- 20 Marks
STP – Aug 2018 – L2 – Q5 – Taxation of Specialized Business Sectors
Discuss tax consequences of establishing a cattle farm in Ghana and the impact of location on incentives.
Question
(a). The Chief Executive Officer (CEO) of Dana, a meat processing company based in the United Arab Emirates is exploring the possibility of expanding the operations of the company to Ghana. The CEO intends to establish a cattle farm and an ultra-modern meat processing which would process the meat for export to the Middle East. His initial inquiries revealed that Ghana has tax incentives for investors who seek to establish businesses which produce items for export.
Required: As the preferred tax advisor, provide an opinion on the income tax consequences of establishing a cattle farm indicating whether the location of the farm impacts on the tax incentives available to an investor.
(b). Based on your knowledge of the Free Zone Act, 1995 (Act 504) state and discuss five (5) tax incentives which the investor can obtain if he registers the meat processing factory as a Free Zone Enterprise.
Find Related Questions by Tags, levels, etc.
- Tags: Export, Free Zone Act, Meat Processing, Tax Incentives, Withholding Tax
- Level: Level 2
- Topic: Tax Incentives
- Series: AUG 2018
