QUESTION ONE BBA L 300 Ltd (BBA) since its incorporation has been providing Mining Support Services (MSS) in line with its mandate and the following is relevant to its operations for 2019 year of assessment. GHE Chargeable income 480,000 The following is relevant: Dividend (gross) received from A Ltd, a mining company, amounting to GH 40,000 and this amount was added in arriving at the chargeable income above BBA received a net interest from a company based in France for an amount of 65625 after 12.5% tax was deducted and the net income was added to chargeable income above. BBA received a net royalty from a company based in the USA which amounted to GH 84,000 after 30% tax was deducted and the net income was added to chargeable income above. Depreciation amounting to GH 40625 was deducted in arriving at the chargeable income above. Capital allowance of GH 50,000 carried forward from 2018 year of assessment was included in the chargeable income above. An unrealized exchange loss of GH 7000 was treated in arriving at the chargeable income above. Repairs and maintenance cost of fixtures and fittings GH 8000 was deducted in arriving at the chargeable income above (written down value of pool = GH 20,000) Examiner: S.1 Page 1 BBA wants to diversify and has acquired a new mining concession for which it spent GH 30000 on research and development. This amount was treated in arriving at the chargeable income above, but the company may start production in 2021. BBA has a basis period from January to December each year. An approved contribution by BBA of an amount GH 30000 into the COVID-19 Trust Fund, but this amount was not treated in in arriving at the chargeable income above. Exchange Rate, GHS 5.50-1. Required: i. Compute the tax payable by BBA Ltd if any. (10 marks) ii. Provide relevant explanation for inclusion or exclusion of each the items listed above. (10 marks) QUESTION ONE BBA L 300 Ltd (BBA) since its incorporation has been providing Mining Support Services (MSS) in line with its mandate and the following is relevant to its operations for 2019 year of assessment. GHE Chargeable income 480,000 The following is relevant: Dividend (gross) received from A Ltd, a mining company, amounting to GH 40,000 and this amount was added in arriving at the chargeable income above BBA received a net interest from a company based in France for an amount of 65625 after 12.5% tax was deducted and the net income was added to chargeable income above. BBA received a net royalty from a company based in the USA which amounted to GH 84,000 after 30% tax was deducted and the net income was added to chargeable income above. Depreciation amounting to GH 40625 was deducted in arriving at the chargeable income above. Capital allowance of GH 50,000 carried forward from 2018 year of assessment was included in the chargeable income above. An unrealized exchange loss of GH 7000 was treated in arriving at the chargeable income above. Repairs and maintenance cost of fixtures and fittings GH 8000 was deducted in arriving at the chargeable income above (written down value of pool = GH 20,000) Examiner: S.1 Page 1 BBA wants to diversify and has acquired a new mining concession for which it spent GH 30000 on research and development. This amount was treated in arriving at the chargeable income above, but the company may start production in 2021. BBA has a basis period from January to December each year. An approved contribution by BBA of an amount GH 30000 into the COVID-19 Trust Fund, but this amount was not treated in in arriving at the chargeable income above. Exchange Rate, GHS 5.50-1. Required: i. Compute the tax payable by BBA Ltd if any. (10 marks) ii. Provide relevant explanation for inclusion or exclusion of each the items listed above. (10 marks)