a). In Ghanaian tax law, as governed by the Income Tax Act, 2015 (Act 896, as amended), assessable income and chargeable income are key concepts in determining tax liability for individuals and corporations.

• Assessable Income: This refers to the total gross income from all sources (employment, business, or investment) that is subject to taxation under the law, before any deductions, reliefs, or exemptions. It includes salaries, profits, dividends, interest, rents, and royalties, calculated for a year of assessment. Assessable income is determined by rules in Sections 3-10 of Act 896, which specify includible items and sources. For example, for a corporate borrower, assessable income might include revenue from operations minus cost of sales, but before operational expenses.
• Chargeable Income: This is the taxable base after subtracting allowable deductions, reliefs, and losses from assessable income. It represents the net amount on which tax is actually computed and charged. Deductions include business expenses (Section 11), capital allowances (Section 14), and personal reliefs for individuals (Section 51). Chargeable income = Assessable Income – (Deductions + Reliefs + Carried-Forward Losses). For instance, if a company’s assessable income is GHS 1,000,000 and deductions total GHS 400,000, chargeable income is GHS 600,000, taxed at the corporate rate of 25%.

The differentiation is crucial in corporate banking for loan appraisals, as banks assess chargeable income to gauge post-tax cash flows for debt servicing, ensuring compliance with BoG’s prudential guidelines on credit risk.

b). Within the context of third-party security in international and domestic banking, a Letter of Comfort (LoC) is a non-binding assurance provided by a third party (often a parent company or affiliate) to a lender, indicating moral or informal support for a borrower’s obligations without creating a legal guarantee.

• It typically states the third party’s awareness of the loan, intention to maintain ownership or support the borrower, and commitment to ensure the borrower meets its duties, but explicitly disclaims legal liability.
• Unlike a guarantee (which is enforceable and creates a secondary liability), an LoC is not a security interest under laws like Ghana’s Borrowers and Lenders Act, 2020 (Act 1052), and courts may view it as non-actionable unless worded to imply a binding promise (e.g., referencing English case law like Kleinwort Benson v Malaysia Mining Corp).
• In practice, banks like Stanbic Ghana use LoCs in group lending for comfort in risk assessment, but they do not count as collateral for capital adequacy under BoG’s CRD. They are useful in cross-border deals to bridge gaps where full guarantees are restricted by foreign laws or corporate policies.

c). The doctrine of ‘Forum Non-Conveniens’ (Latin for “inconvenient forum”) is a common law principle allowing a court to decline jurisdiction over a case if another forum is more appropriate, even if it has jurisdiction, to avoid injustice or inefficiency.

• Explanation: Originating from Scottish and English law (e.g., Spiliada Maritime Corp v Cansulex Ltd [1987]), it considers factors like the location of evidence, witnesses, applicable law, parties’ residence, and potential for fair trial. In Ghana, as a common law jurisdiction, courts apply it under the High Court (Civil Procedure) Rules, 2004 (C.I. 47), Order 11, to stay proceedings if a foreign court is better suited.
• Utility in International Banking Transactions: In conflicts arising from cross-border loans, syndicated facilities, or derivatives, the doctrine prevents forum shopping and ensures disputes are resolved efficiently. For example, if a Ghanaian bank lends to a UK-based company under English law, a Ghanaian court might invoke forum non-conveniens to defer to English courts, reducing costs and enforcing choice-of-forum clauses. It safeguards against jurisdictional overreach, as in cases involving sovereign immunity or multi-jurisdictional syndicates, aligning with the Rome Convention and Brussels Regulation. In Ghanaian practice, post-2019 banking reforms, it aids in enforcing foreign judgments under the Foreign Judgments (Reciprocal Enforcement) Act, 1933, promoting trust in international finance while protecting local interests.