Taxation II

Welcome to ACT B415 Taxation II, the second of two higher-level courses on Hong Kong taxation. ACT B414 Taxation I aims to cover all the core content of the Hong Kong taxation syllabus, while ACT B415 Taxation II will supplement ACT B414 in the major tax topics and will also focus on some selected and advanced tax topics. It is strongly recommended that you complete ACT B414 Taxation I before taking this course.

Here in ACT B415, the major topics will include further discussion on how locality of profits is to be determined under profits tax, how profits tax is to be assessed for special types of industries such as airlines or clubs, how profits tax could be assessable to non-residents, the anti- avoidance rules and general tax planning in Hong Kong. In addition, we will briefly go over the taxation system in the PRC.

We hope that you will enjoy studying this course.

This course has four intended learning outcomes. It will complement ACT B414 Taxation I with advanced topics related to taxation and tax planning. After completion of this course you should be able to attempt the professional examinations organised by relevant accountancy bodies.

Course aims

ACT B415 Taxation II aims to provide you with in-depth knowledge of advanced topics in Hong Kong taxation. It includes advanced tax topics such as locality of profits, taxation of special businesses and non- residents, anti-tax avoidance legislation, an introduction to China tax and Comprehensive Double Taxation Agreements, and tax planning and tax management. It aims to provide you with the skills to effectively interpret tax statutes and tax rules and apply them for your own use.

Course learning outcomes

Upon completion of ACT B415, you should be able to:

• discuss the relevant tax laws and tax authority guidelines to determine the locality and source of profits and the charge to Hong Kong profits tax for non-residents and selected special businesses;
• discuss the relevant tax laws and tax authority guidelines in relation to tax avoidance and the related administration matters;
• explain the general scheme of taxation in mainland China and the general concepts of Comprehensive Double Taxation Agreements (CDTAs); and
• evaluate the relevant tax laws and tax authority guidelines in tax planning and management.

Material

In addition to this Course Guide, the course has the following important components. Please ensure that you have all of these materials available.

Study Guide

This course consists of five print-based Study Guide units. These are designed to clarify and reinforce key concepts from the textbook and provide additional examples.

Unit 1 will visit the problem of how profits would be regarded as arising in or derived from Hong Kong. We will also take a look at how loss of business is to be treated in Hong Kong.

In Unit 2 we will study how profits are to be determined in various types of 'special business' in Hong Kong. We will also examine how tax incentives are applied in certain types of 'special business'.

Unit 3 will look at how profits tax could be levied on a non-resident who has a source of income or profits in Hong Kong. The unit will also look at different anti-avoidance rules under the Inland Revenue Ordinance.

Unit 4 gives an introduction to taxation laws in the PRC. In addition, this unit will look at the double taxation agreement signed between the PRC and Hong Kong.

Unit 5 is devoted to tax planning in Hong Kong. The unit introduces how proper tax planning could help to minimise the tax payable in Hong Kong.

Set textbook

The following set textbook will be provided to students by HKMU:

Ho, P. K. W., & Mak, K. P. L. (2023). Hong Kong taxation and tax planning (21th ed.). Pilot Publishing Company Limited.

Online Learning Environment

This course is supported by the Online Learning Environment (OLE). There you will find course materials and the latest course information. You can also make use of the platform to communicate with your tutor, Course Coordinator and fellow students. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.

Supplementary lectures (pre-recorded videos)

In each unit, different topics of taxation are presented through supplementary lectures (pre-recorded videos) to illustrate the selected topics in greater detail. These will be made available on the Online Learning Environment (OLE).

Assignment File

Details of your assessment can be found in the separate Assignment File included in the course materials. Overview information is provided in the section entitled 'Assessment' in this Course Guide.

Presentation Schedule

The Presentation Schedule is available on the OLE. This schedule provides you with the dates when your assignments are due, as well as the dates of your live online learning sessions.

Assessment

There are two assignments (20% each) which together are worth 40% of the total course score. The final examination constitutes the remaining 60%.

Assignments

There are two assignments for this course. Together they are worth 40% of the total assessment. Each assignment comprises two or three questions, depending upon the length of the questions.

How to submit assignments

You must use word processing software (such as Microsoft Word) to prepare the assignments, and submit them via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.

After an assignment is submitted via the OLE, it is your responsibility to ensure the submission is successful. Application for submission extension due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of the assignment you have submitted.

According to the University's policy, no extension of the due date will be allowed for the second assignment. This policy will be strictly enforced. Any late submission of the second assignment will result in the score of the assignment being adjusted to zero.

Final examination

The final examination is a three-hour, closed-book examination. The format and types of questions will be similar to the Specimen Examination Paper provided.

Assessment summary

Assessment for this course is as follows:

The course is organised as follows:

In ACT B415 Taxation II, you are provided with a range of materials to assist your learning. Your most important resources are your course textbook and the five-unit Study Guide. The Online Learning Environment (OLE) also comes with supplementary lectures (pre-recorded videos) for each unit. Taken together, they provide you with the taxation knowledge you need to master, as well as many comprehensive examples designed to help you in understanding the taxation concepts.

You will get the most from this course by following the study materials, completing the textbook readings and working through the activities and assignments unit by unit. As soon as you can figure out a system that works for you, and apply it consistently, you will be able to progress steadily and enjoy your study of taxation!

Learning support

At the commencement of this course, a tutor will be assigned to help you in your study. Please note that much of your communication with HKMU during the course will be with your tutor, who will mark your assignments and offer timely feedback. Your tutor is eager to help you complete this course successfully, and will closely monitor your learning progress by keeping regular contact with you. If you encounter difficulties in your studies, you should always turn to your tutor for assistance. It is believed that learners who maintain regular contact with their tutors often achieve better performance in their studies.

You will be informed of the name and telephone number of your tutor once you are assigned to a tutorial group. Your tutor will set aside certain preferred hours of contact every week in order to attend to your telephone queries. He or she will inform you of these preferred hours in the first live online tutorial session. Please show consideration for your tutor by making telephone contact only during the preferred hours.

Do not hesitate to telephone your tutor when you need assistance in your studies, for example, if you:

• do not understand any part of the study units; or
• have difficulties in working on the self-tests or activities; or
• have queries about assignment questions, the tutor's feedback, or the grading of an assignment.

You are strongly advised to keep a copy of each assignment you submit in case you need to refer to them during telephone conversations with your tutor.

To assist you in this course, your tutor will conduct live online tutorials throughout the term. In each of these sessions, key concepts and crucial techniques will be reviewed and reinforced; topical issues will be discussed and individual students' questions answered. How effective these learning sessions are depends largely on your willingness to participate. Adequate preparation for discussion will also enable you to benefit more from these sessions. Five two-hour live online tutorials will be provided.

In addition, there will be a two-hour live online surgery at the end of the course in which you will have the opportunity to ask your tutor questions that you might not be able to solve yourself.

You will be notified of the dates and times of these sessions once you are assigned to a tutorial group. Although these sessions are non- compulsory, you are strongly recommended to attend all of them. They will help you in your studies and enhance your chance of achieving better performance in the course.

Tutors are required to start live online tutorials and surgeries on time. If a tutor fails to turn up 30 minutes after the scheduled starting time, learners may assume the session is cancelled and should report the case to the Course Coordinator for the arrangement of a make-up session.

ACT B415 Taxation II is designed to provide you with the theories, concepts and tools needed to address real-world taxation problems and prepare efficient tax planning.

The course includes five Study Guide units and a set textbook. It is supported by regular live online learning sessions and the OLE. Assessment is in the form of two assignments and a final examination. It requires about 150 hours of study.

Good time management and a regular study habit are the keys to success in distance learning. You are encouraged to draw up your own study schedule before you start the course, and follow it consistently throughout the term.

Remember that although you are responsible for your own study, the staff members of Hong Kong Metropolitan University are here to help you. If you experience difficulties with any aspect of your course, contact your tutor or your Course Coordinator.

Good luck, and enjoy the course!

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to your Student Handbook. If you have applied for deferment of studies, you should continue with your studies of this course and submit the required assignments until formal approval is given by the University.

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