90.2K

Verified Solution

Link Copied!

a. Constable Joe is married with seven children, five of them attending first and second cycle institutions in Ghana he provides the following information for 2014 Ghc c Salary 3,600,000 Overtime and other allowances 300,000 Dividend (net) 81,000 10% on tax dividend 9,000 Social Security Employee 5% Employer 12.5% Life insurance policies : Cover Sum Assured Premiums Own life C2,500,000 C 300,000 Own life 1,250,000 090,000 Wifes life 2,000,000 175,000 Employer provides the following: i. Motor car and fuel for both official and private use ii. Accommodation and use of company Gas cooker, deepfreezer, and refigerator. iii. Joe pays 7.5% of his basic salary to his employer as rent. iv. His employers deducted PAYE of C460,000 cedis. You are required to calculate constable Joe's tax liability for the year. EV (12) b. Ghana has of late signed a number of double taxation Agreements with some countries. The concerns people are raising is whether the country is deriving any benefits from these agreements. As a business tax consultant, you have been requested to deliver a paper to critically analyze the advantages and disadvantages of entering into double taxation Mr Eben Annan a computer scientist used to live in Durban, South Africa but he is now settled in Kumasi Ghana. The following information is contained in his tax returns relating to 2013 year of assessment. Mr Annan is married and has four children who, are attending recognized-schools in Accra and Kumasi. He remits GHS 100 per month to his aged father and mother who live in the village. Income earned in Ghana: Business income GHS20,000 Director fee (net) GHS1,500 Bank Interest GHS3,000 Mr Eben Annan bought some shares in a mining company in South Africa when he was working there. During the 2013 year of assessment, he earned gross dividend amounting GHS6,000 from South Africa. Tax deducted from this income was GHS900 and he received the net amount in Ghana in 2013. There exists a double taxation agreement between Ghana and South Africa. You are required to determine: a) foreign tax credit relief to be granted to Mr Eben Annan. AN(9) b) His net tax liability for 2013 year of assessment. AP(8) c) Discuss the role the finance minister plays in a tax system focusing on statutory roles. AP(8) [Total: 25] a. Constable Joe is married with seven children, five of them attending first and second cycle institutions in Ghana he provides the following information for 2014 Ghc c Salary 3,600,000 Overtime and other allowances 300,000 Dividend (net) 81,000 10% on tax dividend 9,000 Social Security Employee 5% Employer 12.5% Life insurance policies : Cover Sum Assured Premiums Own life C2,500,000 C 300,000 Own life 1,250,000 090,000 Wifes life 2,000,000 175,000 Employer provides the following: i. Motor car and fuel for both official and private use ii. Accommodation and use of company Gas cooker, deepfreezer, and refigerator. iii. Joe pays 7.5% of his basic salary to his employer as rent. iv. His employers deducted PAYE of C460,000 cedis. You are required to calculate constable Joe's tax liability for the year. EV (12) b. Ghana has of late signed a number of double taxation Agreements with some countries. The concerns people are raising is whether the country is deriving any benefits from these agreements. As a business tax consultant, you have been requested to deliver a paper to critically analyze the advantages and disadvantages of entering into double taxation Mr Eben Annan a computer scientist used to live in Durban, South Africa but he is now settled in Kumasi Ghana. The following information is contained in his tax returns relating to 2013 year of assessment. Mr Annan is married and has four children who, are attending recognized-schools in Accra and Kumasi. He remits GHS 100 per month to his aged father and mother who live in the village. Income earned in Ghana: Business income GHS20,000 Director fee (net) GHS1,500 Bank Interest GHS3,000 Mr Eben Annan bought some shares in a mining company in South Africa when he was working there. During the 2013 year of assessment, he earned gross dividend amounting GHS6,000 from South Africa. Tax deducted from this income was GHS900 and he received the net amount in Ghana in 2013. There exists a double taxation agreement between Ghana and South Africa. You are required to determine: a) foreign tax credit relief to be granted to Mr Eben Annan. AN(9) b) His net tax liability for 2013 year of assessment. AP(8) c) Discuss the role the finance minister plays in a tax system focusing on statutory roles. AP(8) [Total: 25]

Answer & Explanation Solved by verified expert

See Answer