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Question One: Mr. Asaba Peter is employed as a Secretary Manager with Bunyoro Growers Co-operative Union. He is paid a basic monthly salary of Shs. 1,200,000/=. He also uses a Union Pajero valued at Shs. 30,000,000/= for his official duties. At the beginning of the year, Mr. Asaba Peter obtained a loan of Shs. 10,000,000/= from the Union at an interest rate of 5% p.a. The Union provides 30% of the meals for Mr. Asaba Peter's domestic use. He forfeited his leave during the year and was paid 50% of basic salary as compensation. He also stays in a Union house which could fetch rent worth Shs. 2,500,000/= p.a. Mr. Asaba Peter uses a car twice a week for his private purposes and pays a monthly token of Shs. 50,000/= for the benefit. The discount rate for the period is 10%. Mr. Asaba Peter is also entitled to the following benefits Additional Information. - Mr. Asaba Peter is entitled to monthly refund of Shs. 400,000/= for expenses incurred while on official duties. - The Union pledged to pay school fees for Mr. Asaba Peter's son who is doing a diploma in co-op \& business administration at Uganda Co-operative College Kigumba and accordingly refunded him Shs. 1,000,000/= which he had earlier paid. - Mr. Asaba Peter employs a house helper who he pays Shs. 300,000/= per month. Of this 50% is paid by the Union. - Monthly top-up allowance to Mr. Asaba Peter is Shs. 100,000/= - Included in medical allowance is 40% refund for medical expenses. - Balance of the meals is provided in the Union canteen and is open to all workers. - The office sold two computers to Mr. Asaba Peter for Shs. 350,000/=. Each computer is worth Shs. 200,000/= - The Union offered Mr. Asaba Peter an old office desk worth Shs. 9,800/= for free. - Due to his hard work, the Union paid Mr. Asaba Peter a bonus of Shs. 500,000/= at the end of the year. - Mr. Asaba Peter contributes Shs. 50,000/= per month towards electricity Required. a. Compute Mr. Asaba Peter's annual taxable income. (8 Marks) b. Compute Mr. Asaba Peter's tax liability, assuming; i). he is a resident (3 Marks) ii). He is a non-resident

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