statutory deduction is 5% of gross earnings which National Pension scheme (NAPSA). The Napsa ceiling is K894.61 meaning the employee Will contribute 5% and employer 5% to make it 10% for submission to the Zambian Revenue Authority so K1789.22 is remitted to NAPSA meaning employee K894.61 and employer K894.61

QUESTION 1 Professor B Tembo has been a legal consultant and Advocate with DM and Partners Legal Practitioners based in Lusaka since 1 July2015. He is on a salary scale of K20 000.00 x 20-50 000.00 per annum 500 8000 SO His other entitlements are: i. Responsibility Allowance -K2000 Per month j. Professional Allowance-K500 Per month k. Overtime Allowance-K1 500 per month 5600 Prof Tembo is also provided with a fully furnished townhouse and a vehicle with fuel and a contract cellphone. He through DM and Partners contribute to NAPSA His personal income return form for the year 2018 disclosed the following: i. Part-time lecturing University of Mulungushi, Kabwe (K7000.00- NET) ii. Part-time legal consultancy for an NGO-K10 000(NET) iii. Married with four children with wife and 6 born out of wedlock (All attending top private schools abroad) iv. Life Assurance policy with Vivat Health (Annual premium- Capital sum assured K500 000.00. Annual premium. K50 000.00 v. Subscriptions to professional journals-K900 vi. American bar association and SADCLA association membership Fee-K 1000.00 Required: Determine his tax liability for the year 2018. Show all workings clearly and highlight with notes and comments necessary. TAX RATES: First K3,300 @ 0% Next K800 @25% Next K2,100 @30% Balance @37.5% [20] QUESTION 1 Professor B Tembo has been a legal consultant and Advocate with DM and Partners Legal Practitioners based in Lusaka since 1 July2015. He is on a salary scale of K20 000.00 x 20-50 000.00 per annum 500 8000 SO His other entitlements are: i. Responsibility Allowance -K2000 Per month j. Professional Allowance-K500 Per month k. Overtime Allowance-K1 500 per month 5600 Prof Tembo is also provided with a fully furnished townhouse and a vehicle with fuel and a contract cellphone. He through DM and Partners contribute to NAPSA His personal income return form for the year 2018 disclosed the following: i. Part-time lecturing University of Mulungushi, Kabwe (K7000.00- NET) ii. Part-time legal consultancy for an NGO-K10 000(NET) iii. Married with four children with wife and 6 born out of wedlock (All attending top private schools abroad) iv. Life Assurance policy with Vivat Health (Annual premium- Capital sum assured K500 000.00. Annual premium. K50 000.00 v. Subscriptions to professional journals-K900 vi. American bar association and SADCLA association membership Fee-K 1000.00 Required: Determine his tax liability for the year 2018. Show all workings clearly and highlight with notes and comments necessary. TAX RATES: First K3,300 @ 0% Next K800 @25% Next K2,100 @30% Balance @37.5% [20]