Cliff is a general manager of Sunny Ltd. You have been supplied with the.

You have been supplied with the following information regarding the year ended 31 Mar 2022:

(1) Salaries: $900,000. (2) Bonus: $250,000

On 1 Jan 2021, Cliff was granted an unconditional option to purchase 100,000 shares of Sunny Ltd at $1.5 each within one year. He exercised the option on 17 Dec 2021. On 31 Dec 2021, he received a dividend of$200,000. The market values per share were as follows: 1 Jan 2021 $2.90

17 Dec 2021 $3.80

31 Mar 2022 $8.60

Travelling allowance: An allowance of $9,000 per month was granted to Cliff for his travelling expenses between home and office and in the performance of his duties. The actual amount spent by him was as follows:

Travelling expenses between home and office	$28,000
Travelling expenses necessarily incurred in the performance of his duties	$80,000

Holiday passage allowance: $90,000. Cliff used the allowance for a holiday trip with his spouse in Sep 2021 and spent $100,000 on the trip.

In recognition of his good performance during the past 10 years, Sunny Ltd granted him a gratuity of $360,000 at the companys annual dinner.

Cliff was living in a flat renting for $50,000 a month. The tenant was Sunny Ltd. Sunny paid rent and deducted 3% of Cliffs monthly salary for the rental. The rateable value of the flat was $60,000 a year.

Cliff paid out the following:

(i)	Cash donations to approved charitable organizations	$100,000
(ii)	Self-education expenses	$119,000
(iii)	Contributions to MPF scheme (5% of salaries)	$45,000

Daisy, the wife of Cliff, received $80,000 from her part-time employment during the year.

Cliff and Daisy have 2 children aged 17 and 22 respectively. Both of them are studying in Hong Kong.

Cliff obtained his first mortgage loan against his home in Jan 2016.

Cliff and Daisy have elected for joint assessment for the year of assessment 2021/22.

REQUIRED:

Cliff wishes to relate back the gratuity in (6) above. Compute Cliffs net assessable income. (18 marks)

Compute the salaries tax payable under joint assessment for Cliff and Daisy for the year of assessment 2021/22. (14 marks)

Computer the provisional tax in respect of (B) as well for the year of assessment 2022/23. (14 marks)

Suppose the tax assessment was issued on 1 Nov 2022 and payment is due on 31 Jan 2022. Due to the covid-19, Cliff was on no-pay leave from Apr to Dec 2022. He does not have enough money to pay the tax. What can he do? (7 marks)

Suppose the Inland Revenue Department rejects his application. What things he can do against the decision of the Commission of Inland Revenue. (39 marks)

If Cliff does not settle the tax payment on time, what consequence will arise? (8 marks)