Exports – Knowsia

TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

Question

A) In relation to customs and excise duties, explain how the “value for duty purposes” is calculated on the following:

i. Imports

ii. Locally manufactured goods and services

iii. Export

(B) As part of the revenue mobilization campaign of the Ghana Revenue Authority, your firm, Messrs. Skin Pain & Co. has been contracted to carry out tax audit on the 2018 published accounts of a member of a group companies engaged in the importation of used spare parts. One of the audit teams has just returned to the office and submitted their audit file on Tom and Jerry Company Limited to you for review. The team has made the following findings:

The total IDF value of imports was $5,330,844.56, Import Duty and VAT paid were GH¢7,475,654.23 and GH¢6,546,689.04 respectively.
Total amount transferred to Okamoto Trading Corporation of Japan; the main suppliers was $9,182,250.00. This transfer included $1,237,500 allegedly transferred from the Managing Director’s own resources. The company has a ninety-day credit facility with Okamoto Trading Corporation.
Statement of account for the year ended 31/12/18 from Okamoto Trading Corporation indicated opening and closing balances as $540,690.60 and $708,732.02 respectively.
The account audited which had been filed with Ghana Revenue Authority indicated purchases of GH¢509,552.03 is local purchases from other importers.
Amount of Import Duty and VAT charged in the published accounts amounted to GH¢710,068.11 and GH¢461,544.51 respectively.
Note that import duty rate is 20%; VAT rate is 17½%; and $1.00=GH¢4.20.

You are required to:
i. Analyze the findings of the Audit Team and present a report to your Audit Manager indicating any tax implications of their findings.
ii. What further audit work would you advise the audit team to undertake on the transfer by the managing director to assure yourself that is not business income of funds belonging to the company or from a taxable source.

Answer

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Tags: Customs Duties, Excise Duties, Exports, Imports, Local Manufacturing, Tax Compliance, Valuation
Level: Level 1

Topic: Revenue Inquiry and Financial Analysis
Series: AUGUST 2020

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

Question

a). Section 30 of the Customs, Excise and Preventive Service (Management) Law, 1993 (P.N.D.C.L. 330), as amended provides, among other things, that the transaction value of an item is to be used for Customs purposes.

i) What is “transaction value”? (3 marks)

ii) Distinguish between “identical goods” and “similar goods” in the ascertainment of transaction value. (8 marks)

b). In what circumstances shall excise duty not be paid on goods as provided for in section 57(2) of Customs, Excise and Preventive Service (Management) Law, 1993 (P.N.D.C.L. 330), as amended. (9 marks)

Answer

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Tags: Customs Law, Excise Duty, Exemptions, Exports, Indirect Taxes
Level: Level 2

Topic: Indirect Taxes
Series: FEB 2016

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

Question

In the month of September 2016, Akonfem Fabricating Ltd, a registered trader for VAT, made the following transactions:

Sales: GH¢

Local Supplies: 425,000
Relief Supplies: 215,000
Exports: 550,000
Purchases/Expenses (Input Invoices):
Stationery: 2,030
Hotel Bill for the MD: 3,450
Raw Material (Imported): 545,000
MTN Phone Bills for MD: 1,020
Electricity (Factory): 5,000

Note: Sales and purchases are all Value Added Tax/National Health Insurance Levy exclusive.

Required:
i) Compute the output and input taxes.
ii) Determine the tax payable, if any.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Exports, Input and Output Taxes, Relief Supplies, Tax Payab, VAT
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2018

TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

Question

A) In relation to customs and excise duties, explain how the “value for duty purposes” is calculated on the following:

i. Imports

ii. Locally manufactured goods and services

iii. Export

The total IDF value of imports was $5,330,844.56, Import Duty and VAT paid were GH¢7,475,654.23 and GH¢6,546,689.04 respectively.
Total amount transferred to Okamoto Trading Corporation of Japan; the main suppliers was $9,182,250.00. This transfer included $1,237,500 allegedly transferred from the Managing Director’s own resources. The company has a ninety-day credit facility with Okamoto Trading Corporation.
Statement of account for the year ended 31/12/18 from Okamoto Trading Corporation indicated opening and closing balances as $540,690.60 and $708,732.02 respectively.
The account audited which had been filed with Ghana Revenue Authority indicated purchases of GH¢509,552.03 is local purchases from other importers.
Amount of Import Duty and VAT charged in the published accounts amounted to GH¢710,068.11 and GH¢461,544.51 respectively.
Note that import duty rate is 20%; VAT rate is 17½%; and $1.00=GH¢4.20.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Customs Duties, Excise Duties, Exports, Imports, Local Manufacturing, Tax Compliance, Valuation
Level: Level 1

Topic: Revenue Inquiry and Financial Analysis
Series: AUGUST 2020

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

Question

i) What is “transaction value”? (3 marks)

ii) Distinguish between “identical goods” and “similar goods” in the ascertainment of transaction value. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Customs Law, Excise Duty, Exemptions, Exports, Indirect Taxes
Level: Level 2

Topic: Indirect Taxes
Series: FEB 2016

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

Question

In the month of September 2016, Akonfem Fabricating Ltd, a registered trader for VAT, made the following transactions:

Sales: GH¢

Note: Sales and purchases are all Value Added Tax/National Health Insurance Levy exclusive.

Required:
i) Compute the output and input taxes.
ii) Determine the tax payable, if any.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Exports, Input and Output Taxes, Relief Supplies, Tax Payab, VAT
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2018

Question Tag: Exports

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TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

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TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

You're reporting an error for "TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation"

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

You're reporting an error for "ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification"

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

You're reporting an error for "TF – May 2018 – L3 – Q4c – Business income – Corporate income tax"

TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation

Explain calculation of "value for duty purposes" for imports, locally manufactured goods, and exports.

You're reporting an error for "TAI – Aug 2020 – L1 – Q5 – Customs and Excise Duties Valuation"

ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification

Explain transaction value and distinguish between identical and similar goods for customs purposes under PNDCL 330.

You're reporting an error for "ATP – Feb 2016 – L2 – Q4 – Transaction Value and Goods Classification"

TF – May 2018 – L3 – Q4c – Business income – Corporate income tax

VAT computation for Akonfem Fabricating Ltd. based on taxable transactions.

You're reporting an error for "TF – May 2018 – L3 – Q4c – Business income – Corporate income tax"

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