Environmental duties

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following products is not subject to Consumption Tax in China?

  2. In relation to Consumption Tax imposed on vehicles in China, which of the following statements is correct?

  3. In relation to the VAT policy on trading of recycled materials discussed in the article, which of the following statement is incorrect?

  4. ABC Ltd processes and trades recycled plastic. Which of the following requirements must be fulfilled by ABC Ltd in order to get VAT refund?

  5. The recycled plastic traded by ABC Ltd is subject to VAT at 17%. The budgeted revenue for 2010 is $500,000 (net of VAT). If ABC Ltd is a qualified trader which is eligible for VAT refund, how much VAT refund can ABC Ltd obtain?

  6. In relation to manufacturing with recycled materials, which of the following VAT incentive policies is incorrect?

  7. DEF Ltd makes new steel with used batteries. DEF Ltd is eligible to enjoy the CIT incentives for manufacture with recycled materials and following are the Income Statements of DEF Ltd for 2008: Revenue - $8,500,000; Cost of sales - $5,450,000; Operating expenses - $1,620,000; Profit before tax - $1,430,000. The applicable CIT rate for DEF Ltd is 25%. Please calculate the CIT payable for DEF Ltd for 2008

  8. If DEF Ltd has invested $3,000,000 in a piece of specialised equipment listed in Catalogue of Preferential CIT Treatments for Specialised Equipment in Energy or Water Conservation in 2008. How much CIT payment is due to tax authority for 2008?

  9. XYZ Ltd is a company engaged in landfill diversion established in 2008. XYZ Ltd started to generate income in 2009 but it is not expected to make a profit till 2011. If XYZ Ltd is qualified to enjoy the 'three-year CIT exemption and three-year 50% CIT reduction' tax holiday, which of the following statement is correct?

  10. Which of the following green policies has been adopted by Chinese government as discussed in the article?