Question 2 A. Mr. Think Hard was employed by What a Question Ltd on Ist August 2011 on salary scale of GH5,500 x 600-9,500 as the financial controller of the company. He is entitled to a company car and fuel for both official and private use. He is provided with the following as part of his conditions of service for 2015 Year of Assessment i) Well-furnished rented flat by his employers in respect of which he pays GH150 per month as rent by way of deductions at source. ii) Watchman allowance of GH200 per annum, paid directly to Mr. Think Hard. iii) Risk allowance of GH925 per annum iv) Leave allowance of GH600 per annum v) Garden boy allowance of GH 150 per quarter paid directly to Mr. Think Hard. vi) Medical allowance of GH700 per annum vii) Meals allowance of GH55 per month viii) Two maidservants each on wages of GH250 per annum. The amount is paid to the maid servants directly by the company. ix) Bonus of 40% on annual basic salary x) Duty post allowance of GH150 per month. xi) He has Life Assurance Policies with EIC Itd. Below are the details: Policy Sum Assured (GH) Annual Premium (GHC) A 4,000 420 B 2,800 240 16,000 1,650 D 5.000 525 He is a divorcee with ten children depending on him; four of whom are in SHS in Acera, and the rest are gainfully employed; he caters for 3 of his aged relatives. He contributes 7% of his salary towards the company's Provident Fund which has been approved by the National Pension Authority, he also contributes 5.5% of salary to the SSNIT. Required: Compute his Chargeable Income and Tax Liabilities for 2015 Year of Assessment Question 2 A. Mr. Think Hard was employed by What a Question Ltd on Ist August 2011 on salary scale of GH5,500 x 600-9,500 as the financial controller of the company. He is entitled to a company car and fuel for both official and private use. He is provided with the following as part of his conditions of service for 2015 Year of Assessment i) Well-furnished rented flat by his employers in respect of which he pays GH150 per month as rent by way of deductions at source. ii) Watchman allowance of GH200 per annum, paid directly to Mr. Think Hard. iii) Risk allowance of GH925 per annum iv) Leave allowance of GH600 per annum v) Garden boy allowance of GH 150 per quarter paid directly to Mr. Think Hard. vi) Medical allowance of GH700 per annum vii) Meals allowance of GH55 per month viii) Two maidservants each on wages of GH250 per annum. The amount is paid to the maid servants directly by the company. ix) Bonus of 40% on annual basic salary x) Duty post allowance of GH150 per month. xi) He has Life Assurance Policies with EIC Itd. Below are the details: Policy Sum Assured (GH) Annual Premium (GHC) A 4,000 420 B 2,800 240 16,000 1,650 D 5.000 525 He is a divorcee with ten children depending on him; four of whom are in SHS in Acera, and the rest are gainfully employed; he caters for 3 of his aged relatives. He contributes 7% of his salary towards the company's Provident Fund which has been approved by the National Pension Authority, he also contributes 5.5% of salary to the SSNIT. Required: Compute his Chargeable Income and Tax Liabilities for 2015 Year of Assessment
