Question Tag: Tax Benefits

Search 500 + past questions and counting.

ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses

Analyze the tax implications for Hyland Nigeria Ltd, including adjusted profit, tax payable, dividend tax implications, and tax benefits for reconstituted companies.

Question

Hyland Nigeria Limited commenced business as a manufacturer of stationery on January 1, 2021. The company, in December 2020, acquired all the assets and liabilities of a foreign company operating in Nigeria, Lowland Incorporated, and reconstituted it for turnaround and profitability.

The directors of the newly reconstituted company have considered the draft financial statements and annual tax returns for the year ended December 31, 2021. During a board meeting, there was disagreement over the tax treatment of dividends received (N3,600,000) from equity holdings in another Nigerian public limited liability company. The dividends are also part of the proposed profits to be distributed to shareholders.

Additionally, one director suggested that as a reconstituted company, Hyland Nigeria Limited may qualify for tax reliefs or incentives that could positively affect profitability. Following the board’s decision, the Managing Director contacted your firm to provide professional advice on these matters.

The following financial information is extracted from the company’s records:

The following additional relevant information was provided:
(i) Subscription and donations consisted of:

(ii) Allowance for doubtful debts included:

(iii) Repairs and maintenance was made up of:

(iv) Legal and professional fees included:

(v) Other operating expenses were:

(vi) Tax written down values of qualifying capital expenditure (QCE) as at December 31, 2020:

(vii) Additional assets acquired during the year ended December 31, 2021:

(viii) Unrelieved losses as at December 31, 2020 was N55,900,000.
(ix) Unutilised capital allowances as at December 31, 2020 was N16,155.000.

Required:

Calculate the Adjusted Profit of the company for the year ended December 31, 2021.
Compute the Tax Payable for the relevant assessment year.
Provide professional advice on the tax implications of the dividends received for the company and its shareholders.
Comment on tax benefits/incentives applicable to a reconstituted company in Nigeria as per the Companies Income Tax Act 2004 (as amended).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjusted Profit Computation, Dividend Tax Implications, Tax Benefits, Tax Payable Computation
Level: Level 3

Topic: Taxation of Specialized Businesses

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

Question

You are an external consultant to the Ministry of Trade and Industry. The Minister has received a delegation of both foreigners and Ghanaians to deliberate on investment opportunities available in Ghana.

Required:
i) Business activities that cannot be engaged in by foreigners. (5 marks)
ii) The tax benefits of establishing a sole proprietorship business as against a limited liability company. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Restrictions, Business Structures, Foreign Investment, Foreigners, Limited Liability Company, Sole Proprietorship, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: MAR 2024

AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax

Evaluating the tax benefits of manufacturing ceramics using local and foreign materials versus importing finished ceramics.

Question

Talantula Ltd has engaged you as an ICAG final level candidate on the options that would provide enormous benefits to them and also to the government. The two options are:

To manufacture ceramics using both local and foreign materials. The products will be sold locally and on the international market.
To import finished ceramics for sale in Ghana.

Required:
Evaluate FIVE (5) tax benefits of either of the business options you will want them to associate with over the other.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Importation, Locational incentives, Manufacturing, Tax Benefits
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAR 2024

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

Question

Tax planning opportunities are available to all persons. All business units may not have the same tax planning opportunities, hence the need to carefully select a business unit that may provide the intended benefits to the owner or owners.

Required:
Discuss FOUR (4) tax planning opportunities available to sole proprietorships which may not be available to limited liability companies.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Personal reliefs, Sole Proprietorship, Tax Benefits, Tax Planning
Level: Level 3

Topic: Tax planning
Series: DEC 2023

AT – July 2023 – L3 – Q3a – Tax planning

Analyzing the tax implications of providing assets as equity or loan and determining the best option for tax purposes

Question

Kinky Ltd is a manufacturing entity resident in Ghana. Mr. Andre Camil, a citizen and resident of France, owns 90% of the company’s shares. Mrs. Claude Camil, a citizen and resident of France and wife of Mr. Andre Camil, also owns 5% of the shares of the company. Mr. Francois Camil, the son of Mr. Andre Camil, holds the remaining 5% of the shares in the company.

As at 1 June, 2021, the company had a share capital of GH¢400,000. A report submitted by the management to the Board of Directors indicated that the company needs to acquire a plant valued at GH¢1,000,000 to enable the company to increase its production capacity. Mr. Andre Camil, the majority shareholder, has offered to finance the purchase of the plant for the company but his challenge is whether to provide the asset to the company as a loan or as equity.

Required:
Advise Mr. Andre Camil on:

The income tax treatment of providing the asset to the company as equity contribution.
The income tax treatment of providing the asset to the company as a loan.
The preferable option for providing the asset to the company in order to derive the maximum tax benefits.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital structure, Equity contribution, Loan financing, Tax Benefits
Level: Level 3

Topic: Tax planning
Series: JULY 2023

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

AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana

Discuss the tax benefits that Pearl House Ltd stands to gain by operating in a Free Zone.

Question

a) Pearl House Ltd is a company incorporated in Ghana and contemplates applying for a license to operate within the Free Zone environment from the Free Zone Board as opposed to an earlier decision to run a Micro Finance Business. Management has been at a crossroads on the decision to make.

Required:
As a Tax Consultant, the Management of Pearl House Ltd has approached you to join them at a breakfast meeting and convince them on the tax benefits, if any, that Pearl House Ltd stands to gain from operating in the Free Zone environment. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business operations, Corporate Taxation, Free Zone, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2016

AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax

Advise on which company, Tiika or Taaka, a Ghanaian investor should invest in, considering tax benefits and future growth potential.

Question

The following is the extract of financial statements – Financial position as at 31 December 2018 of the following companies:

Item	Tiika (GH¢)	Taaka (GH¢)
Stated Capital	1,000,000	1,000,000
Retained Earnings	600,000	600,000
Share Deals	30,000	30,000
Total Equity	1,630,000	1,630,000

Tiika is a Free Zone company, resident in Ghana. Taaka is also a company resident in Ghana, and both companies are engaged in the sale of tiles.

A Ghanaian who was living in the United States for a very long time has relocated to Ghana and has sought your opinion as a student of taxation to advise on the company to buy shares in. Your background checks indicate that the two companies have huge prospects.

Required:

Which of the companies will you advise this Ghanaian to invest in and why?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Free Zone Enterprise, Investment Decision, Tax Benefits
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2019

AT – Nov 2019 – L3 – Q2b – International taxation

Explain the benefits that countries A and B stand to gain from a Double Taxation Agreement (DTA).

Question

Countries A and B are contemplating a Double Taxation Agreement (DTA). The two countries are of the view that the Double Taxation Agreement will create a lot of tax benefits to citizens and other persons in both countries. Others have criticized this move as counter-productive and not worth the time of either country.

Your inputs are being solicited as an ICAG Finalist and a patriotic citizen of Country A to provide the benefits to be put on the website of the Ministry of Finance of Country A to enable people to read, appreciate, and support the agreement.

Required:

Explain FIVE (5) benefits that the two countries stand to gain from this arrangement.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double Taxation Agreement, International Taxation, Tax Benefits
Level: Level 3

Topic: International taxation
Series: NOV 2019

ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses

Analyze the tax implications for Hyland Nigeria Ltd, including adjusted profit, tax payable, dividend tax implications, and tax benefits for reconstituted companies.

Question

The following financial information is extracted from the company’s records:

The following additional relevant information was provided:
(i) Subscription and donations consisted of:

(ii) Allowance for doubtful debts included:

(iii) Repairs and maintenance was made up of:

(iv) Legal and professional fees included:

(v) Other operating expenses were:

(vi) Tax written down values of qualifying capital expenditure (QCE) as at December 31, 2020:

(vii) Additional assets acquired during the year ended December 31, 2021:

(viii) Unrelieved losses as at December 31, 2020 was N55,900,000.
(ix) Unutilised capital allowances as at December 31, 2020 was N16,155.000.

Required:

Calculate the Adjusted Profit of the company for the year ended December 31, 2021.
Compute the Tax Payable for the relevant assessment year.
Provide professional advice on the tax implications of the dividends received for the company and its shareholders.
Comment on tax benefits/incentives applicable to a reconstituted company in Nigeria as per the Companies Income Tax Act 2004 (as amended).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjusted Profit Computation, Dividend Tax Implications, Tax Benefits, Tax Payable Computation
Level: Level 3

Topic: Taxation of Specialized Businesses

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Restrictions, Business Structures, Foreign Investment, Foreigners, Limited Liability Company, Sole Proprietorship, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: MAR 2024

AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax

Evaluating the tax benefits of manufacturing ceramics using local and foreign materials versus importing finished ceramics.

Question

Talantula Ltd has engaged you as an ICAG final level candidate on the options that would provide enormous benefits to them and also to the government. The two options are:

To manufacture ceramics using both local and foreign materials. The products will be sold locally and on the international market.
To import finished ceramics for sale in Ghana.

Required:
Evaluate FIVE (5) tax benefits of either of the business options you will want them to associate with over the other.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Importation, Locational incentives, Manufacturing, Tax Benefits
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAR 2024

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

Question

Required:
Discuss FOUR (4) tax planning opportunities available to sole proprietorships which may not be available to limited liability companies.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Personal reliefs, Sole Proprietorship, Tax Benefits, Tax Planning
Level: Level 3

Topic: Tax planning
Series: DEC 2023

AT – July 2023 – L3 – Q3a – Tax planning

Analyzing the tax implications of providing assets as equity or loan and determining the best option for tax purposes

Question

Required:
Advise Mr. Andre Camil on:

The income tax treatment of providing the asset to the company as equity contribution.
The income tax treatment of providing the asset to the company as a loan.
The preferable option for providing the asset to the company in order to derive the maximum tax benefits.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital structure, Equity contribution, Loan financing, Tax Benefits
Level: Level 3

Topic: Tax planning
Series: JULY 2023

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

AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana

Discuss the tax benefits that Pearl House Ltd stands to gain by operating in a Free Zone.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business operations, Corporate Taxation, Free Zone, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2016

AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax

Advise on which company, Tiika or Taaka, a Ghanaian investor should invest in, considering tax benefits and future growth potential.

Question

The following is the extract of financial statements – Financial position as at 31 December 2018 of the following companies:

Item	Tiika (GH¢)	Taaka (GH¢)
Stated Capital	1,000,000	1,000,000
Retained Earnings	600,000	600,000
Share Deals	30,000	30,000
Total Equity	1,630,000	1,630,000

Tiika is a Free Zone company, resident in Ghana. Taaka is also a company resident in Ghana, and both companies are engaged in the sale of tiles.

Required:

Which of the companies will you advise this Ghanaian to invest in and why?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Free Zone Enterprise, Investment Decision, Tax Benefits
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2019

AT – Nov 2019 – L3 – Q2b – International taxation

Explain the benefits that countries A and B stand to gain from a Double Taxation Agreement (DTA).

Question

Required:

Explain FIVE (5) benefits that the two countries stand to gain from this arrangement.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double Taxation Agreement, International Taxation, Tax Benefits
Level: Level 3

Topic: International taxation
Series: NOV 2019

Question Tag: Tax Benefits

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses

Analyze the tax implications for Hyland Nigeria Ltd, including adjusted profit, tax payable, dividend tax implications, and tax benefits for reconstituted companies.

You're reporting an error for "ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses"

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

You're reporting an error for "AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana"

AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax

Evaluating the tax benefits of manufacturing ceramics using local and foreign materials versus importing finished ceramics.

You're reporting an error for "AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax"

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

You're reporting an error for "AT – Dec 2023 – L3 – Q2b – Tax planning"

AT – July 2023 – L3 – Q3a – Tax planning

Analyzing the tax implications of providing assets as equity or loan and determining the best option for tax purposes

You're reporting an error for "AT – July 2023 – L3 – Q3a – Tax planning"

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"

AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana

Discuss the tax benefits that Pearl House Ltd stands to gain by operating in a Free Zone.

You're reporting an error for "AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana"

AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax

Advise on which company, Tiika or Taaka, a Ghanaian investor should invest in, considering tax benefits and future growth potential.

You're reporting an error for "AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax"

AT – Nov 2019 – L3 – Q2b – International taxation

Explain the benefits that countries A and B stand to gain from a Double Taxation Agreement (DTA).

You're reporting an error for "AT – Nov 2019 – L3 – Q2b – International taxation"

ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses

Analyze the tax implications for Hyland Nigeria Ltd, including adjusted profit, tax payable, dividend tax implications, and tax benefits for reconstituted companies.

You're reporting an error for "ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses"

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

You're reporting an error for "AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana"

AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax

Evaluating the tax benefits of manufacturing ceramics using local and foreign materials versus importing finished ceramics.

You're reporting an error for "AT – Mar 2024 – L3 – Q2c – Business income – Corporate income tax"

AT – Dec 2023 – L3 – Q2b – Tax planning

Discussing tax planning opportunities available to sole proprietorships that are not available to limited liability companies.

You're reporting an error for "AT – Dec 2023 – L3 – Q2b – Tax planning"

AT – July 2023 – L3 – Q3a – Tax planning

Analyzing the tax implications of providing assets as equity or loan and determining the best option for tax purposes

You're reporting an error for "AT – July 2023 – L3 – Q3a – Tax planning"

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"

AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana

Discuss the tax benefits that Pearl House Ltd stands to gain by operating in a Free Zone.

You're reporting an error for "AT – Nov 2016 – L3 – Q4a – Tax administration in Ghana"

AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax

Advise on which company, Tiika or Taaka, a Ghanaian investor should invest in, considering tax benefits and future growth potential.

You're reporting an error for "AT – Nov 2019 – L3 – Q2d – Business income – Corporate income tax"

AT – Nov 2019 – L3 – Q2b – International taxation

Explain the benefits that countries A and B stand to gain from a Double Taxation Agreement (DTA).

You're reporting an error for "AT – Nov 2019 – L3 – Q2b – International taxation"

Our offerings

Contact Info

Customer

Get In Touch

admin