In tax free reorganization, sellers can borrow against the stock if they need cash.在

A. salary

B. income tax

C. policy

D. national insurance

(b) (i) Advise Benny of the income tax implications of the grant and exercise of the share options in Summer

Glow plc on the assumption that the share price on 1 September 2007 and on the day he exercises the

options is ￡3·35 per share. Explain why the share option scheme is not free from risk by reference to

the rules of the scheme and the circumstances surrounding the company. (4 marks)

reasons. which is not true？

A. The Congress could not raise money to pay the national army and to pay debts owed to France and other nations.

B. The Congress had no power to tax any citizen.

C. The new states did not cooperate with the Congress or with each other.

D. Some new states wanted to be free from the Union

A.Buyermustcontinueseller’shistoricbusiness买方必须持续经营卖方的业务

B.Sellermustpaycapgains/regularincometax卖方必须支付资本收益/常规所得税

C.Shareholderofsellercandeferpayingtaxesonbuyershareconsideration卖方股东对于买方股票对价部分可以递延支付税款

D.Sellertaxesonbuyersharesarepayablewhenthesharesaresold卖方在出售买方股票时需支付税款

A.Executives of Handyware receive a free automobile every 2 years

B.The top salesman for Genesis in each sales district receives a free two-week vacation in Hawaii

C.Carter, a flight attendant for Western Airlines, flew roundtrip from Houston to Dallas 45 times during the tax year to visit her boyfriend at no cost.Airline employees fly free on a space available basis

D.Mike receives a free apartment from his employer who owns hundreds of apartment complexes all over the country.Mike is the internal auditor for the apartment company.He has the option to live in a free apartment or receive additional compensation

E.All of the above non-cash benefits can be provided to employees on a tax-free basis.

RMB per month. The tax rates are divided into 7 brackets. The lowest rate is 3% for income between 3,501 and 5,000, while the highest rate is 45% for income over 80,000. Therefore, the higher our income is, the more tax we should pay. Tax, which can be used in public services such as education, road construction, public health and so on, is very important to our country. As we all know, tax makes up a great part of our country’s revenue, and the development of our country depends on it. From what has been discussed above, we can see that it is everyone’s legal duty to pay tax because taxes contribute to the country and create benefits for everyone. Those who try to evade taxation are sure to be punished. In short, paying tax is our responsibility to society.Decide if each of the following statements is TRUE (T) or FALSE (F).

1. The purpose of the passage is to help people know the tips how to pay less tax.()

2. According to the chart, if a person’s monthly is 3600 yuan, he doesn’t need to pay tax.()

3. How much income tax a person pays each month depends on how much his/her income is.()

4. The underlined word “evade” in the last paragraph means increase.()

5. Personal income taxes are included in a government’s revenue.()

PERSONAL INCOME TAX RATE (MONTHLY) (_VALID FROM SEPT. 1, 2011_) bracket grading tax rate (%) (TR) simple coefficient (SC) 1 less than 1,500 3 0 2 1,500-4,500 10 105 3 4,500-9,000 20 555 4 9,000-35,000 25 1005 5 35,000-55,000 30 2755 6 55,000-80,000 35 5505 7 Over 80,000 45 13505 NoteTax=(income -3500)*TR-SC The above chart shows individual income tax in China. The tax free threshold is 3,500 RMB per month. The tax rates are divided into 7 brackets. The lowest rate is 3% for income between 3,501 and 5,000, while the highest rate is 45% for income over 80,000. Therefore, the higher our income is, the more tax we should pay. ？ Tax, which can be used in public services such as education, road construction, public health and so on, is very important to our country. As we all know, tax makes up a great part of our country’s revenue, and the development of our country depends on it. ？ From what has been discussed above, we can see that it is everyone’s legal duty to pay tax because taxes contribute to the country and create benefits for everyone. Those who try to evade taxation are sure to be punished. In short, paying tax is our responsibility to society. DECIDE IF EACH OF THE FOLLOWING STATEMENTS IS TRUE (T) OR FALSE (F).

1. The purpose of the passage is to help people know the tips how to pay less tax.()

2. According to the chart, if a person’s monthly is 3600 yuan, he/she doesn’t need to pay tax.()

3. How much income tax a person pays each month depends on how much his/her income is.()

4. The underlined word “evade” in the last paragraph means increase.()

5. Personal income taxes are included in a government’s revenue.()

were from Eastern Europe. The government welcomed these people by offering them free farmland in the West However, Canada immigration policy was not equal for Asian immigrants. The Canadian government passed two laws to prevent Chinese immigration. In 1885, the Canadian government passed the first law to prevent Chinese immigration. The law forced every Chinese person entering Canada to pay a $50 enty fee. The government introduced this head tax to satisfy Caucasian laborers who felt that Chinese immigrants Were competing for their jobs. The head tax was a burden for Chinese immigrants, but it did not prevent them from coming to Canada. For many of these poor Chinese laborers, they could earn more money there than in China. They were willing to borrow the money to pay for the overseas trip and the head tax. The Canadian government rased the head tax to S100 in 1900, then to $500 in 1903. The Canadian government passed its most restrictive immigration law in 1923. That year, the Chinese Immigration Act prevented all Chinese except ficers, merchants, and students from entering Canada. The Act was the result of pressure from ant-Asian groups. These groups felt that the head tax was insufficient because Chinese laborers were still coming to Canada. The effectively stopped Chinese immigration from 1923 to 1947. During the 24-year period, only 44 Chinese entered Canada finally.

A. travels to another counties to work for a short time

B. stays in his or her own country

C. moves to another county to live

D. travels to many countries to visit

05. ‘Hilltop’ had a probate value

of ￡124,000, but in November 2005 it was badly damaged by fire. In January 2006 the insurance company made

a payment of ￡81,700 each to Sergio and Gerard. In February 2006 Sergio and Gerard each spent ￡55,500 of the

insurance proceeds on restoring the property. ‘Hilltop’ was worth ￡269,000 following the restoration work. In July

2006, Sergio and Gerard sold ‘Hilltop’ for ￡310,000.

Sergio is 69 years old and a widower with three adult children and seven grandchildren. His annual income consists

of a pension of ￡9,900 and interest of ￡300 on savings of ￡7,600 in a bank deposit account. Sergio owns his home

but no other significant assets. He plans to buy a domestic rental property with the proceeds from the sale of ‘Hilltop’,

such that on his death he will have a significant asset which can be sold and divided between the members of his

family.

Gerard is 34 years old. He is employed by Fizz plc on a salary of ￡66,500 per year together with a performance

related bonus. Gerard estimates that he will receive a bonus in December 2007 of ￡4,500, in line with previous

years, and that his taxable benefits in the tax year 2007/08 will amount to ￡7,140. He also expects to receive

dividends from UK companies of ￡1,935 and bank interest of ￡648 in the tax year 2007/08. Gerard intends to set

up a personal pension plan in August 2007. He has not made any pension contributions in the past and proposes to

use part of the proceeds from the sale of ‘Hilltop’ to make the maximum possible tax allowable contribution.

Fizz plc has announced that it intends to replace the performance related bonus scheme with a share incentive plan,

also linked to performance, with effect from 6 April 2008. Gerard estimates that Fizz plc will award him free shares

worth ￡2,100 each year. He will also purchase partnership shares worth ￡700 each year and, as a result, will be

awarded matching shares (further free shares) worth ￡1,400.

Required:

(a) Calculate the chargeable gains arising on the receipt of the insurance proceeds in January 2006 and the sale

of ‘Hilltop’ in July 2006. You should assume that any elections necessary to minimise the gain on the receipt

of the insurance proceeds have been submitted. (4 marks)