Mr. George Amoako commenced business on 1st April, 2017 and submitted the following extracts of his financial statements for the year ended 31 March, 2018 and 31 March, 2019 to Ghana Revenue Authority Ghana Revenue Authority is yet to audit and assess the accounts of George's Business since its commencement. Income Statement for the year ended 31 March, Gross profit Salary (Note 1) Computer purchased (Note 5) Office Equipment (Note 5) Employer's SSNIT Contribution Contribution and Donation (Note 2) Carry over loss from 2017-2018 year (Note 4) Net Profit or (Loss) Additional Information Note 1 Salary Mr. George Personal salary Other Permanent Staff's salary Wages paid to Casual worker Note 2 Contribution and donation Ghana Heart Foundation Approved religious Institutions Custom Officials . 2019 GHS First GHS3,132 Next GHS840 Next GHS1,200 Next GHS33,720 Next GHS38,892 Exceeding GHS120,000 99,000 (30,000) (35,000) (6,000) (9,000) (19,000) 6,000 4,000 20,000 30,000 5,500 2,000 1,500 9,000 2018 GHS 43.332 (35,000) (29,200) (6,000) (5,000) (8,000) (39,868) Note 3 Tax Rates Corporate Tax Rate for 2018 year of assessment is 25% and annual Graduated Tax Rate for 2018 year of assessment is shown below Nil 5% 10% 17.5% 25% 35% 8,000 3,000 24,000 35.000 4,000 2.000 2.000 8.000 Note 4 Carry-Over Loss Mr. George decided to carry-over the denied loss of GHS20,868 (ie 39,868- 19,000) from year ended 31" March, 2019 to 31" March, 2020 year end. Page 2 of 4 Note 5 Acquisition of depreciable assets Asset Date of Acquisition 01/12/2017 Computers Equipment 01/03/2018 Computers 01/06/2018 Amount (GH) 29,200 6,000 35,000 Required (a) Compute Mr. George's taxable income and Tax liability for 2018 year of assessment. (b) Comment on George's decision to carry-over an unrelieved loss of GHe 20,868 to 31 year end. (9 marks) March, 2020 (4 marks) Determine Mr. George's obligation on payment of Wages to (c) Casual worker in respect of 2018 year of assessment for taxation purposes. (2 marks) [Total: 15 marks]