Mr. Frempong, an amputee and a widower with four children all of whom are attending secondary schools in Ghana.

He was employed by Hans mining company as a mining engineer on 1^st September, 2000 on a salary scale of GH 120,000 x GH6,000 - GH 150,000.

His service conditions include the following allowances:

i) 7.5% of his salary as duty rent allowance.

ii) 15% as responsibility allowance

iii) 2.5% as risk allowance

iv) accountable entertainment allowance of GH 2,000 per annum

v) He was provided with fully furnished accommodation at the mining site

vi) He was provided with vehicle with fuel for both official and private use

vii) He contributed 5% of his salary towards the social security funds

viii) He engaged in part-time teaching at Tarkwa school of mines and was paid a total of 20,400 net of 15% with holding tax in 2007 year of assessment

ix) He earned interest of GH19,225 on his investment in Government Treasury Bills and savings with unique trust financial services.

x) He also engaged in trading activities which earned him an agreed chargeable income with the GRA of GH 28,125 in 2007 year of assessment. He paid GH4,000 tax to GRA on his trading activities for 2007 year of assessment.

x) His employers deducted a tax of GH24,855 from his salary and paid to GRA for 2007 year of assessment.

Required

Compute Mr. Frempongs Tax Liability for 2007 year of assessment

Annual Individual Tax Rate Scheme (2007)

INCOME RATE AMOUNT

GH GH

First 2,400 nil -

Next 2,400 5% 120

Next 12,000 10% 1,200

Next 79,200 17.5% 13,860

Exceeding 96,000 25%