Mr. Richard Good Man was employed by the State housing Corporation on the

st

1

September, 2016. His salary as at the time of employment was Ghc24,000 pa.

He was due for increment on 1 salary.

st

September, 2017 of Ghc27,600 on the annual

He had the following benefits from employment;

i. Car with fuel provided by the employers.

ii. Furnished accommodation provided by the employers

iii. Rent allowance of Ghc400 a month.

iv. Professional allowance of 25% of basic salary.

v. Responsibility allowance of Ghc250 per month.

vi. He is registered with SSNIT.

The following private matters are also relevant;

a) He is married with four children at senior high school.

b) He remits his aged father on regular basis.

Required:

Determine for 2017 his;

a) Total cash emolument

b) Assessable Income

c) Chargeable income

d) Tax liability.

COMPUTATION TAX FOR 2017 ASSESSMENT YEAR

Chargeable income:

GHC 10,152, 115

Amount

Cummulative

Tax Rate

Tax Liability

Tax there on:

GHC

GHC

GHC

GHC

First

2,592

2,592

nil

-

Next 1,296

1,296

3,888

5%

64.80

Next 1,812

1,812

5,700

10%

181.20

Next 33,180

33,180

38,880

17.5%

5,806.50

Final 10,113,235

10,113,235

10,152,115

25%

2,528,308.75

Total Tax Lability

2,534,361.25