This is a group assignment that should be done on the same groups given to you and it

should be submitted on 7th May, 2024 (Tomorrow) before 09:20 AM.

QUESTION
The table below shows the incomes of three employees of Agana Ltd in 2022 year of assessment.
Adam Aseda Ayeyie
TZS TZS TZS
Basic Salary 120,000,000 160,000,000 180,000,000
Transport allowance (5% of basic salary)
Lunch allowance (10% of basic salary)
Fuel allowance (15% of basic salary)
Additional Information:
Besides the cash emoluments stated above, the employees received the following benefits from
the employer in the year 2022:
a) The employer had provided Adam with a house within the area where he lived up to 30 June
2022. The market rental value of the house was Tshs.2,500,000 per month and he contribute
Tshs.1,000,000 each month towards the rent paid. The employer claim Tshs.2,000,000 each
month for maintenance of the house in its books.
b) Ayeyie received a loan of Tshs.100,000,000 at rate of 10% payable within 15months. This loan
is in addition to an outstanding loan of Tshs.10,000,000 with the same terms and conditions
during the previous twelve months. (Assume that the statutory rate is 20% per annum).
c) The company provides Adam with an automobile with 2500cc and he is allowed to use the
vehicle for personal activities. The car was purchased by the company in 2017 for
Tshs.45,200,000 and the company pays all of his operating costs which, during 2019 and 2022
totaled Tshs.11,340,000 and Tshs.12,150,000 respectively. During 2022, Adam has used the
car for personal use for only 9 months.
d) The company has a policy of providing medical insurance services to all its employees, for the
year 2022, all three employees enjoyed medical insurance amounting to 8,000,000 each in
respect of themselves, their spouse and their children’s. Adam, Aseda and Ayeyie has 5, 4 and
6 children respectively.
e) Retirement contributions to all employees was made to an approved social security fund where
the employer contributes 15% and the employee 5% of the basic monthly salary.
f) During the year 2022, Adam received dividends of TZS.1,500,000 from shares invested in a
nonresident corporation many years ago.
g) Aseda received accumulated rent of TZS.8,000,000 from one of her tenants in her residential
premises situated in the nearby area. This rent was outstanding in respect of eight months of
the year 2021.
h) During the same year 2022, Ayeyie received TZS.2,500,000 as interest from the money
deposited in a private foreign bank. This interest was computed on the basis of bank balance
of TZS.125,000,000.
i) During the year 2022, reimbursement of Tshs.600,000 was made to Adam with respect of
personal expenditures incurred by him on a business trip to Dar es Salaam.
j) Ayeyie had a five years employment contract since January 2020 with the company. On 31st
December 2022, her contract was terminated by the employer because she was suspected of
being involved in illegal activities. She was paid a lump sum compensation of

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 Tshs.400,000,000 on termination of her contract of employment. Her contract provided for
payment of compensation on termination of employment.
k) During the year 2022, Aseda traveled to UAE for an annual leave where she worked on a part
time employment on Emirates Airways for one month for the following remuneration: Wages
amounting to Tshs.400,000 per day for 20 days; Upkeep allowance of Tshs.2,000,000 for the
period and free accommodation with the market value of Tshs.3,000,000.
l) Contribution to Education Fund of Tshs.200,000 every month has been made by Ayeyie. This
contribution has never been applied to the commissioner general for the deduction.

Required:
a) Calculate the Total chargeable income of each employee for the year 2022.
b) What is Aseda’s foreign source of income from employment for year 2022?
c) Establish Ayeyie’s taxable termination benefit and state when will it be taxable.

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