- 2 Marks
Question
Compute the royalty payable on the following data of A Ltd, a Mining Company for 2018 year of assessment:
Production of resource (Volumes) – 1,000,000
Revenue from sale – GH¢10,000,500
Note: the revenue above contains proceeds from sale of scraps amounting to GH¢10,500
Required:
Compute the royalty payable.
Answer
Rate of Royalty 5%
Revenue = 10,000,500 – 10,500 = 9,990,000
Royalty Payable: 5% * 9,990,000 = 499,500
GH¢ 499,500
- Tags: Mining royalty, Resource taxation, Revenue calculation
- Level: Level 3
- Topic: Minerals and mining
- Series: MAY 2020
- Uploader: Theophilus