- 10 Marks
AT – May 2020 – L3 – Q5a – Tax administration in Ghana
Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.
Question
Mmabia University has written to a financial consultancy firm you work for requesting for a clarification in respect of the taxability or otherwise of its profits. The Financial Controller Bubu Moon signed the letter. It indicated that per the University’s understanding, Mmabia is not liable to tax as Government has amended the laws exempting private universities from payment of taxes.
The Financial Controller indicated in his letter that the response from your firm would be shared with other universities to take note also.
The Manager in charge of tax has invited you as his team member to respond to this request for clarification on the matter as expressed by Mmabia University to help clarify the matter better.
Required: Write a response on the clarification setting straight the tax provision on the matter and also, comment on the decision to share the response with other universities.
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