- 20 Marks
ATP – Aug 2017 – L2 – Q4 – Income Tax Computation
Compute tax credit relief for Mr Brefo Nimo based on dividend income from the Netherlands.
Question
Mr Brefo Nimo returned to Ghana after staying in the Netherlands for over 20 years and took up an appointment with Amanfro Limited as the Director of Finance. His gross monthly basic salary for 2016 year of assessment was GH¢10,000.00. He contributed 5.5% to Social Security and National Insurance Trust (SSNIT). Mr Brefo Nimo has investments in the Netherlands, from which he earned a gross dividend of 2,000 Euros in 2016, from which 350 Euros was withheld as dividend tax and the balance remitted to him in Ghana. A double taxation Agreement exists between Ghana and the Netherlands.
The rate of Exchange is GH¢5.2 to 1.00 Euro.
Required:
a) Compute the Tax Credit Relief that will be granted to Mr Brefo Nimo.
b) Compute the tax liability of Mr Brefo Nimo for 2016 Year of assessment.
Find Related Questions by Tags, levels, etc.
- Tags: Dividend tax, Effective Tax Rate, Income Tax, SSNIT Contribution, Tax Liability
- Level: Level 2
- Topic: Income Tax Computation
- Series: AUG 2017
