Series: FEB 2016

a). Under the provisions of the Internal Revenue Act, 2000 (Act 592), as amended a person’s income from an employment, as a general rule, is taxable. A person’s income from an employment is that person’s gains or profits from that employment. The gains or profits from an employment of a person include the allowances or benefits paid in cash or given in kind to, or on behalf of, that person from that employment.

As the Head of Tax Department of your company, you are required to indicate exceptions, if any, to the above general rule in your advisory capacity to your Managing Director, who is scheduled to make a presentation to strategic investors of your company. (10 Marks)

b). The Ghana Revenue Authority is in the process of abolishing the Provisional Assessments under section 76 of the Internal Revenue Act, 2000, (Act 592), as amended and instead, fully roll out the Self-assessment under section 78 of the Internal Revenue Act, 2000, (Act 592), as amended to all taxpayers (at the Large Taxpayer Office, Medium Taxpayer Offices, and Small Taxpayer Offices). As a tax consultant, you have been invited by the Association of Ghana Industries to speak to its members on the topic “The Merits of Self-assessment”.

You are required to state briefly only five (5) of the benefits or importance of Self-assessment. (10 Marks)