- 5 Marks
Question
Madam Okailey Armah, a prominent market queen and Philanthropist, was nominated Asafouakye of Namoale Traditional Area in Accra in January 2018. At her out-dooring in August 2018 as Naa Okailey Tsofatse II, she sat in state and received homage and gifts from her people, friends, and business associates. The following were the quantifiable gifts she received:
GH¢
Market Queens Association 1,000
Commercial Bank (Pick-Up) 5,000
Namoale Traditional Council 500
Father-in-Law 500
Anonymous admirer
1,000
A week after her out-dooring,
she made the following donations:
Osu Children’s Home Pick-Up Vehicle
GH¢
Children’s Hospital (Accra) 1,000
Weija Leprosarium 500
Children’s Ward Korle Bu (Assorted Biscuits) 200
Thanksgiving Offering (Freeman Memorial Church, Bukom) 200
Determine any tax payable and briefly comment on the relevant tax implications.
(5 marks)
Answer
Tax Payable on Gifts Received by Madam Okailey Armah:
Donor Gift Taxable
The donations made by Madam Okailey do not attract any tax liability for the recipients.
Recipient Donation Tax Implication
(5 marks)
- Tags: Gift tax, Gifts, Philanthropy, Taxation
- Level: Level 2
- Series: NOV 2019
- Uploader: Cheoli
