SECTION A (10 marks): Answer ALL Questions in this section. i. QUESTION ONE In-charge Limited (In-Charge) acquired a Land for GHS 3,000 in Year 1 In-charge prepares accounts to 31" December each year. Calculate the capital allowance for Year 1 (3 marks) Twist the owner of In-charge enterprise a sole trader business is confused as whether it is allowable to deduct depreciation on building from income of the business. The business depreciates building at a rate of 20% on reducing balance method. Comment on the treatment of this depreciation (3 marks) IV "Cost of Trade mark is deductible expense", is this statement true for taxation purposes, why? (4 marks) Mr. Ben Quayson (Ben) received a two storey building from his friend on 15the December, 2014. He lived in the building for about 5 years and sold the building to Sarpong in the year 2020. The transfer of the building to sarpong was deemed satisfactory to both parties and documentations were carried through Identify and explain all the types of taxes Mr. Quay son is exposed to in respect to the above arrangement. (10 marks) V Daniel Awuah is married to Sophia Boadu an amputee for ten years with 3 children. All their 3 children attend approved school in Ghana Daniel worked at Bibiani Teaching Hospital and has used his marital status and the three children to apply for tax credit relief on 1 January, 2017. Commissioner General issued tax credit relief to him a month after his application. Sophia graduated in the year 2018 and has just gotten a job appointment at the University of Education, Winneba (UEW). Since Daniel knew the benefits he gets from the reliefs, he advised his wife to apply for tax credit reliefs from Commissioner General with the aim of minimizing her tax liabilities. Required What upfront relief(s) does Sophia stand to get from Commissioner General of Ghana Revenue Authority in accordance with 5 Schedule of the Income Tax Act 2015 (Act 896) as amended? (12 marks) Page 1 of 4 d. The normal VAT rate in Ghana is 17.5%, which consist of the standard VAT rate of 15% (section 3: VAT Act 2013: Act 870) and National Health Insurance Levy, which is imposed at a rate of 2.5%. Currently, the normal VAT rate still stands at 17.5%, which consists of the standard VAT rate of 12.5%, 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, advocates for the current rate argued that its aggregate 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. Required With practical example, using ordinary language, educate your father on this phenomenon (Hint: Consideration should be given to Acr 971, Act 972 & Act 970) (10 marks) (Question Three Total: 30 marks) SECTION A (10 marks): Answer ALL Questions in this section. i. QUESTION ONE In-charge Limited (In-Charge) acquired a Land for GHS 3,000 in Year 1 In-charge prepares accounts to 31" December each year. Calculate the capital allowance for Year 1 (3 marks) Twist the owner of In-charge enterprise a sole trader business is confused as whether it is allowable to deduct depreciation on building from income of the business. The business depreciates building at a rate of 20% on reducing balance method. Comment on the treatment of this depreciation (3 marks) IV "Cost of Trade mark is deductible expense", is this statement true for taxation purposes, why? (4 marks) Mr. Ben Quayson (Ben) received a two storey building from his friend on 15the December, 2014. He lived in the building for about 5 years and sold the building to Sarpong in the year 2020. The transfer of the building to sarpong was deemed satisfactory to both parties and documentations were carried through Identify and explain all the types of taxes Mr. Quay son is exposed to in respect to the above arrangement. (10 marks) V Daniel Awuah is married to Sophia Boadu an amputee for ten years with 3 children. All their 3 children attend approved school in Ghana Daniel worked at Bibiani Teaching Hospital and has used his marital status and the three children to apply for tax credit relief on 1 January, 2017. Commissioner General issued tax credit relief to him a month after his application. Sophia graduated in the year 2018 and has just gotten a job appointment at the University of Education, Winneba (UEW). Since Daniel knew the benefits he gets from the reliefs, he advised his wife to apply for tax credit reliefs from Commissioner General with the aim of minimizing her tax liabilities. Required What upfront relief(s) does Sophia stand to get from Commissioner General of Ghana Revenue Authority in accordance with 5 Schedule of the Income Tax Act 2015 (Act 896) as amended? (12 marks) Page 1 of 4 d. The normal VAT rate in Ghana is 17.5%, which consist of the standard VAT rate of 15% (section 3: VAT Act 2013: Act 870) and National Health Insurance Levy, which is imposed at a rate of 2.5%. Currently, the normal VAT rate still stands at 17.5%, which consists of the standard VAT rate of 12.5%, 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, advocates for the current rate argued that its aggregate 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. Required With practical example, using ordinary language, educate your father on this phenomenon (Hint: Consideration should be given to Acr 971, Act 972 & Act 970) (10 marks) (Question Three Total: 30 marks)