Mr. Joe has two offers for employment in two engineering firms. The
details of the two offers are as follows:

Firm A
Sh.
Firm B
Sh.
Basic pay per month
Benefits:
Housing (market rent) p.m.
Car 1600cc (cost)
45,000
50,000
600,000
41,000
60,000
600,000
Pension scheme which is registered by commissioner of income tax both
employer and employee contribute 5% of the basic salary for pension scheme.
Required:
What offer would you recommend to Mr. Joe? Explain the reasons for
your recommendation.
(16 marks)
(b) What is the tax treatment of school fees?
( 4 marks)