Required: (i) Determine his chargeable income and tax liability for the year of assessment 2022.
Required: (i) Determine his chargeable income and tax liability for the year of assessment 2022.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:6. Mr. Thomas Adade is a 56-year-old widower who has three daughters who are all gainfully employed. He
was employed as a Operations Manager of Kwatson Limited on September 1, 2019, on a salary scale of
GHC152,000 x GHC6,000-GHC200,000.
He is also entitled to the following: Fully furnished accommodation, a vehicle with fuel and driver,
Unaccountable entertainment allowance of GHC2,500 per month, Inconvenience allowance of
GHC2,120 per month and Medical allowance of GHC 7,800 per annum.
The following are also applicable to him:
a.
7.5% of his basic salary as duty post allowance.
b. 15% of his basic salary as a professional allowance.
c. 2.5% of his basic salary as risk allowance.
d. He was provided with the following household items: soap, gas, and toilet rolls amounting to GHC
1,200 each month.
e. Annual bonus of 25% of annual basic salary allowance
f.
Mr. Adade took a loan of GHC300,000 from his employer at an interest rate of 5% per annum simple
interest on 1/1/2023 payable over two years. The Bank of Ghana's statutory interest rate is 25% per
annum.
g. He contributes 5.5% of his basic salary towards the Social Security Fund and 8% to the staff provident
fund.
h. He is married with 5 children attending approved educational institutions in Ghana
i. Mr. Adade takes care off his aged uncle.
j. During the year under review, Mr. Adade made donation of GHS5,000 to support the Ghana black stars
and also paid mortgage interest of GHS3,500
Required:
(i)
Determine his chargeable income and tax liability for the year of assessment 2022.
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