Which of the following statements is correct? A) If an income is capital in nature, it is chargeable to Hong Kong profits tax. B) If an expense is revenue in nature, it is disallowable under Hong Kong profits tax. C) Interest income derived from Hong Kong is chargeable to Hong Kong profits tax D) The sales revenue earned by a person carrying on a business in Hong Kong is a trading receipt and is chargeable to Hong Kong profits tax 9. SPACE has been carrying on business in Hong Kong for many years. For the year of assessment 2015/16, it has the following sources of income: (1) 5% interest charged on overdue trade debts from a customer in Hong Kong 2) Exchange gains arising from conversion of Rmb transactions with Mainland suppliers (3) Profits from the sale of shares quoted on the London Stock Exchange. The shares were held as long term investments (9) Dividends from quoted shares of its Hong Kong subsidiary listed on the Hong Kong Stock Exchange Which of the above four sources of income is NOT assessable for Hong Kong profits tax? 10. A) 2 only B) 3 only C) 3 and 4 only D) 1, 2, 3 and 4 Which of the following is NOT true regarding election for personal assessment? A) The election for personal assessment must be in writing. B) The elector must be aged 18 or above. C) An individual can elect for personal assessment if he/she is a permanent or temporary resident of Hong Kong D) The taxpayer must lodge the application with the CIR within 2 years after the end of the year of assessment in which the election is made or 1 month after any assessment on income forming 1 part of the total income has become final and conclusive, whichever is the later