PART B

TWO QUESTIONS ANSWER ALL

1. Constable Joe is married with seven children, five of them attending first and second cycle institutions in Ghana he provides the following information for 2014.

Ghc

Salary		3,600,000
Overtime and other allowances		300,000
Dividend (net)		81,000
10% on tax dividend		9,000
Social Security
Employee 5%
Employer 12.5%
Life insurance policies :
Cover	Sum Assured	Premiums
Own life	2,500,000	300,000
Own life	1,250,000	90,000
Wifes life	2,000,000	175,000

Employer provides the folllowing;

1. Motor car and fuel for both official and private use
2. Accommodation and use of company Gas cooker, deepfreezer, and refigerator.
3. Joe pays 7.5% of his basic salary to his employer as rent.
4. His employers deducted PAYE of 460,000 cedis.

You are required to calculate constable Joes tax liability for the year. and as a business tax consultant, you have been requested to deliver a paper to critically analyze the advantages and dis advantages of entering into double taxation agreements.