All amounts are stated in HK$, unless otherwise specified

Question 1 In developing a digital identity (D) utility which involved the use of sophisticated biometric authentication techniques, HiTech Bank (which is a bank under the Banking Ordinance (Cap. 155)) incurred the following expenditure in Hong Kong during the year ended 31 December 2018: $ million Staffing costs of the research team 14 Consumable items 6 Consultancy fee paid to an independent expert 4 Testing fee 2 Total 26 b) Assume the development of the digital ID was accepted as a qualifying R&D activity by the IRD. Discuss and compute the total amount of deduction available to HiTech Bank for the year of assessment 2018/19. [Word limit for the explanation is 200 words] (6 marks)