MOSES KALEJI who had been employed as a Public Relations Manager at a Zambian resident company (ICU) for many years was declared redundant on 31 August 2019.

His annual salary in the year 2019 was K420,000. She had always been provided with airtime vouchers of K750 per month and with free meals at the companys staff canteen. The cost of these meals to the company was K2,000 per month.

Throughout his employment, Kaleji was accommodated in a company house, which had a market value of K650,000 in the tax year 2019. Had it been let out on a commercial basis, the company would have received monthly rentals of K5,500. During his period of employment in the tax year 2019, the company paid the wages for the workers employed by Kaleji at his residence. These included the security guards wages of K1,200 per month and the housekeepers wages of K1,000 per month.

Throughout his employment in the tax year 2019, Kaleji used his own personal Toyota Prado motor car with a cylinder capacity of 3000cc for the purposes of the employment.

He acquired the car in 2018 at a cost of K160,000. He travelled a total of 20,000 kilometres in the motor car in the tax year 2019, out of which 14,000 kilometres where in the performance of the duties of her employment, with the remaining 6000 kilometres being for private purposes. He incurred motor car running expenses of K3,500 per month in the tax year 2019. The company paid him a commuted fuel allowance of K2,000 per month throughout his period of employment with the company.

In January 2019, the company paid college fees for his children amounting to K15,000 and in May 2019, the company reimbursed him K8,000 he incurred on the medical treatment of his sick daughter.

Throughout his employment, his employer had always deducted NAPSA contributions of 5% of his basic salary as employees contributions and the company had always contributed 5% of his basic salary as employers NAPSA contributions on his behalf. Kaleji has always made life insurance payments of K1,500 per month in respect of his children and himself.

On being declared redundant on 31 August 2019, Kaleji received the following amounts:

K

Accrued Leave pay 35,000

Repatriation pay 210,000

Severance pay 140,000

Pension 240,000

Half of the pension were employees pension refunds and the remaining amount half was employers pension refunds. Pay As You Earn of K93,763 was deducted from his emoluments in the tax year 2019.

Other income

Kaleji has run a farming business for many years. In the tax year 2019 the tax adjusted

profit from farming before capital allowances was K367,500 generated from a turnover of K860,000. He had a tax loss brought forward from farming of K95,900, which arose in the previous tax year, when his crop was destroyed by army worms. Kaleji will not make an election to have farming profits for the tax year 2019 averaged in respect of the loss.

He incurred the following expenditure in relation to the farming business during the tax

year 2019:

K

Purchase of new irrigation equipment 80,000

New boreholes 50,000

Development expenditure on new Banana plantation 36,000

Construction of a dwelling house for farm manager 127,000

Construction of new storage buildings for farm produce 28,000

There were no other implements plant and machinery qualifying for capital allowances in the tax year 2019.

Required:

(a) Prepare a computation of the taxable emoluments from employment, clearly stating which of the benefits received by Kaleji from her employer in the tax year 2019, will be exempt from income tax.

(b) Compute the final taxable business profit from farming for the tax year 2019.

(b) Calculate the total final income tax payable by Moses Kaleji in the tax year 2019