Petersonmenza employed by heli foundation, a charitable non- governmentaleorganization that has been issuePeterson Menza employed by Heli foundation, a charitable non-governmental organization (NGO) that has been issued with a tax exemption certificate by the commissioner of domestic taxes. He has provided the following information relating to his income for the year ended 31 December, 2015.1.Basic salary sh. 150,000 per month (PAYE sh. 36,000 per month)2.He was provided with a fully furnished house by the employer. The market rental rate for similar houses is sh. 18,000 per month. The employer deducts 3% of his basic pay towards maintenance of the house. The furniture had cost sh. 200,000 in year 2012.3.He was provided with a company car of 1900 cc, which had been purchased in year 2013 at a cost of sh. 800,000. During the year, he used out of pocket cash to fuel the car on official use for which he was reimbursed sh. 120,000.4.He contributed sh. 22,000 per month towards a registered provident fund, and a further sh. 10,000 per month towards an unregistered pension scheme. The employer contributed an equal amount to both schemes for him.5.The employer reimbursed him sh. 200,000 for medical expenses he incurred during the year. There is a medical scheme that covers all employees.6.He contributes sh. 5,000 per month to a registered home ownership savings plan (HOSP)7.During the year 2015, he was paid an entertainment allowance of sh. 6,000 per day for 20 days that he was away for an official day.8.He has a life insurance cover for self and family for which he paid premiums of sh. 440,000 per annum.9.He has a farming business which generates a net surplus of sh. 240,000 during the year.Requiredi)Taxable income for Peterson Menza for the year ended 31 December2015(7mks)ii)Tax payable (if any) on the income computed in (i) above(2mks)iii)Comment on any information not used in your computation under (i) and (ii)above.(1mk)Business
