The following information is related to the properties owned by Mr Chan: Property W Tai...

  

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The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks) The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks) The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks) The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks) The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks) The following information is related to the properties owned by Mr Chan: Property W – Tai Koo Shing, Hong Kong Mr Chan let Property W to Ms Novack on 1 October 2013 for a term of 4 years. The relevant terms of the lease agreement are as follows: Monthly rent: Initial premium: Deposits: Housekeeping fees: HK$20,000 to be paid at the beginning of each month HKS90,000 HK$20,000 The landlord will provide cleaning services to the tenant at a monthly fee of HK$1,500 Rates and government Payable by the landlord (HK$1,500 per quarter for rates and HKS650 per quarter for government rent) to Payable by the tenant (HK$1,000 per month) rent: Management fees property Co.: management Repair and maintenance: Payable by the landlord During the year ended 31 March 2015, Mr Chan has paid repair expense of HKS8,000 directly to the service provider for fixing the windows. Due to an emergency incident, Ms Novack has first paid repair expense of HK$9,000 to replace the drainage system, and has subsequently received reimbursement of HK$3,000 from Mr Chan. On 18 October 2014, Mr Chan has unexpectedly received rental income of HK$50,000 from Mr Donut, who was an ex-tenant of Property W and disappeared during the year of assessment 2010/11. The rental income of HK$50,000 was previously agreed by the assessor as irrecoverable and has claimed deduction during the year of assessment 2011/12. Property X – CyberPort, Hong Kong It was occupied by Mr Chan as his residence. During the year ended 31 March 2015, Mr Chan paid the following expenses: (i) Rates: HK$3,000 per quarter; (ii) Management fee: HKS3,800 per month; and (iii) Mortgage loan interest: HKS120,000. Property Y – Austin Villa, Panyu district, the PRC Property Y was let to Ms Zhao on 1 July 2014 with a period of 3 years for RMB8,500 per month. Ms Zhao was responsible for paying the management fee of RMB250 per month. Property Y is jointly owned by Mr and Mrs Chan. Property Z – The Hermitage, Kowloon Mr Chan let this property to Mr Bagel on 1 January 2012 for a term of 4 years at a monthly rent of HK$20,000. Rates of HK$1,800 per quarter were paid by Mr Chan. Starting from 1 November 2013, Mr Bagel did not pay any rent, and he moved out from the property on 31 August 2014 and was then untraceable. The property was subsequently let to Ms Camel on the following terms: (i) Lease period: 1 January 2015 to 30 June 2017; (ii) Lump sum premium: HK$45,000; (iii) Monthly rent: HK$15,000; (iv) Management fee: HKS700 per month payable by the landlord; and (v) Rates: HK$1,800 per quarter payable by the tenant. It was agreed by the assessor that the rent owed by Mr Bagel was irrecoverable after he had moved out from the property on 31 August 2014. Required: Compute the property tax liabilities of Mr Chan (each property) for the year of assessment 2014/15. (Ignore provisional property tax) (34 marks)

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Tax Liability Monthly rent 2000012 2400005 12000 Initial Premium 9000028 25200 d... View the full answer