Matthew worked as a brewer for East Africa Breweries Plc. His service level agreement stipulated the following
Question:
Matthew worked as a brewer for East Africa Breweries Plc. His service level agreement stipulated the following terms:
Basic salary ksh 900,000 per month.
Company housing whose monthly value was ksh 150,000.
Company car whose purchase price was ksh 3,000,000.
He was entitled to company medical cover. The estimated employee premium was ksh 220,000
He had an entertainment allowance of ksh 100,000. KRA was aware that 1/4 of it was spent on family groceries.
School fees for the spouse and children was ksh 800,000 paid by the company in various colleges in town.
Maina had received a soft loan of ksh 4,000,000 at a rate of 3% per annum. He official prescribed rate was 9%.
Maina had inherited commercial premises that gave him a net rent of ksh 470,000. The deducted expenses were ascertained to have qualified as “wholly and exclusively been incurred in the production of the rental incomes”.
Matthew had an educational policy for his children. The premium per annum was ksh 300,000.
The employer had an educational policy for his children. The premium per annum was ksh 300,000.
Matthew, also received ksh 120,000 being net of withholding on the shares held.
Matthew was entitled to four beers per day at a flat rate of ksh 100 per beer. Include all the day of the month.
Required:
Ascertain the gross taxable income of Maina in the year 2022.
Calculate the gross tax liability of Maina for the year 2022.
Estimate the tax due from Maina for the year 2022.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young