Domes period ended 31 December 2021, Kwok Lee who ran a second-hand clothing stall in Woodlands, received the following amounts RECEIPTS: 575.000 $5.250 $350 Sales of clothing GST received Gints from customers The gift was bestowed due to the closure of his business based on COVID restrictions. The money was given to compensate for lost sales during that period He also paid the following amounts: PAYMENTS: Mobile Telephone expenses $890 He tells you that he used the phone for work purposes 85% of the time Donations 5750 The donation was to an approved Institute of a Public Character. The $750 consisted of 500 cash, whilst the remaining $250 was made up of second-hand clothes Singapore tennis Club $250 This was his personal subscription to belong to the tennis club RIEQUIRED: 1 You are required to explain to Kwok Lee if the receipts are subject to income tax and the reason(s) wty 2. You are also required to explain whether the payments are allowable deductions Where necessary you must show how you calculated the amount that is either income or allowabe deductions You must refer to relevant sections of the income Tax Act It is not suicient simply to say it is subject to tax deductible You must provide a reason and analysis for your answer conclusion Domes period ended 31 December 2021, Kwok Lee who ran a second-hand clothing stall in Woodlands, received the following amounts RECEIPTS: 575.000 $5.250 $350 Sales of clothing GST received Gints from customers The gift was bestowed due to the closure of his business based on COVID restrictions. The money was given to compensate for lost sales during that period He also paid the following amounts: PAYMENTS: Mobile Telephone expenses $890 He tells you that he used the phone for work purposes 85% of the time Donations 5750 The donation was to an approved Institute of a Public Character. The $750 consisted of 500 cash, whilst the remaining $250 was made up of second-hand clothes Singapore tennis Club $250 This was his personal subscription to belong to the tennis club RIEQUIRED: 1 You are required to explain to Kwok Lee if the receipts are subject to income tax and the reason(s) wty 2. You are also required to explain whether the payments are allowable deductions Where necessary you must show how you calculated the amount that is either income or allowabe deductions You must refer to relevant sections of the income Tax Act It is not suicient simply to say it is subject to tax deductible You must provide a reason and analysis for your answer conclusion