Question Tag: Tax Liability

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  • 10 Marks

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

Trincao Ghana, a branch of Trincao International, declared a loss of GH¢500,000 in 2020. Below are the extracts from the company’s returns for the 2022 year of assessment:
Items Amount (GH¢)
Net Profit as per Accounts 20,000,000
Depreciation 82,500
Loss from 2016 49,230
Capital Allowance Agreed with GRA 95,360
Corporate tax rate is 25%.

Required:
Determine the tax payable on profit by Trincao Ghana for the 2022 year of assessment.
(10 marks)


There was a loss of GH¢500,000 from 2020, but no instruction was provided regarding its treatment. It was assumed the loss was offset in the prior year.
(10 marks)

  • 2 Marks

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

c) The following data is relevant to Naab Ltd tax affairs for 2018 year of assessment:

Self-assessment returns submitted:

Tax paid on self-assessment: GH¢1,000,000
Chargeable income: GH¢4,000,000
Actual Returns submitted:

Chargeable Income: GH¢6,000,000
Correct amount – Tax payable: GH¢1,500,000

Required:
What is the amount of tax underpayment to be subject to interest computation?
(2 marks)

Computation of underpayment to be subjected to

Therefore, underpayment subject to tax is 350,000
(2 marks)

  • 8 Marks

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

b) The only tool for communicating a tax liability to a taxpayer is through a notice of assessment.

Required: What are the elements of a notice of tax assessment?
(8 marks)

Where the Commissioner-General makes an assessment, the Commissioner-General is required to serve a written notice of the assessment on the taxpayer. In addition to any requirements of the tax law in question, the notice of assessment should contain:

  • The name of the taxpayer.
  • The Taxpayer Identification Number (TIN) of the taxpayer.
  • The assessment by the Commissioner-General of the tax payable by the taxpayer for the period, event, or matter to which the assessment relates.
  • The amount of tax remaining to be paid after any relevant credits, reductions, or pre-payments.
  • The manner in which the assessment is calculated.
  • The reason why the Commissioner-General has made the assessment.
  • The date by which the tax is to be paid.
  • The time, place, and manner of objecting to the assessment.

(8 points for 8 marks)

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