Question 1 (10 Marks)

Mr Alfred Johannes is a sales manager at Alfred Group of Companies Ltd (AGC) a Namibian incorporatedcompany. During the year, he have been earning a salary of N$10 000 per month and the last twomonths it was N$12 000 due to a promotion that happened. Because of the good performance of AGC

under a very severe economic condition, he received a bonus of N$8 000.

Alfred received additional income of the leave pay cash pay-out of N$2 000 and he was allowed to usethe company car (incl. all costs) with a cost of N$80 000. Since he moved from the Ongwediva branch tothe Windhoek branch, he got a free 2-room house in Whk, for an entertainment allowance of N$24 000

and rent from a second house N$36 000.

Alfred being in the city led him to incur expenses higher than ever, and amongst that was pensioncontribution of N$1000 monthly, donation to charity of 10% of his salary, insurance premiums ofN$2 000 and expenses on second house of N$12 000.

REQUIRED

Calculate the taxable income and tax liability for Mr Alfred Johannes.