Question
Royis a residentin Singaporewho came to Hong Kong in March 2018for holiday. Hewas introduced by a HK property agent to visit a residentialproperty in Tai
Royis a residentin Singaporewho came to Hong Kong in March 2018for holiday. Hewas introduced by a HK property agent to visit a residentialproperty in Tai Koo Shing. The property was owned by a Hong Kong company, BlueLtd, which is wholly owned by Mr. Chan. After consultingwith Frankie, Roys cousin, Royacquired the property in hisown name in April 2018in HK$30million. He settled 70% of the acquisition cost by cash and financed the balance with a 1-year loan from a bank. After the acquisition, Royreturned to Singaporeand placed the property for sale with a few HK property agents for HK$33million, but was unsuccessful in the sale. In June2018, Roylet Frankieuse the property temporarily. In February2019, Royfound the buyer and sold the property, making a profitof HK$3million. Roy wondered whether the HK$3million profit on disposal of the property would be subject to Hong Kong tax or not.
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