Mr. Atsu was employed as a senior staff on 1st April 2018 on a salary scale of GH150,000 x 4,500-GH190,500. His conditions of service entitled him to the following:

a. A saloon car loan of up to GH25,000 every ten years of his employment which he has taken advantage of this policy and acquired a kia picanto car with which the company allocates him 40 gallons of fuel a month and maintenance allowance of GH300 a month.

b. He is also provided with rent allowance of GH500 per month

c. Maidservant and garden boy allowances of GH250 and GH140 per month

respectively

d. Holiday allowance of GH2,500 per annum.

e. Non-Accountable Entertainment allowance of GH450 per month

f. Provision of Meals of GH 150 per month.

g. Mr. Atsu remits an amount of GH300 monthly for their upkeep of his 3 uncles in the

village.

h. He is married with 6 children, four of whom are currently pursuing their studies in the

London. The rest are schooling in Ghana.

i. He contributes to Social Security scheme.

j. Mr. Atsu is undertaking an Advanced Statistical Analysis course in Legon at a total cost

of GH5,000.

Required

a) Determine his chargeable income for the 2022 year of assessment

b) Determine his tax liability for the 2022 year of assessment using the tax schedule below

Tax schedule for 2022 year of assessment

CHARGEABLE INCOME

RATE

TAX

CUMULATIVE CHARGEABLE INCOME

CUMULATIVE TAX

GH

%

GH

GH

GH

First 4,380

Nil

4,380

Next 1,320

5

60

5,700

66

Next 1,560

10

144

7,260

222

Next 36,000

17.5

6,300

43,260

6,522

Next 196,740

25

49,383

240,000

55,707

Exceeding 240,000

30