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) 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.
10. (a & b) 2007/08; (c & d) 2008/09.
B) Essay Questions
1.
The characteristics (features) of Hong Kong tax system are:
• 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:
• Inland Revenue Department (IRD)
• Board of Inland Revenue (BIR)
• Board of Review (BoR)
3.
The source of Hong Kong tax 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 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 necessary 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 CIR’s or DCIR’s determination, s82A additional tax and penalty
• To approve CIR’s application for the taxpayer to file a statement
Taxation
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.
10. (a & b) 2007/08; (c & d) 2008/09.
B) Essay Questions
1.
The characteristics (features) of Hong Kong tax system are:
• 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:
• Inland Revenue Department (IRD)
• Board of Inland Revenue (BIR)
• Board of Review (BoR)
3.
The source of Hong Kong tax 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 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 necessary 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 CIR’s or DCIR’s determination, s82A additional tax and penalty
• To approve CIR’s application for the taxpayer to file a statement