Madam Okailey Armah, a prominent market queen and Philanthropist, was nominated Asafouakye of Namoale Traditional Area in Accra in January 2018. At her out-dooring in August 2018 as Naa Okailey Tsofatse II, she sat in state and received homage and gifts from her people, friends and business associates. The following were the quantifiable gifts she received.
. GH¢
Market Queens Association 1,000
Commercial Bank (Pick-Up) 5,000
Namoale Traditional Council 500
Father-in-Law 500
Anonymous admirer 1,000
A week after her out-dooring, she made the following donations:
Osu Children’s Home Pick-Up Vehicle
. GH¢
Children’s Hospital (Accra) 1,000
Weija Leprosarium 500
Children’s Ward Korle Bu (Assorted Biscuits) 200
Thanksgiving Offering (Freeman Memorial Church, Bukom) 200
Required:
Determine any tax payable and briefly comment on the relevant tax implications. (5 marks)
View Solution
. GH¢
Market Queens Association 1,000 This is taxable
Commercial Bank (Pick-Up) 5,000 This is taxable
Namoale Traditional Council 500 This is taxable
Father-in-Law 500 This is taxable
Anonymous admirer 1,000 This is taxable
The donations made will have the following tax implication in the hands of those who received the gifts from Madam Okailey:
Osu Children’s Home Pick-Up Vehicle. This will not be taxed in the hands of the Home
. GH¢
Children’s Hospital (Accra) 1,000 This is not taxable
Weija Leprosarium 500 This is not taxable
Children’s Ward Korle Bu (Assorted Biscuits) 200 This is not taxable
Thanksgiving Offering (Church,) 200 This is not taxable