Mineral Operations – NBC Institute

AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

Question

A mining company with two contracts operating in the Western and Ashanti Regions of Ghana has one processing facility for its mining operations from both contracts. This has engaged the attention of the Ghana Revenue Authority for some time now regarding how to handle its activities for tax purposes.

Required:
As a final-level tax candidate, how will revenue received from a shared processing facility by a mining company be accounted for tax purposes?

Answer

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Tags: Mineral Operations, Mining Taxation, Revenue Allocation, Shared Processing
Level: Level 3

Topic: Minerals and mining, Tax administration in Ghana
Series: NOV 2018

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

Question

Dekey Company Ltd was incorporated under the Companies Act, 2019 (Act 992) on 1 January 2021 to prospect for diamonds in the Densu River in the Eastern Region of Ghana.

A review of its Comprehensive Income Statement for the year ended 31 December 2021 showed a loss of GH¢29,304,000 for the 2021 year of assessment.

An extract of the Comprehensive Income Statement is as follows:

Description	GH¢
Income from Operations	864,000
Operational Cost	17,920,000
Administration and General Expenses	11,160,000
Finance Charges	1,088,000
Net Loss	(29,304,000)

The CEO of Dekey Company Ltd remembered a discussion on “Unrelieved Losses” during a training workshop. The CEO has approached you, a final year tax candidate, to explain and advise him on the implications of the loss on future tax liabilities of the company.

Required:
Write a report explaining to the CEO what “Unrelieved Losses” are and the rights available to the company for the loss declared at the end of its first year of operations under the Income Tax Act, 2015 (Act 896).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Loss carryforward, Mineral Operations, Unrelieved losses
Level: Level 3

Topic: Tax administration in Ghana
Series: AUG 2022

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

Question

ACM Mining Ltd has commenced mining operations in Ghana. It procured heavy-duty machinery and equipment for use in its operations.

Required:
Advise ACM Mining Ltd on what constitutes the cost of an asset at the commencement of commercial production in respect of mineral operations. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Cost of Asset, Mineral Operations, Mining, Taxation
Level: Level 3

Topic: Minerals and mining
Series: NOV 2023

AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

Question

Required:
As a final-level tax candidate, how will revenue received from a shared processing facility by a mining company be accounted for tax purposes?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Mineral Operations, Mining Taxation, Revenue Allocation, Shared Processing
Level: Level 3

Topic: Minerals and mining, Tax administration in Ghana
Series: NOV 2018

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

Question

Dekey Company Ltd was incorporated under the Companies Act, 2019 (Act 992) on 1 January 2021 to prospect for diamonds in the Densu River in the Eastern Region of Ghana.

A review of its Comprehensive Income Statement for the year ended 31 December 2021 showed a loss of GH¢29,304,000 for the 2021 year of assessment.

An extract of the Comprehensive Income Statement is as follows:

Description	GH¢
Income from Operations	864,000
Operational Cost	17,920,000
Administration and General Expenses	11,160,000
Finance Charges	1,088,000
Net Loss	(29,304,000)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax Act, Loss carryforward, Mineral Operations, Unrelieved losses
Level: Level 3

Topic: Tax administration in Ghana
Series: AUG 2022

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

Question

ACM Mining Ltd has commenced mining operations in Ghana. It procured heavy-duty machinery and equipment for use in its operations.

Required:
Advise ACM Mining Ltd on what constitutes the cost of an asset at the commencement of commercial production in respect of mineral operations. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Cost of Asset, Mineral Operations, Mining, Taxation
Level: Level 3

Topic: Minerals and mining
Series: NOV 2023

Question Tag: Mineral Operations

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AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

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AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

You're reporting an error for "AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining"

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

You're reporting an error for "AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana"

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

You're reporting an error for "AT – Nov 2023 – L3 – Q5a – Minerals and mining"

AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining

Explanation of how revenue from a shared processing facility is accounted for tax purposes in mining operations.

You're reporting an error for "AT – Nov 2018 – L3 – Q5c – Tax administration, Minerals and mining"

AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana

Explain unrelieved losses under the Income Tax Act and its implications for Dekey Company.

You're reporting an error for "AT – Aug 2022 – L3 – Q2b – Tax administration in Ghana"

AT – Nov 2023 – L3 – Q5a – Minerals and mining

Advise on what constitutes the cost of an asset at the commencement of commercial production in mineral operations.

You're reporting an error for "AT – Nov 2023 – L3 – Q5a – Minerals and mining"

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