It has been very hot in the property market in recent years in Hong Kong. Mr. Chan, the second generation of a wealthy family in HK, invests in the property market, despite various anti-speculation measures.

Mr. Chan bought a shop premises in September 2018, and leased it to Candy company on the following terms:

Period of lease: 18 months from 1st October 2018

Rent free period: one month from the start of the tenancy agreement

Premium: $36,000 payable on 1st October 2018

Monthly rental: $45,000 per month

Rental deposit in the amount of $90,000 refundable at the end of the lease

Rates: $6,000 per quarter payable by the tenant

Building management fee: $3,800 per month payable by the tenant.

Candy Company paid $5,000 to replace the door gate and did not claim this expense from the owner.

As sales were poor, Candy Company failed to pay rent to Mr. Chan and failed to pay the rates and building management fee since 1st March 2019. On 1st June 2019, Candy Company filed bankruptcy and moved out. Mr. Chan was required to pay all the outstanding rates and building management fees.

Mr. Chan spent $10,000 to clean the property and asked the real-estate agency to let the property again. On 1st August 2019, Mr. Chan entered a leasing agreement with Donald Company on the following terms:

Period of lease: two years from 1st August 2019

Yearly rent: $600,000 payable in advance on 1st August of each year.

Rent deposit: $100,000 refundable at the end of the lease

Rates: $6,000 per quarter payable by landlord

Building management fee: $4,500 per month payable by landlord.

Donald Company paid $300 to replace the lock and did not claim this from the owner.

Mr. Chan paid a commission of $25,000 to the real-estate agency.

Required:

1. (a) Compute the property tax payable for Mr. Chan for 2018/19 and 2019/20. (Ignore provisional tax)