Question Tag: Foreign Debt

a) It has been said that there is a thin line between tax planning and tax avoidance. The line is a little thinner when one compares tax planning to aggressive tax avoidance. Required: Explain the areas of divergence between tax planning and aggressive tax avoidance. Do you however think the two may be similar in any way? (10 marks)

b) A conflict of interest occurs when an individual’s personal interests – family, friendships, financial or social factors such as serving two or more competing clients could compromise his or her judgement, decisions or actions in the performance of his/her duties. You are a tax expert at Pompor & Associates, a firm of Chartered Accountants and Tax Practitioners. Your third assignment is to carry out a tax health check into the affairs of one of the clients of your firm where your interest is likely to conflict. Required: Explain how you are likely to manage the actual or potential conflict of interest situation. (5 marks)

c) The Bank of Ghana’s summary of Economic and Financial data has over the years shown the escalating nature of Ghana’s public debt. Successive governments keep blaming themselves that despite the huge debts contracted over the years there is little development across the country. Published statistics also show that the total foreign debts mostly contracted outstrip the total domestic debt. You are the head of the Policy Unit of the Ministry of Finance who work closely with the Chief Director of the Ministry. Required: Draft a report for the perusal of the Chief Director for onward submission to the Minister to be tabled for cabinet discussion on FOUR benefits of foreign debt over domestic debt. (5 marks)