Mr. Asaba Peter is employed as a Secretary Manager with Bunyoro Growers Co-operative Union. He is...

 

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Mr. Asaba Peter is employed as a Secretary Manager with Bunyoro Growers Co-operative Union. He is paid a basic monthly salary of Shs. 1,200,000/=. He also uses a Union Pajero valued at Shs. 30,000,000/= for his official duties. At the beginning of the year, Mr. Asaba Peter obtained a loan of Shs. 10,000,000/= from the Union at an interest rate of 5% p.a. The Union provides 30% of the meals for Mr. Asaba Peter's domestic use. He forfeited his leave during the year and was paid 50% of basic salary as compensation. He also stays in a Union house which could fetch rent worth Shs. 2,500,000/- p.a. Mr. Asaba Peter uses a car twice a week for his private purposes and pays a monthly token of Shs. 50,000/= for the benefit. The discount rate for the period is 10%. Mr. Asaba Peter is also entitled to the following benefits Medical allowance Overtime Union contributes to NSSF Electricity & water bills Additional Information. Mr. Asaba Peter is entitled to monthly refund of Shs. 400,000/ for expenses incurred while on official duties. - . - 2,400,000/- annually 1,200,000/= Annually 150,000/- Monthly 200,000/= Monthly The Union pledged to pay school fees for Mr. Asaba Peter's son who is doing a diploma in co-op & business administration at Uganda Co-operative College Kigumba and accordingly refunded him Shs. 1,000,000/= which he had earlier paid. Mr. Asaba Peter employs a house helper who he pays Shs. 300,000/- per month. Of this 50% is paid by the Union. Monthly top-up allowance to Mr. Asaba Peter is Shs. 100,000/= Included in medical allowance is 40% refund for medical expenses. Balance of the meals is provided in the Union canteen and is open to all workers. The office sold two computers to Mr. Asaba Peter for Shs. 350,000/=. Each computer is worth Shs. 200,000/=. The Union offered Mr. Asaba Peter an old office desk worth Shs. 9,800/= for free. Due to his hard work, the Union paid Mr. Asaba Peter a bonus of Shs. 500,000/= at the end of the year. Mr. Asaba Peter contributes Shs. 50,000/- per month towards electricity Required. a. Compute Mr. Asaba Peter's annual taxable income. b. Compute Mr. Asaba Peter's tax liability, assuming: he is a resident He is a non-resident i). ii). (8 Marks) (3 Marks) (3 Marks) Mr. Asaba Peter is employed as a Secretary Manager with Bunyoro Growers Co-operative Union. He is paid a basic monthly salary of Shs. 1,200,000/=. He also uses a Union Pajero valued at Shs. 30,000,000/= for his official duties. At the beginning of the year, Mr. Asaba Peter obtained a loan of Shs. 10,000,000/= from the Union at an interest rate of 5% p.a. The Union provides 30% of the meals for Mr. Asaba Peter's domestic use. He forfeited his leave during the year and was paid 50% of basic salary as compensation. He also stays in a Union house which could fetch rent worth Shs. 2,500,000/- p.a. Mr. Asaba Peter uses a car twice a week for his private purposes and pays a monthly token of Shs. 50,000/= for the benefit. The discount rate for the period is 10%. Mr. Asaba Peter is also entitled to the following benefits Medical allowance Overtime Union contributes to NSSF Electricity & water bills Additional Information. Mr. Asaba Peter is entitled to monthly refund of Shs. 400,000/ for expenses incurred while on official duties. - . - 2,400,000/- annually 1,200,000/= Annually 150,000/- Monthly 200,000/= Monthly The Union pledged to pay school fees for Mr. Asaba Peter's son who is doing a diploma in co-op & business administration at Uganda Co-operative College Kigumba and accordingly refunded him Shs. 1,000,000/= which he had earlier paid. Mr. Asaba Peter employs a house helper who he pays Shs. 300,000/- per month. Of this 50% is paid by the Union. Monthly top-up allowance to Mr. Asaba Peter is Shs. 100,000/= Included in medical allowance is 40% refund for medical expenses. Balance of the meals is provided in the Union canteen and is open to all workers. The office sold two computers to Mr. Asaba Peter for Shs. 350,000/=. Each computer is worth Shs. 200,000/=. The Union offered Mr. Asaba Peter an old office desk worth Shs. 9,800/= for free. Due to his hard work, the Union paid Mr. Asaba Peter a bonus of Shs. 500,000/= at the end of the year. Mr. Asaba Peter contributes Shs. 50,000/- per month towards electricity Required. a. Compute Mr. Asaba Peter's annual taxable income. b. Compute Mr. Asaba Peter's tax liability, assuming: he is a resident He is a non-resident i). ii). (8 Marks) (3 Marks) (3 Marks)

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a Computation of Mr Asaba Peters annual taxable income Basic salary Shs 1200000 x 12 Shs 14400000 Va... View the full answer