QUESTION TWO i. Labista, Razak, Oliver and Nuellah are into a partnership business sharing profit and losses in the ratio: 2:1:3:4. Their business has chopped a lot of sucessess for several years since its inception. However, the parnership has experienced one of its worst times since January 2019. The partneership is in the law court with the commissioner General concerning salaries that were paid to the partners for taking part in the day to day running of the business. Also, the patnership paid some taxes in the United Kingdom on some investment income it earned for which Oliver, the accountant of the partnership, argued that the partnership qualified to claim some credit on that payment. Assuming that the partners have approached you as a tax expert to advise them on the case taking into consideration the taxation of parnership. (6 marks) ii. The normal rate in Ghana is 17.5%, which consits of the standard VAT rate of 15% (section; VAT Act 2013: Act 870) and National Health Insurance Levy, which is imposed at a rate of 2.5%. Currently, the normal rate still stands at 17.5%, which consists of the standard VAT rate of 12.3%, National Health Insurance Levy, which is imposed at a rate of 2.5% and Ghana Education Trust Fund Levy of 2.5%. Assuming that you are watching a television programme dubbed The aggregate implication of the current VAT rate on taxable persons with your dad who is fully aware that you are a Level 300 BBA Accounting student who has scored an A in Tax Planning course. On the programme, avocates for the current rate argued that its agrregate impact is minimal on taxable persons. On the contrary, critics have argued that the aggregate impact on taxable persons is so devastating. Your father has become so confused than ever, with practical example, using ordinary language, educate your father on this phenomenom. (6 marks). iii. BBA Level 300 Life Insurance Business accountant is confused with the treatement of dividend. The confusion comes as he is fully aware that dividend is taxed at a final withholding tax rate of 8% for either resident or non-resident. On the contrary, the Commissioner General also holds a different view on the taxation of dividend in a life insurance business. As a tax expert, briefly educate the accontant on the issue by explaining clearly why it so. (3 marks) QUESTION TWO i. Labista, Razak, Oliver and Nuellah are into a partnership business sharing profit and losses in the ratio: 2:1:3:4. Their business has chopped a lot of sucessess for several years since its inception. However, the parnership has experienced one of its worst times since January 2019. The partneership is in the law court with the commissioner General concerning salaries that were paid to the partners for taking part in the day to day running of the business. Also, the patnership paid some taxes in the United Kingdom on some investment income it earned for which Oliver, the accountant of the partnership, argued that the partnership qualified to claim some credit on that payment. Assuming that the partners have approached you as a tax expert to advise them on the case taking into consideration the taxation of parnership. (6 marks) ii. The normal rate in Ghana is 17.5%, which consits of the standard VAT rate of 15% (section; VAT Act 2013: Act 870) and National Health Insurance Levy, which is imposed at a rate of 2.5%. Currently, the normal rate still stands at 17.5%, which consists of the standard VAT rate of 12.3%, National Health Insurance Levy, which is imposed at a rate of 2.5% and Ghana Education Trust Fund Levy of 2.5%. Assuming that you are watching a television programme dubbed The aggregate implication of the current VAT rate on taxable persons with your dad who is fully aware that you are a Level 300 BBA Accounting student who has scored an A in Tax Planning course. On the programme, avocates for the current rate argued that its agrregate impact is minimal on taxable persons. On the contrary, critics have argued that the aggregate impact on taxable persons is so devastating. Your father has become so confused than ever, with practical example, using ordinary language, educate your father on this phenomenom. (6 marks). iii. BBA Level 300 Life Insurance Business accountant is confused with the treatement of dividend. The confusion comes as he is fully aware that dividend is taxed at a final withholding tax rate of 8% for either resident or non-resident. On the contrary, the Commissioner General also holds a different view on the taxation of dividend in a life insurance business. As a tax expert, briefly educate the accontant on the issue by explaining clearly why it so
