Deemed Dividend – Knowsia

PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

Question

A Nigerian investor (Niger Ltd) in Ghana has the following information relating to its business:

Year	Revaluation Reserves (GH¢)	Share Capital (GH¢)	Retained Earnings (GH¢)
2021	250,000	1,000,000	1,200,000
2020	100,000	600,000	1,350,000

Required:
With relevant computations, comment on the tax implication of the transfer from Retained Earnings to Share Capital. (8 marks)

Answer

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Tags: Corporate Tax, Deemed Dividend, Retained Earnings, Share Capital, Stamp Duty
Level: Level 2

Topic: Corporate Tax Liabilities
Series: DEC 2023

PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

Question

Kawukudi Ltd intends to increase its capital requirement. Therefore, it applied to the Registrar General with the following:

Retained Earnings Account (GHȼ)

Balance b/fwd: 100,000
Transfer from income statement: 1,200,000
Transfer to stated capital: (600,000)
Balance c/fwd: 700,000

Required:
Assess with explanation the tax payable under this circumstance.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Transfers, Deemed Dividend, Ghana tax law, Retained Earnings, Tax computation
Level: Level 2

Topic: Income Tax Liabilities
Series: NOV 2021

PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

Question

A Nigerian investor (Niger Ltd) in Ghana has the following information relating to its business:

Year	Revaluation Reserves (GH¢)	Share Capital (GH¢)	Retained Earnings (GH¢)
2021	250,000	1,000,000	1,200,000
2020	100,000	600,000	1,350,000

Required:
With relevant computations, comment on the tax implication of the transfer from Retained Earnings to Share Capital. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Deemed Dividend, Retained Earnings, Share Capital, Stamp Duty
Level: Level 2

Topic: Corporate Tax Liabilities
Series: DEC 2023

PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

Question

Kawukudi Ltd intends to increase its capital requirement. Therefore, it applied to the Registrar General with the following:

Retained Earnings Account (GHȼ)

Balance b/fwd: 100,000
Transfer from income statement: 1,200,000
Transfer to stated capital: (600,000)
Balance c/fwd: 700,000

Required:
Assess with explanation the tax payable under this circumstance.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Transfers, Deemed Dividend, Ghana tax law, Retained Earnings, Tax computation
Level: Level 2

Topic: Income Tax Liabilities
Series: NOV 2021

Question Tag: Deemed Dividend

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PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

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Question Tag: Deemed Dividend

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PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

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PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

You're reporting an error for "PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities"

PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities

Explanation of the tax implications of transferring retained earnings to share capital, including deemed dividend tax and stamp duty.

You're reporting an error for "PT – Dec 2023 – L2 – Q4a – Corporate Tax Liabilities"

PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities

Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.

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