Mr.waleba is employed as a senior manager with brook enterprises ltd. He holds 18% of the company's
Question:
Mr.waleba is employed as a senior manager with brook enterprises ltd. He holds 18% of the company's controlling interest. The following details relate to mr.waleba for the year ended 31 december 2022
1. Basic salary shs.250,000 per month (PAYE sh.18,400) per month
2. Benefits in kind for the year amounted to sh.48,000
3. He was provided with a company car 2000cc whose cost was shs.1,000,000 . the car leased by the company at a monthly rent of sh.39,000. He also received a monthly fuel allowance of sh.19,000 for the car.
4. He was provided with a house by the employer. The house is rented front one of the company's directors at sh.40,000 per amouny. The electricity is supplied front a generator installed by the company,the monthly expenses in relation to the generator amounted to shs.30,000
5. On may 1 2022, he moved to his own house which he had constructed through a 12% mortgage lease of sh.2,000,000. The loan had been obtained from national housing corportation on 1st October 2021
6. He is a member of a registered pension scheme where he contributin sh.18,000 per month with the employer contributing an equal amount for him.
7. On 1st October 2022,hesecured an education insurance policy for his child at an annual premium of sh.72,000 payable by the company.
8.He reported us farming income of sh.108,000
9.He was out of work station for 5 days which he was paid per diem of sh.7,600 per day
Required:
- Total taxable income of mr.waleba for the year ended 31st December 2022
- Tax due on the taxable income calculated in (i) above.
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler