NGO Taxation – Knowsia

AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

Question

Kankoka is registered with the Registrar General Department of Ghana as a Non- Governmental Organisation (NGO) and had income amounting to GH¢30,000,000 in 2018 year of assessment.

A detailed analysis reveals the following composition of the income: Support from Benefactor based in Germany GH¢10,000,000 Transport business GH¢10,000,000 Government afforestation project disbursement GH¢10,000,000

Required: Determine the tax payable if any by Kankoka and comment on your answer and state any relevant assumption.

Answer

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Tags: Business income of NGOs, Charitable organization, NGO Taxation
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2020

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

Question

Scenario:

Bubandushe is a Non-Governmental Organisation (NGO) located in Accra with operational areas in the Northern Regions of Ghana. The NGO buys rice from a supermarket in Accra and transports it to the Northern Regions for distribution to widows and orphans. Its main source of funding is from a benefactor based in the Netherlands, who has been supporting the project since its inception.

In support of its operations, it engaged Chartered Accountants from the Institute of Chartered Accountants (Ghana) as employees. Their role is basically to organize training programmes for Government Institutions on budget preparation using advanced financial models for a fee. This additional source of income equally supports the operations of this NGO.

Ghana Revenue Authority (GRA) has written to this NGO to regularize its operations with it for tax purposes. The Management of the NGO has argued that it is exempt from tax on its income. The management has written to you to offer professional help on the matter.

Required:

i) Determine whether the NGO is required under the tax laws to pay tax and if yes, what type of taxes. (6 marks)

ii) On what basis are NGOs liable to tax or exempt? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Charitable Organizations, Corporate Tax, NGO Taxation, Withholding Tax
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2019

AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

Question

Kankoka is registered with the Registrar General Department of Ghana as a Non- Governmental Organisation (NGO) and had income amounting to GH¢30,000,000 in 2018 year of assessment.

Required: Determine the tax payable if any by Kankoka and comment on your answer and state any relevant assumption.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business income of NGOs, Charitable organization, NGO Taxation
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2020

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

Question

Scenario:

Required:

i) Determine whether the NGO is required under the tax laws to pay tax and if yes, what type of taxes. (6 marks)

ii) On what basis are NGOs liable to tax or exempt? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Charitable Organizations, Corporate Tax, NGO Taxation, Withholding Tax
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2019

Question Tag: NGO Taxation

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AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

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Question Tag: NGO Taxation

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AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

You're reporting an error for "AT – May 2020 – L3 – Q5d – Business income – Corporate income tax"

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

You're reporting an error for "AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana"

AT – May 2020 – L3 – Q5d – Business income – Corporate income tax

Determine the tax payable by Kankoka, an NGO, on various income sources including support from benefactors, transport business, and government project disbursement.

You're reporting an error for "AT – May 2020 – L3 – Q5d – Business income – Corporate income tax"

AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana

Determine the tax obligations of an NGO involved in both charitable activities and business operations.

You're reporting an error for "AT – Nov 2019 – L3 – Q4a – Tax administration in Ghana"

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