Part A Kate is a full-time English tutor employed by ABC English Institute (ABCEI) in Hong Kong. She teaches classes at various tutorial centres of ABCEI in Hong Kong and incurs travelling expenses when travelling between her home and these centres. Kate gets full reimbursement for the travelling expenses from ABCEI when travelling between the centres but she receives no reimbursement from ABCEI for the travelling expenses between her home and the centres. Required:

Discuss the salaries tax treatment of the travelling expenses incurred by Kate when she travels (i) between her home and the tutorial centres; and (ii) between various tutorial centres. (5 marks)

Part B Ms Mary Poon is a Hong Kong Permanent Resident (HKPR) and does not own any residential property in Hong Kong. On 1 March 2021, acting on her own behalf and through an introduction of a real estate agent, she entered into an Agreement for Sale and Purchase (ASP) to acquire a new residential property from a property developer at a purchase price of $15 million. Required:

(a) Advise Ms Mary Poon on the Stamp Duty implications of her acquisition. 

(b) Advise Ms Mary Poon on the consequences of non-stamping of the ASP.

Answer rating: 100% (QA)

Part A Katie is employed at ABC English Institute in Hong Kong She incurs the following tax conseque... View the full answer