Location Incentives

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

Question

(a). State and explain four (4) non-tax factors which influence the decision of an entrepreneur as to where to establish a business.

(b). A Ghanaian entrepreneur is looking for an ideal location to establish an orange juice processing facility. The initial feasibility studies conducted by consultants for the entrepreneur indicate that Tema, Takoradi and Nsawam have comparable economic conditions which will make an investment in any of these cities financially prudent. With reference to the provisions of the Income Tax Act, 2015 (Act 896) discuss the tax implications of establishing a manufacturing entity in Tema, Takoradi and Nsawam and advise the entrepreneur on the most tax efficient location to establish the entity.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Location Incentives, Manufacturing, Tax Incentives
Level: Level 2

Topic: Tax Incentives
Series: AUG 2018

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

Question

The location of an entity is of importance in tax planning. How does location inure to the benefit of a young entrepreneur aged 35 years or younger in the manufacturing business?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Location Incentives, Manufacturing, Tax Planning, Young Entrepreneurs
Level: Level 2

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

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

Question

Some investors have invited you for comments on a business they intend to establish in four years’ time. Your comments are critical to the investors in making a choice on the establishment of one of the two entities, that is:

Manufacturing company or
Free zone company.

The investors intend to name the entity Gigani Ltd and establish it in Ghana. The following relates to the projected business of Gigani Ltd:

The shareholders plan to establish Gigani Ltd in either Accra/Tema, Ashanti Regional capital, or Kasoa in the Central Region. It is anticipated that irrespective of the location, Gigani Ltd would generate the same amount of profit in year 1 and grow by 5% each year, all things being equal.

Its first year’s financial performance is projected as follows:

Location	Profit (GH¢)
Accra/Tema	10,000,000
Ashanti Regional Capital	10,000,000
Kasoa, Central Region	10,000,000

Additional interventions on what the investors intend to do in the future when Gigani Ltd is established are as follows:

Establish the business with four resident shareholders.
Start with share capital of GH¢2 million from the contribution of the shareholders.
Raise a debt from two main sources: GH¢10 million from a financial institution in Ghana and GH¢20 million from shareholders with interest at 4% above the market rate.
Transfer an amount of GH¢2 million from retained earnings to share capital to increase the worth of the shareholders after the second year.
Recruit fresh graduates each year from the University of Ghana and Massachusetts Institute of Technology in Boston, USA for the next 5 years until it meets its staff requirement yet to be decided.

Required:
You are required to assess the tax implications of the: i) Set-up.
ii) Location.
iii) Interventions to be introduced.
(12 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Setup, Corporate Tax, Free Zone, Location Incentives, Manufacturing, Tax implications
Level: Level 3

Topic: Tax planning
Series: NOV 2023

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

Question

(a). State and explain four (4) non-tax factors which influence the decision of an entrepreneur as to where to establish a business.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Location Incentives, Manufacturing, Tax Incentives
Level: Level 2

Topic: Tax Incentives
Series: AUG 2018

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

Question

The location of an entity is of importance in tax planning. How does location inure to the benefit of a young entrepreneur aged 35 years or younger in the manufacturing business?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Location Incentives, Manufacturing, Tax Planning, Young Entrepreneurs
Level: Level 2

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

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

Question

Manufacturing company or
Free zone company.

The investors intend to name the entity Gigani Ltd and establish it in Ghana. The following relates to the projected business of Gigani Ltd:

The shareholders plan to establish Gigani Ltd in either Accra/Tema, Ashanti Regional capital, or Kasoa in the Central Region. It is anticipated that irrespective of the location, Gigani Ltd would generate the same amount of profit in year 1 and grow by 5% each year, all things being equal.

Its first year’s financial performance is projected as follows:

Location	Profit (GH¢)
Accra/Tema	10,000,000
Ashanti Regional Capital	10,000,000
Kasoa, Central Region	10,000,000

Additional interventions on what the investors intend to do in the future when Gigani Ltd is established are as follows:

Establish the business with four resident shareholders.
Start with share capital of GH¢2 million from the contribution of the shareholders.
Raise a debt from two main sources: GH¢10 million from a financial institution in Ghana and GH¢20 million from shareholders with interest at 4% above the market rate.
Transfer an amount of GH¢2 million from retained earnings to share capital to increase the worth of the shareholders after the second year.
Recruit fresh graduates each year from the University of Ghana and Massachusetts Institute of Technology in Boston, USA for the next 5 years until it meets its staff requirement yet to be decided.

Required:
You are required to assess the tax implications of the: i) Set-up.
ii) Location.
iii) Interventions to be introduced.
(12 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Setup, Corporate Tax, Free Zone, Location Incentives, Manufacturing, Tax implications
Level: Level 3

Topic: Tax planning
Series: NOV 2023

Question Tag: Location Incentives

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

Our offerings

Community

Contact Info

Customer

Get In Touch

Question Tag: Location Incentives

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

You're reporting an error for "STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation"

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

You're reporting an error for "PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy"

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

You're reporting an error for "AT – Nov 2023 – L3 – Q2b – Tax planning"

STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation

State and explain four non-tax factors influencing an entrepreneur's decision on business location.

You're reporting an error for "STP – Aug 2018 – L2 – Q3 – Tax Strategies for New Business Formation"

PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy

Discuss how location benefits young entrepreneurs aged 35 years or younger in manufacturing regarding tax planning.

You're reporting an error for "PT – May 2021 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy"

AT – Nov 2023 – L3 – Q2b – Tax planning

Assess the tax implications of the setup, location, and planned interventions for the establishment of Gigani Ltd.

You're reporting an error for "AT – Nov 2023 – L3 – Q2b – Tax planning"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form