Yaa Abrefi Kortor is a taxpayer who was served with a provisional assessment containing an estimated tax liability of GHS100,000 for the 2022 year of assessment on 2nd January 2022. She complained that the current assessment is almost two times that of the previous years (i.e. GHS55,000) and this makes it too outrageous and does not reflect the true state of affairs in her business. She therefore decided to go to court to seek redress. On her way to court, she met you and discussed her problem with you. As a student of taxation, what advice will you give to Yaa Abrefi Kortor.

b) Golden Industries Limited manufactures soaps and related products at their factory in Takoradi. The company commenced business operations on 1 April 2020 and had an assessed loss of GHS10,000 for the year ended 31 March 2021.

The company recorded a net Loss of GHS200,000 for the year ended 31 March 2022 after taking into account the following transactions in the income statement:

a. Gross rental income of GHS 150,000 received from the leasing of one wing of the office building for use by another company.

b. A donation of GHS90,000 worth of furniture was made to a local government assisted school as part of Company's corporate social responsibility programme which was duly acknowledged by Ghana Education Service (GES).

c. Depreciation of fixed assets of GHS90,000.

d. Cost of a motor vehicle for distributing the products amounting to GH90,000

e. An amount of GHS50,000 paid to the production manager as severance pay after sustaining an

injury whilst working on one of the production lines in the factory.

f. An amount of GHS150,000 used to acquire additional computers.

g. Factory Inspectorate Department imposed a fine of GHS50,000 for not meeting the safety

requirements for operating factories.

h. Net dividend of GHS80,000 received from another company.

i. Acquisition of patent rights for manufacturing at a cost of GHS30,000 with a useful life of 10

years

j. Bad debts deducted is made up of Specific GHS 52,200; General 60,000

k. Wages and salaries amounting to 125,000 out of which is for 68 employees out of which 2 of

them are fresh graduates with Degree from University of Ghana, Legon. Each of the fresh graduates was paid GH 9,000

Additional information

Details of the written down values/cost of the Company's fixed assets at the beginning of the accounting year are provided below.

Factory Building (cost) Gh100,000

Plant and Machinery Gh110,000

Office Building (cost) Gh120,000

Furniture and Office Equipment Gh10,000

Motor vehicles (Goods Vans) Gh100,000

Computers Gh20,000

Required:

a) Calculate the capital allowances claimable by Golden Industries Limited for the year ended 31 December 2022 using all the available information.

b) Calculate the chargeable income and tax liability of Golden Industries Limited for the year ended 31 December 2022.