(ii) Salaries Tax Computation 2022/23 for Mr. Wong (Client 2) showing his salaries tax payable, no Personal Assessment and/or Joint Assessment are elected. (25 marks)

Mr. Wong is employed by Glen Ltd (Glen), a multinational corporation based in the US, as the Asian sales manager. According to his employment contract, which was concluded and enforceable in US, Mr. Wong is in charge of sales promotion in the Asian region. For convenience purposes, he is based in the Hong Kong office of Glen and is required to travel within the region when necessary. His salary is paid in HK dollars into his bank account in Hong Kong. Mr. Wong's travelling schedule (only the arrival day in Hong Kong is counted as present in Hong Kong) for the year ended 31 March 2023 was as follows: For the year ended 31 March 2023, Mr Wong had the following income and expenditure: (1) Annual salary of $1,080,000. (2) A travelling allowance of $80,000 was paid during the year to subsidise Mr. Wong's trip back to US for a family visit. Mr. Wong expended $55,000 and kept the balance. (3) During the year, Mr. Wong was paid a special bonus of $190,000, out of which $50,000 was donated to Oxfam Hong Kong. (4) Glen operated a group medical insurance scheme for its staff through an insurance company and paid an annual premium of $3,000 for each staff member. During the year, Mr. Wong was hospitalised for three weeks. He asked for a private room so as to enable him to continue to work whilst in hospital. The total hospital bill was $85,000, out of which only $55,000 was successfully claimed and reimbursed from the insurance company. The balance of $30,000 was paid by Glen. (5) Glen provided a company car for Mr. Wong's use. He used the car for both business and private purposes on a 60:40 basis, which was agreed with the Inland Revenue Department for tax purposes. He was also provided with a corporate credit card which he used to pay for the petrol cost totaling $35,000 for the whole year. The credit card balance was settled by Glen. Mr. Wong did not use the corporate credit card for any other purposes. (6) On 1 October 2022 , Mr. Wong was granted an option to acquire 20,000 shares at $20 each in Glen. He paid $2,000 for this option. On 1 January 2023, he exercised the option to take up 15,000 and sold the shares on 15 February 2023. On 1 March 2023, he sold the option for the remaining 5,000 shares for $8,000. (7) Mr. Wong acquired a flat in Hong Kong as his residence on 1 April 2022 at the price of $8 million. The acquisition was funded by a staff loan obtained from Glen at a below-market interest rate. During the year ended 31 March 2023, Mr. Wong paid a total interest of $16,800 to Glen. If a market interest rate was charged by Glen, his interest cost would be $45,000. (8) Mr. Wong hired a domestic helper at the cost of $4,000 per month. The wages of this domestic helper were refunded by Glen. (9) Mr. Wong joined the Hong Kong Country Club and paid an annual membership fee of $40,000. He was reimbursed half of this amount by Glen. Mr. Wong often met with his clients in the club. (10) Mr. Wong enrolled in a part-time MBA programme in management offered by a university in Hong Kong and paid an annual tuition fee of $120,000 during the year. No reimbursement was paid by Glen. (11) Mr. Wong contributes $1,500 to the Mandatory Provident Fund each month. (12) Mr. Wong is married with two children. His wife is a housewife and currently living with their children in US. The younger child, aged 20 , is working on a part-time job. The elder child, aged 24 , is studying full-time in Canada. (13) Mr. Wong's father-in-law, aged 70, lives in his own apartment in Hong Kong, is maintained by Mr. Wong's wife. (14) Mr. Wong's stepmother, aged 55 and disabled, lives in a nursing home in Hong Kong. She receives the Government Disability Allowance of $2,000 per month. The total nursing home bills amounting to $150,000 for the year was paid by Mr. Wong