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  • 2017 Dec Ans-4

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    何健珩
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    This document contains calculations of property tax and income tax for two individuals, Mr. Mo and Mrs. Shi, for the years of assessment 2016/17 and 2017/18. For Mr. Mo in 2016/17, the assessable value of his rental property was calculated to be $297,250, with a net assessable value of $232,200 after allowances. His property tax was determined to be $34,830. In 2017/18, his assessable value was $165,250 with a net of $129,800 and property tax of $19,470. For Mrs. Shi in 2016/17, her assessable income was calculated to be $749,160 based on

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    This document contains calculations of property tax and income tax for two individuals, Mr. Mo and Mrs. Shi, for the years of assessment 2016/17 and 2017/18. For Mr. Mo in 2016/17, the assessable value of his rental property was calculated to be $297,250, with a net assessable value of $232,200 after allowances. His property tax was determined to be $34,830. In 2017/18, his assessable value was $165,250 with a net of $129,800 and property tax of $19,470. For Mrs. Shi in 2016/17, her assessable income was calculated to be $749,160 based on

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    2 views1 page

    2017 Dec Ans-4

    Uploaded by

    何健珩
    This document contains calculations of property tax and income tax for two individuals, Mr. Mo and Mrs. Shi, for the years of assessment 2016/17 and 2017/18. For Mr. Mo in 2016/17, the assessable value of his rental property was calculated to be $297,250, with a net assessable value of $232,200 after allowances. His property tax was determined to be $34,830. In 2017/18, his assessable value was $165,250 with a net of $129,800 and property tax of $19,470. For Mrs. Shi in 2016/17, her assessable income was calculated to be $749,160 based on

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    of 1

    Marks

    Profits tax payable = $291,000 x 15% = $43,650 0·5


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    8
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    10
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    4 Mr Mo – Property tax computation for the year of assessment 2016/17


    Basis period: 1 April 2016 to 31 March 2017
    $
    Rental (48,000 x 6) 288,000 1
    Premium (30,000 x 7/24) 8,750 1
    Repair to keylock 500 0·5
    ––––––––
    Assessable value 297,250
    Less: Rates (3,000/3 x 7) (7,000) 0·5
    ––––––––
    290,250
    Less: 20% statutory allowance (58,050) 0·5
    ––––––––
    Net assessable value 232,200
    ––––––––
    ––––––––
    Property tax at 15% 34,830 0·5
    ––––––––
    ––––––––
    Correct treatment of the following items: rental deposit, management fee, agency fee, mortgage interest, renovation
    cost, no deduction of bad debt, water dripping repair cost, legal cost.
    (0·5 mark each, maximum) 3
    Mr Mo – Property tax computation for the year of assessment 2017/18
    Basis period: 1 April 2017 to 31 March 2018
    $
    Rental (48,000 x 3) 144,000 0·5
    Premium (30,000 x 17/24) 21,250 1
    ––––––––
    Assessable value 165,250
    Less: Rates (3,000/3 x 3) (3,000) 0·5
    ––––––––
    162,250
    Less: 20% statutory allowance (32,450) 0·5
    ––––––––
    Net assessable value 129,800
    ––––––––
    ––––––––
    Property tax at 15% 19,470 0·5
    ––––––––
    –––––––– –––
    10
    –––

    5 (a) Mrs Shi – Computation of net assessable income for the year of assessment 2016/17
    Basis period: 1 April 2016 to 31 March 2017
    $ $
    Salary (55,000 x 12) 660,000 0·5
    Travelling allowance 16,000 0·5
    Petrol cost (12,000 x 20%) 2,400 0·5
    Reimbursement of membership fee (35,000 x 20%) 7,000 0·5
    ––––––––
    685,400
    Rental value: ((685,400 – 2,600) x 4/12 x 10%) 22,760 1·5
    Less: Rent suffered (3,000 x 4) (12,000) 10,760 0·5
    –––––––
    Reimbursement of utilities bills 3,000 0·5
    Share option gain [(15·5 – 5) x 5,000 – 10,000 x 5,000/20,000] 50,000 1
    ––––––––
    Assessable income 749,160
    Less: ACCA membership fee (2,600) 0·5
    ––––––––
    Net assessable income 746,560

    ––––––––
    ––––––––

    21

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