Foundations of Strategic Tax Planning

STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

Question

Some scholars argue that from a strategic tax planning perspective, debt financing provides more tax benefits to companies than equity financing for investors.

Required
With the aid of appropriate authorities, discuss the accuracy or otherwise of the above assertion.

Answer

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Tags: Debt Financing, Dividend taxation, Equity Financing, Income Tax Act, Interest Deduction, Tax Benefits, Thin Capitalization, Transfer Pricing
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

Question

Obibini Ghana Limited is a wholly owned Ghanaian real estate company. The basis period of the company ends on 31st December each year. In order to raise additional capital to expand its activities, the company is looking for an investor who would acquire at least 51% of the shares of the company. The managers of the company are engaged in negotiations with a potential investor and the parties expect the transaction to be completed on 31st January 2020. The financial statements of the company revealed that the company made a loss of GH₵2,500,000 for the period ended 31st December 2019. The company also had financial cost of GH₵100,000.00
The company also has a parcel of land located at Abokobi which the company purchased three years ago at the cost of GH₵100,000.00. The current value of the land is GH₵500,000.00

Required
The managers of the Obibini Ghana are seeking your opinion on the following:
i. the income tax implications for the company if an investor acquires 51% of the company’s shares.

ii. The tax planning opportunities available which could reduce the income tax exposure of company if an investor acquires 51% of the company’s shares.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Ownership Change, Share Acquisition, Tax Mitigation, Tax Planning
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

Question

The Council of the Chartered Institute of Taxation, Ghana (CITG) has invited you to speak at a Continuous Development Program (CPD) on the topic “The distinction between tax planning schemes and tax avoidance arrangements under Ghanaian tax laws”.
In the letter of invitation, the Council indicated that you are to submit a detailed write-up of your presentation.

Required
With the aid of appropriate examples and specific references to Ghanaian tax law provisions, write in sufficient detail, the content of your presentation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghanaian Tax Law, Income Splitting, Income Tax Act, Revenue Administration Act, Tax avoidance, Tax Exemptions, Tax Planning, Thin Capitalization, Transfer Pricing
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

Question

a) State and explain three (3) non-tax factors which may inform the choice of a particular location for an investment.

b) Discuss three (3) tax incentives available to investors who register under the Free Zone Act, 1995 (Act 504).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Decisions, Investment location, Non-Tax Factors, Tax Planning
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: FEBRUARY 2021

STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

Question

Some scholars argue that from a strategic tax planning perspective, debt financing provides more tax benefits to companies than equity financing for investors.

Required
With the aid of appropriate authorities, discuss the accuracy or otherwise of the above assertion.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Debt Financing, Dividend taxation, Equity Financing, Income Tax Act, Interest Deduction, Tax Benefits, Thin Capitalization, Transfer Pricing
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

Question

Required
The managers of the Obibini Ghana are seeking your opinion on the following:
i. the income tax implications for the company if an investor acquires 51% of the company’s shares.

ii. The tax planning opportunities available which could reduce the income tax exposure of company if an investor acquires 51% of the company’s shares.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Ownership Change, Share Acquisition, Tax Mitigation, Tax Planning
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

Question

Required
With the aid of appropriate examples and specific references to Ghanaian tax law provisions, write in sufficient detail, the content of your presentation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghanaian Tax Law, Income Splitting, Income Tax Act, Revenue Administration Act, Tax avoidance, Tax Exemptions, Tax Planning, Thin Capitalization, Transfer Pricing
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: AUGUST 2020

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

Question

a) State and explain three (3) non-tax factors which may inform the choice of a particular location for an investment.

b) Discuss three (3) tax incentives available to investors who register under the Free Zone Act, 1995 (Act 504).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Decisions, Investment location, Non-Tax Factors, Tax Planning
Level: Level 2

Topic: Foundations of Strategic Tax Planning
Series: FEBRUARY 2021

Topic: Foundations of Strategic Tax Planning

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STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

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Topic: Foundations of Strategic Tax Planning

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STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

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STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

You're reporting an error for "STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications"

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

You're reporting an error for "STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance"

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

You're reporting an error for "STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location"

STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing

Discuss whether debt financing offers more tax benefits than equity financing for companies, with references to Ghanaian tax law.

You're reporting an error for "STP – Aug 2020 – L2 – Q4 – Debt vs Equity Financing"

STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications

Discuss income tax implications for Obibini Ghana Limited if an investor acquires 51% of its shares.

You're reporting an error for "STP – Aug 2020 – L2 – Q3 – Ownership Change Tax Implications"

STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance

Discuss distinction between tax planning and tax avoidance under Ghanaian tax law with examples and references.

You're reporting an error for "STP – Aug 2020 – L2 – Q1 – Tax Planning vs. Tax Avoidance"

STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location

State and explain three non-tax factors influencing the choice of investment location.

You're reporting an error for "STP – Feb 2021 – L2 – Q5 – Non-tax Factors for Investment Location"

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Customer

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