Betty, a Hong Kong resident, was employed by Wallace Company, a company located in Hong Kong....
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Betty, a Hong Kong resident, was employed by Wallace Company, a company located in Hong Kong. On 15 May 2014, she was involved in a serious car crash and was admitted to the Prince of Wales Hospital for 6 months. She was finally discharged from the hospital and back home on 18 November 2014. She discovered that the IRD has issued an estimated assessment for 2013/14 to her on 5 October 2014 and demanding tax of HKS80,000 (ignore provisional tax for 2014/15). She was shocked because she did not receive the composite tax return for 2013/14 in early May 2014, and the tax demanded was clearly excessive as she was eligible to claim the dependent parent allowance in respect of her parents. Betty phoned the assessor-in-charge, and was being informed that the composite tax return for 2013/14 was issued and sent to her on 2 May 2014. Required: Betty came to you on 25 November 2014 and seeking your assistance to resolve the above matter. Please advise and explain to Betty: 1. Under normal circumstances, would she be able to lodge an objection against the estimated assessment for 2013/14. (4 marks) 2. Based on her unusual situation, what Betty should do to object the estimated assessment for 2013/14. (10 marks) (2 marks) 3. Who is responsible to show that the EA is excessive. Betty, a Hong Kong resident, was employed by Wallace Company, a company located in Hong Kong. On 15 May 2014, she was involved in a serious car crash and was admitted to the Prince of Wales Hospital for 6 months. She was finally discharged from the hospital and back home on 18 November 2014. She discovered that the IRD has issued an estimated assessment for 2013/14 to her on 5 October 2014 and demanding tax of HKS80,000 (ignore provisional tax for 2014/15). She was shocked because she did not receive the composite tax return for 2013/14 in early May 2014, and the tax demanded was clearly excessive as she was eligible to claim the dependent parent allowance in respect of her parents. Betty phoned the assessor-in-charge, and was being informed that the composite tax return for 2013/14 was issued and sent to her on 2 May 2014. Required: Betty came to you on 25 November 2014 and seeking your assistance to resolve the above matter. Please advise and explain to Betty: 1. Under normal circumstances, would she be able to lodge an objection against the estimated assessment for 2013/14. (4 marks) 2. Based on her unusual situation, what Betty should do to object the estimated assessment for 2013/14. (10 marks) (2 marks) 3. Who is responsible to show that the EA is excessive.
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Answer rating: 100% (QA)
1 No Betty cannot anymore lodge an objection against the estimated assessment for 201314 under normal circumstances This is because under Hong Kong Ta... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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