Question

In Kenya, an individual is taxed at a graduated scale rates as follows:

$\backslash$table$[[,\backslash$table$[[$Tax band per$],[$month $($Kshs$)]],\backslash$table$[[$Tax band per$],[$annum $($Kshs$)]],$Rate$],[,................24,000...,................288,000..,],[$ext$...,................8,333...,...............100,000..,25\mathrm{.}0],[$ext$,.............467,667...,...........5,612,000..,30\mathrm{.}0],[,........300,000...,........3,600,00..,],[$e$,800,,...\mathrm{.}9,600,000,]]$

The personal relief is Kshs $28,800$ per year $($Kshs $2,400$ per month$)$

Required

Calculate the annual tax payable $($net PAYE$),$ for an individual whose serves as a director in ABC limited$,$ is housed by the company in a house for which it pays Kshs $162,003$ per month. The market rate for such a house is Kshs $156,000$ per month. His taxable monthly employment income $($excluding the value of housing provided$),$ is Kshs $862,345.$ State any assumption$($s$)$ you have made in your computation.

$(15$ Marks$)$