Taxation Tutorial 2011/12

CC3155 Taxation tutorial 1 (2009/10 Semester 1) Suggested Answers to Tutorial Questions (Lecture 1) Overview of the Hong Kong Tax System and Administration A) screen 1. 2. 3. 4. 5. 6. 7. 8. F T T T F T E The chargeable person a) Salaries value person who has income from employment, office or grant deriving from HK, b) Property tax owner of land/buildings in HK, and c) simoleons tax person who carries on a trade, profession or rail line 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 dust be Territorial Source Concept Schedular tax system Direct assessment Limitation to the standard rate Low tax rates No capital gains tax No tax on dividend income 2. The following bodies are involved in the administration of income taxes in Hong Kong interior revenue enhancement Department (IRD) Board of Inland Revenue (BIR) Board of look back (BoR) 3.The sou rce of Hong Kong tax natural law comprises Statute law Case law 1 CC3155 Taxation ______________ 4. Tutorial Answer 1 (2008/09 Semester 1) Composition BIR consists the m integritytary Secretary and 4 other 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 legate 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 necessary for carrying out the aliment 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 statement of assets and liabilities under s51A(1). 2