Taxation Tutorial 2011/12

CC3155 measure incomeation Tutorial 1 (2009/10 Semester 1) Suggested Answers to Tutorial Questions (Lecture 1) Overview of the Hong Kong Tax System and Administration A) Quiz 1. 2. 3. 4. 5. 6. 7. 8. F T T T F T E The chargeable person a) Salaries tax person who has income from employment, office or pension deriving from HK, b) Property tax owner of land/buildings in HK, and c) Profits tax person who carries on a trade, profession or business in HK. 9. April 1st, March 31st, April 1st 2008, March 31st 2009. 0. (a & b) 2007/08 (c & d) 2008/09. B) Essay Questions 1. The characteristics (features) of Hong Kong tax system atomic modus operandi 18 Territorial Source Concept Schedular tax system Direct assessment Limitation to the standard stride Low tax rates No capital gains tax No tax on dividend income 2. The avocation bodies are involved in the administration of income taxes in Hong Kong interior Revenue Department (IRD) Board of Inland Revenue (BIR) Board of Review (Bo R) 3.The source of Hong Kong tax practice of law comprises Statute law Case law 1 CC3155 Taxation ______________ 4. Tutorial Answer 1 (2008/09 Semester 1) Composition BIR consists the Financial Secretary and 4 other(a) members, appointed by the Chief Executive. The CIR is one of the members and a DCIR is the secretary of the BIR. BoR consists of a chairman and a number of deputy chairman and not more than 150 other members, all of whom are appointed by the Chief Executive (s65). Functions BIR To make rules called Inland Revenue Rules (IRR) To specify the forms (e. g. composite tax return) which are needed for carrying out the provisions of the IRO To prescribe the procedure to be followed when appealing to the BoR with effect from Jun13,1997 BoR To hear taxpayers appeals against the CIRs or DCIRs determination, s82A additional tax and penalty To approve CIRs application for the taxpayer to file a didactics of assets and liabilities under s51A(1). 2