Sun Limited Investment Holding Business in Hong Kong Case Study Accounting Assignment Help

Assignment Task

CASE
Sun Limited is incorporated and carrying on an investment holding business in Hong Kong. Sun Limited
prepares its accounts to 31 March annually.
A. Salaries tax matters of Mr Chan
Mr Chan was employed by Sun Limited as general manager. Mr Chan and the director of Sun
Limited negotiated and signed the employment contract in Country A. The employment contract
is enforceable in Hong Kong. Mr Chan’s remuneration is paid directly into his bank account in
Hong Kong. Based on the terms of employment, Mr Chan is required to perform duties in Hong
Kong and Country A. No comprehensive double taxation arrangement has been made between
Hong Kong and Country A.
You have been supplied with the following information regarding Mr Chan for the year ended
31 March 2020:
(1) Salaries: HK$1,800,000
(2) During the year, Mr Chan performed his duties in Country A for 120 days. One-third of
his salaries was attributable to services performed in Country A and was subject to tax
in Country A. The amount of such tax in Country A paid by Mr Chan was HK$150,000.
(3) During the year, a flat owned by Sun Limited was provided to Mr Chan as his residence
at a monthly rent of HK$7,000. The market rental value of the flat was HK$21,000 per
month. The rateable value of the flat was HK$185,000.
(4) On 1 April 2019, Sun Limited unconditionally granted options to Mr Chan for the right
to acquire 30,000 shares in Sun Limited at HK$5 each. Mr Chan paid HK$60,000 for
the options. On 1 July 2019, Mr Chan assigned half of the options to his colleague at a
consideration of HK$70,000. On 31 October 2019, Mr Chan exercised the remaining
options. On 31 March 2020, Mr Chan sold all the shares obtained from exercising the
options. The market prices per share in Sun Limited were as follows:
1 April 2019 HK$8
1 July 2019 HK$9
31 October 2019 HK$10
31 March 2020 HK$12

This Accounting Assignment has been solved by our Accounting Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
    
Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.