Question One (25 marks)

The following information relates to the details of earning during the year ended 30 June 2022 for Khalid who is employed as Production Manager at Bolux Group of Companies in Gaborone. P Basic salary Bonus Water and electricity paid by company Tuition fees paid by company Medical aid contribution by company Wifi subscription paid by company Encashment of leave days Company contribution to approved pension scheme 420,000 48,500 13,200 75,300 36,000 9,600 35,000 63,000 Additional information

1. Khalid contributes 10% of her basic salary to an approved annuity fund

2. The company provides Khalid with accommodation and deducted P48,000 for rent, the value of the house is P750,000.

3. Khalid is provided with a company car worth P415,000

4. During the year Khalid was reimbursed P15,000 for her holiday trips.

5. Khalid received P65,000 relating to a labour dispute from her previous employer.

6. The company deducted PAYE of P112,000

Required

a) Compute Khalids taxable income for the year ended 30 June 2022 (12 marks)

b) Calculate Khalids tax payable /refundable for the year ended 30 June 2022. (3 marks)

c) List any four remuneration subject to PAYE. (2 marks)

d) State any three sources of tax law and practice. (3 marks)

e) Explain six badges of trade giving example of each. (5 marks)