Question Tag: Cross-border income

Libir Ltd is a resident company incorporated in Ghana. Its trading partners have been customers and suppliers from Ghana and also from Nigeria. The company supplies animal feed.

Its operation for 2021 year of assessment is as follows:
Income from Ghana: GH¢10,000,000
Income from Nigeria: ₦1,000,000,000

Additional information:

1. Allowable expense granted by the Ghana Revenue Authority is GH¢6,000,000.
2. The allowable expense in 1 does not include capital allowance of GH¢1,200,000 which was legitimately claimable by the company.
3. The tax paid in Nigeria amounted to ₦40,000,000. The withholding taxes paid in Ghana with evidence of tax credit certificates amounted to GH¢1,000,000.
4. The taxpayer has written to the Commissioner-General to relinquish its right under the double taxation arrangement.
5. Exchange rate is GH¢1 = ₦60.

Required:
Compute the tax payable.