- 5 Marks
PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities
Assess the tax payable on a capital transfer from retained earnings to stated capital based on the details provided.
Question
Kawukudi Ltd intends to increase its capital requirement. Therefore, it applied to the Registrar General with the following:
Retained Earnings Account (GHȼ)
- Balance b/fwd: 100,000
- Transfer from income statement: 1,200,000
- Transfer to stated capital: (600,000)
- Balance c/fwd: 700,000
Required:
Assess with explanation the tax payable under this circumstance.
Find Related Questions by Tags, levels, etc.
- Tags: Capital Transfers, Deemed Dividend, Ghana tax law, Retained Earnings, Tax computation
- Level: Level 2
- Topic: Income Tax Liabilities
- Series: NOV 2021
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