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    ACC315A JAN 2023 Taxation CAT 1

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    Abuk Ayul
    Mr. T. Kombe's taxable income and tax liability for 2022 must be calculated based on the information provided. This includes: 1) His employment income from Lipa Ltd including basic pay, annual bonus, monthly commission, medical allowance, and free lunch. 2) Interest income and deemed interest from an employer loan. 3) Life insurance premiums paid. 4) His wife's employment income and business income must also be included to determine their total taxable income and liability.

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    ACC315A JAN 2023 Taxation CAT 1

    Uploaded by

    Abuk Ayul
    22 views2 pages
    Mr. T. Kombe's taxable income and tax liability for 2022 must be calculated based on the information provided. This includes: 1) His employment income from Lipa Ltd including basic pay, annual bonus, monthly commission, medical allowance, and free lunch. 2) Interest income and deemed interest from an employer loan. 3) Life insurance premiums paid. 4) His wife's employment income and business income must also be included to determine their total taxable income and liability.

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    acc315

    Original Title

    ACC315A JAN 2023 Taxation CAT 1 (1)

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    Mr. T. Kombe's taxable income and tax liability for 2022 must be calculated based on the information provided. This includes: 1) His employment income from Lipa Ltd including basic pay, annual bonus, monthly commission, medical allowance, and free lunch. 2) Interest income and deemed interest from an employer loan. 3) Life insurance premiums paid. 4) His wife's employment income and business income must also be included to determine their total taxable income and liability.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    22 views2 pages

    ACC315A JAN 2023 Taxation CAT 1

    Uploaded by

    Abuk Ayul
    Mr. T. Kombe's taxable income and tax liability for 2022 must be calculated based on the information provided. This includes: 1) His employment income from Lipa Ltd including basic pay, annual bonus, monthly commission, medical allowance, and free lunch. 2) Interest income and deemed interest from an employer loan. 3) Life insurance premiums paid. 4) His wife's employment income and business income must also be included to determine their total taxable income and liability.

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    © All Rights Reserved
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    ACC 315 A: TAXATION I

    JANUAERY 2023 SEMESTER


    Make up CAT I
    TIME ONE HOUR AND THIRTY MINUTES
    INSTRUCATIONS ANSWER ALL QUESTIONS.
    QUESTION ONE
    The following information relates to Mr. T. Kombe and his wife for the year ended 31 December
    2022:
    1. He was employed by Lipa Ltd as a sales manager on the following terms:
    • Basic pay per annum Sh. 900,000 (annual PAYE Sh. 250,000)
    • Annual bonus of Sh. 25,000
    • Monthly commission equal to 2% of monthly basic pay
    • Annual medical allowance (non discriminatory scheme) of Sh. 180,000 paid on
    reimbursement basis. During the year, he was reimbursed Sh. 120,000 for medical cost
    incurred on self and family
    • Free lunch valued at Sh. 35,000 per annum

    2. He obtained a loan from the employer amounting to Sh. 400,000 on 1st December
    2021. The interest on the loan was specified by the employer as 5% per annum. Assume a
    prescribed interest rate of 8% per annum for the month of December 2022
    3. He paid life premium amounting to Sh. 72,000 during the year for policies on self
    and family
    4. His wife is employed by Mauzo Ltd as a financial analyst at a basic salary Sh.
    60,000 per month. Mr. T. Kombe owns 25% of the ordinary share capital of Mauzo Ltd.
    5. The following additional income accrued to his wife during the year:
    • She earned a profit of Sh. 400,000 from a supermarket business registered by her
    name but managed by her daughter. This profit was after deducting Sh. 120,000 paid as
    salary to the daughter during the year. The daughter was below eighteen years of age as
    at 31 December 2022.
    • She owns residential houses inherited from her father. The rental income received
    for the year amounted to Sh. 480,000.

    • Co. paid his telephone bills amounting Shs. 3000 p.m.


    Required:
    (i) The taxable incomes of Mr. T. Kombe and his wife for the year ended 31
    December 2022 ( 15
    Marks)
     Co. paid his telephone bills amounting Shs. 3000 p.m.
    Required :
    Compute taxable income & tax liability for Mr. kombe in year 2022. (15 marks)

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