The free zone enterprises are required to export all their produce or products. However, the law allows the free zone enterprises to obtain permission to sell up to 30% in the local market that is in Ghana.
When that happens, they are required to pay the following taxes:

• Pay duties on the products or produces as duty was not paid at the time of importation
• Pay all VAT on those goods
• Pay National Health Insurance levies and
• Pay all Get/funds on the goods
• Chargeable income of the goods sold locally shall be subject to corporate tax at the rate of 25%

• A free zone enterprises are enterprises which operate in non-custom controlled territory and pay tax when they export at the rate of 15% on their income while local sales are taxed at the rate of 25%.
• While a company that deals in tiles in Ghana is subject to tax at the rate of 25%. An investor in a company is part of the ownership structure.                 (2 points for 2 marks)

The following are other tax benefits to a shareholders:

• Dividend paid to shareholders are exempt from tax.
• Shareholders are going to benefit from huge profits when they export to grow their capital.     (2 points for 2 marks)

Conclusion:

• I will advise the investment in Tiika as the investors stand to benefit from the above arrangement. In the case of investors in Taaka, dividend declared shall be subject to a high taxes at 8% final. The growth of equity is much more with Tiika than with Taaka. In future investors in Tiika shall have huge capital gain from the investment in Tiika as against equal investment in Taaka.
• On the strength of the above, the investor should not look any further but to invest in Tiika for maximum benefit in dividend and capital gains when there is a disposal in shares.                   (2 points for 2 marks)