Mr. Kiplimo is finalizing his tax affairs for the year of income 2005. He and his wifehad the following income and transactions for 2005:1. Mr. Kiplimo’s income:He has paid Sh.52,000 Value Added Tax on all his purchases for the yearHe was an employee of Bomet Tea Limited and was paid an annual salary ofSh.600,000 (P.A.Y.E deducted was Sh.142,500).Pension contribution to a registered scheme were Sh.100,000 by his employerand Sh.50,000 from his pay.Dividend received was Sh.40,000 gross. (Withholding tax was deducted asappropriate).Gross interest received was sh.18,000 of which Sh.10,000 was from Post OfficeSavings Bank.2. Mr. Kplimo’s expenses for the year:Personal accident insurance premium of Sh.9,000 paid to American LifeInsurance CompanyLife insurance premium on self life of Sh.15,000 paid to world Life UnionInsurance of the United Kingdom.Alimony to his first wife of Sh.6,000 per monthMortgage interest of Sh.62,000 on his house where he stays with his wife andchildren. The mortgage is from Savings and Loan Kenya Limited.3. Mrs. Kiplimo’s income:She was an employee of Macadamia Limited who paid her a salary of Sh.25,000per month. P.A.Y.E of Sh.7,800 was deducted per month from her salary.She made a profit of Sh.900,000 from the sale of a plot in Nairobi inheritedfrom her father.She used the money to start a private clinic. She is a registered clinical officer.In the year of income 1997, she made an assessed loss of Sh.240,000.Required:(a) What is a registered pension scheme and what are its implications?( 5 marks)(b) Compute the income chargeable to tax of Mr. Kiplimo for the year 2005.( 8 marks)(c) Calculate the tax payable (repayable) by him for 2005.( 4 marks)(d) Identify and comment on any information you have not used in calculations in (b) and (c) above. ( 5 marks)