Susan Mbaya is an employee of Mauzo Ltd. She has provided the following details pertaining to her income in the year of income 2021:
i) Her monthly basic salary was sh. 105,000 (PAYE sh. 21,000 per month)
ii) She was provided with a house by the company. The rental Market value was sh.
35,000 per month. The house was fully furnished and the cost of the furniture was
sh. 800,000.
iii) She was provided with free airtime of sh.10,000 for her cellphone
iv) She obtained a Life insurance policy of sh 1,000,000, where the company paid sh
40,000 per month to the insurance company
v) She was paying owner occupier interest of sh 600,000 on a mortgage loan she took
to build her own home
vi) She received a bonus allowance of sh. 180,000 in that year for working extra time.
vii) She was provided with a company car of 2500cc. The car was purchased by the
company for sh 2,092,000 on 1st
January 2019.
viii) She is a member of a registered pension scheme where she contributed sh. 18,000
per month towards the scheme
ix) She received a year end bonus payable to executive staff of sh. 120,000
x) The employer reimbursed (refunded) her, all medical expenses she incurred during
the year, amounting to sh. 365,400. The company’s medical scheme covers all staff
members.
xi) She spent sh 20,000 of her own money in the service of her employer and she has
maintained receipts of these payments. However, her employer only refunded her
sh. 5,000
Required
Taxable income of Susan Mbaya for the year of income ended 31st December 2021 and the Tax
payable ( if any ) on the income computed.
Question Two
Wepesi Manufacturers. commenced busine