Explain the omission of income from his salaries tax return

Reference no: EM133665858

Assignment:

Mr. Brown is the director of Success Limited, a company carrying on business in Hong Kong. In January 2023, Brown notified Success Limited that he wished to retire from his office. Brown was persuaded to stay in office, and received a "compensation payment for agreeing not to retire" of $800,000 in March 2023.

In May 2023, Brown received his composite tax return (Form BIR 60) for the year of assessment 2022/23, and asked his tax consultant for advice about the taxability of the payment of $800,000. He was told that the payment might not be taxable, and as the Inland Revenue Department would not know about it, he did not need to report the sum as assessable income. Brown acted on this advice.

In August 2023, Brown urgently flew to Belgium to take care of his mother, who was critically ill. When he returned to Hong Kong on 1 October 2023, he discovered that a salaries tax assessment for the year of assessment 2022/23 had been issued to him, dated 20 August 2023. The assessment included the payment of $800,000. He also received a notice issued under s.51(3) of the Inland Revenue Ordinance by the assessor, asking him to explain the omission of income from his salaries tax return.

Required:

State the conditions that must be satisfied before an objection against the salaries tax assessment can be lodged and advise Brown whether a valid objection can be lodged in his case.

Reference no: EM133665858

Questions Cloud

Write a thesis statement and an outline of the evidence : Write a thesis statement and an outline of the evidence (including any outside evidence) you would use to answer this prompt

How professional values relate administrative responsibility : Examine how professional values relate to administrative responsibility and how organization values are configured and influence organizational decision-making.

What were the technological developments : What were the technological developments that contributed to the rise and transformation of modern sport? What influences did industrialization

Great awakening movement and the enlightenment : Benjamin Franklin's Autobiography, explain the central concepts that define the Great Awakening movement and the Enlightenment

Explain the omission of income from his salaries tax return : He also received a notice issued under s.51(3) of Inland Revenue Ordinance by assessor, asking him to explain omission of income from his salaries tax returrn.

Compare the behavioral assessment already discussed : Compare and contrast the behavioral assessment already discussed with personality testing. Use examples in your discussion to support your points.

What are the physiologic implications of the disease : What is the genetic basis of the disease? What are the physiologic implications of the disease? What are the treatment options?

How you feel about exclusion policies in childcare centers : When you are ready to post, share with the group how you feel about exclusion policies in childcare centers. Are we strict enough or not strict at all?

Which distribute stroom bakfiets products in romania : Stroom Bakfiets' market share in Romania does not exceed 5 per cent while Biciclete Cargo's market share there amounts to 17 per cent.

User Account

All Pages