Ghana tax law – NBC Institute

PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

Question

Maame Adwoa Konadu Yiadom is a shareholder of Asokwa Company Ltd, a company not listed on the Ghana Stock Exchange Market. Maame Adwoa Konadu Yiadom transacted the following business with Asokwa Company Ltd:

1 January 2010 purchased 100,000 ordinary shares for GH¢50,000.
30 June 2015 purchased 100,000 ordinary shares at a price of GH¢0.60 per share.
1 January 2020 Maame Adwoa Konadu Yiadom accepted a rights offer of 1 share for every 10 shares held as at 31 December 2019 at a price of GH¢0.50 per share.
31 December 2020 Maame Adwoa Konadu Yiadom sold 50,000 shares for GH¢60,000, paying a commission of 2% of the sale value to the brokerage firm that facilitated the sale. The current market price per share on the market is GH¢1.12 per share.

Required:
Calculate the capital gain tax, if any.

Answer

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Tags: Capital gains tax, Ghana tax law, Sale of Shares, Share Transactions, Tax computation
Level: Level 2

Series: NOV 2021

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.

Answer

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Tags: Capital Transfers, Deemed Dividend, Ghana tax law, Retained Earnings, Tax computation
Level: Level 2

Topic: Income Tax Liabilities
Series: NOV 2021

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

Question

The Chief Executive Officer of LOBILO Limited, producers of Alata Local Soap for the Ghanaian market, returned from a Tax Seminar organized by The Institute of Chartered Accountants, Ghana (ICAG) and called you, the Tax Manager of LOBILO, into his office and stated:
“LOBILO Company Limited has been shortchanged over the years on account of tax losses.” He said that carryover of losses as an incentive was discussed at length at the Tax Seminar. He further added that LOBILO Limited has not carried over its tax losses as provided for in the tax laws. He states, “Tax Manager, please act now by writing to the Ghana Revenue Authority to recognize the tax losses of LOBILO, since the losses are within the five years in order to help reduce the taxes of the Company now that the Company is making profits,” he ended.

You are required to:
Explain clearly the provision of tax laws on carryover of losses and to what extent do you agree with the position of the Chief Executive Officer of LOBILO Company Limited.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Ghana tax law, Tax incentive, Tax loss carryover
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2015

PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

Question

1 January 2010 purchased 100,000 ordinary shares for GH¢50,000.
30 June 2015 purchased 100,000 ordinary shares at a price of GH¢0.60 per share.
1 January 2020 Maame Adwoa Konadu Yiadom accepted a rights offer of 1 share for every 10 shares held as at 31 December 2019 at a price of GH¢0.50 per share.
31 December 2020 Maame Adwoa Konadu Yiadom sold 50,000 shares for GH¢60,000, paying a commission of 2% of the sale value to the brokerage firm that facilitated the sale. The current market price per share on the market is GH¢1.12 per share.

Required:
Calculate the capital gain tax, if any.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Ghana tax law, Sale of Shares, Share Transactions, Tax computation
Level: Level 2

Series: NOV 2021

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.

Answer

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

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

Question

You are required to:
Explain clearly the provision of tax laws on carryover of losses and to what extent do you agree with the position of the Chief Executive Officer of LOBILO Company Limited.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Ghana tax law, Tax incentive, Tax loss carryover
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2015

Question Tag: Ghana tax law

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PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

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.

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

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.

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

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PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

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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.

You're reporting an error for "PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities"

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

You're reporting an error for "AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy"

PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains

Calculate the capital gains tax on the sale of shares by Maame Adwoa Konadu Yiadom.

You're reporting an error for "PT – Nov 2021 – L2 – Q5b – Taxation of Capital Gains"

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.

You're reporting an error for "PT – Nov 2021 – L2 – Q1a – Income Tax Liabilities"

AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy

Explaining tax loss carryover provisions and determining the applicability for LOBILO Limited.

You're reporting an error for "AT – Nov 2015 – L3 – Q1a – Taxation and Fiscal Policy"

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