(a).

• No tax is payable by the purchaser of equity in a mining company.
• The purchaser has an obligation to withhold tax of 5% where the equity is not traded on the Ghana Stock Exchange. Where listed, no tax is payable by the seller so no wht prevails.

(b). The lessor takes credit for the grant of capital allowance but the lessee claims full deduction for the lease payments as business expense.

(c).

• There is a VAT charge on the lease payment.
• Bills submitted to the lessee must carry a VAT charge since leasing is a hiring business.
• The lessor must comply with VAT reporting schedules as detailed out by Act 546.

(d).

• Prior to March 2012 class 3 depreciable assets were treated for tax purposes as follows:
• Gain on sale of the asset treated as business income and attracted tax at 25%.
• Removal of residue of asset sold from the pool.
• No capital gain tax payable on disposal of class 3 depreciable asset
• After March 2012, class 3 depreciable assets are treated for tax purposes as follows:
• Gain made on the sale of the asset is treated as a capital gain for tax purposes which attracts tax at 15%.
• Removal of residue of asset sold from the pool.
• Capital gain tax payable on disposal.

(e). In all cases, the taxpayer should own the asset, should have incurred costs on the asset purchase and should have informed the CG about the purchase of the asset within 30 days of the purchase of the asset.

• Prior to March 2012 class 3 depreciable assets were depreciated as follows:
• 1st year 80%
• 2nd year Residue from prior year added to 5% of the prior year cost base and depreciated at 50%
• 3rd year, residue from second year depreciated at 50%
• After March 2012, class 3 depreciable assets are depreciated as follows:
• Cost of asset purchase is depreciated at 20% straight line over 5 years.
• 5% of cost of prior year asset addition has been removed