Mr Burny Odipo has provided the following information on his employment and other incomes for the year ended 31 December 2013: Required: i. Total taxable income...

      

Mr Burny Odipo has provided the following information on his employment and other incomes for the year ended 31 December 2013:
1. He received a basic salary of Sh.120, 000 per month. (PAYE Sh.30, 000 per month).
2. From I January 2013 to 30 April 2013, he was provided with a company motor vehicle of 2,000 cc which the company had purchased in August 2010 at a cost of Sh.1,500,000. The motor vehicle was disposed of on 1 May 2013. From 1 May 2013, the company hired another motor vehicle for use by Mr BurnyOdipo at a monthly hire charge of Sh.60, 000. The initial cost of the motor vehicle to the hiring company was Sh.2, 400,000.
3. He lived in a company house until 30 September 2013 and paid a nominal rent of Sh.10,000 per month for the house. The market rental value of houses in the estate was Sh.50, 000 per month.
4. He purchased a house and moved in on I October 2013. He financed the house through a mortgage loan of Sh.1 0,000,000 at an interest rate of 12% per annum.
5. He is a member of a house ownership savings plan (HOSP). He contributed Sh.10, 000 per month up to the time he acquired the mortgage loan.
6. He has a life insurance policy where the company paid Sh.20, 000 per month for him. He also paid an equal amount for the policy.
7. He received dividends from Hekima Co-operative Society Ltd. of Sh.68, 000 (net) and interest on a 20 year Government Infrastructure Bond of Sh.72, 000 (gross) during the year.
8. He received an entertainment allowance of Sh.100, 000 during the year. Half of this amount was spent on entertaining his family.
9. His wife has invested in the shares of a quoted company. She received a dividend of Sh.24, 000 (net) from the investment in the year 2013.
10. During the year ended 31 December 2013, he reported a net rental income of Sh.700, 000. This was after deducting the following expenditure:

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Required:
i. Total taxable income of Mr BurnyOdipo for the year ended 31 December 2013.
ii. The tax due on the taxable income calculated in (i) above.

  

Answers


Wilfred
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Wilfykil answered the question on February 13, 2019 at 09:41


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