Question Tag: Corporate Taxation

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STP – Feb 2018 – L2 – Q4- Taxation and Operating Strategies

Calculate Honson Plc's tax liability for Kumasi/Accra, advise on Nsawam, and discuss non-tax factors for facility location.

Question

Honson Pic, a UK-based manufacturing company, is planning to build a new processing facility in Ghana. The Chief Executive Officer in a meeting with Management needs to decide whether to cite the facility in Accra or in Kumasi. Market intelligence has no preference for citing the facility either in Kumasi or Accra since information gathered indicate that business activities would largely be same in Kumasi and Accra for the next 10 years.

The following forecast information is relevant for the decision-making process being considered by management.

Kumasi	Accra	GH¢	GH¢

Required: i. Calculate Hamson Plc’s income tax liability for each proposed location for the first year. ii. Would you advise Hamson Plc to consider citing the facility in Nsawam, taking into consideration the close proximity of Nsawam to Accra? iii. Discuss three (3) non-tax factors that Hamson UK Plc may consider in the decision-making process to locate the facility either in Kumasi, Accra or elsewhere in the country.

b). With reference to the Income Tax Act, 2015 (Act 896) explain the following: i. Private Ruling issued by the Commissioner-General: (2 marks) ii. Conditions under which a Private Ruling will be binding on the Commissioner-General and on the person to whom the Private Ruling is issued.

Answer

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Tags: Corporate Taxation, Income Tax, Location Decision, Non-Tax Factors, Tax computation, Tax Incentives
Level: Level 2

Topic: Taxation and Operating Strategies in Business
Series: FEBRUARY 2018

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

Question

The profit and loss account of Jamaa Mining Company Ltd for the years ended December 2008 and 2009 are as tabled below:

	Year Ended 31 December (all amounts in ‘000)
	2009 GHC	2008 GHC
Turnover	309,000	430,000
Cost of Sales	(164,000)
Gross Profit	145,000
General and Admin Exp	(100,000)
Operating Profit	45,000
Other Income	5,300
Net Profit before tax	50,300
Income Tax provision	12,575
Transfer to Income Surplus	37,725
Income Surplus Account
Balance brought forward	46,945
Transfer from profit and loss account	9,220
Surplus carried forward	46,945

Notes:
2. Turnover is made up as follows
For year

	2009	2008
Collected for year but included in prior year a/c	291,000
Interest income received for 18 months	0	18,000
	309,000

Cost of sales includes:

	2009	2008
Withholding taxes paid	1,500	1,000
VAT unclaimed	6,000	8,000
Depreciation	43,000	25,000

4a. Gen and Admin expenses includes

	2009	2008
Rent prepaid of	3,000
Rent outstanding	500	500

4b. Includes unrealized foreign exchange gain of but realized in 2009

	2009	2008
	2,000	2,000

The GRA has agreed a capital allowance of GHC20,000 for year 2009 and GHC15,000 for year 2008.

Required:
Please advise management of Jamaa Mining Company Ltd on the tax due to the GRA for the years 2009 and 2008.

Answer

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Tags: Capital Allowance, Corporate Taxation, Mining Company, Tax computation, Taxable Profit
Level: Level 3

Topic: Taxation and Operating Strategies in Business
Series: AUG 2012

AT – Mar 2025 – L3 – Q5 – Transfer Pricing

Prepare a functional analysis for a multinational group's entities from a transfer pricing perspective.

Question

a) The global mobile technology industry is rapidly growing and Amega Cell LTD (AMC), has established itself as a leading Multinational Entity (MNE) in this industry. The AMC group is made up of entities involved in the manufacture, distribution and sale of media and communications processors (MCPs) that deliver advanced technologies and unmatched performance to desktop, mobile and professional systems.

Sarpeiman Technologies LTD (STL), in country A is responsible for conducting research and development, creating new MCPs for use in the telecommunication and mobile technology industry, as well as improvements in the design of MCPs. STL employs a number of highly skilled technical staff, including qualified software and electronic engineers. All of the AMC group’s intellectual property is legally owned by STL.

Resident in Country B is STL-Sub1, a wholly owned subsidiary of STL. STL-Sub1 is the entity in charge of manufacturing all of AMC’s products, making use of the know-how and intellectual property of STL. STL-Sub1 makes royalty payments to STL for the use of know-how in the manufacturing process for the MCPs. STL-Sub1 sells finished products to STL-Sub2 and STL-Sub3.

Resident in Country C is STL-Sub2, an entity which purchases finished goods from STL-Sub1 which it then distributes to end customers in the Country C. STL-Sub2 makes royalty payments to STL for use of the intellectual property attached to the products it sells to end customers.

Resident in Country D is STL-Sub3, an entity which purchases finished goods from STL-Sub1, which it then distributes to end customers in Country D. STL-Sub3 makes royalty payments to STL for the use of the intellectual property attached to the products it sells to end customers.

Each distributor entity within the group has an office, and employs highly-skilled staff involved in activities including administration, procurement, marketing and sales. Marketing and sales staff employed in this industry need to possess strong technical knowledge and communicate this to potential customers.

Required:

From a transfer pricing perspective, prepare a functional analysis of the parent company, indicating the entity characterisation for each group entity.

b) Chariston LTD, a US based company intends investing in Ghana for the first time. In the evaluation of the acquisition proposal, the following options are offered:

i) To acquire 50%

ii) To acquire 51%

The Ghanaian company identified as the target is into ceramic manufacturing and is located at Adukrom, a district capital in the Eastern Region of Ghana.

Required:

With practical illustrations, explain what Chariston LTD stands to benefit from both acquisition and also the implication for holding either option.

Answer

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Tags: Corporate Taxation, Ghana tax law, Mergers and Acquisitions, Ownership Change, Tax Incentives
Level: Level 3

Topic: Taxation of Mergers and Acquisitions
Series: MAR 2025

AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses

Calculation of tax liabilities under the Mining Act and an explanation of tax neutralities with applications to policy issues.

Question

Udi Nigeria Limited is a mining company which was established ten years ago. The company makes up its accounts to December 31 of every year. The Managing Director, who is an engineer, while having a chat with his former colleagues in the university during the week, heard for the first time, the concept of tax neutralities. He wondered how tax could be neutral.

On getting to the office the following week, he requested further information on tax neutralities from the accountant, but based on his personal opinion, the accountant’s response was not convincing enough.

The company is in the process of filing its annual returns for the year ended December 31, 2021, to the tax authorities. The Managing Director has directed the Financial Accountant to forward the following reports to you (being the company’s Tax Consultant) in respect of the company’s operational activities for the year:

Operational Results:

Description	N’000
Gross Turnover	125,490
Salaries and Wages	25,900
Depreciation of Mining Equipment	15,400
Transport and Traveling	2,100
Repairs and Maintenance	3,700
Allowance for Bad Debts	6,200
Electricity and Other Utilities	4,660
Legal and Professional Fees	4,850
Certified Exploration Expenditure	4,500
Administrative Expenses	1,450
Development and Processing Expenditure	2,500
Miscellaneous Expenses	3,420
Total Deductibles	74,680
Net Profit	50,810

Additional Information:

Repairs and maintenance included an amount of N1,500,000, being cost of fittings incurred at the operational site.
Capital allowances computed:
- Brought forward: N750,000
- Current year (excluding current year capital expenditure): N12,200,000
- Total: N12,950,000

Required:

As the company’s Tax Consultant, you are to prepare a report to the Managing Director of Udi Nigeria Limited, which will:

a. Show the tax liabilities payable by the company for the relevant assessment year in line with the provisions of Nigerian Minerals and Mining Act 2007 (as amended). (9 Marks)

b. Explain the concept of tax neutralities and its applications to specific policy issues. (6 Marks)

Answer

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Tags: Capital allowances, Corporate Taxation, Mineral Resources, Mining Taxation, Nigerian Tax System, Policy Implications, Tax Compliance, Tax Neutrality
Level: Level 3

Topic: Taxation of Specialized Businesses
Series: NOV 2023

AT – Nov 2023 – L3 – SC – Q5 – Tax Administration and Dispute Resolution

Steps and objectives in handling a tax audit with FIRS and the required documentation.

Question

Zola Nigeria Limited has been in business for several years, preparing its accounts to December 31 of every year. Prior to the last two years, the company had a very good relationship with the Federal Inland Revenue Service (FIRS) as far as prompt filing of annual tax returns and payment of tax liabilities are concerned. The company was, however, fined for late filing of returns in the last financial year ended December 31, 2020.

In compliance with the provisions of the Companies Income Tax Act Cap C21 LFN 2004 (as amended), the company filed its annual returns for the 2022 assessment year (year ended December 31, 2021) within the statutory period. Payment of tax due was also made.

The review done by the tax officials at the FIRS on the tax returns filed by the company necessitated the request for additional relevant documents to authenticate some items of expenditure and capital allowances claimed. The FIRS subsequently wrote a letter to the company for the submission of the documents within two weeks of the receipt of the letter. The receipt of the letter was acknowledged by the company, but it, however, failed to forward the required documents to the tax authorities. A reminder was sent to the company four weeks after the first letter was written, yet it failed to respond to the request made.

The Managing Director of the company has just received a letter from the tax office that a team of tax inspectors will be visiting the company in a fortnight to conduct a tax audit.

The company has approached your firm of chartered accountants to assist with advice on how the company should handle the forthcoming tax audit.

Required:

Your Principal Partner has directed you, as a newly employed Audit Senior, to handle the engagement and expects you to prepare a report for his review before sending the same to the client. The report should address the following:

a. Objectives of tax audits (5 Marks)

b. Stages in a typical tax audit process (4 Marks)

c. Schedule of requirements for FIRS tax audit (6 Marks)

Answer

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Tags: Audit Process, Audit Stages, Corporate Taxation, Dispute Resolution, Financial Reporting, FIRS Requirements, Nigerian Tax System, Tax Audit, Tax Compliance
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: NOV 2023

AT – Nov 2017 – L3 – Q5 – Tax Administration and Dispute Resolution

Outline objection and appeal procedures for FIRS additional assessment.

Question

Papa Ejima Limited, a manufacturing company, filed tax returns for the 2014 Assessment Year. The Federal Inland Revenue Service (FIRS) issued additional assessments totaling N360,000 for Value Added Tax (VAT) and N3,050,000 for Withholding Tax (WHT). The Managing Director disputes this assessment, asserting the accuracy of the company’s tax filings.

The records of the company for the Accounting Year ended December 31, 2013 showed:

Description	Amount (N)
Revenue	187,500,000
Cost of sales	(102,500,000)
Gross Profit	85,000,000
Other income	31,250,000
Operating expenses	(57,250,000)
Interest and similar charges	(3,200,000)
Profit before tax	55,800,000
Taxation	(6,250,000)
Profit after tax	49,550,000
Dividend	(38,500,000)
Retained profit for the year	11,050,000

Other relevant information includes:

Revenue:
- Export sales: N58,500,000
- Local sales: N129,000,000
Cost of sales:
- Opening inventory (VAT inclusive): N22,800,000
- Closing stock (VAT inclusive): N37,150,000
- Purchase of raw material: N90,600,000
- Freight charges: N18,700,000
- Other direct materials: N27,550,000
Other income:
- Foreign exchange gain: N4,800,000
- Profit on sale of Non-current assets (sales proceeds is N21.5m): N8,850,000
- Management fees from subsidiary companies: N17,600,000
Operating expenses:
- Office rent: N18,000,000
- Audit fees: N4,000,000
- Consultancy fees to ZXY Ltd: N11,000,000
- Directors’ fees: N7,500,000
- Other expenses: N16,750,000
Additional details:
- The company purchased Non-Current Assets (VAT inclusive): N84,000,000
- VAT remitted to FIRS during the year: N1,976,235
- WHT remitted to FIRS during the year: N6,650,000

Required:
As the tax consultant for the company, prepare a memo to advise the Managing Director on the appropriate objection and appeal procedures available to the company under the tax regulations.

(Total 15 Marks)

Answer

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Tags: Corporate Taxation, FIRS, Objection Procedures, Tax Appeal, Tax Dispute, VAT, WHT
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: NOV 2017

TAX – Nov 2015 – L2 – Q5b – Companies Income Tax (CIT)

This question requires the computation of Adebola Nigeria Limited's tax liabilities and withholding tax payable for 2013 and 2014.

Question

Adebola Nigeria Limited has been trading for many years. The company makes up its accounts to 31 December annually. The extracts from its Statement of Comprehensive Income for the years ended 31 December 2013 and 2014 (as adjusted for tax purposes) are as follows:

Year ended 31 December	2014 (₦)	2013 (₦)
Profit for the year	14,000,000	10,000,000
Bank interest received (gross)	2,400,000	1,600,000
Debenture interest received (gross)	800,000	800,000
Dividend received from Adesemowo Ltd. (Net)	720,000	720,000
Dividend paid to shareholders (gross)	6,000,000	4,000,000

Required:
i. Compute the company’s tax liabilities for the relevant years of assessment. Ignore capital allowances. (5 Marks)
ii. Determine the net withholding tax payable or receivable by Adebola Nigeria Limited, arising from dividends paid and received by it. (4 Marks)

Answer

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Tags: Assessment, Corporate Taxation, Dividend income, Interest Income, Tax liabilities, Withholding Tax
Level: Level 2

Topic: Companies Income Tax (CIT), Withholding Tax (WHT)
Series: NOV 2015

AT – MAR 2024 – L3 – Q4 – Business Income – Corporate Income Tax | Capital Allowance

Covers capital allowance computation, tax rules on long-term contracts, and chargeable income calculation.

Question

Finstruct Ltd has been awarded an airport terminal project. The project started on 1 January 2022 for a contract sum of GH¢60,000,000. The construction of the airport is to be completed on 31 December 2023.

Finstruct Ltd has a financial year ending on 31 December each year. On 31 December 2022, the accounts appropriate to the airport contract contained the following:

Cost Item	GH¢
Cost of construction materials	25,500,000
Direct wages of construction staff	22,100,000
Hire of special equipment	300,000
Cost of soil test	100,000
Purchase of fuel and lubricants	750,000
Consultancy services	135,000

Additional information:
i) Materials costing GH¢340,000 sent to the site were returned to the company’s warehouse.
ii) Materials sent to the site worth GH¢675,000 were still unused at the construction site as of 31 December 2022.
iii) Finstruct Ltd pays some of its workers the first week of the ensuing month after the end of the current month. GH¢57,000 is still owed for wages as of the close of the year 2022, and this was not included in the accounts.
iv) A bill amounting to GH¢45,000 was submitted late by Finstruct Ltd, and as of 31 December 2022, the bill had not yet been paid. This was not included in the accounts.
v) It is estimated that the cost to complete the project as of 31 December 2022 should be GH¢8,265,180.
vi) The following details are available on assets of Finstruct Ltd:

Required:
a) Compute the capital allowance for Finstruct Ltd for the year 2022. (6 marks)
b) Explain the tax rules on long-term contracts and compute the percentage of contract completion of the project. (4 marks)
c) Compute the chargeable income of Finstruct Ltd for the year ended 31 December 2022. (10 marks)

Answer

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Tags: Capital allowances, chargeable income, Construction Contracts, Corporate Taxation, Long-Term Contracts, Tax computation
Level: Level 3

Topic: Business income - Corporate income tax, Capital allowance
Series: MAR 2024

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

Question

Tax planning opportunities are available to all persons. All business units may not have the same tax planning opportunities, hence the need to carefully select a business unit that may provide the intended benefits to the owner or owners.

Required:
Discuss FOUR (4) tax planning opportunities available to sole proprietorships which may not be available to limited liability companies.

Answer

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Tags: Corporate Taxation, Personal reliefs, Sole Proprietorship, Tax Benefits, Tax Planning
Level: Level 3

Topic: Tax planning
Series: DEC 2023

AT – Nov 2015 – L3 – Q2a – Capital allowance

Explaining the conditions under which the Ghana Revenue Authority grants capital allowances.

Question

Capital allowance is an incentive granted to all persons in business and investment. They are, however, granted upon fulfillment of certain conditions.

Required:
Explain fully the conditions under which GRA may grant Capital Allowance to a person.

Answer

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Tags: Capital Allowance, Corporate Taxation, Depreciable assets, Tax Incentives
Level: Level 3

Topic: Capital allowance
Series: NOV 2015

STP – Feb 2018 – L2 – Q4- Taxation and Operating Strategies

Calculate Honson Plc's tax liability for Kumasi/Accra, advise on Nsawam, and discuss non-tax factors for facility location.

Question

The following forecast information is relevant for the decision-making process being considered by management.

Kumasi	Accra	GH¢	GH¢

Answer

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Tags: Corporate Taxation, Income Tax, Location Decision, Non-Tax Factors, Tax computation, Tax Incentives
Level: Level 2

Topic: Taxation and Operating Strategies in Business
Series: FEBRUARY 2018

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

Question

The profit and loss account of Jamaa Mining Company Ltd for the years ended December 2008 and 2009 are as tabled below:

	Year Ended 31 December (all amounts in ‘000)
	2009 GHC	2008 GHC
Turnover	309,000	430,000
Cost of Sales	(164,000)
Gross Profit	145,000
General and Admin Exp	(100,000)
Operating Profit	45,000
Other Income	5,300
Net Profit before tax	50,300
Income Tax provision	12,575
Transfer to Income Surplus	37,725
Income Surplus Account
Balance brought forward	46,945
Transfer from profit and loss account	9,220
Surplus carried forward	46,945

Notes:
2. Turnover is made up as follows
For year

	2009	2008
Collected for year but included in prior year a/c	291,000
Interest income received for 18 months	0	18,000
	309,000

Cost of sales includes:

	2009	2008
Withholding taxes paid	1,500	1,000
VAT unclaimed	6,000	8,000
Depreciation	43,000	25,000

4a. Gen and Admin expenses includes

	2009	2008
Rent prepaid of	3,000
Rent outstanding	500	500

4b. Includes unrealized foreign exchange gain of but realized in 2009

	2009	2008
	2,000	2,000

The GRA has agreed a capital allowance of GHC20,000 for year 2009 and GHC15,000 for year 2008.

Required:
Please advise management of Jamaa Mining Company Ltd on the tax due to the GRA for the years 2009 and 2008.

Answer

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Tags: Capital Allowance, Corporate Taxation, Mining Company, Tax computation, Taxable Profit
Level: Level 3

Topic: Taxation and Operating Strategies in Business
Series: AUG 2012

AT – Mar 2025 – L3 – Q5 – Transfer Pricing

Prepare a functional analysis for a multinational group's entities from a transfer pricing perspective.

Question

Required:

From a transfer pricing perspective, prepare a functional analysis of the parent company, indicating the entity characterisation for each group entity.

b) Chariston LTD, a US based company intends investing in Ghana for the first time. In the evaluation of the acquisition proposal, the following options are offered:

i) To acquire 50%

ii) To acquire 51%

The Ghanaian company identified as the target is into ceramic manufacturing and is located at Adukrom, a district capital in the Eastern Region of Ghana.

Required:

With practical illustrations, explain what Chariston LTD stands to benefit from both acquisition and also the implication for holding either option.

Answer

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Tags: Corporate Taxation, Ghana tax law, Mergers and Acquisitions, Ownership Change, Tax Incentives
Level: Level 3

Topic: Taxation of Mergers and Acquisitions
Series: MAR 2025

AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses

Calculation of tax liabilities under the Mining Act and an explanation of tax neutralities with applications to policy issues.

Question

Operational Results:

Description	N’000
Gross Turnover	125,490
Salaries and Wages	25,900
Depreciation of Mining Equipment	15,400
Transport and Traveling	2,100
Repairs and Maintenance	3,700
Allowance for Bad Debts	6,200
Electricity and Other Utilities	4,660
Legal and Professional Fees	4,850
Certified Exploration Expenditure	4,500
Administrative Expenses	1,450
Development and Processing Expenditure	2,500
Miscellaneous Expenses	3,420
Total Deductibles	74,680
Net Profit	50,810

Additional Information:

Repairs and maintenance included an amount of N1,500,000, being cost of fittings incurred at the operational site.
Capital allowances computed:
- Brought forward: N750,000
- Current year (excluding current year capital expenditure): N12,200,000
- Total: N12,950,000

Required:

As the company’s Tax Consultant, you are to prepare a report to the Managing Director of Udi Nigeria Limited, which will:

a. Show the tax liabilities payable by the company for the relevant assessment year in line with the provisions of Nigerian Minerals and Mining Act 2007 (as amended). (9 Marks)

b. Explain the concept of tax neutralities and its applications to specific policy issues. (6 Marks)

Answer

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Tags: Capital allowances, Corporate Taxation, Mineral Resources, Mining Taxation, Nigerian Tax System, Policy Implications, Tax Compliance, Tax Neutrality
Level: Level 3

Topic: Taxation of Specialized Businesses
Series: NOV 2023

AT – Nov 2023 – L3 – SC – Q5 – Tax Administration and Dispute Resolution

Steps and objectives in handling a tax audit with FIRS and the required documentation.

Question

The Managing Director of the company has just received a letter from the tax office that a team of tax inspectors will be visiting the company in a fortnight to conduct a tax audit.

The company has approached your firm of chartered accountants to assist with advice on how the company should handle the forthcoming tax audit.

Required:

a. Objectives of tax audits (5 Marks)

b. Stages in a typical tax audit process (4 Marks)

c. Schedule of requirements for FIRS tax audit (6 Marks)

Answer

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Tags: Audit Process, Audit Stages, Corporate Taxation, Dispute Resolution, Financial Reporting, FIRS Requirements, Nigerian Tax System, Tax Audit, Tax Compliance
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: NOV 2023

AT – Nov 2017 – L3 – Q5 – Tax Administration and Dispute Resolution

Outline objection and appeal procedures for FIRS additional assessment.

Question

The records of the company for the Accounting Year ended December 31, 2013 showed:

Description	Amount (N)
Revenue	187,500,000
Cost of sales	(102,500,000)
Gross Profit	85,000,000
Other income	31,250,000
Operating expenses	(57,250,000)
Interest and similar charges	(3,200,000)
Profit before tax	55,800,000
Taxation	(6,250,000)
Profit after tax	49,550,000
Dividend	(38,500,000)
Retained profit for the year	11,050,000

Other relevant information includes:

Revenue:
- Export sales: N58,500,000
- Local sales: N129,000,000
Cost of sales:
- Opening inventory (VAT inclusive): N22,800,000
- Closing stock (VAT inclusive): N37,150,000
- Purchase of raw material: N90,600,000
- Freight charges: N18,700,000
- Other direct materials: N27,550,000
Other income:
- Foreign exchange gain: N4,800,000
- Profit on sale of Non-current assets (sales proceeds is N21.5m): N8,850,000
- Management fees from subsidiary companies: N17,600,000
Operating expenses:
- Office rent: N18,000,000
- Audit fees: N4,000,000
- Consultancy fees to ZXY Ltd: N11,000,000
- Directors’ fees: N7,500,000
- Other expenses: N16,750,000
Additional details:
- The company purchased Non-Current Assets (VAT inclusive): N84,000,000
- VAT remitted to FIRS during the year: N1,976,235
- WHT remitted to FIRS during the year: N6,650,000

(Total 15 Marks)

Answer

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Tags: Corporate Taxation, FIRS, Objection Procedures, Tax Appeal, Tax Dispute, VAT, WHT
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: NOV 2017

TAX – Nov 2015 – L2 – Q5b – Companies Income Tax (CIT)

This question requires the computation of Adebola Nigeria Limited's tax liabilities and withholding tax payable for 2013 and 2014.

Question

Year ended 31 December	2014 (₦)	2013 (₦)
Profit for the year	14,000,000	10,000,000
Bank interest received (gross)	2,400,000	1,600,000
Debenture interest received (gross)	800,000	800,000
Dividend received from Adesemowo Ltd. (Net)	720,000	720,000
Dividend paid to shareholders (gross)	6,000,000	4,000,000

Answer

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Tags: Assessment, Corporate Taxation, Dividend income, Interest Income, Tax liabilities, Withholding Tax
Level: Level 2

Topic: Companies Income Tax (CIT), Withholding Tax (WHT)
Series: NOV 2015

AT – MAR 2024 – L3 – Q4 – Business Income – Corporate Income Tax | Capital Allowance

Covers capital allowance computation, tax rules on long-term contracts, and chargeable income calculation.

Question

Finstruct Ltd has a financial year ending on 31 December each year. On 31 December 2022, the accounts appropriate to the airport contract contained the following:

Cost Item	GH¢
Cost of construction materials	25,500,000
Direct wages of construction staff	22,100,000
Hire of special equipment	300,000
Cost of soil test	100,000
Purchase of fuel and lubricants	750,000
Consultancy services	135,000

Answer

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Tags: Capital allowances, chargeable income, Construction Contracts, Corporate Taxation, Long-Term Contracts, Tax computation
Level: Level 3

Topic: Business income - Corporate income tax, Capital allowance
Series: MAR 2024

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

Question

Required:
Discuss FOUR (4) tax planning opportunities available to sole proprietorships which may not be available to limited liability companies.

Answer

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Tags: Corporate Taxation, Personal reliefs, Sole Proprietorship, Tax Benefits, Tax Planning
Level: Level 3

Topic: Tax planning
Series: DEC 2023

AT – Nov 2015 – L3 – Q2a – Capital allowance

Explaining the conditions under which the Ghana Revenue Authority grants capital allowances.

Question

Capital allowance is an incentive granted to all persons in business and investment. They are, however, granted upon fulfillment of certain conditions.

Required:
Explain fully the conditions under which GRA may grant Capital Allowance to a person.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Corporate Taxation, Depreciable assets, Tax Incentives
Level: Level 3

Topic: Capital allowance
Series: NOV 2015

Question Tag: Corporate Taxation

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STP – Feb 2018 – L2 – Q4- Taxation and Operating Strategies

Calculate Honson Plc's tax liability for Kumasi/Accra, advise on Nsawam, and discuss non-tax factors for facility location.

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STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

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AT – Mar 2025 – L3 – Q5 – Transfer Pricing

Prepare a functional analysis for a multinational group's entities from a transfer pricing perspective.

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AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses

Calculation of tax liabilities under the Mining Act and an explanation of tax neutralities with applications to policy issues.

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AT – Nov 2023 – L3 – SC – Q5 – Tax Administration and Dispute Resolution

Steps and objectives in handling a tax audit with FIRS and the required documentation.

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AT – Nov 2017 – L3 – Q5 – Tax Administration and Dispute Resolution

Outline objection and appeal procedures for FIRS additional assessment.

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TAX – Nov 2015 – L2 – Q5b – Companies Income Tax (CIT)

This question requires the computation of Adebola Nigeria Limited's tax liabilities and withholding tax payable for 2013 and 2014.

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AT – MAR 2024 – L3 – Q4 – Business Income – Corporate Income Tax | Capital Allowance

Covers capital allowance computation, tax rules on long-term contracts, and chargeable income calculation.

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AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

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AT – Nov 2015 – L3 – Q2a – Capital allowance

Explaining the conditions under which the Ghana Revenue Authority grants capital allowances.

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STP – Feb 2018 – L2 – Q4- Taxation and Operating Strategies

Calculate Honson Plc's tax liability for Kumasi/Accra, advise on Nsawam, and discuss non-tax factors for facility location.

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STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

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AT – Mar 2025 – L3 – Q5 – Transfer Pricing

Prepare a functional analysis for a multinational group's entities from a transfer pricing perspective.

You're reporting an error for "AT – Mar 2025 – L3 – Q5 – Transfer Pricing"

AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses

Calculation of tax liabilities under the Mining Act and an explanation of tax neutralities with applications to policy issues.

You're reporting an error for "AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses"

AT – Nov 2023 – L3 – SC – Q5 – Tax Administration and Dispute Resolution

Steps and objectives in handling a tax audit with FIRS and the required documentation.

You're reporting an error for "AT – Nov 2023 – L3 – SC – Q5 – Tax Administration and Dispute Resolution"

AT – Nov 2017 – L3 – Q5 – Tax Administration and Dispute Resolution

Outline objection and appeal procedures for FIRS additional assessment.

You're reporting an error for "AT – Nov 2017 – L3 – Q5 – Tax Administration and Dispute Resolution"

TAX – Nov 2015 – L2 – Q5b – Companies Income Tax (CIT)

This question requires the computation of Adebola Nigeria Limited's tax liabilities and withholding tax payable for 2013 and 2014.

You're reporting an error for "TAX – Nov 2015 – L2 – Q5b – Companies Income Tax (CIT)"

AT – MAR 2024 – L3 – Q4 – Business Income – Corporate Income Tax | Capital Allowance

Covers capital allowance computation, tax rules on long-term contracts, and chargeable income calculation.

You're reporting an error for "AT – MAR 2024 – L3 – Q4 – Business Income – Corporate Income Tax | Capital Allowance"

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

You're reporting an error for "AT – Dec 2023 – L3 – Q2b – Tax planning"

AT – Nov 2015 – L3 – Q2a – Capital allowance

Explaining the conditions under which the Ghana Revenue Authority grants capital allowances.

You're reporting an error for "AT – Nov 2015 – L3 – Q2a – Capital allowance"

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