WORKING 1:

• Where an employer makes a payment for overtime work to a qualifying junior employee during a year of assessment, the employer shall:
• Withhold tax from the total of the payment at the rate of five percent, if the amount paid does not exceed fifty percent of the basic salary of the employee for the month.
• Withhold tax from the excess of that payment at the rate of ten percent, if the amount paid exceeds fifty percent of the basic salary of the employee for that month.
• Where an employer makes a payment for overtime to an employee who is not a qualifying junior employee, the payment shall be included in calculating the income of that employee from the employment and taxed in accordance with the First Schedule of the Act (i.e. using the graduated rates).
• Tax withheld is a final tax on the overtime and the payment shall not be included in calculating income derived by the employee from that employment; and the tax paid by withholding satisfies the tax liability of the employee with respect to the payment and may not be reduced by any tax credits allowed to the employee.
  

• Where an employer pays a bonus to an employee during a year of assessment, the employer shall:
• If the total of the bonus payments made by that employer to the employee during the year of assessment does not exceed fifteen percent of the annual basic salary of that employee, withhold tax from the gross amount of the payment at the rate of five percent; or
• If the total bonus payments made by the employer to the employee during the year exceeds fifteen percent of the annual basic salary of that employee.
• Add the excess payments to the employment income of that employee for that year; and
• Withhold tax from the total amount obtained in accordance with the First Schedule of the Act (i.e. using the graduated rates).
• Tax withheld is a final tax on the bonus payment and the payment shall not be included in calculating income derived by the employee from that employment; and the tax paid by withholding satisfies the tax liability of the employee with respect to the payment and may not be reduced by any tax credits allowed to the employee.
  

Where a person makes payment to a casual worker, which payments shall be treated as income earned by that casual worker, and the person shall withhold tax from the gross income paid to the casual worker at the rate of five percent. Tax withheld shall be treated as final tax.

Where a person makes payment to a temporary worker as defined under section 78 of the Labour Act, 2003 (Act 651) that payment shall be treated as income earned by the temporary worker, and the person shall withhold tax from that income in accordance with section 114 of the Income Tax Act, 2015 (Act 896) as amended and the First Schedule of the Act (i.e. using the graduated rates).

Sekyiwaa Annam Industries Ltd
Computation of Capital Allowance

Sekyiwaa Annan Industries Ltd
Computation of Chargeable Income for the Assessment year 2017

• Provide social goods:
  The theory of social goods is of prime importance to the economies of the public sector. The market economy, if certain conditions are met, enables an efficient use of resources for providing private goods.
  However, when it comes to providing public or social goods (e.g. parks roads, bridges, free or subsidised educational facilities), the market economy often runs into trouble. Social goods are goods which are required for the welfare of society as a whole, but for which the market fails to provide a value.
  People are generally ignorant of the value or utility of social goods. An individual knows that once one category of social goods say a road, is constructed, he cannot be denied its use whether he paid for its construction or not.
  Everyone assumes that others would pay for it. It is these failures of the market (i.e., provision of social goods) that bring the role of the government and public expenditure in focus for providing social goods for the welfare of the public in general.
  Some economists divide social goods under two heads: Social and economic overheads. Social overheads like hospitals, schools and colleges and technical institutions and economic overheads like roads and railways, irrigation and power projects etc. are all essential for economic development. It is the responsibility of Public expenditure to build up sound social and economic overheads as money for these things does not usually come from private sources.
• Remove unemployment:
  Public expenditure is the most potent weapon to fight unemployment. The level of employment depends upon effective demand. The government can influence effective demand either by making more public expenditure or by resorting to such fiscal methods as may raise the level of private expenditure.
  The role of public expenditure becomes very significant during the period of depression when the private entrepreneurs are not keen to take up investment activities.
  The government can resort to counter cyclical fiscal policy, which means the taxes and government spending be varied in an anti-cyclical direction; government spending being cut and taxes increased in the expanding phase of cycle and government spending increased and taxes cut during the contraction phase. Increased government expenditure will open new job opportunities in the country, which means creation of demand of goods and services.
  Mention may also be made of pump priming and compensatory expenditure to raise the level of employment in the economy. Pump priming refers to increase in private expenditure through an injection of fresh purchasing power in the form of an increase in public expenditure even through budgetary deficit.
  It is argued that such an initial public expenditure may set in motion a process of recovery from the condition of depression. Compensatory expenditure refers to the variation in the government budget expenditure to compensate the deficiency in private demand so as to maintain high level of investment, employment and income stability.
  In the words of Keynes, government expenditure becomes a balancing factor in order to maintain national income at a given level. Such expenditure may be progressively raised during depression phase of the business cycle, and progressively reduced in the recovery phase.
• Increase Production:
  Public expenditure contributes to production through a large number of public enterprises both in industries and agriculture. Government incurs a lot of expenditure in the agricultural sector, e.g. on irrigation and power, seed forms, fertilizer factories, warehouses, etc., and in the industrial sector by setting up public enterprises like the steel plants, heavy electrical, heavy engineering, machine-making factories, etc. All these enterprises are calculated to promote production and thereby economic development.
• Exploitation and Development of Mineral Resources:
  Minerals provide a base for further economic development. The government has to undertake schemes of exploitation and development of essential minerals, e.g. coal and oil. Public expenditure has to play its role here too.
• Promote Price Stability:
  Increase in public expenditure relieves the economy from the quagmire of depression and conversely public expenditure can be scaled down when there is a fear of inflationary rise in prices. Thus, public expenditure helps in stabilising price.
• Promote Balanced Growth:
  There is a tendency to use economic resources for the further development of already developed regions. But for overall growth, special attention needs to be paid for the development of backward areas and under developed regions. This requires huge amounts for which reliance has to be placed on public expenditure.
• Reduce Inequality of Income:
  Another objective of Public expenditure is to reduce the inequality of income. Expenditure on old age pensions, unemployment relief, free education, free mid-day meals etc. benefits the poorer classes of the community at the expense of the rich. The above objectives reveal that public expenditure properly made of utmost important for social welfare and economic prosperity.                                                      (Any 5 points well explained)

Automatic Stabilizers

• Some tax and expenditure programs change automatically with the level of economic activity. These are called Automatic Stabilizers.Automatic stabilisers refer to how fiscal instruments (taxes and government spending) will influence the rate of growth and help counter swings in the economic cycle.
• In a period of high economic growth, automatic stabilisers will help to reduce the growth rate. With higher growth, the government will receive more tax revenues – people earn more and so pay more income tax (note the tax rate doesn’t change, the amount received just becomes higher). With higher growth, there will also be a fall in unemployment so the government will spend less on unemployment benefits.
• In a recession, economic growth becomes negative. However, automatic stabilisers will help to limit the fall in growth. With lower incomes people pay less tax, and government spending on unemployment benefits will increase. This increase in benefit spending and lower tax helps to limit the fall in aggregate demand

Discretionary Fiscal Policy

• Discretionary fiscal policy refers to deliberate changes in taxes or spending. The government cannot control certain aspects of the economy related to fiscal policy. For example: The government can control tax rates but not tax revenue. Tax revenue depends on household income and the size of corporate profits.
• Government spending depends on government decisions and the state of the economy.Discretionary government spending and tax policies can be used to shift aggregate demand.
  

• Administer and give effect to the laws or relevant provisions of the laws set out in the First Schedule and use optimum efficiency in assessing, collecting and accounting for all revenue to which those laws apply;
• Pay the amounts collected into the Consolidated Fund unless otherwise provided by this Act and other Acts;
• Promote tax compliance and tax education;
• Combat tax fraud and evasion and co-operate to that effect with other competent law enforcement agencies and revenue agencies in other countries;
• Advise District Assemblies on the assessment and collection of their revenue.
• Prepare and publish reports and statistics related to its revenue collection;
• Make recommendations to the Minister on revenue collection policy.                             (Any 5 points)
  

COMPUTATION OF LOSS TO BE CARRIED FORWARD
YEAR OF ASSESSMENT : 2016
BASIS PERIOD:

Dividend paid to a resident company by another resident company is exempt from tax where the company receiving the dividend controls directly or indirectly, at least 25% of the voting power of the company which paid the dividend. In this case, the dividend paid by Foopo ltd is exempt from tax in the hands of Foopo Ltd and Kofas ltd.

Unrelieved loss is loss that has occurred which is carried forward for 5 years in the case of mining against income in subsequent five (5) years. The loss shall be used against income in future years for only 5 years.

Dividend shall be paid to Ghana Government under the following circumstances:

• Payment of dividend by National Oil Companies established by Government of Ghana to operate in the upstream.
• Government of Ghana holding shares in any company in petroleum operations.
  

Delax Happy Consult
PMB 12
Accra
9th November, 2017

MINISTER OF TRADE
MINISTRY OF TRADE AND INDUSTRY
ACCRA

REPORT ON JOBS SPECIFICALLY RESERVED FOR INDIGENES

Introduction
Following our conversation on the need to identify employment opportunities reserved for only Ghanaians, I forward to you the dictates of the GIPC Act 2013 Act 865 on jobs specifically reserved for indigenes for your study and further action.

Activities reserved for the locals:

• The sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a stall at any place.
• The operation of taxi or car hire service with a fleet of less than 25 vehicles.
• The operation of a beauty salon or a barber shop.
• Printing of scratch cards for the use of subscribers of telecommunication services.
• The production of exercise books and other basic stationery.
• The retail of finished pharmaceutical products.
• The production, supply and retail of sachet waters; and
• All aspects of pool betting business and lotteries, except football pool.       (Any 4 points @ 2 marks = 8 marks)

Foreign dominance
The above unfortunately have seen fierce competition from foreign investors either resulting from lack of knowledge of our laws by our foreign investors or lack of proper advisory services in this regard from Tax Professionals.    (1 mark)

Conclusion
It is hoped that the above report would help you in your decision making.
Thank you.
Yours faithfully,
JOMBO SUCCESS
PARTNER                                                           (1 mark for structure of report)

NOVEMBER 8, 2017
REPORT BY MASTER XXX TO CEO SWISSCOM LTD ON PROCEDURE FOR SUBMISSION OF RETURNS AND PAYMENT OF TAX (INCLUDING PENALTY) AND DISPUTE RESOLUTION PROCEDURES.

Dispute resolution procedures:

• A person who is dissatisfied with the Commissioner-General (CG) with a decision of the Commissioner-General may object in writing within thirty (30) days of being notified of the decision.
• The objection shall be in writing stating the grounds of the objection.
• Commissioner-General may grant the application for extension.
• An objection shall not be entertained unless a payment of 30% of the tax in dispute and paid all other taxes are made.
• The 30% could be waived by the Commissioner-General.
• The objection could be disallowed in whole or in part.
• The Commissioner-General shall within 60 days serve the objector with a notice of the decision including the reason for the decision.
• Where the CG does not serve notice within 60 days, it should be interpreted to mean the objection has been disallowed.
• A person who is dissatisfied with the decision of the CG could appeal against the decision to the Court within thirty days of the decision.
• An appeal against an objection decision does not operate as a suspension of the objection decision.
  (Any 4 points for 4 marks)