Question $1($Total $35$ marks$)$

Part A

Mr Lee owns a flat in Hong Kong and has rental income subject to property tax. Mr Lee's

assessable value of the flat for the year of assessment $2023/24$ was HK $$600,000.$ The assessable

value of the flat for the year of assessment $2024/25$ reduced to HK$$50,000$ since he has taken

the flat back on $1$ May $2024$ and lives on his own. Mr$.$ Lee would like to seek your advice of

how he can successfully apply for holdover of provisional tax of the year of assessment $2024/25.$

Required:

$($a$)$ What valid grounds Mr Lee may consider for the application of such holdover. $(9$ marks$)$

$($b$)$ Any time limit of such application Mr Lee should pay attention to$.$

Part B

In each following situation, state the tax impact or consequences that the taxpayer $/$ employer

has to follow under the Hong Kong Tax System. Your answer must be supported with relevant

section$($s$)$ of Inland Revenue Ordinance $($IRO$)$ and its operation.

Required:

$($a$)$ Mary was employed as an accountant of Lam & So Trading Company Ltd $("$Lam & So$")$

on $1$ May $2024.$ What are the tax obligations of Lam & So$?$

$($b$)$ Mr Ho is a fresh graduate of AD in Accounting. He commenced his first job on $1$ December

$2023$ with a monthly salary of $HK$$$35,000.$ Mr Ho has not received the individual tax return

from IRD in May $2024.$ What are the tax obligations of Mr Ho$?$

$($c$)$ Mr George Baker has decided to move back to England, his home country, for good. On

$30$ November $2023,$ he gave one$-$month notice to his employer for terminating the service

contract. He has bought a single journey air ticket to England and decided to leave Hong

Kong on $5$ January $2024.$ What are the tax obligations of Mr George Baker's employer?