May 2018 Q5 b.
AB ltd is a mining company operating at Kyebi in the Eastern Region. The following data is relevant for the last quarter of 2017 year of assessment.
The following additional information is relevant:
i) Royalty has not been computed and paid on the above yet.
ii) Depreciation of an amount of GH¢1,000,000 was part of the cost of operation above.
iii) Proceeds from sale of depreciable assets amounting to GH¢500,000 were added to revenue above.
iv) Capital allowance agreed with the Mining Unit of Ghana Revenue Authority was agreed to be GH¢800,000.
Required:
Compute the taxes payable by AB Ltd to Ghana Revenue Authority and comment on any TWO items as to why you allowed or disallowed it in the tax computation. (5 marks)
View Solution
AB ltd
Computation of corporate tax payable
Year of assessment 2017