Reference no: EM133134714

Question - Mr. Cheung purchased a flat on 1 July 2006, and the flat was let to Mr. Wong for a two-year lease on the same day. Mr. Wong paid to Mr. Cheung a premium of $300,000 on 1 July 2006 and a monthly rent of $30,000 which was payable on the first day of each month. Mr. Cheung paid rates of $2,000 per quarter. Mr. Wong paid the rent on time each month. However, he did not pay the rent for the three months of February, March and April 2008, and he moved out from the flat on 30 April 2008 with the rent still outstanding. Mr. Cheung took possession of the flat and let the flat to Mr. Lee at a monthly rent of $45,000 from 1 June 2008. You are required to compute the property tax payable for the years of assessment 2007/08 and 2008/09.