Question
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:
- 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.
- What is Kofi Mensah net tax liability in Ghana?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Tax Credit Relief Kofi Mensah is entitled to tax credit relief on the foreign tax he paid on the par...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started