Question 1(Tax Administration in in Ghana) The GRA was established by an Act of Parliament (Act 2009 (Act 791) merging the 3 revenue agencies that is the Customs, Excise & Preventive Service (CEPS), Internal Revenue Service (IRS) & VATS) and the Revenue Agencies Governing Board (RAGB) Secretaries into single Authority for the administration of taxes & duties in the Country. Required: i) Describe FIVE (5) Objective of the Ghana Revenue Authority. AP(5 marks) ii) Examine Five (5) Function of the Ghana Revenue Authority. AP(5 marks) iii) Explain Five (5) Benefits of integration of revenue agencies to taxpayers and the administration AP(5 marks) iv) Describe THREE (3) functions of the Board of Ghana Revenue Authority. AP(3 marks) v) State TWO (2) functions performed by the Commissioner-General of the Ghana Revenue Authority. AP(2 marks) TOTAL [20 MARKS] Question 2 (Tax Administration in in Ghana) A withholding agent who has no withholding tax obligation for a particular month shall still file "nil return with the Commissioner General within 15 days after the end of the month to which the return relates. a. Explain FIVE (5) requirements for granting exemptions from withholding WHT AN(10 Marks) b. Examine FIVE (5) Categories to withhold Tax AN(10 Marks) TOTAL (20 MARKS] Question 3 (Introduction to taxation/Tax Administration in in Ghana) A good Tax System is one which is designed on the basis of an appropriate set of principles (rules). The Tax System should strike a balance between the interest of the taxpayer and that of Tax Authority. a. Discuss Five (5) characteristics of a good Tax System (Canons of Taxation) AN(10 Marks) David and Worlanyo are employee of Elated Child School earning GHS500,000.00 and GHS700,000.00 per annum respectively. b. Compute the respective taxes to be paid by each employee using the proprotional taxes 20% (10 Marks) TOTAL [20 MARKS Question 4 (Introduction to taxation/Sources of tax revenue in Ghana) Taxation is an important tool that has helped and hurt economies the world over including those of the developing countries. a. Examine Tax evasion and the ways by which tax evasion might occur in Ghana AN(10 Marks) b. Describe Tax Avoidance and schemes used by taxpayer to avoidance taxes in Ghana AN (10 Marks) TOTAL 120 MARKS GH Question 5 (Employment income) a) During the year ended 31 December, 2020 the partnership of Yayra, Nukununya and Worlanyo reported an adjusted profit of GH951,000 before charging partners salaries, interest on capital and cost of travelling for leave. Yayra, Nukungnya Worlanyo Profit/loss sharing ratio 3 2 1 GHC GHE Salaries 48,000 72,000 96,000 Interest on Capital 20,000 10,000 Cost of travelling for leave 20,000 30,000 25,000 98,000 122,000 131,000 Required: 30,000 3 Compute the assessable income for each partner. (7 marks) b) It is necessary to find out whether an activity carried out by an individual amount to a profession (contract for service) or employment (contract of service). From taxation point of view there is the existence of employment where there is a contract of service. Required: What are the characteristics of contract of service? (6 marks) e) What are the taxation rules for overtime payments and bonus payments under employment income? AP(7 marks) (Total: 20 marks) The Tax Rates- (ANNUAL 2020) No Chargeable Income Rate of Tax 1. First GHS3,456 2. Next GHS1,200 5% 3. Next GHS1,680 4. Next GHS36,000 17.5% 5. Next GHS197,664 25% 6. Exceeding GHS240.000 30% NIL 10%
