Social Security – Knowsia

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

Mr. Abu Sakari has been appointed the Head of Tax Department of Jubilee Hub Limited with effect from 1st January 2014 on annual basic salary of GHS84,000.00. Mr. Sakari also enjoys the following allowances and benefits by virtue of his position:

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He is provided with a soft furnished accommodation by the company as well as a Toyota Camry saloon car which is fuelled by the company. He contributes 5.5% of his salary to the Social Security Fund and the company contributes 13%. He is a widower with four children. The first child is pursuing a BSc. Nursing program at the University of Ghana, the second child attends Presbyterian Boys Senior High School, Legon, and the last two girls attend University of Ghana Junior High School, Legon. He is fully responsible for the upkeep of his father aged 61 years and his mother aged 58 years.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

Question

a) Selassi Afolabi was employed as the Personnel Manager of Tano North District Assembly on 1 March 2021 on salary scale of GH¢72,000, which is expected to increase by GH¢4,000 annually to a maximum of GH¢84,000. As part of his conditions of employment, he is entitled to the following: i) He has a fully furnished accommodation. ii) He has a vehicle, fuel and driver for official use only. iii) Risk allowance of GH¢2,000 a month. iv) Inconvenience allowance of GH¢1,500 a month. v) Professional allowance of GH¢2,500 a month. vi) He was paid a bonus of GH¢16,000. vii) He had the services of a gardener who receives monthly salary of GH¢800, paid by the employer. viii) He is divorced with three children who are schooling in government approved schools in Ghana. ix) He contributes 5.5% of his salary to the Social Security Scheme. x) He contributes 8% of his salary to an approved Provident Fund and his employers also contributes 10% on his behalf to the Provident Fund. xi) He received a net dividend of GH¢12,800 in 2023 from shares owned in a resident company. xii) He received a director’s fee of GH¢16,000 net of 20% WHT in 2023 from being a Board member in a private company.

Required: Determine his chargeable income for the 2023 year of assessment.

b) Adwoa Ntowbea is an investor in several companies in Ghana and abroad. Below are details of ordinary share dealing of Adwoa Ntowbea in Amaraaba LTD, a limited liability company in Ghana which is not listed on the Ghana Stock Exchange.

Date	Details
1 Jan 2023	Bought 500 shares at GH¢11 each
18 Sept 2023	Bought 1500 shares at GH¢12 each
30 Dec 2023	Bought 800 shares at GH¢10 each
19 Nov 2024	Sold 500 shares for GH¢12 each

Required: i) Determine the gains on the shares sold

ii) Determine the tax, if any, on the shares sold.

iii) Explain the withholding tax regime on realization of capital assets.

iv) What are the tax return requirements on realization of capital gains?

Answer

Find Related Questions by Tags, levels, etc.

Tags: chargeable income, Directors’ Fees, Dividends, Employment Income, Provident fund, Social Security, Tax Allowances
Level: Level 2

Topic: Capital Gains Tax (CGT)
Series: MAR 2025

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

Question

Explain briefly the 3-Tier Ghana National Pension Scheme Mechanism.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana National Pension Scheme, Pensions, Social Security, Taxation
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2019

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

Question

What are the features of the 3-Tier Ghana National Pension Scheme?
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: National Pension Scheme, Pensions, Retirement Benefits, Social Security
Level: Level 2

Topic: Ghana National Pension Scheme
Series: MAY 2020

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

Question

ABA Venture was set up recently and John is an independent electrical contractor working for ABA Ventures for the past 3 months under a contract that requires him to ensure that all electrical facilities are well maintained. Abena is a fresh graduate who has also completed level one of the ICAG professional programme and has been given a one-year contract as a Cashier of ABA Ventures. Your firm is designing the conditions of service for ABA Ventures.

i) List the FOUR (4) rights of employees.
(4 marks)

ii) Indicate whether ABA Ventures will have obligations to pay Social Security on behalf of John and Abena who are both working at ABA.
(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract for Service, Contract of Service, Employee Obligations, Employment Rights, Social Security
Level: Level 1

Topic: Employment law
Series: MAY 2019

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

Question

Required: Determine his chargeable income for the 2023 year of assessment.

Date	Details
1 Jan 2023	Bought 500 shares at GH¢11 each
18 Sept 2023	Bought 1500 shares at GH¢12 each
30 Dec 2023	Bought 800 shares at GH¢10 each
19 Nov 2024	Sold 500 shares for GH¢12 each

Required: i) Determine the gains on the shares sold

ii) Determine the tax, if any, on the shares sold.

iii) Explain the withholding tax regime on realization of capital assets.

iv) What are the tax return requirements on realization of capital gains?

Answer

Find Related Questions by Tags, levels, etc.

Tags: chargeable income, Directors’ Fees, Dividends, Employment Income, Provident fund, Social Security, Tax Allowances
Level: Level 2

Topic: Capital Gains Tax (CGT)
Series: MAR 2025

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

Question

Explain briefly the 3-Tier Ghana National Pension Scheme Mechanism.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana National Pension Scheme, Pensions, Social Security, Taxation
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2019

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

Question

What are the features of the 3-Tier Ghana National Pension Scheme?
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: National Pension Scheme, Pensions, Retirement Benefits, Social Security
Level: Level 2

Topic: Ghana National Pension Scheme
Series: MAY 2020

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

Question

i) List the FOUR (4) rights of employees.
(4 marks)

ii) Indicate whether ABA Ventures will have obligations to pay Social Security on behalf of John and Abena who are both working at ABA.
(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract for Service, Contract of Service, Employee Obligations, Employment Rights, Social Security
Level: Level 1

Topic: Employment law
Series: MAY 2019

Question Tag: Social Security

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ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

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ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

You're reporting an error for "POT – Mar 2025 – L2 – Q3 – Taxation of Individuals"

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

You're reporting an error for "PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits"

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

You're reporting an error for "PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy"

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

You're reporting an error for "BCL – May 2019 – L1 – Q3c – Employment Law"

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

POT – Mar 2025 – L2 – Q3 – Taxation of Individuals

Determine Selassi Afolabi’s chargeable income for 2023.

You're reporting an error for "POT – Mar 2025 – L2 – Q3 – Taxation of Individuals"

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

You're reporting an error for "PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits"

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

You're reporting an error for "PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy"

BCL – May 2019 – L1 – Q3c – Employment Law

Discusses employee rights and employer obligations regarding social security in employment contracts.

You're reporting an error for "BCL – May 2019 – L1 – Q3c – Employment Law"

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