Practice notes – Knowsia

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

Question

(a). The Ghana Revenue Authority Act, 2009 (Act 791) sets out the objectives to be achieved in the performance of its duties as an agency of the state responsible for the collection of both direct and indirect taxes.

Required:

Identify the functions that are set out in Act 791 that are to be performed by the Ghana Revenue Authority to enable it achieve the said objectives.

(b). Section 18 of Act 915, Revenue Administration Act, 2016 sets out prohibition on representation and tax advice.

Required:

Explain the conditions under which a person can act as a Tax Consultant.

(c). Section 100 of Act 915, Revenue Administration Act, 2016 provides guidelines to achieve consistency in the administration of the tax laws and provide guidance to affected persons. The Commissioner-General is therefore required to issue practice notes.

Required:

Explain the principles that guide the Commissioner-General in issuing practice notes.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Act 915, Commissioner-General, Practice notes, Revenue Administration Act, Tax Law Guidance
Level: Level 2

Topic: Tax Compliance Framework
Series: AUG 2019

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

Question

a) Afraa LTD made a net profit before tax of GH₵1,100,000 for the year 2024.
The following were effected before arriving at the net profit before tax:

Depreciation: GH₵105,000.
Income tax paid (meant for last quarter of 2023): GH₵22,500.
Financial cost (from financial derivatives): GH₵350,000
Financial gain (from financial derivatives): GH₵105,000

Additional Information:
Capital allowance of GH₵180,000 and Donations to Osu Children’s home of GH₵30,000 which were agreed on with Ghana Revenue Authority are yet to be recognised in the financial statements.
Required:
Compute the allowable financial cost and the company tax payable for 2024. Explain any other tax implications.

b) Premier Insurance Company LTD located at Koforidua submitted the following accounts for the year ended 31 December 2024.

Note	GH₵
Gross premiums received	3,380,000
Premiums returned to insurers	118,500
Reinsurance premiums paid	126,000
Claims settled	1,185,000
Reinsurance claims recovered	24,000
Commissions to agents	271,200
General administrative expenses	881,900
Interest on Bank Deposits (Net)	418,000
Gross income from insurance consultancy services rendered	350,000
Dividends received (Net)	341,000
Reserves for unexpired risk at 31/12/2023	910,000

Notes:

Commissions to agents
| | GH₵ | |——————————–|————| | Casual commission agents | 250,000 | | Unnamed commission agents | 21,200 |
General administrative expenses
| | GH₵ | |——————————–|————| | Water and electricity | 69,200 | | Office wages and salaries | 414,560 | | Repairs to premises | 91,920 | | Motor expenses | 57,040 | | Depreciation | 56,800 | | Loss on sale of equipment | 20,640 | | Professional charges (Note iii) | 66,000 | | Sundry expenses (Note iv) | 103,840 | | Entertainment | 1,900 |

i) Repairs to premises

	GH₵
Construction of main gate and Landscaping	86,360
Minor office decoration	3,600
Re-plastering of damaged walls	1,960

ii) Motor expenses

	GH₵
Travelling expenses	7,200
Purchase of new vehicle engine	35,000
Fuel and lubricants	14,840

iii) Professional charges

	GH₵
Accounting and audit fees	23,200
Cost of obtaining new lease to build an office complex	42,800

iv) Sundry expenses

	GH₵
Penalty for late filling of tax returns	9,500
Donation to Ghana Education Trust Fund (confirmed by GRA)	8,000
Postage and courier services	7,200
Fines for vehicle wrong parking	1,300
Office cleaning	29,000
Business Operating Permit paid to Ada District Assembly	15,000
Printing and stationery	25,500
Telephone and communication/internet services	8,340

Other information:

Reserves for unexpired risk is calculated at 45% of net insurance premium.
Capital allowance for the year has been agreed at GH₵65,400 after consideration of all available information in the tax returns.
Required:
Determine the chargeable income of Premier Insurance Company LTD.
(9 marks)

c) Practice notes are issued by the Commissioner-General of the Ghana Revenue Authority (GRA), by publishing a notice in the Gazette or on their website or in at least two daily newspapers of national circulation.

Required:

As a tax finalist working with Kato Chartered Accountants, explain to your study partner FOUR purposes of issuing practice notes.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Practice notes, Tax Administration
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: MAR 2025

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

Question

Private rulings, class rulings, and practice notes do not serve the same purpose.

Required:
Write a memo to the Tax Manager of your company as a Tax Intern explaining how each is used and their effect on tax administration.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Class rulings, Practice notes, Private rulings, Tax Administration, Tax rulings
Level: Level 3

Topic: Tax planning
Series: JULY 2023

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

Question

The Commissioner General issued a private ruling that conflicts with existing practice notes issued by the Ghana Revenue Authority on the same transaction.

Required:
Discuss how this issue should be handled in tax administration.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Conflict Resolution, Practice notes, Private ruling, Tax Administration
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2015

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

Question

Required:

Identify the functions that are set out in Act 791 that are to be performed by the Ghana Revenue Authority to enable it achieve the said objectives.

(b). Section 18 of Act 915, Revenue Administration Act, 2016 sets out prohibition on representation and tax advice.

Required:

Explain the conditions under which a person can act as a Tax Consultant.

Required:

Explain the principles that guide the Commissioner-General in issuing practice notes.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Act 915, Commissioner-General, Practice notes, Revenue Administration Act, Tax Law Guidance
Level: Level 2

Topic: Tax Compliance Framework
Series: AUG 2019

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

Question

a) Afraa LTD made a net profit before tax of GH₵1,100,000 for the year 2024.
The following were effected before arriving at the net profit before tax:

Depreciation: GH₵105,000.
Income tax paid (meant for last quarter of 2023): GH₵22,500.
Financial cost (from financial derivatives): GH₵350,000
Financial gain (from financial derivatives): GH₵105,000

b) Premier Insurance Company LTD located at Koforidua submitted the following accounts for the year ended 31 December 2024.

Note	GH₵
Gross premiums received	3,380,000
Premiums returned to insurers	118,500
Reinsurance premiums paid	126,000
Claims settled	1,185,000
Reinsurance claims recovered	24,000
Commissions to agents	271,200
General administrative expenses	881,900
Interest on Bank Deposits (Net)	418,000
Gross income from insurance consultancy services rendered	350,000
Dividends received (Net)	341,000
Reserves for unexpired risk at 31/12/2023	910,000

Notes:

Commissions to agents
| | GH₵ | |——————————–|————| | Casual commission agents | 250,000 | | Unnamed commission agents | 21,200 |
General administrative expenses
| | GH₵ | |——————————–|————| | Water and electricity | 69,200 | | Office wages and salaries | 414,560 | | Repairs to premises | 91,920 | | Motor expenses | 57,040 | | Depreciation | 56,800 | | Loss on sale of equipment | 20,640 | | Professional charges (Note iii) | 66,000 | | Sundry expenses (Note iv) | 103,840 | | Entertainment | 1,900 |

i) Repairs to premises

	GH₵
Construction of main gate and Landscaping	86,360
Minor office decoration	3,600
Re-plastering of damaged walls	1,960

ii) Motor expenses

	GH₵
Travelling expenses	7,200
Purchase of new vehicle engine	35,000
Fuel and lubricants	14,840

iii) Professional charges

	GH₵
Accounting and audit fees	23,200
Cost of obtaining new lease to build an office complex	42,800

iv) Sundry expenses

	GH₵
Penalty for late filling of tax returns	9,500
Donation to Ghana Education Trust Fund (confirmed by GRA)	8,000
Postage and courier services	7,200
Fines for vehicle wrong parking	1,300
Office cleaning	29,000
Business Operating Permit paid to Ada District Assembly	15,000
Printing and stationery	25,500
Telephone and communication/internet services	8,340

Other information:

Reserves for unexpired risk is calculated at 45% of net insurance premium.
Capital allowance for the year has been agreed at GH₵65,400 after consideration of all available information in the tax returns.
Required:
Determine the chargeable income of Premier Insurance Company LTD.
(9 marks)

Required:

As a tax finalist working with Kato Chartered Accountants, explain to your study partner FOUR purposes of issuing practice notes.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Practice notes, Tax Administration
Level: Level 3

Topic: Tax Administration and Dispute Resolution
Series: MAR 2025

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

Question

Private rulings, class rulings, and practice notes do not serve the same purpose.

Required:
Write a memo to the Tax Manager of your company as a Tax Intern explaining how each is used and their effect on tax administration.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Class rulings, Practice notes, Private rulings, Tax Administration, Tax rulings
Level: Level 3

Topic: Tax planning
Series: JULY 2023

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

Question

The Commissioner General issued a private ruling that conflicts with existing practice notes issued by the Ghana Revenue Authority on the same transaction.

Required:
Discuss how this issue should be handled in tax administration.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Conflict Resolution, Practice notes, Private ruling, Tax Administration
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2015

Question Tag: Practice notes

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

Our offerings

Community

Contact Info

Customer

Get In Touch

Question Tag: Practice notes

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

You're reporting an error for "ATP – Aug 2019 – L2 – Q1 – Tax Administration"

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

You're reporting an error for "AT – Mar 2025 – L3 – Q1 – Taxation of Companies"

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

You're reporting an error for "AT – July 2023 – L3 – Q5b – Tax administration in Ghana"

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

You're reporting an error for "AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana"

ATP – Aug 2019 – L2 – Q1 – Tax Administration

Identify functions of Ghana Revenue Authority under Act 791 for tax collection objectives.

You're reporting an error for "ATP – Aug 2019 – L2 – Q1 – Tax Administration"

AT – Mar 2025 – L3 – Q1 – Taxation of Companies

Compute allowable financial cost and company tax payable for Afraa LTD for 2024, including tax implications.

You're reporting an error for "AT – Mar 2025 – L3 – Q1 – Taxation of Companies"

AT – July 2023 – L3 – Q5b – Tax administration in Ghana

Explaining the purposes and differences of private rulings, class rulings, and practice notes in tax administration.

You're reporting an error for "AT – July 2023 – L3 – Q5b – Tax administration in Ghana"

AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana

Discussing how to handle a conflict between a private ruling and existing practice notes.

You're reporting an error for "AT – Nov 2015 – L3 – Q4c – Tax administration in Ghana"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form