This is taxation system of Kenya, 2017.

STION ONE Mr. Mhotcla is employed by Jamii Bank Ltd. as an accounlant. He has prescnted the following details to he used in the computation of his taxable income for the ycar ended 31 December 2017 1. He received a basic salary of Sh. 60,000 per month (PAYE Sh. 7,000). He also reoeived an overtime allowance equivalent to 2. 3. 10% of his monthly pay His cmployer paid his hospital bills averaging Sh. 4,000 per month. His employer provided him with the following A car which was acquired at a cost of Sh 300,000. This car has an engine capacity of 2000cc. A house. The employer deducted Sh. 2,500 from Mr. Mbotela's salary cvery month to cover rent for the house. . .A gardener and a night watchman. 4. Hc contributes Sh. 8,000 per month to a rcgistered pension scheme while the employer contributes an equal amount. 5. 6, For the year ended 31 December 2017, the employer provided Mr. Mhotela with tea and snacks valued at Sh. 3,000 Mr. Mbotela attended a one-day seminar and received Sh. 2,500 from his cmployer as allowances. He donated 10% ofthis amount to a local childrens home. He was nominatcd the employee of the year on 31 December 2015. This award carried a cash gift of Sh. 45,000. M. Mbotela operares a savings account with Post Bank Ltd. During the year cnded 31 Dccember 2017, the bank credited his account with Sh. 2,000 being interst on the balance in his accont. 7. 8. the month of November 2017, he received compensation from an insurance company amounting to Sh. 80,000. This was in relation lo houschold turniture destroyed by fire. On S November 2017, he started offering part-time tax consultancy services. He made a profit of Sh. 70,000 from the consultancy before dcducting operating expenses of Sh. 18,000 and Sh. 4,000 relating to the acquisition of furniture His wife, Mrs. Mbotela, operates a grocery, She made a net-profit of Sh. 50,000 after deducting the following 9. 10. 11. Sh. Rent of stall Hire of van School fecs for children Advertisement expense:s 108,000 6,000 Required: Mr. Mbotela's taxahle income for the year ended 3 Deccmber 2017 Tax payable on the taxable income computed in (i) above. STION ONE Mr. Mhotcla is employed by Jamii Bank Ltd. as an accounlant. He has prescnted the following details to he used in the computation of his taxable income for the ycar ended 31 December 2017 1. He received a basic salary of Sh. 60,000 per month (PAYE Sh. 7,000). He also reoeived an overtime allowance equivalent to 2. 3. 10% of his monthly pay His cmployer paid his hospital bills averaging Sh. 4,000 per month. His employer provided him with the following A car which was acquired at a cost of Sh 300,000. This car has an engine capacity of 2000cc. A house. The employer deducted Sh. 2,500 from Mr. Mbotela's salary cvery month to cover rent for the house. . .A gardener and a night watchman. 4. Hc contributes Sh. 8,000 per month to a rcgistered pension scheme while the employer contributes an equal amount. 5. 6, For the year ended 31 December 2017, the employer provided Mr. Mhotela with tea and snacks valued at Sh. 3,000 Mr. Mbotela attended a one-day seminar and received Sh. 2,500 from his cmployer as allowances. He donated 10% ofthis amount to a local childrens home. He was nominatcd the employee of the year on 31 December 2015. This award carried a cash gift of Sh. 45,000. M. Mbotela operares a savings account with Post Bank Ltd. During the year cnded 31 Dccember 2017, the bank credited his account with Sh. 2,000 being interst on the balance in his accont. 7. 8. the month of November 2017, he received compensation from an insurance company amounting to Sh. 80,000. This was in relation lo houschold turniture destroyed by fire. On S November 2017, he started offering part-time tax consultancy services. He made a profit of Sh. 70,000 from the consultancy before dcducting operating expenses of Sh. 18,000 and Sh. 4,000 relating to the acquisition of furniture His wife, Mrs. Mbotela, operates a grocery, She made a net-profit of Sh. 50,000 after deducting the following 9. 10. 11. Sh. Rent of stall Hire of van School fecs for children Advertisement expense:s 108,000 6,000 Required: Mr. Mbotela's taxahle income for the year ended 3 Deccmber 2017 Tax payable on the taxable income computed in (i) above