David owns a residential flat in Hong Kong which was let to Alex who failed to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
David owns a residential flat in Hong Kong which was let to Alex who failed to pay rent from September 2019 onwards. After Alex moved out of the flat in March 2020, David decided to let the flat to Iris. The tenancy agreement between David and Iris was signed on 1 April 2020. The terms under the lease and other information relating to the property are as follows: (1) Duration of tenancy: three and a half year from 1 April 2020 to 30 September 2023. (2) Monthly rent: $11,000, payable on the first day of each month. (3) Lump sum premium: $180,000, payable on 1 April 2020. (4) Rent deposit: two months' rental, payable on signing of the agreement. (5) Rates: $2,000 (before rates concessions) per quarter, payable by David. The government of Hong Kong SAR granted rates concessions for all the four quarters during the year of assessment 2020/21, subject to a ceiling of $1,500 per quarter. (6) Government rent: $1,000 per quarter, payable by David, due on the same day as the rates. (7) Management fee: $1,500 per month, payable by Iris directly to the property management company. (8) Agency fee: 50% of one month's rental for introducing the tenant, payable by David on signing the agreement. (9) Repair to the toilet: $17,000 incurred by Iris on 31 July 2020. (10) Renovation: $30,000 incurred by David on 1 March 2020. The rent of $72,000 in connection with Alex, which had been assessed in the year of assessment 2019/20, was agreed by the Assessor to become bad on 1 January 2021. Required: Prepare, without explanation, a computation of David's property tax liability for the year of assessment 2020/21. Show all your workings. Ignore provisional tax. The following figures for tax rates, personal allowances and deductions should be used in answering the questions of this test. 1. Standard rates of tax for Y/A 2020/21. Property tax/Salaries tax 15% 2. Progressive rates of tax for Y/A 2020/21. First $50,000 Next $50,000 Next $50,000 Next $50,000 Remainder 2% 6% 10% 14% 17% David owns a residential flat in Hong Kong which was let to Alex who failed to pay rent from September 2019 onwards. After Alex moved out of the flat in March 2020, David decided to let the flat to Iris. The tenancy agreement between David and Iris was signed on 1 April 2020. The terms under the lease and other information relating to the property are as follows: (1) Duration of tenancy: three and a half year from 1 April 2020 to 30 September 2023. (2) Monthly rent: $11,000, payable on the first day of each month. (3) Lump sum premium: $180,000, payable on 1 April 2020. (4) Rent deposit: two months' rental, payable on signing of the agreement. (5) Rates: $2,000 (before rates concessions) per quarter, payable by David. The government of Hong Kong SAR granted rates concessions for all the four quarters during the year of assessment 2020/21, subject to a ceiling of $1,500 per quarter. (6) Government rent: $1,000 per quarter, payable by David, due on the same day as the rates. (7) Management fee: $1,500 per month, payable by Iris directly to the property management company. (8) Agency fee: 50% of one month's rental for introducing the tenant, payable by David on signing the agreement. (9) Repair to the toilet: $17,000 incurred by Iris on 31 July 2020. (10) Renovation: $30,000 incurred by David on 1 March 2020. The rent of $72,000 in connection with Alex, which had been assessed in the year of assessment 2019/20, was agreed by the Assessor to become bad on 1 January 2021. Required: Prepare, without explanation, a computation of David's property tax liability for the year of assessment 2020/21. Show all your workings. Ignore provisional tax. The following figures for tax rates, personal allowances and deductions should be used in answering the questions of this test. 1. Standard rates of tax for Y/A 2020/21. Property tax/Salaries tax 15% 2. Progressive rates of tax for Y/A 2020/21. First $50,000 Next $50,000 Next $50,000 Next $50,000 Remainder 2% 6% 10% 14% 17%
Expert Answer:
Answer rating: 100% (QA)
Sure Here is the computation of Davids property tax liability for the year of assessment 202021 Desc... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these law questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
What does a consumer price index for industrial workers measure?
-
At the end of Year 1, Clayton Company had $7,000 of cash, $8,500 land, $2,500 of liabilities, $4,000 of common stock, and $9,000 of retained earnings. During Year 2, Clayton experienced the following...
-
Contrast and compare three popular OSs for personal computers.
-
In Example 6.7, let \(m_{1}=3 m_{2}\). (a) Where on axis A is the center of mass of the two-cart system? (b) Where on axis A would you need to place a third cart of inertia \(m_{3}=m_{1}\) so that...
-
All of the following would be considered a company with high operating leverage, except a(n) a. airline company. b. t-shirt kiosk in a mall. c. hotel chain. d. amusement park.
-
Now suppose that the U.S. court hears the case and awards damages to Robco, but the government of Honduras has no assets in the United States that can be used to satisfy the judgment. Under which...
-
In the space provided, 150- to 350-word summary of your financial analysis from Part 2: Financial Ratio Calculations. Include the following in your summary: Make final recommendations as to whether...
-
A bank decides to create a five-year principal-protected note on a non-dividend-paying stock by offering investors a zero-coupon bond plus a bull spread created from calls. The risk-free rate is 4%...
-
How many kilograms of raw materials 1 point should ABC purchase during the 1st quarter of 2020? ABC is in the middle of the 1st quarter of 2020. Actual Jan. 1, 2020 inventory balances include 50,000...
-
Consider the double integral xdA where R = {(x,y) R(x-4) y 4}. (a) Make a neat, labelled sketch of the region R in the ry-plane. (b) Express this double integral as an integral with respect to y...
-
Research Question(s) Question 1 Study the scenario and complete the questions that follow: Project Overview: In this group project, you will work collaboratively with two other classmates to prepare...
-
Consider diffusion in a spherical particle governed by J cs r with boundary conditions and c t = Ds Cs c r cs = r + 2 . 2 (R t) = 3/1/ r r (0, t) = 0, where D, is the diffusion coefficient, R is the...
-
1. Krafedge Sdn Bhd (KESB) was established in 2013. Its main activity is the construction of portable cabins. Most of its customers are local. En. Mustafa is the founder of KESB and also acts as the...
-
9. What 10. What memory slots will be used to install the 16 GB of total memory, based on the information vided and the upgrade scenario presented in Question 8? pa 11. Using the internet, a computer...
-
Use triple integral to find the volume of the solid enclosed by the cone z = V(x2 + y) and the plane z = 9.
-
A stock has had returns of 8 percent, 26 percent, 14 percent, 17 percent, 31 percent, and 1 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
-
Distinguish between a vested and a contingent remainder.
-
Richardson hired J. C. Flood Company, a plumbing contractor, to correct a stoppage in the sewer line of her house. The plumbing companys snake device, used to clear the line leading to the main...
-
Civil Code 1719, subdivision (a) provides in part that any person who draws a check that is dishonored due to insufficient funds shall be liable to the payee for the amount owing upon the check and...
-
Under an evolutionary classification system, species are grouped together based on (a) their shared similarities. (b) how closely related they are to one another. (c) their position in a hierarchy...
-
What criteria are used to classify species in the Linnaean system?
-
The scientific name of a species (a) consists of two parts, the family name and the species name. (b) is always underlined. (c) is always in Latin. (d) includes only the species name.
Study smarter with the SolutionInn App