Payment Due Dates

ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

Question

Fafali Ghana Limited produces aluminium roofing sheets for both the domestic market and exports to other West African countries. The company is registered with the Ghana Revenue Authority for Value Added Tax (VAT). The company’s transactions during the month of January, 2019 were as follows:

Item	GH¢
Sales (VAT Inclusive)	6,804,000.00
Exports to Sierra Leone (US Dollars)	120,000.00
Relief Supplies	148,000.00
Purchase of Modelling Equipment	160,500.00
Staff Training (VAT Inclusive)	10,800.00
Assembly of Equipment (US Dollars)	15,600.00
Alumina imported (All duties paid at importation)	141,750.00
Local Purchases	180,000.00

Unless otherwise stated, Sales and Purchases are all Value Added Tax exclusive. National Health Insurance and GET Fund Levies are also exclusive except where it has been specifically stated. The assembling of equipment was a payment made to a foreign consultant for the service rendered. The average exchange rate for the month was GH¢5.5 to one US dollar.

Required:

a) Calculate the NHIL and GET fund levies, VAT payable, if any, and Withholding Tax for January 2019.

b) State the last date when each payment is due.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Indirect Taxes, Payment Due Dates, Tax Compliance
Level: Level 2

Topic: Tax Compliance Framework
Series: AUGUST 2020

AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

Question

Kanadu Nigeria Limited is a manufacturer of leather shoes, bags, and allied accessories since 2017. The recent changes in the taste of customers, particularly the quest for imported, cheaper leather shoes and bags, have had a negative impact on the company’s profits. The management has decided to re-organize the business in a way to better satisfy the customers.

The following transactions were extracted from the books of the company:

(i) June 2017: Acquisition of an acre of land at the outskirts of the State capital for N8,500,000. The company spent an additional amount of N1,500,000 to sand-fill the land;

(ii) August 2017: A factory was built on the acquired land for the purpose of the business at a cost of N65,000,000;

(iii) May 2022: Sold part of the factory’s land for N25,500,000;

(iv) The market value of the remaining property unsold, as valued by a professional valuer, at the time of disposal in May 2022, was N99,500,000;

(v) July 2023: Acquisition of a new acre of land in the town for N45,000,000 (utilized all the proceeds from the disposal of the land). This is expected to be used for the construction of another factory in the same line of business.

The company’s General Manager, who is an engineer, has just engaged your professional accounting firm as its tax consultants.

Required:

As the Principal Partner, you are to prepare a report to the General Manager, stating the:

a. Capital gains tax payable in line with the provisions of Capital Gains Tax Cap C1 LFN 2004 (as amended) (10 Marks)

b. New cost of undisposed property (2 Marks)

c. The roll-over relief (if any) the company is entitled to (2 Marks)

d. Due date(s) for the payment of tax liabilities (1 Mark)

(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Land Valuation, Payment Due Dates, Property Disposal, Roll-Over Relief, Tax Compliance
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: MAY 2024

ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

Question

Item	GH¢
Sales (VAT Inclusive)	6,804,000.00
Exports to Sierra Leone (US Dollars)	120,000.00
Relief Supplies	148,000.00
Purchase of Modelling Equipment	160,500.00
Staff Training (VAT Inclusive)	10,800.00
Assembly of Equipment (US Dollars)	15,600.00
Alumina imported (All duties paid at importation)	141,750.00
Local Purchases	180,000.00

Required:

a) Calculate the NHIL and GET fund levies, VAT payable, if any, and Withholding Tax for January 2019.

b) State the last date when each payment is due.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Indirect Taxes, Payment Due Dates, Tax Compliance
Level: Level 2

Topic: Tax Compliance Framework
Series: AUGUST 2020

AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

Question

The following transactions were extracted from the books of the company:

(i) June 2017: Acquisition of an acre of land at the outskirts of the State capital for N8,500,000. The company spent an additional amount of N1,500,000 to sand-fill the land;

(ii) August 2017: A factory was built on the acquired land for the purpose of the business at a cost of N65,000,000;

(iii) May 2022: Sold part of the factory’s land for N25,500,000;

(iv) The market value of the remaining property unsold, as valued by a professional valuer, at the time of disposal in May 2022, was N99,500,000;

The company’s General Manager, who is an engineer, has just engaged your professional accounting firm as its tax consultants.

Required:

As the Principal Partner, you are to prepare a report to the General Manager, stating the:

a. Capital gains tax payable in line with the provisions of Capital Gains Tax Cap C1 LFN 2004 (as amended) (10 Marks)

b. New cost of undisposed property (2 Marks)

c. The roll-over relief (if any) the company is entitled to (2 Marks)

d. Due date(s) for the payment of tax liabilities (1 Mark)

(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Land Valuation, Payment Due Dates, Property Disposal, Roll-Over Relief, Tax Compliance
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: MAY 2024

Question Tag: Payment Due Dates

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ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

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ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

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AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

You're reporting an error for "AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax"

ATP – Aug 2020 – L2 – Q1 – Indirect Taxes

Calculate NHIL, GET Fund, VAT, and Withholding Tax for Fafali Ghana Limited for January 2019.

You're reporting an error for "ATP – Aug 2020 – L2 – Q1 – Indirect Taxes"

AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax

Prepare a report calculating Kanadu Nigeria Limited’s capital gains tax, undisposed property cost, roll-over relief, and tax payment due dates.

You're reporting an error for "AT – May 2024 – L3 – SC – Q6 – Capital Gains Tax"

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