- 20 Marks
STP – Aug 2013 – L2 – Q5 – Strategic Indirect Tax Management
Advise Isak Esh Ltd on VAT responsibilities in Ghana.
Question
(a) Isak Esh Ltd registered to do business in Ghana in October 2012. The CEO read in the papers that the Ghana Revenue Authority intends to embark on a mop up exercise before year 2012 will end. The CEO has been briefed by the Chief Finance Officer of Isak Esh Ltd about his company’s inability to have registered with the GRA for VAT purposes. As Chartered Tax Advisor, the CEO has approached you for advice.
Required Please advice Isak Esh Ltd on its VAT responsibility in Ghana.
(b). As tax advisor to Tanko Enterprises Ltd., you receive a note from the Chief Finance Officer as follows: “We have purchased Processing Plant and Machinery from a company registered in Mauritius. The company has agreed not to sell this machinery to any other party in Ghana for the next ten (10) years and therefore is charging us additional fee of $100,000. Should we pay? What are the tax implications of the payment of the price of the machinery and the additional fee in Ghana? “
Required a) Please advice the Chief Finance Officer on Tanko’s tax responsibilities as detailed in the Tax Acts in respect of such transactions.
b) Discuss the duty and VAT payable on the import of machinery into Ghana.
Find Related Questions by Tags, levels, etc.
- Tags: Capital Allowance, Import duty, Machinery Purchase, VAT
- Level: Level 2
- Topic: Strategic Indirect Tax Management
- Series: AUG 2013
