Resident companies – NBC Institute

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Zealow Ltd, a car battery dealer, holds 26% voting power of Aboye Ltd, an energy and power distribution company. Both companies are resident in Ghana. Aboye Ltd declared a dividend, and the portion of the dividend that should be credited to the accounts of Zealow Ltd is GH¢78,900.

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

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Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

Question

a) CJA Ltd is a resident company engaged in Real Estate Business. As part of efforts to diversify its operations, it plans to acquire interest in Don-bill Ltd, another resident company. At the last AGM held on 4th March 2017, some Shareholders were of the view that CJA should acquire 15% of the shares of Don-bill Ltd.

The Managing Director of CJA was of the view that the Company should rather invest and acquire 25% shares to give it enormous influence in Don-bill Ltd.

Your firm has been identified to give a professional advice on the two proposals to help in decision making.

Required:
What is the tax implication on the two proposals and which proposal will you advise CJA Ltd to adopt to leverage on the tax benefits.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Dividend tax, Investment decisions, Resident companies, Share Acquisition, Tax Benefits
Level: Level 3

Series: MAY 2017

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

Question

The Managing Director of CJA was of the view that the Company should rather invest and acquire 25% shares to give it enormous influence in Don-bill Ltd.

Your firm has been identified to give a professional advice on the two proposals to help in decision making.

Required:
What is the tax implication on the two proposals and which proposal will you advise CJA Ltd to adopt to leverage on the tax benefits.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Dividend tax, Investment decisions, Resident companies, Share Acquisition, Tax Benefits
Level: Level 3

Series: MAY 2017

Question Tag: Resident companies

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PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

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PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

You're reporting an error for "AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization"

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

You're reporting an error for "AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization"

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