Mining Company – Knowsia

STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

Question

(a) The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the tax implications of the purchase of equity in a mining company.

(b). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the grant of capital allowance on a leased asset.

(c). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the VAT implications of the lease payments.

(d). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the tax implications of the sale of class 3 mining asset.

(e). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the grant of capital allowance on the use of a machinery by a mining company.

Answer

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Tags: Capital Allowance, machinery, Mining Company
Level: Level 2

Topic: Taxation of Capital Transactions
Series: AUG 2013

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

Question

The profit and loss account of Jamaa Mining Company Ltd for the years ended December 2008 and 2009 are as tabled below:

	Year Ended 31 December (all amounts in ‘000)
	2009 GHC	2008 GHC
Turnover	309,000	430,000
Cost of Sales	(164,000)
Gross Profit	145,000
General and Admin Exp	(100,000)
Operating Profit	45,000
Other Income	5,300
Net Profit before tax	50,300
Income Tax provision	12,575
Transfer to Income Surplus	37,725
Income Surplus Account
Balance brought forward	46,945
Transfer from profit and loss account	9,220
Surplus carried forward	46,945

Notes:
2. Turnover is made up as follows
For year

	2009	2008
Collected for year but included in prior year a/c	291,000
Interest income received for 18 months	0	18,000
	309,000

Cost of sales includes:

	2009	2008
Withholding taxes paid	1,500	1,000
VAT unclaimed	6,000	8,000
Depreciation	43,000	25,000

4a. Gen and Admin expenses includes

	2009	2008
Rent prepaid of	3,000
Rent outstanding	500	500

4b. Includes unrealized foreign exchange gain of but realized in 2009

	2009	2008
	2,000	2,000

The GRA has agreed a capital allowance of GHC20,000 for year 2009 and GHC15,000 for year 2008.

Required:
Please advise management of Jamaa Mining Company Ltd on the tax due to the GRA for the years 2009 and 2008.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Corporate Taxation, Mining Company, Tax computation, Taxable Profit
Level: Level 3

Topic: Taxation and Operating Strategies in Business
Series: AUG 2012

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

Question

a. Describe FOUR (4) ways in which the investment appraisal approach of a Municipal Assembly will differ from a mining company. (4 marks)

Answer

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Tags: Investment Appraisal, Mining Company, Municipal Assembly, Public Sector vs. Private Sector
Level: Level 2

Topic: Introduction to Investment Appraisal
Series: NOV 2015

STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

Question

(a) The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the tax implications of the purchase of equity in a mining company.

(b). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the grant of capital allowance on a leased asset.

(c). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the VAT implications of the lease payments.

(d). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the tax implications of the sale of class 3 mining asset.

(e). The Board of Kwaamens Ltd has approached you as their preferred Tax Consultant for advice on the grant of capital allowance on the use of a machinery by a mining company.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, machinery, Mining Company
Level: Level 2

Topic: Taxation of Capital Transactions
Series: AUG 2013

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

Question

The profit and loss account of Jamaa Mining Company Ltd for the years ended December 2008 and 2009 are as tabled below:

	Year Ended 31 December (all amounts in ‘000)
	2009 GHC	2008 GHC
Turnover	309,000	430,000
Cost of Sales	(164,000)
Gross Profit	145,000
General and Admin Exp	(100,000)
Operating Profit	45,000
Other Income	5,300
Net Profit before tax	50,300
Income Tax provision	12,575
Transfer to Income Surplus	37,725
Income Surplus Account
Balance brought forward	46,945
Transfer from profit and loss account	9,220
Surplus carried forward	46,945

Notes:
2. Turnover is made up as follows
For year

	2009	2008
Collected for year but included in prior year a/c	291,000
Interest income received for 18 months	0	18,000
	309,000

Cost of sales includes:

	2009	2008
Withholding taxes paid	1,500	1,000
VAT unclaimed	6,000	8,000
Depreciation	43,000	25,000

4a. Gen and Admin expenses includes

	2009	2008
Rent prepaid of	3,000
Rent outstanding	500	500

4b. Includes unrealized foreign exchange gain of but realized in 2009

	2009	2008
	2,000	2,000

The GRA has agreed a capital allowance of GHC20,000 for year 2009 and GHC15,000 for year 2008.

Required:
Please advise management of Jamaa Mining Company Ltd on the tax due to the GRA for the years 2009 and 2008.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Corporate Taxation, Mining Company, Tax computation, Taxable Profit
Level: Level 3

Topic: Taxation and Operating Strategies in Business
Series: AUG 2012

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

Question

a. Describe FOUR (4) ways in which the investment appraisal approach of a Municipal Assembly will differ from a mining company. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Investment Appraisal, Mining Company, Municipal Assembly, Public Sector vs. Private Sector
Level: Level 2

Topic: Introduction to Investment Appraisal
Series: NOV 2015

Question Tag: Mining Company

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STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

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STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

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STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

You're reporting an error for "STP – Aug 2012 – L3 – Q1 – Tax Computation"

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

You're reporting an error for "FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal"

STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions

Tax implications of purchasing equity in a mining company.

You're reporting an error for "STP – Aug 2013 – L2 – Q1 – Taxation of Capital Transactions"

STP – Aug 2012 – L3 – Q1 – Tax Computation

Compute tax liability for Jamaa Mining Company for 2008 and 2009 based on provided financials.

You're reporting an error for "STP – Aug 2012 – L3 – Q1 – Tax Computation"

FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal

Describe how the investment appraisal approach of a municipal assembly differs from that of a mining company.

You're reporting an error for "FM – NOV 2015 – L2 – Q3a – Introduction to Investment Appraisal"

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