Jimmy Pang currently is a financial controller of Convoy Limited, a company carrying on business in Hong Kong. He has provided you with the following notes for the year ended 31 March 2020: 1. He received a salary of $650,000 for the year plus a bonus of $102,600. 2. He also received a cash allowance of $15,000 per month to cover his accommodation costs. He leased a property in Hunghom at a monthly rent of $17,000. He was not accountable to his employer on how he spent his housing allowance. 3. Accounts of electricity, water, gas and telephone of his accommodation are paid by him but fully reimbursement from his employer. The total was $23.459. 4. He leased a car from a car company at an annual rental of $20,000. He also paid for the fuel and for parking fees amounting to $30,000. He obtained a full refund of these expenses from his employer. The assessor agreed that the car was partly used for his employment purposes and such usage was agreed to be 20% for deduction. 5. He was enrolled in the company's medical insurance scheme. His medical bills of $4,800 were fully refunded by the insurance company. 6. He was enrolled in the company's MPF scheme. In order to have better retirement, he made a voluntary contribution. Total contribution was $80,000 to the MPF scheme during the year. 7. He enrolled in the Masters of Corporate Finance programme offered by The City University of Hong Kong and paid a tuition fee of $72,000 for the year. Besides, he also attended a running course organized by the Hong Kong Amateur Athletic Association. The training fee was $500 during the year. 8. Jimmy is married and his wife is a housewife. They have a son, aged 10. Jimmy's father and mother, aged 60 and 53 respectively, resided with Jimmy during the year. REQUIRED: a. Calculate the Hong Kong salaries tax liability of Jimmy Pang for the year of assessment 2019/20. Ignore provisional tax and any tax rebates. You may assume that Jimmy will claim whatever deductions or allowances for which he is eligible. (20 marks) b. In respect of the information given in note 3 above, suggest how Jimmy can work with his company to minimize his tax liability. Relevant legislation is required to quote. (5 marks) Jimmy Pang currently is a financial controller of Convoy Limited, a company carrying on business in Hong Kong. He has provided you with the following notes for the year ended 31 March 2020: 1. He received a salary of $650,000 for the year plus a bonus of $102,600. 2. He also received a cash allowance of $15,000 per month to cover his accommodation costs. He leased a property in Hunghom at a monthly rent of $17,000. He was not accountable to his employer on how he spent his housing allowance. 3. Accounts of electricity, water, gas and telephone of his accommodation are paid by him but fully reimbursement from his employer. The total was $23.459. 4. He leased a car from a car company at an annual rental of $20,000. He also paid for the fuel and for parking fees amounting to $30,000. He obtained a full refund of these expenses from his employer. The assessor agreed that the car was partly used for his employment purposes and such usage was agreed to be 20% for deduction. 5. He was enrolled in the company's medical insurance scheme. His medical bills of $4,800 were fully refunded by the insurance company. 6. He was enrolled in the company's MPF scheme. In order to have better retirement, he made a voluntary contribution. Total contribution was $80,000 to the MPF scheme during the year. 7. He enrolled in the Masters of Corporate Finance programme offered by The City University of Hong Kong and paid a tuition fee of $72,000 for the year. Besides, he also attended a running course organized by the Hong Kong Amateur Athletic Association. The training fee was $500 during the year. 8. Jimmy is married and his wife is a housewife. They have a son, aged 10. Jimmy's father and mother, aged 60 and 53 respectively, resided with Jimmy during the year. REQUIRED: a. Calculate the Hong Kong salaries tax liability of Jimmy Pang for the year of assessment 2019/20. Ignore provisional tax and any tax rebates. You may assume that Jimmy will claim whatever deductions or allowances for which he is eligible. (20 marks) b. In respect of the information given in note 3 above, suggest how Jimmy can work with his company to minimize his tax liability. Relevant legislation is required to quote