QUESTION THREE Mambwe has been employed by Timwe Breweries Ltd as a Sales and Marketing Director since 1 January 2019. Mambwe decided to go on early retirement during the year and his last day of employment was on 31 October 2023. He was entitled to the following benefits during his employment in the year 2023: Annul basic salary Housing allowance Medical allowance Telephone allowance Fuel allowance School fees allowance per child Mambwe has his three school going children. K720,000. 30% of annual basic pay K72,000 per annum. K30,000 per annum K3,500 per month K6,000 per annum On his retirement Mambwe received gratuity of 25% of his cumulative basic salary earned during the period of his employment with the company. He also received a long service award in form a television set valued at K15,000. The following payments and deductions were made from his gross emoluments up to the time of his retirement in the tax year 2023: Donation to a political party Donations to an approved Public Benefit Organization K6,000 K6,500 Subscriptions to a professional body relevant to his employment K5,000 NAPSA contributions PAYE Payment of medical expenses for children Required: K12,500 K68,800 K51,000 (a) Explain the meaning of the following tests used to distinguish employees from independent self-employed persons: (i) Work performance (2 marks) (ii) Engagement and dismissal (2 marks) (c) Explain the time when emoluments are deemed to be received by directors.(5 marks) (d) Calculate the final income tax payable by Mambwe for the tax year 2023. (11 marks) [Total: 20 Marks]