1. Mr Fung had been working with a Hong Kong property development company for over 20 years and retired on 30 September 2020. During the year ended 31 March 2021, he received the following:

a. Salary from employment of $35,000 per month;

b. Bonus of $46,000;

c. Payment in lieu of leave of $12,000 in respect of his accumulated leave for the past twelve months;

d. An option to purchase 10,000 shares at $2 each on 1 April 2020 in H Ltd, the parent company of his employer. Market value of the shares in H Ltd on 1 April 2020 was $4.5 per share. Mr Fung purchased the shares on 1 September 2020 when market value of the shares was $6 each. He sold all the shares on 15 December 2020 at $7.5 per share;

e. Lump sum payment of $750,000 from his employer's recognized occupational retirement scheme;

f. Pension of $15,000 per month starting from 1 October 2020;

g. A gratuity of $150,000 paid by his employer on the date of his retirement in recognition of his good performance during his past services with the company; h. Part-time employment income of $169,000;

i. A provision of quarters during his employment with a monthly rent of $1,600 deducted directly from his salary.

During the year ended 31 March 2021, he made contributions of $6,000 to the recognized retirement scheme.

Mr Fung's spouse died 5 years ago. He has 2 sons aged 22 and 20. His elder son is studying in the Hong Kong University. His younger son is not working due to his mental disability and is eligible to claim an allowance under the Government's Disability Allowance Scheme.

Required:

Compute the salaries tax liability of Mr Fung for the year of assessment 2020/21 (Ignore provisional salaries tax). Mr Fung has elected to have the lump sum spread back under S11D of the Inland Revenue Ordinance.