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Which of the following payment is a capital expenditure and not deductible under profits tax?

Which of the following payment is a capital expenditure and not deductible under profits tax?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1(a) Which of the following payment is a capital expenditure and not deductible under profits tax? A) Annual bonus. B) Severance payment made according to Employment Ordinance. C) Payment to a departing employee agree for not competing with the company. D) Payment to get rid of an unsatisfactory senior executive. 1(b) Which of the following features of the Hong Kong tax system assist in attracting foreign investors? (1) No Capital gains tax. (2) No profit remittance tax. (3) No tax on dividends. (4) No indirect income tax. A) 1 and 2 only B) 1, 2 and 3 C) 2, 3 and 4 D) 1, 3 and 4 1(c) For the acquisition of immovable property in Hong Kong, ad valerom stamp duty is calculated on which of the following amount? A) The consideration. B) The market value of the property. C) The lower of the consideration or market value of the property. D) The higher of the consideration or market value of the property.
Transcribed Image Text:1(a) Which of the following payment is a capital expenditure and not deductible under profits tax? A) Annual bonus. B) Severance payment made according to Employment Ordinance. C) Payment to a departing employee agree for not competing with the company. D) Payment to get rid of an unsatisfactory senior executive. 1(b) Which of the following features of the Hong Kong tax system assist in attracting foreign investors? (1) No Capital gains tax. (2) No profit remittance tax. (3) No tax on dividends. (4) No indirect income tax. A) 1 and 2 only B) 1, 2 and 3 C) 2, 3 and 4 D) 1, 3 and 4 1(c) For the acquisition of immovable property in Hong Kong, ad valerom stamp duty is calculated on which of the following amount? A) The consideration. B) The market value of the property. C) The lower of the consideration or market value of the property. D) The higher of the consideration or market value of the property.
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