- 10 Marks
PT – April 2022 – L2 – Q1c – Tax Administration
Calculate the taxes payable for each quarter for Bumu Manufacturing Company based on estimated chargeable income and tax paid.
Question
c) You have been offered an appointment by Bumu Manufacturing Company (BMC) as Tax Manager responsible for preparing and filing tax returns on behalf of the company. BMC files its returns with the Osu Medium Taxpayers Office of the Ghana Revenue Authority. The company’s Tax Identification Number is C0000261178. The company prepares accounts to 31 December each year.
BMC estimated its chargeable income for the 2019 year of assessment as GH¢3,000,000. Subsequently, the company secured a Government contract and anticipates in the third (3rd) quarter that its chargeable income would be GH¢4,500,000.
Additional Information:
Tax paid on account:
1st quarter GH¢100,000
2nd quarter GH¢120,000
3rd quarter GH¢200,000
Required:
Compute the taxes payable for BMC for each quarter.
(10 marks)
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