Mr. Ayub Mate is a tax consultant working with Malipo and Associates a firm of certified public

accountants

The following information has been availed to you in relation to the income and benefits received

by Mr.

Mate for the year ended 31

st

December 2016.

1.

Basic salary sh.80,000 per month PAYE Sh. 18,000 per month)

2.

He lived in a house which was leased by the firm from one of the partners at a monthly

rent of sh. 45,000.

The market rental value of the house was estimated at Sh. 60,000 per

month.

The house was fully furnished by the firm at a cost of Sh. 200,000 and connection

to a telephone line whose average bill per month was Sh.6,000