1. **State the problem:** Calculate Elio Meta's taxable income for the year ended 31 December 2022 based on multiple sources of income and benefits. 2. **Calculate total annual basic salary:** Basic salary per month = Sh.102,500 Annual basic salary = $102,500 \times 12 = 1,230,000$ 3. **Add gifts received:** Gifts during the year = Sh.60,000 4. **Calculate car benefits:** - Car leased at Sh.30,000 per month: $30,000 \times 12 = 360,000$ - Fuel allowance per month: $12,500 \times 12 = 150,000$ - Total car benefits = $360,000 + 150,000 = 510,000$ 5. **Calculate house benefits:** - Rent value of house per month = Sh.50,000 - Annual rent = $50,000 \times 12 = 600,000$ - Furniture cost = Sh.240,000 (assumed annual benefit) - Total housing benefits = $600,000 + 240,000 = 840,000$ 6. **Life insurance premium paid by employer:** Annual premium = Sh.72,000 7. **Per Diem payments for official duty (taxable):** - Days out of station = 5 - Per Diem per day = Sh.5,750 - Total Per Diem = $5 \times 5,750 = 28,750$ 8. **Medical bills paid by employer (taxable):** Medical bills settled = Sh.675,000 9. **Pension contributions:** - Employee contribution = $22,500 \times 12 = 270,000$ - Employer contribution = $22,500 \times 12 = 270,000$ - Only employee contribution is deductible. 10. **Servants' salaries paid by employer:** - Cook monthly salary = Sh.9,000 - Security guard monthly salary = Sh.12,000 - Annual salaries = $(9,000 + 12,000) \times 12 = 252,000$ 11. **School fees paid:** Sh.240,000 (not debited in company books but taxable as emolument) 12. **Calculate total taxable income:** $$\text{Taxable income} = \text{Basic salary} + \text{Gifts} + \text{Car benefits} + \text{Housing benefits} + \text{Life insurance} + \text{Per Diem} + \text{Medical bills} + \text{Servants' salaries} + \text{School fees} - \text{Employee pension contribution}$$ $$= 1,230,000 + 60,000 + 510,000 + 840,000 + 72,000 + 28,750 + 675,000 + 252,000 + 240,000 - 270,000$$ $$= 3,637,750$$ 13. **Final answer:** Elio Meta's taxable income for the year ended 31 December 2022 is Sh.3,637,750.