i) The 1st Contract Sum of GH¢1,000 does not meet the threshold amount of GH¢2,000 so there will be no tax withheld on the amount.
ii) The 2nd Contract Sum of GH¢900 does not meet the threshold of GH¢2,000. Furthermore, the aggregate value of the 1st and 2nd contracts (GH¢1,000 + GH¢900 = GH¢1,900) also does not meet the threshold of GH¢2,000 hence no withholding tax will be charged on payment of the 2nd contract.
iii) The 3rd Contract Sum of GH¢900 does not meet the threshold of GH¢2,000. However, the aggregate value of the 1st, 2nd and 3rd contracts (GH¢1,000 + GH¢900 + GH¢900 = GH¢2,800) exceeds the threshold of GH¢2,000 hence the cumulative amount of GH¢2,800 will be subject to withholding tax at the applicable rate.
Tax withheld is 3% x GH¢2,800 = GH¢84.00
NB: A student would be correct if he or she states that, at the start of the year, the company anticipates that purchases from the vendor will exceed the threshold of GH¢2,000. In this case, the first, second and third purchases will all be taxed at 3% and the same tax liability will result.

Where, within thirty calendar days after the date of a supply, a recipient who is a taxable person claims to have lost the original tax invoice for a taxable supply, the taxable person making the supply is required to, on receipt of a request in writing from the recipient, provide a certified copy clearly marked “copy” to the recipient within fourteen calendar days of receipt after the request.

Proportion of VAT that should be withheld by the agent: 7% x GH¢525,000.00  = GH¢36,750.00

Calculation of the output VAT = 12.5% X 525,000 = 65,625.00

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 requirement of the tax law in question, the notice of assessment should contain:

• The name of the taxpayer.
• The Taxpayer Identification Number 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; and
• The time, place and manner of objecting to the assessment.

The under-developed countries are very susceptible to three sources of instability which results from the nature of their economy and the logic of accelerated economic development.
a) Instability caused by world market developments;
b) Instability due to cyclical deficiency of effective demand in the short run, and
c) Instability caused by inflationary pressures

• The under-developed countries are more vulnerable to the effects of international cyclical fluctuations due to an unbalanced nature of their economic structure and heavy reliance on the export of primary products, as a source of their national income. This means any fluctuations in the international demand for their products, therefore, will tend to exercise a predominant effect on their national income through the medium of the foreign trade multiplier. Equally, as the under-developed countries export primarily raw materials, they import the finished manufactured goods from the developed countries and in the event of an international recession, the under-developed countries exporting primary products find that the resources in agriculture and some other primary industries are immobile in the short run and often continue to produce the same type and even quantities of output as before. But as the demand for these products are inelastic, it leads to a fall in the prices of these products in the international market leading to reduced export earnings which may affect the process of economic development in these countries adversely, as their own consumption requirements is very small due to their subsistence living.
• Specific fiscal instruments like export taxes are more useful as stabilisation measures than aggregative fiscal instruments such as a general sales-tax and income-taxation. These specific tax measures are more flexible in adjustment than income-tax and can also single out the export sector of the economy and counteract the destabilising influences that arise from it. Besides, they are relatively simple to administer and difficult to evade. But the contribution of export taxes to internal economic stability, and thus, economic development can be of great significance only if the under-developed countries are able to resist a high propensity to import consumer goods, especially luxuries and have the necessary skill not only in the
  manipulation of export and import taxes but also in timing the changes and channelling the proceeds for promoting their economic development.
• The stabilisation objectives of taxation should also aim at maximising the level of aggregate saving by applying a cut to the actual and potential consumption of the public at large. This stabilisation objective should aim at curbing the conspicuous consumption of the rich and force them to save for capital formation, which if maximised, should break economic stagnation and lead the country on the path of rapid economic growth.
• Another objective of the stabilisation policy of taxation should aim at protecting the economy of an under-developed country from the evils of inflation and depression as the under-developed countries have unusual susceptibility to inflationary pressures. Stagnation is regarded as too heavy and unacceptable a price to pay for achieving stability in prices. At the same time, large scale inflation as a means of promoting the economic development of the under-developed countries is beset with so many evils. Thus, the taxation policy for a developing economy should aim at curbing inflationary pressures inherent in a developing economy as in such an economy, there is always an imbalance between the demand for and supply of real resources.
• Equally, during depression, taxation along with other fiscal policy must operate in coordination with each other to offset it. Thus, taxation policy along with other fiscal policy measures are ideally suited to check inflation and depression in a developing economy. Taxation will be reduced in deflationary situation while during inflationary situation, taxation will be increased. If inflation is not controlled in time, it can undermine the very process of economic growth and development. As such, a suitable taxation policy for an under-developed country should be designed as to curb the demon of inflationary and deflationary situations which can prove ruinous to an underdeveloped economy

1. Mobilisation of Resources
The first and the foremost objective of taxation in a developing economy should be to maximise the level of aggregate saving by applying a cut to the actual and potential consumption of the public at large. It then becomes necessary to collect more revenues mainly in the form of taxes, a major part of which will have to come from the rich, who constitute as small section of the society, mainly in the form of direct taxes
2. Taxation as an Instrument of Economic Stability
The under-developed countries are very susceptible to three sources of instability which results from the nature of their economy and the logic of accelerated economic development.
a. Instability caused by world market developments;
b. Instability due to cyclical deficiency of effective demand in the short run, and
c. Instability caused by inflationary pressures
3. The Re-allocative Role of Taxation
The tax system in order to ensure effective allocation of resources should interfere as little as possible with the consumers’ choices for consumption goods and the producers’ choices regarding the use of factors of production. The owners of factors of production should be enabled to seek their most remunerative employment and the price mechanism should be allowed to operate freely so that there is optimum output of goods. Under this condition, it is essential that the tax system should be economically neutral and framed in such a way as to ensure the optimal allocation and utilisation of the productive resources of the economy.
4. The Re-distributive Objective of Taxation.
The under-developed countries are characterised by the existence of extreme inequalities in the distribution of income and wealth and a large proportion of saving of the upper income groups is misdirected. Besides, in some of the under-developed countries, the consumption propensities of the upper income groups are higher than those of the upper income groups of the developed countries. Thus, there exists a large volume of avoidable inequality in the economy of the under-developed countries. Therefore, a good redistribution objective of the-tax system in a developing country should be an instrument for the reduction of economic inequalities by redistributing the income through bridging the gap between the rich and the poor. The very purpose of taxation is not merely to raise revenues for the state but the revenues should be raised in such a manner as to ensure that the burden of tax should fall on the rich in the form of wealth-tax, income-tax, etc. and the proceeds, if possible, should be spent for the benefit of the poor.
5. Growth Objective of Taxation
The Government, in any economy, attempts to use taxation to achieve many goals, and mobilisation of resources for the government in a less-developed country is one of them. To see that taxes are paid and collected, a tax system has to have a proper administrative set up. In addition, the taxes should be equitable. From the point of view of the growth of the economy, its industries, trade, agriculture, consumption, etc., the tax policy has to be such that it does not upset the pattern of production, trade, consumption, savings, and investment in the economy.

• Improving corporate image/reputation/brand loyalty – Strong ethical principles that go beyond upholding the law can add value to Apusco in terms of improving its brand. Failure to act ethically can cause social, economic and environmental damage and undermine Apusco’s long-term survival. Being such a large, multinational organisation, Apusco’s ability to demonstrate strong ethical principles across its whole organisation will help to sustain its future viability. Ethics must be embedded in its business models, organisational strategy and decision making processes.
• Often organisations which adopt strong ethical approaches will also see an improvement in profitability. Although this may not be the main driver for Apusco, it is a consideration in a highly competitive global marketplace.
• By having a range of suppliers which Apusco has trained in its ethical ways of operating, it is investing in the future and can work with them on repeated projects globally. This will tie these suppliers into Apusco and provide a stable working relationship which will deliver cost savings in the long-term. This is a complete contrast to many companies which operate a short term focus and change suppliers regularly or which are let down by non-delivery or poor performance of its sub-contractors. Apusco should not experience these problems and should gain a better reputation with its customers for on time delivery and good quality of work. All suppliers (services and products, such as building materials) will be at the standard that Apusco expects and requires as it has established a good working relationship with the companies it works with. Also, by being ethically responsible, Apusco can reduce its cost by avoiding fines and law suits as well as payment of compensations which are associated with being ethically irresponsible.
• The ethical tone has to come from the top of the organisation. Therefore, it is at a strategic level that the ethical tone is set. The senior managers and business leaders of Apusco must demonstrate an ethical approach by example. This will show that middle and junior managers will be rewarded for taking an ethical stance and create the appropriate organisational culture.
• Apusco places high regard towards ethical and sustainable business practices which appear to be clearly communicated to staff and suppliers and by communicating its positive actions this should assist in achieving its overall business objectives.

Below are the objectives Events Tech seeks to achieve by establishing an internal audit department

• Review of the accounting and internal control systems. The establishment of adequate accounting and internal control systems is a responsibility of management and the directors. Internal audit is often assigned specific responsibility for the following tasks.
   Reviewing the design of the systems
   Monitoring the operation of the systems by risk assessment and detailed testing
   Recommending cost effective improvements
  Review will cover both financial and non-financial controls using the COSO Framework.
• Examination of financial and operating information. This may include review of the means used to identify, measure, classify and report such information and specific enquiry into individual items including detailed testing of transactions, balances and procedures.
• Review of the economy, efficiency and effectiveness of operations (value for money audit).
• Review of compliance with laws, regulations and other external requirements and with internal policies and directives and other requirements including appropriate authorization of transactions
• Review of safeguarding of assets
• Review of the implementation of corporate objectives. This includes review of the effectiveness of planning, the relevance of standards and policies, the company’s corporate governance procedures and the operation of specific procedures such as communication of information.
• Identification of significant business and financial risks, monitoring the organisation’s overall risk management policy to ensure it operates effectively, and monitoring the risk management strategies to ensure they continue to operate effectively.
• Special investigations into particular areas, for example suspected fraud.

Strategic Advantages

• One of Azugu’s strategic aims is making gyms more accessible to people and to open more gyms in Ghana. East Legon Gyms will help satisfy this aim and is an opportunity for Azugu to achieve growth in gym numbers.
• Synergies are possible whereby Azugu and East Legon Executive Fitness Club reduce their aggregated costs by operating together as one bigger organisation. For example, they may utilize bulk buying discounts or obtain more favourable financing deals as part of a bigger operating unit.
• Also, by sharing ideas and expertise, both elements of the business may find more effective ways of working.
• It also appears that this particular acquisition may be cost-effective as East Legon Executive Fitness Club can be obtained “at a very good price”.
• Location advantage may also accrue to Azugu considering the fact that East Legon Executive Fitness Club is located in a very prime area. This may not be easily acquired by Azugu through organic growth.
• Economies of scale by means of equipment purchases and other services sought by the combination of the two organisations.
  Strategic challenges
• The acquisition of East Legon Gyms is a new type of venture to Azugu. To date Azugu has achieved growth purely organically. It does not have experience of acquisitions and may need to obtain professional advice.
• Any acquisition process can be a concern for staff of Azugu. Unlike organic growth, an acquisition leads to uncertainty and fear, particularly at the target company, and if staff leave as a result, the target can become less valuable.
• Integration problems – Differences in organisational culture may not be easy to manage. Through organic growth Azugu can roll out their desired company culture as they proceed. This will be more challenging when acquiring East Legon Gyms and we will have to decide whether we want to change the culture at East Legon Gyms to bring it in line with our Azugu culture.

• East Legon Gyms staff will need to be reassured, perhaps face-to-face, that Azugu value and intend to keep the luxury, highly staffed approach. Communication should focus on educating staff about the impacts of the change and dispel rumours.
• Azugu may want to back up face-to-face meetings with good quality, regular and transparent electronic communications by email or an intranet to keep staff informed of the process and their part in it.
• Another way of ensuring staff remain loyal and motivated is to involve them in the process. Letting them have their say and giving them roles within the acquisition project will help them to feel part of the new organisation and reassure them they have a future post-acquisition.
• Removing uncertainty through timely and appropriate information exchange is key to preventing staff from searching for alternative employment through fear of their own position within the organisation. Reassuring staff of their long term role by sharing ideas and plans will reduce concerns and may lead to the generation of new and useful ideas that smooth the course of the change.

• The multiple stakeholder obligations stance is that many groups have a stake in what the organisation does.
• This is particularly important in the business context, where shareholders own the business but employees, customers and government also have particularly strong claims to having their interest considered. It is suggested that modern corporations are so powerful, socially, economically and politically, that unrestrained use of their power will inevitably damage other people’s rights.
• Under this approach, the exercise of corporate social responsibility constrains the corporation to act all times as good citizen. Particular emphasis is laid on the preservation of employment and protection of the environment.
• Stakeholder stance posits that the essence of business primarily lies in building relationships and creating value for all its stakeholders. Though the composition of stakeholders may differ depending on company’s industry and business model, the main stakeholders typically include employees, customers, communities, suppliers, and financiers (owners, investors). All these stakeholders are equally important for the company and any trade-off among the stakeholders should be avoided.
• Performance should not be measured simply through the financial bottom line. Long term survival is dependent on social and environmental performance as well as economic (financial) performance, and therefore it is important to take account of the views of stakeholders with interests relating to social and environmental matters.
  NOTE: The following points can also be considered as significance of the CSR stance taken by the Board:.
• Redeem company’s image through damage control.
• Reliable source of supply of inputs to ensure continuity of operations.
• Reduce labour turnover and improve service quality to customers.
• Avoid legal suits and associated costs.

Inadequate corporate governance systems

• It is a requirement of good corporate governance that the board of directors should review the effectiveness of the system of internal control (either financial control only or financial, operational and compliance control) and risk management. However, it is quite probable that, in some banks at least, the systems of control were inadequate for their purpose. Perhaps because of the complexity of many aspects of banking, the board of directors might not have had the knowledge or understanding to carry out a sufficient review, with the result that banks were exposed to excessive uncontrolled risk. It would certainly appear that not all banks were fully aware of the business risks that they were taking.
• It is possible that some banks were led by dominant chief executives, board chairpersons and/o majority shareholders, and that the non-executive directors did not act sufficiently well as a counter-balance to the power and influence of the dominant individual or group of individuals.
• Lack of supervisory effectiveness on the part of non-executive directors. A consequence may have been that some banks pursued high-risk strategies without sufficient challenge from the NEDs. This also raises the question about how effective the annual performance evaluations of the NEDs were, and the assessment of what they were contributing to the board and it’s decision-making.
• Transparency in financial reporting and other reporting is another aspect of good corporate governance. The financial statements of major banks are complex and difficult to understand even for many experienced investors. The lack of clarity and transparency in financial reporting may possibly have resulted in a situation where shareholders were not properly aware of the financial position of the banks and the security of their investment.
• Lack of adequate knowledge and expertise of board members to effectively supervise management of the failed banks.
• Ineffective or poor independent scrutiny by external auditors.
• Failure of the regulator (Bank of Ghana) to perform its oversight functions effectively and to supervise the behavior of internal actors.