Ican 2024 Taxation Question 1

Mr. Ola Alao works as the manager of XYZ Limited which has its office located at Ikeja, Lagos. He lived with his family in Ibafo, Ogun State, and he provided the following information in respect of his 2021 assessment year: (i) He was paid a gross monthly income of N 204,000; (ii) In addition to his salary, he was paid the following bonuses; (iii) He attended a workshop outside his station for a period of ten days and was paid a daily allowance of N45,000, to cover hotel expenses, transportation and other incidental expenses; (iv) As a senior sales staff of the establishment, he was given non – assignable luncheon vouchers to the tune of N120,000 in year 2021; (v) He was assigned an official vehicle for his exclusive use which was purchased at the cost of N8,000,000 by the company; (vi) He enjoyed the services of a night guard and a domestic staff fully paid for by the company. Domestic servant (staff of the company) was paid N360,000 per annum and the night guard received N480,000 per annum but was hired from a company offering security services; (vii) He was transferred to the Port-Harcourt office on November 1, 2021 and was paid the sum of N2,000,000 for the purpose of relocating to his new station; (viii) He lived in a rented apartment fully paid for by company for N600,000 per annum; (ix) He contributes to an approved pension scheme at the rate of 8% of his salary and has a life insurance policy with a capital sum assured of N5,000,000, paying a premium of N20,000 per month; (x) He subscribed to National health insurance and National housing fund schemes making contributions of N35,000 and N40,000, respectively on a monthly basis.