1、ACCACAT考試P6高級(jí)稅務(wù)主觀題練習(xí)1、(b) The tax relief available in respect of the anticipated trading losses, together with supporting calculations anda recommended structure for the business. (16 marks)2、(d) Advise on any lifetime inheritance tax (IHT) planning that could be undertaken in respect of both Stuart

2、 andRebecca to help reduce the potential inheritance tax (IHT) liability calculated in (c) above. (7 marks)Relevant retail price index figures are:May 1994 1447April 1998 16263、Section B TWO questions ONLY to be attempted 3.(a) AB Ltd, a Hong Kong resident company, is organising a pop music concert

3、to be staged in Hong Kong in January 2012. AB Ltd has appointed another Hong Kong resident company, CD Ltd, to procure performances by various overseas artists at the concert. CD Ltd has entered into an agreement with Mr X, the US resident manager of a US resident pop star, for the performance of th

4、at pop star at the concert for a fee of $3,000,000. AB Ltd will pay $3,300,000 to CD Ltd, which will then pay $3,000,000 to Mr X. The fee payable by Mr X to the US pop star is $2,700,000.Required:Explain the withholding obligations, if any, imposed under the Inland Revenue Ordinance on each of the p

5、arties concerned and compute, with explanations, the amount of tax to be withheld. (8 marks)(b) KK Ltd is carrying on a trading business in Hong Kong, preparing accounts to 31 March each year. On 1 February 2011, it entered into a lease agreement to lease a motor vehicle, which has since been used i

6、n KK Ltds business, from an unrelated leasing company. The lease agreement is for a term of 24 months, with a monthly lease payment of $45,000 commencing from 1 February 2011. The cash cost of the motor vehicle was $840,000. The agreement provides KK Ltd with an option to acquire the motor vehicle a

7、t the end of the lease period upon payment of a small residual amount; and it is expected that the residual value will be higher than the exercise price.Required: Explain the tax implications of the lease agreement to KK Ltd, clearly identifying the expenditures it is entitled to claim with respect

8、to the motor vehicle for the year of assessment 2010/11. (9 marks)4、(b) (i) Calculate Amandas income tax payable for the tax year 2006/07; (11 marks)5、2.John and Mary are married to each other and are permanent residents of Hong Kong. Each of them currently has full-time employment working for organ

9、isations in Hong Kong. Last year, Marys father passed away, leaving her a boutique business. Also, Mary is pregnant and expecting twin babies in two months time. John and Mary recently met with a local tax consultant to discuss their future Hong Kong tax positions. A summary of the major points disc

10、ussed during the meeting is as follows:(1) Based on the information from her late fathers lawyer, the boutique business is currently held through a company incorporated in the British Virgin Islands (BVI). The BVI company is cash-rich without any debt or liability, and does not own any asset other t

11、han the boutique business. The boutique is operated at a leased retail shop located in Hong Kong. Mary has been given a choice by the lawyer either to take over the shares in the BVI company or to own the boutique business directly. It is Marys intention to continue to run the boutique by herself.(2

12、) Mary has been invited by her brother to participate in an established partnership business following the recent retirement of one of the partners. Mary expects that in addition to her share of profits, she will draw a monthly salary from the partnership. If this is not tax effective, the partnersh

13、ip may engage John as an employee and pay the salary to him instead. On the other hand, Marys sister has recently graduated and is interested in being engaged as an employee of the partnership.(3) John has recently signed a new employment contract with an organisation based in Mainland China (China

14、Co). This new employment will commence in three weeks time. Under the new employment contract, John will be responsible for looking after both China Cos Shenzhen factory and its Hong Kong operations, and thus is expected to travel extensively between China and Hong Kong. The tentative schedule shows

15、 that John will stay in Hong Kong for about eight months each year and spend the remaining four months in China. John negotiated his new employment terms during visits to China Cos premises in China, and he also signed the contract there. The major items in the remuneration package include:(i) A mon

16、thly salary of $100,000 (the take-home amount payable to John is $90,000 after withholding 10% for Chinas individual income tax).(ii) A lump sum incentive of $80,000 to encourage John to resign from his current employment.(iii) A housing allowance of $30,000 to compensate for Johns mortgage loan rep

17、ayment for his residence in Hong Kong.(iv) Reimbursement of any additional China tax liability arising from his employment after adjusting for the 10% amount withheld from the monthly salary.(v) A holiday package (flight tickets plus hotel) for Johns family up to a maximum of $60,000 per annum.(4) T

18、he couples existing apartment is too small to accommodate themselves and the two babies, and the couple are planning to move into the residence currently owned and occupied by Johns parents. Johns parents will then move into the couples existing apartment. The couple jointly owns their current apart

19、ment and will continue to pay their mortgage loan instalments after the swap. The residence owned by Johns parents is free from any mortgage. John intends to pay a nominal rental to his parents each month for the use of their residence.(5) The couple are financially independent. Each spouse files th

20、eir individual tax return each year and pays their salaries tax according to the assessment issued in their own name. Their tax positions in the previous years have been simple and straightforward with their respective employment income as the only item in their tax calculations. After the birth of

21、the twins, each spouse intends to claim one child allowance for Hong Kong tax purposes.Required:(a) Discuss the implications for Marys Hong Kong tax position in respect of the potential income earned (or losses incurred) by the boutique business in the event that Mary takes over the shares in the BV

22、I company as compared to the alternative that Mary takes over the boutique business directly. You should also address the potential differences in the implications, if any, depending on whether or not Mary elects for personal assessment. (5 marks)(b) Explain how a partnership is assessed for Hong Ko

23、ng tax purposes, and the Hong Kong tax implications for Mary in respect of the partnership profit or loss shared by her and the salary drawn from the partnership. You should also discuss whether it will make any difference to the tax treatment of the partnership and/or the partners if the salary is

24、received by John or Marys sister rather than by Mary. (4 marks)(c) Explain whether John is assessable to Hong Kong salaries tax in respect of the income from his new employment, and if so, state on what basis and explain the Hong Kong tax treatment of the major remuneration items specified in the qu

25、estion. Note: You are NOT required to discuss the Arrangement between the Mainland of China and HKSAR for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. (9 marks)(d) Analyse the major impact on the couples Hong Kong tax position arising from th

26、e proposed swap of residences between themselves and Johns parents. State any assumptions which you deem necessary. (3 marks)(e) Comment on the proposed action intended to be taken by the couple with regard to their claiming the child allowance in respect of the twins, and advise on the amount of al

27、lowance for which they will be eligible. (4 marks)6、5 Gloria Seaford is UK resident and ordinarily resident but is not domiciled in the UK.Gloria has owned and run a shop selling books, cards and small gifts as a sole trader since June 1992. Shepurchased her current premises, which were built in 199

28、0, in July 2005 for 267,000. Gloria is registered for valueadded tax. Gloria will be 66 on 4 January 2007 and, with this in mind, on 1 November 2006 she started lookingfor a buyer for the business so that she could retire.Gloria has received an offer of 335,000 for the shop premises from Ned Skillet

29、 who intends to convert the buildinginto a restaurant. It can be assumed that the sale will take place on 28 February 2007 and that Gloria will cease totrade on that day.Gloria estimates that on 28 February 2007 she will be able to sell the shelving and other shop fittings to localbusinesses for 1,4

30、00 (no item will be sold for more than cost). She has agreed to sell all stock on hand on28 February 2007 to a competitor at cost plus 5%. This is expected to result in sales revenue of 8,300. The onlyother business asset is a van that is currently used 85% for business purposes. The van is expected

31、 to be worth4,700 on 28 February 2007 and Gloria will keep it for her private use.Glorias tax adjusted trading profit for the year ended 31 October 2006 was 39,245. The forecast tax adjustedtrading profit for the period ending 28 February 2007, before taking account of the final sale of the business

32、 assetson that date and before deduction of capital allowances, is 11,500. Gloria has overlap profits brought forward of15,720.The tax written down value on the capital allowance general pool at 31 October 2006 was 4,050. Gloria purchasedequipment for 820 in November 2006. The tax written down value

33、 of the van at 31 October 2006 was 4,130.In 2006/07 Gloria will have a taxable retirement pension of 4,300 and bank interest of 13,500 credited to herbank account.On 1 November 2004 Gloria inherited the following assets from her aunt. 7、2.Mr Chan, a Malaysian, has been working in Hong Kong for World

34、 Ltd, a company resident in Hong Kong (the Company) since 1 April 2004, at a monthly salary of $80,000. Due to a failure in an important business project, Mr Chan was asked to resign and he submitted his resignation letter to the Companys director on 31 March 2012, notifying that he would terminate

35、his employment with effect from 1 April 2012. However, his official last day of work in the Company would be 29 March 2012, after deducting two days of entitled annual leave.Other details of Mr Chans termination arrangement and payment are as follows:(I) His total termination payment represented the

36、 following:(i) his final salary accrued up to 31 March 2012; (ii) compensation for the remaining balance of his entitled annual leave days as at 31 March 2012 of 15 days, of $40,000; (iii) compensation for loss of office as agreed with the Companys director, representing one month of his salary. It

37、has been the practice of the Company to pay an annual discretionary bonus equivalent to one months salary; (iv) his entitlement payment from the Companys provident fund registered under the Occupational Retirement Scheme Ordinance in the amount of $300,000 (Mr Chan and the Company had contributed eq

38、ual amounts to the provident fund). The accrued benefit attributable to Mr Chans service was $120,000; and (v) compensation for the loss incurred by him from having to sell his car in Hong Kong as a result of his termination of $10,000.(II) The Companys director agreed to pay Mr Chan an extra sum of

39、 compensation of $200,000 after six months from the date of his termination on the condition that he did not work for the Companys competitors during this period.Mr Chan is planning to move back to Malaysia. Before he goes back, he is interested in investing in residential properties in Hong Kong. W

40、ith various ideas in mind, he has approached you for advice on how to plan his investment in a tax effective manner. His plans and ideas are:(1) He will acquire one or two residential units in Tsimshatsui and lease them out for rental.(2) The acquisitions will be financed partly by his personal savi

41、ngs (around 50%) and partly by bank mortgage loans. It is expected that the rental income will not be sufficient to cover the mortgage interest.(3) The residential units need to be renovated before they can be leased out. A substantial amount of renovation costs is expected to be incurred after the

42、acquisition.(4) In two to five years time, he may consider disposing of the units if property prices go up to a satisfactory level.(5) He has no idea as to how the properties should be owned, by an individual or by a special purpose company. However, for the former, he prefers to have the properties

43、 owned by his daughter who is single, has always been living in the UK and has no connection with Hong Kong. He believes that this will lead to a tax-free position in respect of the rental received. Alternatively, he is considering setting up a company in an offshore tax haven to hold the properties

44、 so that Hong Kong tax can be avoided; with minimal local tax payable in the tax haven country.Required:(a) Advise Mr Chan of the general principles used for determining the taxability of each item of the termination payment received upon his cessation of employment. Note: You are NOT required to ca

45、lculate his assessable/chargeable income or tax payable. (14 marks)(b) Compare the tax implications for the rental income received from the residential units if the properties are held by: (i) an individual; and (3 marks) (ii) a special purpose company. (4 marks)(c) Comment on the extent to which th

46、e tax planning ideas as described in note 5 above are feasible. (3 marks)(d) Explain the tax implications arising from the disposal of the residential units in two to five years time, including how these may be affected by the different ownership structures. (6 marks)8、(b) Identify the most appropri

47、ate approved share option scheme for Happy Home Ltd. Outline the schemerequirements and the tax benefits of using it compared to the current unapproved scheme. (6 marks)9、5 Crusoe has contacted you following the death of his father, Noland. Crusoe has inherited the whole of his fathersestate and is

48、seeking advice on his fathers capital gains tax position and the payment of inheritance tax following hisdeath.The following information has been extracted from client files and from telephone conversations with Crusoe.Noland personal information: Divorcee whose only other relatives are his sister,

49、Avril, and two grandchildren. Died suddenly on 1 October 2007 without having made a will. Under the laws of intestacy, the whole of his estate passes to Crusoe.Noland income tax and capital gains tax: Has been a basic rate taxpayer since the tax year 2000/01. Sales of quoted shares resulted in: Char

50、geable gains of 7,100 and allowable losses of 17,800 in the tax year 2007/08. Chargeable gains of approximately 14,000 each tax year from 2000/01 to 2006/07. None of the shares were held for long enough to qualify for taper relief.Noland gifts made during lifetime: On 1 December 1999 Noland gave his

51、 house to Crusoe. Crusoe has allowed Noland to continue living in the house and has charged him rent of 120 per monthsince 1 December 1999. The market rent for the house would be 740 per month. The house was worth 240,000 at the time of the gift and 310,000 on 1 October 2007. On 1 November 2004 Nola

52、nd transferred quoted shares worth 232,000 to a discretionary trust for the benefitof his grandchildren.Noland probate values of assets held at death: Portfolio of quoted shares 370,000Shares in Kurb Ltd 38,400Chattels and cash 22,300Domestic liabilities including income tax payable (1,900) It shoul

53、d be assumed that these values will not change for the foreseeable future.Kurb Ltd: Unquoted trading company Noland purchased the shares on 1 December 2005.Crusoe: Long-standing personal tax client of your firm. Married with two young children. Successful investment banker with very high net worth.

54、Intends to gift the portfolio of quoted shares inherited from Noland to his aunt, Avril, who has very little personalwealth.Required:(a) Prepare explanatory notes together with relevant supporting calculations in order to quantify the tax reliefpotentially available in respect of Nolands capital los

55、ses realised in 2007/08. (4 marks)10、(ii) The answers to any questions that the potential investors may raise in connection with the maximumpossible investment, borrowing to finance the subscription and the implications of selling the shares.(7 marks)Note: you should assume that Vostok Ltd and its t

56、rade qualify for the purposes of the enterprise investmentscheme and you are not required to list the conditions that need to be satisfied by the company, itsshares or its business activities.11、(b) Given his recent diagnosis, advise Stuart as to which of the two proposed investments (Omikron plc/Om

57、egaplc) would be the more tax efficient alternative. Give reasons for your choice. (3 marks)12、(iii) The extent to which Amy will be subject to income tax in the UK on her earnings in respect of dutiesperformed for Cutlass Inc and the travel costs paid for by that company. (5 marks)Appropriateness o

58、f format and presentation of the report and the effectiveness with which its advice iscommunicated. (2 marks)Note:You should assume that the income tax rates and allowances for the tax year 2006/07 and the corporation taxrates and allowances for the financial year 2006 apply throughout this questio1

59、3、Section A BOTH questions are compulsory and MUST be attempted1.Organic World Inc (the Parent), a company incorporated in the US, has since September 2006 wholly-owned a subsidiary in Hong Kong, Green HK Ltd (Green-HK). Green-HK operates a retail store in Hong Kong and imports organic goods from th

60、e Parent and sells the goods in the store. It closes its accounts on 31 December.Starting from January 2010, the Parent also has another wholly-owned subsidiary in China, Green China Ltd (Green-China), which operates a similar retail store in Mainland China but not in Hong Kong. Green-China has been