QUESTION ONE Mr. Think Hard was employed by What a Question Ltd on 1st August 2011 on salary scale of GH5,500 x 600-9.500 as the financial controller of the company. He is entitled to a company car and fuel for both official and private use. He is provided with the following as part of his conditions of service for 2015 Year of Assessment 1) Well-furnished rented flat by his employers in respect of which he pays GH150 per month as rent by way of deductions at source ii) Watchman allowance of GH200 per annum, paid directly to Mr. Think Hard. Risk allowance of GH 925 per annum iv) Leave allowance of GH600 per annum V) Garden boy allowance of GHe 150 per quarter paid directly to Mr. Think Hard. vi) Medical allowance of GH700 per annum vii) Meals allowance of GH55 per month vii) Two maidservants each on wages of GHc250 per annum. The amount is paid to the maid servants directly by the company. ix) Bonus of 40% on annual basic salary x) Duty post allowance of GH 150 per month xi) He has Life Assurance Policies with IC Itd. Below are the details: Policy Sum Assured (GH) Annual Premium (GH) 4,000 420 B 2,800 240 16,000 1.650 D 5.000 525 In addition to his employment income, Mr. Think Hard have other investment which also provides him with income every year. He have an investment of which he received a yearly dividend of GHC75,000 from Ecobank Ghana Ltd on his shares that was acquired on some few years ago. He obtained a loan from Ghana Home Loans amounting to GHC200,000 to put up a house which he pays 10% of it as a loan interest per annum. The house was fully rented out to tenants in 2015 and he receives GHC14,000 monthly rent from his building which is located at Santa Maria in Accra and he incurs the following necessary expenses. a. Repairs and maintenance GHC20,000 b. Property rate paid to AMA GHC 8,000 He is a divorcee with ten children depending on him; four of whom are in SHS in Accra, and the rest are gainfully employed; he caters for 3 of his aged relatives. He contributes 7% of his salary towards the company's Provident Fund which has been approved by the National Pension Authority, he also contributes 5.5% of salary to the SSNIT. Required: Compute his Chargeable income and Tax Liabilities for 2015 Year of Assessment QUESTION ONE Mr. Think Hard was employed by What a Question Ltd on 1st August 2011 on salary scale of GH5,500 x 600-9.500 as the financial controller of the company. He is entitled to a company car and fuel for both official and private use. He is provided with the following as part of his conditions of service for 2015 Year of Assessment 1) Well-furnished rented flat by his employers in respect of which he pays GH150 per month as rent by way of deductions at source ii) Watchman allowance of GH200 per annum, paid directly to Mr. Think Hard. Risk allowance of GH 925 per annum iv) Leave allowance of GH600 per annum V) Garden boy allowance of GHe 150 per quarter paid directly to Mr. Think Hard. vi) Medical allowance of GH700 per annum vii) Meals allowance of GH55 per month vii) Two maidservants each on wages of GHc250 per annum. The amount is paid to the maid servants directly by the company. ix) Bonus of 40% on annual basic salary x) Duty post allowance of GH 150 per month xi) He has Life Assurance Policies with IC Itd. Below are the details: Policy Sum Assured (GH) Annual Premium (GH) 4,000 420 B 2,800 240 16,000 1.650 D 5.000 525 In addition to his employment income, Mr. Think Hard have other investment which also provides him with income every year. He have an investment of which he received a yearly dividend of GHC75,000 from Ecobank Ghana Ltd on his shares that was acquired on some few years ago. He obtained a loan from Ghana Home Loans amounting to GHC200,000 to put up a house which he pays 10% of it as a loan interest per annum. The house was fully rented out to tenants in 2015 and he receives GHC14,000 monthly rent from his building which is located at Santa Maria in Accra and he incurs the following necessary expenses. a. Repairs and maintenance GHC20,000 b. Property rate paid to AMA GHC 8,000 He is a divorcee with ten children depending on him; four of whom are in SHS in Accra, and the rest are gainfully employed; he caters for 3 of his aged relatives. He contributes 7% of his salary towards the company's Provident Fund which has been approved by the National Pension Authority, he also contributes 5.5% of salary to the SSNIT. Required: Compute his Chargeable income and Tax Liabilities for 2015 Year of Assessment