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Kofi Mensah has been in employment since 2008 on a consolidated salary of GH3,600 per annum with AB & Associates. In the year 2015, his

Kofi Mensah has been in employment since 2008 on a consolidated salary of GH¢3,600 per annum with AB & Associates. In the year 2015, his consolidated salary was GH¢ 15,000 from which he contributed 5.5% to the Social Security and National Insurance Trust. In the same year he remitted an amount of GH¢ 1,800 (in Cedi terms of his UK Pounds Sterling) being his net share of partnership profits in UK, into Ghana, after tax of GH¢ 450 had been deducted in the UK. Kofi Mensah is married with three children two of whom are in Christ the King Junior High School in Accra and one in St. Martins Senior High School.

You are required to:

  1. Determine the Tax Credit Relief to be granted to Kofi Mensah on the basis that a double taxation agreement exists between Ghana and the United Kingdom (UK) and that Kofi Mensah has provided evidence of payment of foreign tax on the amount remitted.
  2. What is Kofi Mensah net tax liability in Ghana?

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