Question Tag: Government Revenue

Search 500 + past questions and counting.

OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation

Compute capital allowances, crude oil distribution, income tax, and government revenue for Sapele Petroleum and Mahogany Production in 2019.

Question

Sapele Petroleum Ghana Ltd and Mahogany Production Incorporated are joint venture partners who have 45% and 35% interest respectively in the Upstream Fields in Ghana. They commenced exploration in 2011 and discovered hydrocarbons in commercial quantities in 2013.

The fiscal terms of the agreement between the joint venture partners and the Government of Ghana include Bonus of US$ 150 million, Royalty of 5%, Initial (Carried) Interest of 15%, Additional Participating Interest of 5%, Corporate Tax rate of 35% and Capital Allowance on straight line basis at a rate of 20%. Mahogany Production is the operator of the Upstream Fields. Production commenced in the Upstream Fields in 2019. Information available on the oil and gas exploration and production operations in the Upstream Fields are as follows:

Up to 31/12/2017	US$
Exploration Costs	250,000,000.00
Development Costs	2,000,000,000.00
Bonus	150,000,000.00

As at 31/12/2018	US$
Exploration Costs	100,000,000.00
Development Costs	1,500,000,000.00
Interest on loan for installation of equipment & facilities	100,000,000.00

NB. The loan was contracted by the operator on behalf of the parties that hold interest in the Upstream Fields

As at 31/12/2019	US$
Exploration Costs	40,000,000.00
Development Costs	400,000,000.00
Average production cost per barrel	15.00
Average Price of crude oil per barrel	40.00
2019 Production	50,000,000 barrels

You are required to compute the following, and also state the assumptions underlying your computations:
i. Capital allowance entitlements of Sapele Petroleum Ghana Ltd and Mahogany Production Incorporated.
ii. Distribution of crude oil.
iii. 2019 income tax liability of Sapele Petroleum Ghana Ltd and Mahogany Production Incorporated in accordance with the provisions of the Income Tax Act, 2015 (Act 896).
iv. Total revenue that will accrue to Government of Ghana.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Crude Oil Distribution, Government Revenue, Income Tax, Petroleum Operations
Level: Level 1

Topic: Taxation of Revenue and Cost Streams
Series: AUGUST 2020

PSAF – Nov 2014 – L2 – Q1 – Government Revenue

Calculation and distribution of revenue collected by Olakoma Federation across federal, state, and local levels.

Question

Eboda State is one of the 30 states in the Olakoma Federation. The Federation has a population of 120 million people with 700 local government councils and a land mass of 300,000 sq kilometers.

Eboda State has a population of 12 million, 25 local government councils, and a land mass of 30,000 sq kilometers.

The following transactions took place in the Office of the Accountant-General of Olakoma Federation during the year ended December 31, 2013:

Revenue Source	Amount (N’ Million)
Crude oil sale	350,000
Domestic oil receipts	445,000
Miscellaneous oil receipts	105,000
Royalty on crude oil	101,000
Royalty on gas	95,000
Rentals on oil field	87,000
Gas flared penalty	77,000
Petroleum profit tax	650,000
Companies income tax	500,000
Other non-oil taxes	225,000
Import duties	255,000
Export duties	125,000
Excise duties	320,000
Custom penalty charge	115,000
Custom fees account	120,000
Common external tariff levy	100,000
Court fees	30,000
PAYE of armed forces	55,000
7% Port levy	25,000
Value Added Tax (VAT)	700,000

Additional Information:

The Olakoma Customs Service is entitled to 7% cost of collection on all revenues collected, while the Federal Inland Revenue Service is entitled to 4% of non-oil revenue.
The sharing formula for the Federation Account and VAT is as follows:

Category Federation Account VAT

Federal Government 52.68% 15%

State Governments 26.72% 50%

Local Governments 20.60% 35%
A 13% derivation is paid to oil-producing states, based on oil and gas-related income.
The sharing ratio in (ii) above is based on the following criteria:

Category State Local Government

Equity 40% 40%

Population 30% 30%

Land Mass 20% 20%

Internally Generated Revenue Effort 10% 10%
The total internally generated revenue effort of the 30 states and 700 local government councils amounted to N500 billion and N300 billion, respectively.
The total internally generated revenue effort of Eboda State and its 25 local governments amounted to N50 billion and N20 billion, respectively. Eboda State is not one of the oil-producing states.
All revenues due to all local governments in each state are paid to the State Joint Local Government Account. This account is entitled to 10% of the Internally Generated Revenue (IGR) of the state.

Category	Federation Account	VAT
Federal Government	52.68%	15%
State Governments	26.72%	50%
Local Governments	20.60%	35%

Category	State	Local Government
Equity	40%	40%
Population	30%	30%
Land Mass	20%	20%
Internally Generated Revenue Effort	10%	10%

Required:

a. State the differences between the Federation Account and the Consolidated Revenue Account. (4 Marks)

b. Calculate:

i. Olakoma Custom Service’s cost of collection. (3 Marks)
ii. Federal Inland Revenue Service’s cost of collection. (2 Marks)
iii. The 13% derivation paid to oil-producing states. (3 Marks)

c. Calculate the amount to be credited to:

i. Consolidated Revenue Fund of Olakoma Federal Government. (6 Marks)
ii. Eboda State Consolidated Revenue Fund Account. (6 Marks)
iii. State Joint Local Government Account. (6 Marks)

(Show workings)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allocation Formulas, Consolidated Revenue Fund, Cost of Collection, Federation Account, Government Revenue, Revenue Allocation, State Revenue
Level: Level 2

Topic: Government Revenue

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

Question

Discuss any FIVE weaknesses in the current system of cash management in Nigeria.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budgetary Control, Cash Management, Government Revenue, Inter-Agency Collaboration, Oil Dependence, Treasury Monitoring
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

Question

Luxury tax can simply be defined as tax imposed on goods and services that are considered by the government to be luxury goods and services. Luxury goods and services are those that are not considered to be essential by the government and which are consumed by the rich or wealthy class of the society.

Goods and services that are classified as luxury are usually assessed to tax as a percentage of the sales price but likely at a higher percentage than the regular sales tax or value added tax on essential commodities.

Required:
State FOUR benefits of taxation of luxury goods and services.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Luxury Tax, Non-Essential Goods, Taxation Benefits
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Justify the use of public debt as an alternative to taxation in Ghana's development agenda.

Question

b) The development agenda of a developing country like Ghana can only be brought to reality through the availability of funds. The two (2) main sources of government revenue are taxation and debt. In spite of the fact that taxation remains the most reliable source of government revenue for government plans, projects and programmes, it is said to be limited in its role and function in the economy.

Required:
Justify the use of public debt as an alternative to taxation.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fiscal Policy, Government Revenue, Public Debt, Taxation alternatives

Topic: National Debt, Overview of the Ghanaian Tax System and Fiscal Policy
Series: APR 2022

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

Question

Withholding tax is deducted at source by an authorised agent and accounted later to the Commissioner-General of Ghana Revenue Authority.

Required:
State TWO (2) merits and TWO (2) demerits of the withholding tax regime.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Tax Collection, Tax Compliance, Taxpayer Burden, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2021

PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Explain the types of fiscal policies and their effects on economic fluctuations and government revenue.

Question

Countries worldwide experience fluctuations in economic activity, which affects the consistency in government revenue generation. For example, when income levels are high, all other things being equal, tax revenue rises. Conversely, when income levels fall, tax revenue drops, requiring government policies to address the fluctuations. Governments, therefore, employ expansionary and contractionary fiscal policies to moderate the effects of such fluctuations.

Required:
Explain the following forms of fiscal policy:
i) Automatic Stabilisers
ii) Discretionary Fiscal Policy

Answer

Find Related Questions by Tags, levels, etc.

Tags: Automatic Stabilizers, Discretionary Fiscal Policy, Economic Activity, Fiscal Policy, Government Revenue
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2021

AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana

Explaining the benefits of foreign debt over domestic debt for government financing.

Question

The use of debt for a country’s financing has engaged the attention of economists and also the ordinary man in the interest regarding its impact on our economy. While some prefer domestic debt, others are making a case for foreign debts as part of government’s fiscal policy.
Required:
What are the benefits to a government for going in for a foreign debt as opposed to going in for domestic debt as a support to the revenue base from taxes? (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Domestic Debt, Fiscal Policy, Foreign Debt, Government Revenue
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2018

OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation

Compute capital allowances, crude oil distribution, income tax, and government revenue for Sapele Petroleum and Mahogany Production in 2019.

Question

Up to 31/12/2017	US$
Exploration Costs	250,000,000.00
Development Costs	2,000,000,000.00
Bonus	150,000,000.00

As at 31/12/2018	US$
Exploration Costs	100,000,000.00
Development Costs	1,500,000,000.00
Interest on loan for installation of equipment & facilities	100,000,000.00

NB. The loan was contracted by the operator on behalf of the parties that hold interest in the Upstream Fields

As at 31/12/2019	US$
Exploration Costs	40,000,000.00
Development Costs	400,000,000.00
Average production cost per barrel	15.00
Average Price of crude oil per barrel	40.00
2019 Production	50,000,000 barrels

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Crude Oil Distribution, Government Revenue, Income Tax, Petroleum Operations
Level: Level 1

Topic: Taxation of Revenue and Cost Streams
Series: AUGUST 2020

PSAF – Nov 2014 – L2 – Q1 – Government Revenue

Calculation and distribution of revenue collected by Olakoma Federation across federal, state, and local levels.

Question

Eboda State is one of the 30 states in the Olakoma Federation. The Federation has a population of 120 million people with 700 local government councils and a land mass of 300,000 sq kilometers.

Eboda State has a population of 12 million, 25 local government councils, and a land mass of 30,000 sq kilometers.

The following transactions took place in the Office of the Accountant-General of Olakoma Federation during the year ended December 31, 2013:

Revenue Source	Amount (N’ Million)
Crude oil sale	350,000
Domestic oil receipts	445,000
Miscellaneous oil receipts	105,000
Royalty on crude oil	101,000
Royalty on gas	95,000
Rentals on oil field	87,000
Gas flared penalty	77,000
Petroleum profit tax	650,000
Companies income tax	500,000
Other non-oil taxes	225,000
Import duties	255,000
Export duties	125,000
Excise duties	320,000
Custom penalty charge	115,000
Custom fees account	120,000
Common external tariff levy	100,000
Court fees	30,000
PAYE of armed forces	55,000
7% Port levy	25,000
Value Added Tax (VAT)	700,000

Additional Information:

The Olakoma Customs Service is entitled to 7% cost of collection on all revenues collected, while the Federal Inland Revenue Service is entitled to 4% of non-oil revenue.
The sharing formula for the Federation Account and VAT is as follows:

Category Federation Account VAT

Federal Government 52.68% 15%

State Governments 26.72% 50%

Local Governments 20.60% 35%
A 13% derivation is paid to oil-producing states, based on oil and gas-related income.
The sharing ratio in (ii) above is based on the following criteria:

Category State Local Government

Equity 40% 40%

Population 30% 30%

Land Mass 20% 20%

Internally Generated Revenue Effort 10% 10%
The total internally generated revenue effort of the 30 states and 700 local government councils amounted to N500 billion and N300 billion, respectively.
The total internally generated revenue effort of Eboda State and its 25 local governments amounted to N50 billion and N20 billion, respectively. Eboda State is not one of the oil-producing states.
All revenues due to all local governments in each state are paid to the State Joint Local Government Account. This account is entitled to 10% of the Internally Generated Revenue (IGR) of the state.

Category	Federation Account	VAT
Federal Government	52.68%	15%
State Governments	26.72%	50%
Local Governments	20.60%	35%

Category	State	Local Government
Equity	40%	40%
Population	30%	30%
Land Mass	20%	20%
Internally Generated Revenue Effort	10%	10%

Required:

a. State the differences between the Federation Account and the Consolidated Revenue Account. (4 Marks)

b. Calculate:

i. Olakoma Custom Service’s cost of collection. (3 Marks)
ii. Federal Inland Revenue Service’s cost of collection. (2 Marks)
iii. The 13% derivation paid to oil-producing states. (3 Marks)

c. Calculate the amount to be credited to:

i. Consolidated Revenue Fund of Olakoma Federal Government. (6 Marks)
ii. Eboda State Consolidated Revenue Fund Account. (6 Marks)
iii. State Joint Local Government Account. (6 Marks)

(Show workings)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allocation Formulas, Consolidated Revenue Fund, Cost of Collection, Federation Account, Government Revenue, Revenue Allocation, State Revenue
Level: Level 2

Topic: Government Revenue

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

Question

Discuss any FIVE weaknesses in the current system of cash management in Nigeria.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budgetary Control, Cash Management, Government Revenue, Inter-Agency Collaboration, Oil Dependence, Treasury Monitoring
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

Question

Required:
State FOUR benefits of taxation of luxury goods and services.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Luxury Tax, Non-Essential Goods, Taxation Benefits
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Justify the use of public debt as an alternative to taxation in Ghana's development agenda.

Question

Required:
Justify the use of public debt as an alternative to taxation.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fiscal Policy, Government Revenue, Public Debt, Taxation alternatives

Topic: National Debt, Overview of the Ghanaian Tax System and Fiscal Policy
Series: APR 2022

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

Question

Withholding tax is deducted at source by an authorised agent and accounted later to the Commissioner-General of Ghana Revenue Authority.

Required:
State TWO (2) merits and TWO (2) demerits of the withholding tax regime.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Tax Collection, Tax Compliance, Taxpayer Burden, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2021

PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Explain the types of fiscal policies and their effects on economic fluctuations and government revenue.

Question

Required:
Explain the following forms of fiscal policy:
i) Automatic Stabilisers
ii) Discretionary Fiscal Policy

Answer

Find Related Questions by Tags, levels, etc.

Tags: Automatic Stabilizers, Discretionary Fiscal Policy, Economic Activity, Fiscal Policy, Government Revenue
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2021

AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana

Explaining the benefits of foreign debt over domestic debt for government financing.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Domestic Debt, Fiscal Policy, Foreign Debt, Government Revenue
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2018

Question Tag: Government Revenue

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation

Compute capital allowances, crude oil distribution, income tax, and government revenue for Sapele Petroleum and Mahogany Production in 2019.

You're reporting an error for "OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation"

PSAF – Nov 2014 – L2 – Q1 – Government Revenue

Calculation and distribution of revenue collected by Olakoma Federation across federal, state, and local levels.

You're reporting an error for "PSAF – Nov 2014 – L2 – Q1 – Government Revenue"

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector"

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses"

PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Justify the use of public debt as an alternative to taxation in Ghana's development agenda.

You're reporting an error for "PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy"

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

You're reporting an error for "PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration"

PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Explain the types of fiscal policies and their effects on economic fluctuations and government revenue.

You're reporting an error for "PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy"

AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana

Explaining the benefits of foreign debt over domestic debt for government financing.

You're reporting an error for "AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana"

OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation

Compute capital allowances, crude oil distribution, income tax, and government revenue for Sapele Petroleum and Mahogany Production in 2019.

You're reporting an error for "OGMT – Aug 2020 – L1 – Q5 – Petroleum Taxation"

PSAF – Nov 2014 – L2 – Q1 – Government Revenue

Calculation and distribution of revenue collected by Olakoma Federation across federal, state, and local levels.

You're reporting an error for "PSAF – Nov 2014 – L2 – Q1 – Government Revenue"

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector"

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses"

PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Justify the use of public debt as an alternative to taxation in Ghana's development agenda.

You're reporting an error for "PT – April 2022 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy"

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

You're reporting an error for "PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration"

PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy

Explain the types of fiscal policies and their effects on economic fluctuations and government revenue.

You're reporting an error for "PT – Nov 2021 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy"

AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana

Explaining the benefits of foreign debt over domestic debt for government financing.

You're reporting an error for "AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form