- 5 Marks
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.
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
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