(b)Manu Ltd, a manufacturer which has suffered from losses in recent years, sold its factory premises for RMB200 million on 31 December 2014. The factory premises had been purchased on 1 March 1997 for RMB90 million (including the cost of the land use right) and it had a net book value (after depreciation) of RMB9 million at its date of sale.
Manu Ltd has never arranged for a valuation of the factory premises.
Required:
Calculate the land appreciation tax (LAT) liability of Manu Ltd on the sale of the factory premises on 31 December 2014.
Notes:
1. City maintenance and construction tax and education levy are to be calculated at 12% of business tax.
2. Ignore stamp duty.