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QUESTION 2 (20 marks) Below is the trading and profit and loss account of Ms Julie, a sole trader, for the year ending 31st December
QUESTION 2 (20 marks) Below is the trading and profit and loss account of Ms Julie, a sole trader, for the year ending 31st December 2022 . Additional information: a. Other income is made up of: Lotto winning Dividend (net of 8% WHT) GHS 184 b. Salaries include GHS1,500 paid to Ms Julie, the sole trader, for working within the business. The remaining GHS1,300 was in respect of a part-time shop assistant. d. The capital allowance was agreed at GHS2,500. e. Ms Julie has two daughters who are both attending primary school in Accra. You are required to compute Ms Julie's tax liabilities for the 2022 year of assessment. Personal reliefs Marriage/ responsibility - C1,200 per year Child education - C600 per child per year up to a maximum of three children Disability relief 25% of income from business or employment Old age relief C1,500 per year Aged dependent relief C1,000 per year up to a maximum of 2 relatives Individual annual income tax rates First C4,8240% Next C1,3205% Next C1,56010% Next C36,000-17.5\% Next C196,740-25\% Next C359,556-30\% Exceeding C600,00035%
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