- 16 Marks
AT – May 2016 – L3 – Q5a – International taxation
Calculate tax credit relief available for a resident with income from the UK under a double taxation agreement.
Question
Mrs. Olivia Quartey is a resident in Ghana and works as the Finance Director of Ghana Trustees Limited. She earned a gross salary of GH¢30,000.00 for the 2014 year of assessment. She contributed 5.5% of her salary to the social security fund. In 2014, the gross royalties that accrued to her was £4,000 from the United Kingdom from which tax of £800 had been deducted with the remainder of £3,200 being remitted to her in Ghana.
Granted that Ghana has a double taxation agreement with the United Kingdom, you are required to calculate the tax credit relief (if any) available to Mrs. Olivia Quartey for the year 2014.
[Exchange rate: GH¢4.50 = £1.] (16 marks)
Tax Rate Table
| Income (GH¢) | Rate (%) |
|---|---|
| First 1,584.00 | Free |
| Next 792.00 | 5 |
| Next 1,104.00 | 10 |
| Next 28,200.00 | 17.5 |
| Exceeding 31,680.00 | 25 |
Find Related Questions by Tags, levels, etc.
- Tags: Double Taxation, Exchange Rate, Ghana, Tax Credit, UK
- Level: Level 3
- Topic: International taxation
- Series: MAY 2016
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