Mr. Chan earned salary of $480,000 and contributed $20,000 to Mandatory Provident Fund (MPF) retirement scheme in the year of assessment (YA) 2015/16.

Mr. Chan signed a lease agreement with a tenant for two years starting from 1 April 2015. According to the lease agreement, he let his sole-owned property in Yuen Long to the tenant at $30,000 per month payable on the first day of each month commencing on 1 April 2015. He also received refundable rental deposit worth two months' rent from the tenant on 1 April 2015. According to the terms of the lease, Mr. Chan, as the landlord, would be responsible for rates, management fees, and all related expenses such as maintenance and repairs of the rental property. For the period from April 2015 to March 2016, Mr. Chan paid rates of $12,000 and mortgage interests of $20,000 in relation to the rental property. Due to a plumbing problem in the property, Mr. Chan paid $10,000 in related repairs.

Mr. Chan used to have a consulting business as a sole proprietor but the business incurred a loss. Therefore, he ceased the business in the YA 2014/15 and still had an excess loss carried forward of $5,000.

Required:

Would it be more advantageous, when only considering tax payable, for Mr. Chan to elect personal assessment (PA) for the YA 2015/16? Please indicate your answer precisely.

Support your advice with computation of Mr. Chan's tax payable in a good (logical and understandable) format.

Disregard rates concession, tax reduction and provisional tax.

Summary of Deductions, Personal Allowances and Tax Rates 2014/15 2015/16 2016/17 2017/1 Year of Assessment (YA) Deductions Self-education expenses Home loan interest Elderly residential care expense Mandatory contribution to recognised retirement schemes Approved charitable donations (Income -Allowable Expenses - Depreciation Allowances) x Percentage 80,000 80,000 100,00 100,000 100,000 100,000 100,00 80,000 92,00092,00C 18,00018,00C 80,000 17,500 18,000 Year of Assessment (YA) Personal allowances: Basic allowance Married person's allowance Child allowance 2014/152015/16 2016/17 2017/18 132,000 264,000 120,000 240,000 120.000 240,000 132,000 264,000 200,000 100,000 200,000 100,000 70,000 For each of the 1t to 9h child Additional allowance in the year of birth 100,000 Dependent parent/grandparent (each 20,000 23,000 who is 55 years old or above but below 60 who is 60 years old or above who is under 60 years old but eligible to claim an allowance under the Government's Disability Allowance Scheme 46,000 Additional dependent parent/grandparent (each) 23,000 who is 55 years old or above but below 60 who is 60 years old or above who is under 60 years old but eligible to claim an allowance under the Government's Disability Allowance Scheme 40,000-L- 46,000 46,000 46,000 Dependent brother/sister allowance Single parent allowance Disabled dependent allowance 33,000 120,000 33,000 120,000 33,000 132,000 37,500 132,000 66,000 75,000 2014/15 2015/16 2016/17 2017/18 Year of Assessment (YA) Tax Rates Standard (salaries tax, property tax, and personal assessment) Progressive 1 $40,000 2nd $40,000 3rd $40,000 Remainder 1st $45,000 2nd $45,000 3d $45,000 Remainder 12 Tax Reduction Year of Assessment (YA of tax reduction Maxim umreduction percase 2009/10- 2010/11 2011/12 2012/13 2013/14 2014/15, 2015/16, 2016/17 Source: Salaries tax, profit tax and tax under personal assessment $12,000 $10,000 75 Summary of Deductions, Personal Allowances and Tax Rates 2014/15 2015/16 2016/17 2017/1 Year of Assessment (YA) Deductions Self-education expenses Home loan interest Elderly residential care expense Mandatory contribution to recognised retirement schemes Approved charitable donations (Income -Allowable Expenses - Depreciation Allowances) x Percentage 80,000 80,000 100,00 100,000 100,000 100,000 100,00 80,000 92,00092,00C 18,00018,00C 80,000 17,500 18,000 Year of Assessment (YA) Personal allowances: Basic allowance Married person's allowance Child allowance 2014/152015/16 2016/17 2017/18 132,000 264,000 120,000 240,000 120.000 240,000 132,000 264,000 200,000 100,000 200,000 100,000 70,000 For each of the 1t to 9h child Additional allowance in the year of birth 100,000 Dependent parent/grandparent (each 20,000 23,000 who is 55 years old or above but below 60 who is 60 years old or above who is under 60 years old but eligible to claim an allowance under the Government's Disability Allowance Scheme 46,000 Additional dependent parent/grandparent (each) 23,000 who is 55 years old or above but below 60 who is 60 years old or above who is under 60 years old but eligible to claim an allowance under the Government's Disability Allowance Scheme 40,000-L- 46,000 46,000 46,000 Dependent brother/sister allowance Single parent allowance Disabled dependent allowance 33,000 120,000 33,000 120,000 33,000 132,000 37,500 132,000 66,000 75,000 2014/15 2015/16 2016/17 2017/18 Year of Assessment (YA) Tax Rates Standard (salaries tax, property tax, and personal assessment) Progressive 1 $40,000 2nd $40,000 3rd $40,000 Remainder 1st $45,000 2nd $45,000 3d $45,000 Remainder 12 Tax Reduction Year of Assessment (YA of tax reduction Maxim umreduction percase 2009/10- 2010/11 2011/12 2012/13 2013/14 2014/15, 2015/16, 2016/17 Source: Salaries tax, profit tax and tax under personal assessment $12,000 $10,000 75