Mr. Frank Danso was employed by Ghana Trust Ltd on 1st September 2010 on salary scale of GH¢4,500 x 500-7,500 as the financial controller of the company. He is provided with the following as part of his conditions of service for 2014 Year of Assessment.
i) Well-furnished rented flat by his employers in respect of which he pays GH¢100 per month as rent by way of deductions at source.
ii) Watchman allowance of GH¢200 per annum, paid directly to Mr. Frank Danso.
iii) Risk allowance of GH¢905 per annum
iv) Leave allowance of GH¢500 per annum
v) Garden boy allowance of GH¢100 per quarter paid directly to Mr. Frank Danso.
vi) Medical allowance of GH¢680 per annum
vii) Meals allowance of GH¢50 per month
viii) Two maidservants each on wages of GH¢200 per annum. The amount is paid to the maid servants directly by the company.
ix) Bonus of 40% on annual basic salary
x) Entertainment allowance of GH¢400 a year ( accountable)
xi) Duty post allowance of GH¢100 per month.
xii) He has Life Assurance Policies with EIC ltd. Below are the details:
Policy                     Sum Assured (GH¢)                    Annual Premium (GH¢)

A                                    4,000                                                  420
B                                    2,800                                                  240
C                                    16,000                                               1,650
D                                    5,000                                                  525
xiii)He is entitled to a company car and fuel for both official and private use.
xiv) He has two wives and ten children; four of whom are in SHS in Accra, and the rest are gainfully employed; he caters for 3 of his aged relatives.
xv) He contributes 7% of his salary towards the company’s Provident Fund which has been approved by the National Pension Authority, he also contributes 5.5% of salary to the SSNIT.

TAX RATES :

Required:
a) Compute his tax liabilities for 2014 Year of Assessment using 2014 rates.                                                                 (15 marks)

b) Determine his take home pay for the 2014 Year of Assessment.                                                                                   (5 marks)

CJA Ltd has been incorporated and intends to go into mining operations. You have been approached as a Tax Consultant on the key consideration for the issuance of license.
Required:
What are the factors to be considered by the Minerals Commission before a license is recommended for issuance?       (3 marks)

c) Should a Contractor in the Upstream Petroleum Sector be subject to tax by the Ghana Revenue Authority in a situation where its products are exported to its Parent Company without evidence of sale (technically called export without sale)?        (4 marks)

d) Carried Interest is part of income stream by the Host Government. What is the basis for the ownership of carried interest under petroleum upstream operations and the mining and mineral operation?                                                                   (4 marks)

What constitutes taxable gifts under Direct Tax?                                                                                                   (3 marks)

Songe Enterprise Limited is a dealer in rice. It buys its rice from the Rice Masters a wholesaler and sells to retailers. It has not over the years deducted a withholding tax on payments to its suppliers and its management is contemplating doing so to avoid any possible sanctions from Ghana Revenue Authority. It has received a letter from the Ghana Revenue Authority to conduct a tax audit on its activities. Ahead of the tax audit, the management has invited you as a Tax Consultant to come and conduct tax health check on its operations and put things right.
Required:
Advise the Company on the withholding tax situation on payment to its suppliers.                                                        (6 marks)

Statement of retained earnings:

What is the tax implication if any on the above income statement?                                                                                (3 marks)

The Commissioner General issued a private ruling which conflicts to all intents and purposes with existing practice notes issued by Ghana Revenue Authority on the same transaction.
Required:
Discuss how this issue should be handled in Tax Administration.                                                                                (4 marks)

Nangodi Enterprise in its bid to be tax compliant has sought your opinion on the circumstances under which its registration under Value Added Tax can be cancelled by the Commissioner General.
Required:
What are the conditions under which the Nangodi Enterprise’s registration can be cancelled?                                         (5 marks)

The Government intends to discourage drastically, the importation of Television Sets and rather create local demands for Osafo Electronics as part of efforts to “Grow Made in Ghana products”.
The following data is relevant:
4,000 pieces of Television Sets at a cost of GHS2,200.00 per one were imported in March 2015 from USA by Kamus Enterprise. The cost of freight was GHS100 per a Television Set via KLM Airline.
Additional information:
Rate of Duty 20%
Rate of Duty: GHS80 per a Television set

(Note: Assume that the television sets were imported by air).

i. Using the above, compute the taxes payable under both the advalorem and specific methods.                                      (6 marks)

ii. Advise the government on which method would help achieve The Government’s intended action and why?              (2 marks)

d) Who are incapacitated Persons?                                                                     (3 marks)