a) Describe the general procedures for computation of income tax on the emoluments of an employed person.

b) Joka is an employee of UCCK as an auditor and the details of his emoluments and earnings were

as follows.

Basic salary 240,000= per month

Travelling allowance 60,000= per month Housing Jan-May 2009 80,000= per month

Entertainment 60,000= per month

Medical 50,000= per month

Housing June Dec 2009 95,000= per month

Additional information:

1. Joka was granted an air ticket to travel to UK and study the audit aspects of the College.

2. Air ticket and accommodation costs were shs. 1,000,000= for 5 weeks.

3. The employer contributed 10% of the employees basic salary to the NSSF.

4. Joka used his car during the course of employment for official duties and the employer reimbursed 2,300,000 for expenses of running and maintaining the car during the year.

5. The premium paid for his life insurance by the employer was shs. 2,500,000=

6. During the year he paid graduated Tax of shs. 100,000=

7. The employer also paid shs. 560,000= for his childs school fees during the year.

8. The College covered Jokas alimony worth shs. 350,000= during the year From Jan May lived in a rented house.

Required:

a) Calculate Jokas annual taxable income from employment.

b) Calculate his tax liability on employment income for the year. Assuming

i) He is a resident

ii) He is a non-resident.