Moses Bundi works for geo-sat solution ltd as a technical Director. During the year ended 31 December 2015 he received the following incomes and emoluments:

Basic salary of sh.160000 per month(P.A.Y.E sh.42000 per month)

He was provided with a 2200cc land lover which had cost the company sh.4600000 in the year 2010.

In the month of December 2015,he received a sitting allowance of sh.28000

He is a member of a registered retirement benefits scheme of which he makes monthly contribution of sh.30000.

He was housed by the company in a retired house with water, telephone and electricity. The house had a market rental value of sh.64000 per month and he paid a nominal rent of sh.25000 per month.

During the year, the company paid school fees for his son amounting to sh.280000. This amount was disallowed for tax purposes on Geo-sat solution Ltd.

Geo-sat solution Ltd operates a medical scheme for all staff with Afya Insurance Ltd.In the year 2015, the amount paid for Moses Bundi`s cover amounted to sh.320000.

The company paid his monthly electricity, water and telephone bills averaging to sh.18000, sh.12500 and sh.16000 respectively.

He earned interest income of sh. 180000 during the year from his investment in Housing Development Bonds.

The company paid sh.240000 to cover for Moses Bundis family life insurance premiums during the year.The insurance policy covered Moses Bundi,his wife and son.

In December 2015 Moses Bundi received an entertainment allowance of sh.120000.Half of this amount was spent on entertaining customers.

Moses Bundi received a net rental income of sh.1800000 from his commercial rental premises during the year.This was after deducting the following expenses:

Caretakers wages sh.620000

Building an extension sh.840000

Interest on mortgage sh.120000

Fixing metallic doors sh.320000

Purchase of a water tank sh.150000

Required;

Taxable income of Moses Bundi for the year ended 31 December 2015

Tax liability (if any) from the income computed above