PAYE of Sh.130,000 was deducted from Matatas pay but due to an oversight in the part of the Chief Accountant the tax was not paid to the Collector of Income tax. His wifes PAYE was Sh.180,000 in the year.

Required:

(i)Compute total income chargeable to tax and show the tax payable thereon.(15 marks)

(ii)Comment on any information not used for computing taxable income above.(2 marks)

(iii)Is Matata to blame for failure of the company to pay his PAYE? Explain.(2 marks)

(Total: 22 marks)

(Total: 18 marks)