This is a clear case of a gift from Kwame patapaa to Adongo Muda as land is a taxable gift under section 106 of the Internal Revenue Act 2000 Act 592 as amended by Act 2003 Act 644.
Conclusion:
However, under section 105 of the Act, taxable gift received under a will or upon intestacy should not be included in the calculation of gift tax. In effect, the taxable gift of land received by Adongo Muda is exempt.

Tax Evasion is the practice of using fraudulent means to pay lower tax or not pay any tax at all. This is criminal and attracts sanctions from the Tax Authority and or the courts. Example (includes but not limited to) is using two receipt books to record transactions with one recording actual transactions which will not be rendered for tax purpose and the one recording lower transactions which will be made available to the Ghana Revenue Authority for tax purpose.

On the other hand, Tax Avoidance is the practice of using the loopholes in the tax laws to pay legitimately lower tax. An example of Tax Avoidance schemes include but not limited to selling chargeable assets and using the proceeds to acquire a replacement asset within a year of such disposal. This is exempt from capital gains tax.

Public debt is the sum of public and publicly guaranteed debt. Public debt is the sum of domestic and external obligations of public debtors which include the central government and its agencies and publicly guaranteed debt is the sum of all domestic and external obligations of the private sector that is guaranteed for repayment by a public entity.

• Minimize borrowing costs
• Keep risks at an acceptable level
• Support the development of domestic markets
• Ensure the financing needs of the government
  

Self assessment regime is a type of assessment regime where a taxpayer is made responsible for accurately computing and reporting their tax liability. The taxpayers are required to estimate their taxable income and the tax thereon for the year of assessment. Tax payers on self assessment may file revision of their estimates and pay taxes in accordance with section 80 of the Internal Revenue Act 2000 Act 592 accordingly.
i. Persons on self assessment are persons specified in a notice published in the Gazette or in a print media by the Commissioner General.
ii. An estimate furnished under a revised estimate to the Commissioner General shall remain in force until revised by the person together with a statement of reason for the revision.
iii. Where the Commissioner General is not satisfied with the estimate or revised estimate, the Commissioner General may set aside the estimated assessment and provisionally assess the person.
iv. Under section 144 of the Internal Revenue Act, 2000 Act 592, where a person on self assessment makes an estimate or a revised estimate of chargeable income less than 90% of the persons actual chargeable income assessed for that year is liable to pay a penalty equal to 30% of the difference between the tax calculated in respect of that person’s estimate or revised estimate of that person’s actual chargeable income for the year.
v. Under section 48 of Internal Revenue Regulations, 2001 (LI 1675), the Commissioner General may permit a person to furnish an estimate prior to the date by which the person must pay the first installment of tax payable.                       (4 marks for any 4 points)

The benefits include but not limited to the following:
i. The taxpayer is given the opportunity to make the estimate which engenders trust. This makes the taxpayer confident of the system and helps them own their tax affairs.
ii. The tax payers know their personal circumstances and can make a better estimate under no duress. The taxpayer makes estimate which reflect their operations. However, it may also lead to low estimate at the early stage of the taxpayer’s business which will cripple government’s ability to raise enough revenue.
iii. The Taxpayers is at will to revise estimates so as to avoid any imposition of penalty as the circumstances of their businesses will dictate. This makes taxpayers to pay huge taxes at the last quarter as against earlier quarters.
iv. It reduces cost of doing business as it does not engender objection to provisional assessment which is very common under a provisional assessment regime. On the part of the business, cost increases as taxpayers will have to engage tax experts to help out.
v. It builds the technical skill of the taxpayers over the period. As the taxpayers furnish these returns over the years, they begin to appreciate the technicalities involved in the tax administration.
vi. It promotes healthy interaction between the taxpayers and the Ghana Revenue Authority. There is always constant engagement between the taxpayers and tax administrators.
vii. It promotes accurate record keeping by the taxpayers. The self assessment thrives on proper record keeping.
(6 Marks for any 6 points)

Part time lecturers should be subject to a final withholding tax at the rate of 10% under section (84)(a) of the Internal Revenue Act 2000, Act 592

The engagement of facilitators to teach and direct the flow is a clear case of Part time teaching and should be subject to a withholding tax at the rate of 10%

This is a clear case of contract for service and under section 84(2) (b) is a clear case of supply of service and should be subject to 5%. The rate of withholding tax paid to resident persons. It is not a final tax.

i. Capital allowances are granted with respect to depreciable assets of a capital nature
ii. Capital allowances are only granted in respect of depreciable assets owned by the person making the claims
iii. The assets should be used in the generation or production of the income of the person
iv. The Commissioner General should be informed of the purchase and putting the asset into use within one month
v. It must be in the business in the last basis period of the business except in temporary disuse
vi. It must be acquired at a cost.                               (4 marks for any 4 points mentioned)

Shares are classified as chargeable assets under section 97 (1) (a) and (b). However, under the following provisions, shares are not classified as chargeable assets:
i. Securities (shares) of a company listed on the Ghana Stock Exchange during the twenty-five years after the establishment of the Ghana Stock Exchange. It was established in 1990. Section 97 (3) (a) of the Internal Revenue Act, 2000 Act 592.  (2 marks)
ii. Also, realization involving the disposal of shares in the course of liquidation (section 96 (2) of the Internal Revenue Act 2000 Act 592 as amended.    (2 marks)

Section 63 of the Internal Revenue Act 2000 Act 592 states, the gains or profits from any employment of a person shall be treated as accruing in or derived from Ghana to the extent to which the employment is exercised in Ghana, regardless of the place of payment.                            (2 Marks)
Under section 8(3) any amount, allowance, or benefit is a gain or profit from employment if it
a. Is provided by the employer, an associate of the employer, or a third party under an arrangement with the employer or an associate of the employer
b. Is provided to an employee or an associate of an employee; and
c. Is provided in respect of past, present, or prospective employment.                             (3 marks)

Conclusion:
ABC Bank Limited -United Kingdom (the Parent Company) is an associate of ABC Bank Ghana Limited. Therefore the shares issued to the staff constitute a benefit paid by the Associate of their employer and should be added to its income and tax appropriately using the graduated tax rate.                                        (2 marks)

Under section 22 of the internal Revenue Act 2000, Act 592 as amended by Act 2002 Act 622, Act 2006 Act 700, and Act 2007 Act 731, there shall be deducted losses of the previous five years incurred by that person on that business.    (1 Mark)
The loss shall be deducted in the order in which they occur.
Persons that can carry their losses are as follows:
i. Farming business
ii. Mining business
iii. Information Technology Business (ICT –Software development)
iv. Tourism business registered with the Ghana Tourism Authority
v. Agro-processing companies
vi. Manufacturing mainly for exports
vii. A loss incurred by a qualifying venture capital financing company from the disposal of shares in any venture investment under section 17 of the Venture Capital Trust Fund Act, 2004 (Act 684)
viii. In the case of the petroleum upstream Contractors, they are permitted to carry over their losses indefinitely
(6 Marks for any 6 points)

In conclusion, it is not all persons that are allowed to carry over their losses
The statement by the Chief Executive Officer can therefore be supported by the provision of the law as the Company is into the production of the Alata Soap which is covered under the carryover of loss provision under section 22 of the Internal Revenue Act 2000 Act 592 as amended. Any effort put in by LOBILO Company Limited to enjoy the benefit on the carryover of losses can be sustained.         (2 Marks)

Since the shares are selling for GH¢35, yet have a computed value of GH¢45, they are a good buy for Kurablah.

She could pay up to GH¢45 per share and still earn her required 12% return

• Investors, as a group, may not perceive the future growth aspect of Senchi Ltd, as being quite high as does Kurablah.
• Other investors may perceive greater risk to future returns from Senchi Ltd, than does Kurablah, and consequently may require a higher return than 12% on their investments.
• Other features about the shares, such as low marketability or irregular or fluctuating dividends may cause investors to request a higher rate of return.
• Other factors might include:
  *General market recession
  *General instability of economy
  *Risk-averse nature

Implied market capitalisation rate:

Intragroup currency netting
Conversion of indebtedness to netting currency (GH¢):

Transfer plan:
Gil (Nigeria) receives GH¢2.091 million from Edi (Ghana) and GH¢7.5675 million from Zep (South Africa)

Advantages of hedging currency risk with options rather than futures

• The main advantage of hedging with currency options over currency futures is that options present relatively lower risk. This is because with options hedge comes with the flexibility of enjoying gains in the upside whilst avoiding losses in the downside. In the case of futures, however, trading is obligatory even in the downside.
• Besides, several strike prices are available to choose from. This thus present an opportunity to use varied strategies in hedging the currency option.                           (2 points for 2 marks)

Disadvantages of hedging currency risk with options rather than futures

• The main disadvantage of hedging with an option the requirement to pay a nonrefundable premium upfront. In the case of futures, the margin deposit is refundable once losses are covered.
• Another disadvantage of options is that premiums vary as volatility changes. Futures, however, comes with fixed upfront margin requirements which have be same for many years.                     (2 points for 2 marks)