You have been approached by Mr. Kenneth Kamau, seeking your assistance in the computation of his tax liability for the year ended 31 December 2001....

You have been approached by Mr. Kenneth Kamau, seeking your assistance in the computation of his tax liability for the year ended 31 December 2001. He has provided you with the following information:
Mr. Kamau works for Chip.com Ltd. as the technical director. During the year ended 31 December 2001, he received the following emoluments:


Required:
i) Compute the taxable income for Mr. Kamau for the year ended 31 December 2001.
ii) Determine tax payable and specify when it is to be paid.
iii) Is Mr. Kamau to blame for the PAYE not deducted from his emoluments? Briefly explain.
iv) Assuming that the market rate of interest for January 2001 was 10% per annum. Compute the fringe benefit tax (FBT) payable on Mr. Kamau’s loan. When would the FBT be paid to the Commissioner of Income Tax?
v) Comment on the tax implications of Mrs. Kamau’s contributions to an Individual Retirement Benefit Scheme

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Wilfykil answered the question on February 26, 2019 at 06:16

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