Eno Mary Ltd is a resident company in Ghana, Mama Rho Ltd acquired $62\%$ of the

underlying ownership of the company. Following the acquisition arrangement, a loan facility

of GHS$10$ million was secured by Eno Mary Ltd from Mama Rho Ltd$.$ The interest rate

agreed was $4\%$ more than the average of $25\%$ being charged. The interest paid in $2021$ was

GHS$2\mathrm{.}5$ million.

Mama Rho Ltd is exempt from tax on all its income.

The following is the capital structure of Eno Mary Ltd for $2021$ year of assessment:

Details January $1,2021$ December $31,2021$

GHS GHS

Share Capital $1,000,0001,200,000$

Retained Earnings $200,000250,000$

Revaluation Reserves of assets $100,000100,000$

Required:

$($i$)$ Compute the tax implication of the above arrangement and provide a brief explanation of