Fluvin Insurance Co. Ltd is a resident insurance company carrying out both general and life assurance businesses. The following information relates to the insurance company's financial year ended 31 December 2022:

General Insurance Life Business

Business

Sh. "000" Sh. "000"

Insurance premiums received 7,728,000 10,500,000

Premiums returned on surrendered 1,176,000 1,806,000

policies

Re-insurance commission ceded 365,400

Premiums paid to re-insurance company 966,000 378,000

Revaluation surplus distributed from 1,352,400

life fund

Management expenses 1,906,800 1,869,000

Traveling expenses 117,600 310,800

Advertising expenses 193,200 239,400

General expenses 113,400 145,320

Bad debts written off (specific) 138,600 53,760

Income from subrogation rights 399,000

Rent and rates 184,800 60,900

Staff training expenses 96,600 32,340

PAPP 1 of Fi

Depreciation of equipment 121,800 34,860

Theft of car wreck from an accident 5,880

Fines and penalties for late tax 18,900 37,800

Repairs and maintenance 14,700 14,700

Claims recovered on re-insurance 273,000

Additional information

Reserves for unexpired risk for general insurance business was as follows: General

Business Sh. "000"

1 January 2022 302,400

31 December 2022 197,400

Claims outstanding were as follows:

General insurance Life assurance

Business Business

Sh. "000" Sh. "000"

1 January 2022 2,335,200 2,688,000

31 December 2022 1,940,424 2,016,000

o0⁰

Claims paid during the year ended 31 December 2022 amounted to Sh. 2,419,200 \for General insurance business and Sh. 625,000,000 for Life assurance business.

4. The management proposed to be transferred from the life fund a further sh. 1,125,600,000 for the benefit of shareholders which amount is not included in the amount already distributed above.

5. The capital allowances have been agreed with KRA at ksh 94,500,000

Required:

(i) Determine the taxable income or loss of Fluvin Insurance Co. Ltd for the year of income

2022. (18 marks)

(ii) Tax payable (if any) by the insurance company (2 marks)