Question 1 (15 marks) (a) Where required by the law, all persons liable to pay tax must file their returns on due dates, signed by the person or authorised agent of the person, and shall have a declaration to the effect that the return is complete and accurate. Required: (i) State four circumstances under which the Commissioner-General of Ghana Revenue Authority may require a person to file tax return before the before the due date for filing tax return?

(ii) State two powers that may be exercised by the CommissionerGeneral if a taxpayer fails to file tax returns on time

(b) You are the tax manager of KK Owusu & Associate, a firm of tax consultants. You visited Ghana Revenue Authority (GRA) and met one of your valued customers, Mr. Azumah, storming out of the office of the Tax Commissioner of GRA in anger. Upon interrogation, Mr. Amuzu complained that saying the GRA is not treating me fairly. They have just completed a tax audit and raised a number of issues including additional assessment which my company has paid and they are coming back again for another audit they are referring to as reperformance audit. Required: Explain to Mr. Azumah, the right of the Commissioner-General under reperformance audit and the conditions that will lead to a person being selected for such an audit.

Question 2 (20 marks) Miseho Company Ltd, a self-assessed tax payer with the Large Taxpayer Office (LTO) of the Ghana Revenue Authority estimated its chargeable income for the assessment year 2019 to be GHS30,000,000. The company commissioned a new plant in April 2019 and realized that its production capacity has improved significantly and hence revised its estimated chargeable income to GHS50,000,000 in May 2019. In November the same year after the third quarter interim accounts, the Directors were advised by the Auditors to adjust their chargeable income to avoid an imposition of a penalty by the LTO. This was adhered to and subsequently revised the estimate further to GHS75,000,000. The company submitted its 2019 annual returns on due date of 30 April 2020 and posted actual chargeable income of GH130,000,000. Required: (a) Compute the installment payment for the four (4) quarters in the assessment year 2019.

(b) Compute penalty payable by the company, if any.

(c) Determine the outstanding tax payable by the company at the end of the year assuming all the installment payments were made on due date.

Question 4 (10 marks) Mr. Benkuta has been the Head of Treasury in Bank Du Accra since 2016. For the year 2019 his entitlements were as follows: GHS Salary 14,000 Fully furnished accommodation Vehicle with fuel Inconvenience allowance 3,500 Risk allowance 9,000 Bonus 30% of basic salary He receives cash of GHS450 a month for entertaining visitors. He contributes towards the Social Security Scheme. He has been operating two Urvan buses. His account for the year ended 31 December 2019 showed the following results: GHS GHS Total income 12,000 Less expenses: IRS quarterly stickers 1,250 Repairs and testing 1,550 Drivers and mates 1,500 Petrol and lubricants 2,650 Road tips 2,150 Fines 900 Insurance 850 Depreciation 1,950 Net profit (loss) (800) He is married with five children all of whom are attending schools in the United States of America. Capital Allowance granted for the period amounted to GHS2,850. You are required to determine his tax liability for the 2019 year of assessment.

Question 5 (15 marks) Kwadwovi Ameko stayed in the UK for over 25 years where he was a professional boxer. He decided to settle back home in Ghana when he turned 50. He returned to Ghana in November 2018 with his total savings of 5,000. He also brought a slightly used BMW Saloon car valued at GHS25,000 and decided to set up his own business which he began on 1/1/2019. He changed his 1,250 at the rate of GHS6.8 for 1, raising GHS8,500 which he used as his working capital. He has an estate house at Abeka Lapaz which he purchased in 1983 before leaving for the UK. He used his garage as a factory where he installed machines for purifying water. The machine cost him GHS2,500 which he paid from his money from abroad and deposited the remaining GHS6,000 in his GCB account. Many Pure Water retailers registered with him hence his business was very successful. In January 2020, the domestic Tax Revenue Division of the Ghana Revenue Authoritys office at Abeka Lapaz invited him for discussion on his tax affairs since he had so far not paid any tax on his income. The following facts emerged during the discussions: 1. He purchased a Delivery Van costing GHS3,000 during the 2019 year of assessment. 2. He had also acquired two new machines costing GHS5,000 during the year under review. 3. He had extended his garage/factory at a cost of GHS,000. By the end of the 2019 year of assessment some customers owed him GHS7,500 whereas he owed an amount of GHS1,500 in respect of water and electricity. He caused to be transferred from UK an amount equivalent to GHS5,000 being winnings on football bet he staked before leaving the UK, which amount was transferred into his bank account with GCB bank. His wife and his children are still living in the UK, making him stay in Ghana alone, since the children are all working in the UK. His private living expenses for 2019 were as follows: GHS Rent/Rates 400 Food 2,400 Social Activities 250 Required: Determine Kwadwovi Ameko Chargeable Income for the year 2019.