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Sir John, an amputee, was employed by MAP mining company Ltd. as a mining engineer on 1st November, 2017 on a salary scale of GH15,000

Sir John, an amputee, was employed by MAP mining company Ltd. as a mining engineer on 1st November, 2017 on a salary scale of GH15,000 5,000 GH35,000. His conditions of service entitles him to the following in 2020 year of assessment: i. A fully-furnished accommodation at the mining site. ii. Duty post allowance of 5% of basic salary iii. Professional allowance of 15% of basic salary iv. Risk allowance of GH1,500 per month v. Accountable entertainment allowance of GH3,500 per annum vi. He is provided with the following household items: soaps, drinks, toilet rolls amounting to GH500 each month. vii. Garden boy allowance of GH1,000 per quarter, paid directly to Sir John. viii. Medical allowance, GH5,000 semi-annually. ix. Two Maidservants, each on wages of GHS4,000 per annum. The amounts are paid to the maidservants directly by the company. x. Bonus of 40% of Annual Basic Salary. xi. Overtime payment of GH8,000 for the year. xii. He received the following gifts from the CEO of the company: 2 goats at a market value of GH500 each and a laptop valued at GH3,000. xiii. Watchman allowance of GH10,000 per annum, paid directly to Sir John. xiv. He is entitled to company car for both official and private use. He is also entitled to 40 gallons of fuel at GH8 each per month for which he receives cash from the company. xv. He was given a loan of GH100,000 for five years at an annual interest rate of 8%. At that time the BOG rediscount rate was 18%. xvi. He lives with two (2) wives, and four children two of whom attend Presec and the other two Aburi Girls. xvii. He also takes care of the necessities of life of his uncle aged 58 years and his aunt aged 71 years. xviii. He contributed 15% of his basic salary towards the companys Staff Provident Fund, which has been approved by the National Pensions Regulatory Authority (NPRA). He also contributes 5.5% of his basic salary towards the Social Security Fund. xix. He is currently pursuing a masters degree in project management at UGBS where he incurred GH20,000 by way of educational expenses. It is the hope of the company that the course will help improve his professional skills. 5 xx. During the year, he made some donations of GH30,000 towards church harvest and GH2,000 to Ghana Red Cross Society. Required: a. Compute Sir Johns chargeable income for 2020 year of assessment. b. Compute Sir Johns tax liability for 2020 year of assessment. c. Determine the Take Home pay of Sir John for 2020 year of assessment.

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