Insurance Taxation

ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

Question

Question:
Nkrabea Insurance Company Limited commenced operating in Ghana on 1st January, 2016.
Below is an extract from the Trial Balance as at 31/12/16.

GH¢000
Building (at cost) 1,950
Motor Vehicle (at cost) 630
F & F (at cost) 420
Interest received on loans 183
Interest in Investment 225
Stated Capital 3,600
Gross Premium received 2,760
Claims paid during the year 960
Income Tax paid 210
Commission to Agent 72
General Administrative Expenses 1,050
Reinsurance Premium paid 162
Reinsurance recoveries 540
Premiums returned to clients 57
Notes:
(i) Reserve is calculated at 40% of Net Premium Income
(ii) Assets were acquired on 1st January, 2016
(iii) The General Administration Expenses include GH¢600,000 in respect of depreciation charged for the year.
(iv) The applicable, rates for capital allowance are as follows:

Pool 1 40%
Pool 2 30%
Pool 3 20%
Pool 4 10%
Required:
Compute the tax liability of the company for 2016 year of assessment.
Corporate Tax Rate: 25%

Answer

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Tags: Capital Allowance, Corporate Tax, Insurance Taxation, Reducing Balance Depreciation, Tax Liability
Level: Level 2

Topic: Sector-Specific Taxation
Series: AUG 2017

TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

Question

Bakosa Insurance Co. Plc. is a company engaged in both life and other insurance businesses. You were appointed as the tax consultant of the company on June 30, 2021. The Managing Director of the company invited you to a meeting of the directors with a view to intimating them of the recent changes introduced by the Finance Acts 2019 and 2020, relating to insurance business.

Required:
Explain the following to the management of the company:
a. Recent changes introduced by Finance Acts 2019 and 2020, that relate to the computation of tax liabilities of insurance companies. (16 Marks)
b. Additional documents/information to be filed by insurance companies. (4 Marks

Answer

Find Related Questions by Tags, levels, etc.

Tags: Finance Act 2019, Finance Act 2020, Insurance Taxation, Tax on Insurance Companies
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2022

ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

Question

Question:
Nkrabea Insurance Company Limited commenced operating in Ghana on 1st January, 2016.
Below is an extract from the Trial Balance as at 31/12/16.

Pool 1 40%
Pool 2 30%
Pool 3 20%
Pool 4 10%
Required:
Compute the tax liability of the company for 2016 year of assessment.
Corporate Tax Rate: 25%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Corporate Tax, Insurance Taxation, Reducing Balance Depreciation, Tax Liability
Level: Level 2

Topic: Sector-Specific Taxation
Series: AUG 2017

TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Finance Act 2019, Finance Act 2020, Insurance Taxation, Tax on Insurance Companies
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2022

Question Tag: Insurance Taxation

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ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

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Question Tag: Insurance Taxation

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ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

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TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

You're reporting an error for "TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)"

ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation

Compute Nkrabea Insurance’s 2016 tax liability, including premium income and capital allowances.

You're reporting an error for "ATP – Aug 2017 – L2 – Q5 – Sector-Specific Taxation"

TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)

Explain the recent changes in taxation introduced by the Finance Acts of 2019 and 2020, specifically related to insurance companies.

You're reporting an error for "TAX – May 2022 – L2 – SA – Q4 – Companies Income Tax (CIT)"

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