Kaek Consult
P.O. Box 4
Accra

12th December 2020

The Manager
Gona Jon Ltd
Accra

Dear Sir,

Subject: Worthwhile Causes, Benefits, and How to Access Them

Following your request for information on how Gona Jon Ltd can benefit from contributions and donations toward worthwhile causes, I hereby outline the relevant details for your consideration.

1. Types of Worthwhile Causes and Donations:

The Ghana Revenue Authority (GRA) provides incentives for companies that contribute to certain worthwhile causes. These include:

• Charitable organizations: Contributions to approved charitable organizations, such as those focused on poverty alleviation, education, or healthcare.
• Scholarship schemes: Contributions towards academic, technical, professional, or other courses of study, especially for underprivileged students.
• Development of rural or urban areas: Donations aimed at developing infrastructure or services in disadvantaged areas.
• Sports development and promotion: Support for local or national sports programs, facilities, and initiatives.
• Any other worthwhile cause: Contributions that are approved by the Commissioner-General of the GRA as beneficial to the public good.

2. Circumstances for Accessing Deductions:

To benefit from tax deductions on contributions to these causes, Gona Jon Ltd must meet the following conditions:

• Approval from the Commissioner-General: Before the contributions or donations can be tax-deductible, Gona Jon Ltd must seek and obtain approval from the Commissioner-General of the GRA.
• Proof of payment: Proper documentation, such as receipts or acknowledgments from the beneficiary organizations, must be provided.
• Alignment with public benefit: The contribution or donation must clearly align with the public benefit and meet the specific criteria for the selected worthwhile cause.

3. Benefits of Supporting Worthwhile Causes:

By contributing to worthwhile causes, Gona Jon Ltd can gain several benefits:

• Corporate goodwill: Such contributions can enhance the company’s reputation by showing social responsibility.
• Tax deduction: The value of the donations will be deductible from Gona Jon Ltd’s taxable income, thus reducing the company’s tax liability.
• Community engagement: Supporting local causes can foster goodwill and strengthen relationships with the communities where the company operates.

Conclusion:

In conclusion, supporting worthwhile causes not only allows Gona Jon Ltd to contribute to society but also provides tangible tax benefits. For further details or assistance with the application process, please feel free to contact our office.

Yours faithfully,
Boys Abre3
(Intern, Kaek Consult)