b. Faith Charity Foundation (Faith) is an approved Ghanaian Non-Governmental Organisation which provides care and support to homeless children. During the year ended 31st December, 2018 the income of the foundation reduced by 25%, this created financial crisis for the foundation to cover its core expenditures. The foundation has enough space it is not using currently. Management decided to provide venue for big programs for fees to support the children education in 2019. They added that, since celebrities may be present, it will serve as a motivation to these homeless children. They also made projection about selling of un-used equipment for GH 200,000 in 2019 year. ABC Hotel Ltd which commenced operation in the year 2018 has promised the foundation an amount of 22% of its assessed annual profit before tax for 2019 year of assessment. The foundation has included these arrangements in its budget for 2019 year.

Required

i. Explain the tax implications with the projected incomes included in Faiths budget for 2019 year by the management. (3 marks) ii. Estimate the amount of tax payable (in percentage) by ABC Limited and determine the effect of its contribution to Faith Foundation on tax payable to GRA for 2019 year of assessment. (3 marks)