Question 1 In developing a digital identity (ID) 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 Consumable items 6 Consultancy fee paid to an independent expert 4 Testing fee 2 Total 26 14 Required: a) Assume the development of the digital ID was accepted as a research & development (R&D) activity by the Inland Revenue Department (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) Question 1 In developing a digital identity (ID) 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 Consumable items 6 Consultancy fee paid to an independent expert 4 Testing fee 2 Total 26 14 Required: a) Assume the development of the digital ID was accepted as a research & development (R&D) activity by the Inland Revenue Department (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)