SECTION B (40 Marks) Answer ALL questions from this section. Question 1 (total: 5 marks) What are the functions of the Board of Inland Review? (5 marks) Question 2 (Total: 15 marks) Samson purchased a property in Shatin. A lease was signed with Claudia for two years. Details of the terms of the lease agreement were as follows: 1. 2. 3. 4. Term of lease: Two years from 1 March 2017 Monthly rental: $20,000 Rent-free period: One month from 1 March 2017 Rental deposit: $20,000 Rates: $3,000 per quarter, payable by Samson Management fee: $2,000 per month, payable by Claudia directly to the management company 5. 6. Samson obtained a bank mortgage loan to fund the purchase price of the property. During the year ended 31 March 2018, he paid monthly loan interest of $25,000. REQUIRED (a) Calculate the property tax liability for the year of assessment 2017/18. Ignore provisional property tax and tax rebate or reductions, if any. (10 marks) (b) Give explanations on the tax treatment of management fee (item 6) and mortgage loan interest