With reference to Pay As You Earn (PAYE) system:
(a) Write explanatory notes on the following:
(i) Taxation of pension income for a retired employee; ( 4 marks)
(ii) Allowable deductions for contributions to a registered pension scheme;
( 2 marks)
(iii) Procedure for the end of year Return; ( 6 marks)
(b) Give a list of statutory deductions. ( 4 marks)
(c) Give a list of three omissions which amount to failure to comply with PAYE
regulations and indicate the penalty there on. ( 4 marks)