Question 1 Mr. George Amoako commenced business on 1st April 2017 and washmitted the following extracts of his financial statements for the year ented 31 March, 2018 and 31* March, 2019 ta Ghuna Revenue Authority Ghana Revenue Authority is yet to audit and assess the secount of George's Business since is comencement Income Statement for the year ended 31 March 2019 GHS 99.000 (30,000) (35000) Gross profil Salary (Note 1) Computer purchased (Note 5) Ofice Equipment (Note 5) Employer's SSNIT Contribution Comribution and Donation (Note 2) Carry over loss from 2017-2018 year (Note 4) Net Profit or (Loss) 2018 GHS 43.JJZ (35.000) (29.200) (6,000) (5,000) 18,000) (6,000) (9,000) (19.000) 39.N685 Additional Information Note Salary Mt. George Personal salary 6,000 8,000 Other Permanent Staff's salary 4,000 3,000 Wages paid to Cusual worker 20,000 24 000 30,000 35,000 Note 2 Contribution and donation Ghana Heart Foundation 5,500 4.000 Approved religious Institutions 2,000 2.000 Custom Onlicials 1,500 2.000 2,000 8.000 Corporate Tax Rate for 2018 year of assessment is 25% and annual Graduated Tax Rate for 2018 year of assessment is shown below First GHS3,132 Nil Next GHS840 5% Next GHS1 200 10% Next GHS33.720 17:39 Next GHS38,892 25% Exceeding GHS120,000 35% Note 3 Tax Rates 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 Note 5 Acquisition of depreciable assets Asset Date of Acquisition Coinputers 01/12/2017 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. (9 marks) (b) Comment on George's decision to carry-over an unrelieved loss of GHe 20,868 to 31" March, 2020 year end. (c) (4 marks) Determine Mr. George's obligation on payment of Wages to Casual worker in respect of 2018 year of assessment for taxation purposes. (2 marks) [Total: 15 marks Question 1 Mr. George Amoako commenced business on 1st April 2017 and washmitted the following extracts of his financial statements for the year ented 31 March, 2018 and 31* March, 2019 ta Ghuna Revenue Authority Ghana Revenue Authority is yet to audit and assess the secount of George's Business since is comencement Income Statement for the year ended 31 March 2019 GHS 99.000 (30,000) (35000) Gross profil Salary (Note 1) Computer purchased (Note 5) Ofice Equipment (Note 5) Employer's SSNIT Contribution Comribution and Donation (Note 2) Carry over loss from 2017-2018 year (Note 4) Net Profit or (Loss) 2018 GHS 43.JJZ (35.000) (29.200) (6,000) (5,000) 18,000) (6,000) (9,000) (19.000) 39.N685 Additional Information Note Salary Mt. George Personal salary 6,000 8,000 Other Permanent Staff's salary 4,000 3,000 Wages paid to Cusual worker 20,000 24 000 30,000 35,000 Note 2 Contribution and donation Ghana Heart Foundation 5,500 4.000 Approved religious Institutions 2,000 2.000 Custom Onlicials 1,500 2.000 2,000 8.000 Corporate Tax Rate for 2018 year of assessment is 25% and annual Graduated Tax Rate for 2018 year of assessment is shown below First GHS3,132 Nil Next GHS840 5% Next GHS1 200 10% Next GHS33.720 17:39 Next GHS38,892 25% Exceeding GHS120,000 35% Note 3 Tax Rates 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 Note 5 Acquisition of depreciable assets Asset Date of Acquisition Coinputers 01/12/2017 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. (9 marks) (b) Comment on George's decision to carry-over an unrelieved loss of GHe 20,868 to 31" March, 2020 year end. (c) (4 marks) Determine Mr. George's obligation on payment of Wages to Casual worker in respect of 2018 year of assessment for taxation purposes. (2 marks) [Total: 15 marks
