TAXATION TEST BANK

As a board member of Top Holding Ltd, Mr. William Baffour receives GH¢1800 (net) monthly
for the year as fees. He is also a part-time lecturer at the Wisconsin University College. He
received GH¢7,406.50 (net of withholding tax) for lecturing during the second semester in 2016.
The tenant in his house located in Dansoman renewed her tenancy and paid GH¢9,600 for rent
covering the half year of 2016. The house attracts a property rate of GH¢200 per year. What is
the annual gross fees for William Baffour as a board member?

• A. GHS21,600

• B. GHS27,000

• C. GHS27,500

• D. GHS21,000

Tawas Limited is a manufacturing company located at Koforidua. Determine the tax liability if
in the year 2017 chargeable income of GH¢200,000 was made.

• A. GH¢25,000

• B. GH¢37,500

• C. GH¢16,000

• D. GH¢50,000

Determine the cost of class 1 assets at the beginning of 2016. Kaywuo commenced business
operations on 1/ 1/ 2016 preparing accounts to 31/12 each year. In 2016 year of assessment, he
acquired the following assets for use in the business. Furniture & fittings, GH¢7,500;Computers,
GH¢15,000; Motor vehicle,GH¢28,000;Building, GH¢50,000;Trademark, GH¢100,000.The
following transactions took place in 2017 year of assessment:He traded in his motor vehicle for
GH¢9,000 and purchased a printer for GH¢2,000. He purchased additional office furniture for
GH¢3,000 and sold the old fittings for GH¢1,000. The useful life of the trademark is estimated to
be 100 years.

• A. GH¢28,000

• B. GH¢15,000

• C. GH¢7,500
 • D. GH¢43, 000

What is the offence associated with the following: Kofi Mayelate disposed of his property at East
Legon, but failed to notify and pay appropriate tax to GRA

• A. Failure to file Returns (Individual)

• B. Failure to pay tax on due date

• C. Making false or misleading statements

• D. Failure to comply with the Act

In assessing an employee for tax, which of the following will not be included in determining his/
her total cash emolument?

• A. car maintenance allowance

• B. provision of accommodation for which he/ she pays 6% of basic salary as rent

• C. professional allowance

• D. cash allowance paid to the employee in respect of a garden boy

What is the penalties associated with the following: Some clients who are personal friends
of the Managing Director of New Love Ltd negotiate and pay only the VAT exclusive
amount of goods they buy from the company. underpaid.

• A. Between GH120- GH600 and/ or between 6months -1-year imprisonment

• B. Interest of 125% of the statutory rate, compounded monthly on the amount

outstanding.

• C. Where the statement/ omission is made without reasonable excuse – a fine of 200%
of the tax

• D. Two currency points and prosecution after 4months

UGBS engaged Moshosho Limited to supply the School with goods on the following dates:
1/3/17: GH¢560; 3/4/17: GH¢280; 4/05/17: GH¢900; 10/9/17: GH¢1,630. What is the
withholding tax paid by Moshosho Limited in the month of March 2017

• A. GHS16.80

• B. GHS28.00

• C. GHS42.00

• D. GHS0.00

Hajia Baraka, a sole trader started business on 1/ 4/ 2013 and keeps accounts to 31/ 3 each year.
She presents the following results of operations for assessment: Year to 31/3/2014: GH¢480,000;
Year to 31/3/2015:GH¢560,000; Year to 31/3/2016: GH¢400,000; Year to
31/3/2017:GH¢520,000. What was her chargeable income for the 2013 year of assessment?

A. GH¢120,000

B. GH¢480,000

C. GH¢520,000

D. GH¢360,000

What is the total cash emolument of Koo Nimo for the 2017 year of assessment? Koo Nimo was
employed by Don’t Touch Me Limited as a financial controller on 1/ 8/ 2014 on a salary scale of
GH¢42,000× GH¢1,560 - GH¢49,800. He is entitled to furnished accommodation and a car with
fuel and driver. He is also entitled to professional allowance and risk allowance of GH¢150 and
GH¢500 per month respectively.

• A. GH¢52,920

• B. GH¢53,570

• C. GH¢54,480

• D. GH¢53,830
As a board member of Top Holding Ltd, Mr. William Baffour receives GH¢1800 (net) monthly
for the year as fees. He is also a part-time lecturer at the Wisconsin University College. He
received GH¢7,406.50 (net of withholding tax) for lecturing during the second semester in 2016.
The tenant in his house located in Dansoman renewed her tenancy and paid GH¢9,600 for rent
covering the half year of 2016. The house attracts a property rate of GH¢200 per year. What is
the withholding tax paid by William Baffour as a part-time lecturer at the Wisconsin University
College?

• A. GHS823

• B. GHS832

• C. GHS740

• D. GHS742

Which of the following about Value Added Tax is not true? It is ……..

• A. an indirect tax

• B. a consumption tax

• C. a multi-stage tax

• D. a progressive tax

The government enforces the tax laws by

• A. tax audits.

• B. withholding taxes at source.

• C. requiring firms to report amounts paid as compensation.

• D. All of the above.

Which of the following is defined with reference to the residency of a person

• A. assessable income

• B. chargeable income
 • C. Disallowable income

• D. Allowable income

The Ghana government relies most heavily on which source of revenue?

• A. individual income taxes

• B. corporate income taxes

• C. social insurance payroll taxes

• D. excise taxes

Bibiloo was employed by Asempa Limited as an operations manager on 1/ 9/ 2014 on a salary

scale of GH¢96,000× GH¢4,800 - GH¢124,800. He is entitled to rent allowance of GH¢450 per
month and unaccountable entertainment allowance of 5% of his basic salary. His personal car is
fueled by the company and the company also provides furnished accommodation. What is the
total cash emolument of Bibiloo for the 2017 year of assessment?

• A. GH¢129,375

• B. GH¢117,960

• C. GH¢109,250

• D. GH¢119,375

Food Limited incurred expenses of GH¢6,500 on plant and machinery and declared a profit of
GH¢100,000 for the 2016 year of assessment. The written down value of the applicable pool
before capitalizing any excess is GH¢60,000. What is the excess amount of repairs and
improvement for 2016 year of assessment to be added to the depreciable pool it relates?

• A. GH¢3,000

• B. GH¢6,500

• C. GH¢6,000

• D. GH¢3,500
Which of the following is not exempted from tax in Ghana.

• A. Gains from life insurance when the proceeds are paid by a resident insurer

• B. Interest paid to an individual by a resident financial institution or on bonds issued by

the Government of Ghana

• C. Interest or dividends on an investment paid or credited to a holder or member of an

approved unit trust scheme or mutual fund

• D. All of the above

An individual who has one dependent child is entitled what form of personal relief

• A. responsibility relief

• B. marriage relief

• C. children education relief

• D. none of the above

How much tax will a resident person suffer if he is paid dividend (net) of GH¢7,360 in 2019?

• A. GH¢640

• B. GH¢810

• C. GH¢736

• D. GH¢730

Food Limited incurred expenses of GH¢6,500 on plant and machinery and declared a profit of
GH¢100,000 for the 2016 year of assessment. The written down value of the applicable pool
before capitalizing any excess is GH¢60,000. What is the rce amount of repairs and improvement
for 2016 year of assessment?

• A. GH¢3,500

• B. GH¢6,500
 • C. GH¢6,000

• D. GH¢3,000

Calculate the capital allowance of class 2 assets in 2016. Kaywuo commenced business
operations on 1/ 1/ 2016 preparing accounts to 31/12 each year. In 2016 year of assessment, he
acquired the following assets for use in the business. Furniture & fittings, GH¢7,500;Computers,
GH¢15,000; Motor vehicle,GH¢28,000;Building, GH¢50,000;Trademark, GH¢100,000.The
following transactions took place in 2017 year of assessment:He traded in his motor vehicle for
GH¢9,000 and purchased a printer for GH¢2,000. He purchased additional office furniture for
GH¢3,000 and sold the old fittings for GH¢1,000. The useful life of the trademark is estimated to
be 100 years.

• A. GH¢8,400

• B. GH¢6,000

• C. GH¢9,900

• D. GH¢11,200

The easiest way to create greater income equality is to _____.

• A. raise everyone’s income by the same percentage

• B. raise everyone’s income by the same amount

• C. raise the incomes of the poor

• D. lower the incomes of the rich

Jojokwa, a sole proprietor withdrew goods out of his business for his personal use. The cost of
the goods was GH¢1,000 and the average profit margin on the goods was 20%. How much
adjustment should be made in the accounts?

• A. GH¢1,000

• B. GH¢1,200

• C. GH¢1,250
 • D. GH¢1,500

In determining the net profit for Lady Lydia Enterprise for 2017, the closing stock was
overvalued by GH¢3,000. If the net profit reported was GH¢860,000, what was her adjusted net
profit for the 2017 year of assessment

• A. GH¢863,000

• B. GH¢866,000

• C. GH¢800,000

• D. GH¢857,000

Professor Know All has invested his lifetime savings into the construction of two buildings,
made up of an apartment block and an office complex. He rented out the apartment block to the
Managing Partner of AB & Associates at GH¢50,000.00 a year as her residence. He also rented
out the office complex to the firm, AB & Associates, for their office operations at
GH¢100,000.00 for a year. Determine the tax to be withheld by the firm on the investment
income payable to Professor Know All

• A. GH₵19,000

• B. GH₵12,000

• C. GH₵15,000

• D. GH₵4,000

Dizzo Limited is a manufacturing company located at Kumasi in the Ashanti regional capital.
Determine the tax liability if in the year 2017 chargeable income of GH¢100,000 was made.

• A. GH¢25,000

• B. GH¢18,750

• C. GH¢12,500

• D. GH¢8,000
Love group of companies is noted for employing fresh graduates. In the 2017 year of assessment
the company paid a sum of GH¢100,000 as salaries to the fresh graduates. Assuming 0.8% of the
total workforce of the company were fresh graduates, how much deduction will the company be
entitled to?

• A. GH¢50,000

• B. GH¢30,000

• C. GH¢800

• D. GH¢10,000

Sunset Ltd commenced business on 1 September, 2011. He keeps accounts to 30 June each year.
The basis period for Sunset Ltd for 2012 year of assessment is………...

• A. 1/9/11 – 31/6/12

• B. 1/9/11 – 30/6/12

• C. 1/1/12 – 31/12/12

• D. 1/6/12 – 31/5/12

What is the offence associated with the following: The Accountant of Side Track Ltd has a
classmate working with the Osu office of the GRA. His mate has been assisting him to file the
company’s annual tax return by using “creative accounting” for years at a fee.

• A. Aiding or abetting

• B. Failure to pay tax on due date

• C. Making false or misleading statements

• D. Failure to comply with the Act

What is the offence associated with the following: Some clients who are personal friends of the
Managing Director of New Love Ltd negotiate and pay only the VAT exclusive amount of goods
they buy from the company

• A. Aiding or abetting
 • B. Failure to pay tax on due date

• C. Making false or misleading statements

• D. Failure to comply with the Act

ABC Ltd commenced business on 1 September, 2011. He keeps accounts to 31 December each
year. The basis period for ABC Ltd for 2013 year of assessment is………...

• A. 1/9/12 – 31/8/13

• B. 1/1/13 – 31/12/13

• C. 1/7/12 – 30/6/13

• D. 1/6/12 – 31/5/13
There are exceptions regarding turnover threshold registration except

• A. An auctioneer

• B. A promoter of public entertainment

• C. Manufacturer of local goods

• D. A national, regional, local authority or other authority or body which carries on any
taxable activity shall apply for registration in respect of whether the threshold is met or not.

The following unstructured invoice has been forwarded to Adamu Ltd from Asigra Ltd, a
standard rated supplier: Goods invoiced (VAT inclusive) GH¢3,375,000. The above transactions
relate to payment for goods in January 2019. Compute the withholding tax payable by Adamu
Ltd

• A. GH¢142,857.14

• B. GH¢101,250.50

• C. GH¢90,000.00

• D. GH¢85,714.29

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2018 year of assessment?

• A. GH₵50,000

• B. GH₵170,000

• C. GH₵125,500

• D. GH₵140,000

Manna Limited is manufacturing business located in Cape Coast. The available records in
2018, 2019 and 2020 year of assessment show a income/(loss) of (GH₵10,000), (GH₵50,000)
and GH₵200,000 respectively. What is the tax liability of Manna Limited in 2020 year of
assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵26,250

King Peter is a Junior Staff member of Sir James Company Limited. His monthly basic salary is
GH¢700.00. He was paid an overtime totaling GH¢50.00 during the month of January 2019.
Compute his tax liability on overtime for the month of January, 2019

• A. GH¢2.00

• B. GH¢2.50

• C. GH¢5.00

• D. None of the above

Manna Limited is manufacturing business located in Cape Coast. The available records in 2018,
2019 and 2020 year of assessment show a income/(loss) of (GH₵10,000), (GH₵50,000) and
GH₵160,000 respectively. What is the tax liability of Manna Limited in 2019 year of
assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. NIL

My little Lily was seconded to Office of the President on 1st October 2013 as a Research Officer.
His consolidate salary was GH₵ 100,000 X GH₵ 20,000 - GH₵ 180,000. Compute her basic
salary for 2016 year of assessment.

• A. GH₵140,000
 • B. GH₵145,500

• C. GH₵144,333

• D. GH₵145,000

Somesonka Enterprise began business on 1st October 2016 making accounts to 30th September.
Assets as at 1st October 2016 were as follow: Administration building GH¢300,000; Store: GH¢
180,000; Copyright: GH¢250,000. On 10th may, 2018, expansion work that cost GH¢15,000,000
was completed on the store. The copyright was acquired for a period of 8 years. What is the
capital allowance of copy right for 2020 year of assessment?

• A. GH₵25,500

• B. GH₵30,500

• C. GH₵31,250

• D. GH₵31,500

Somesonka Enterprise began business on 1st October 2016 making accounts to 30th September.
Assets as at 1st October 2016 were as follow: Administration building GH¢300,000; Store: GH¢
180,000; Copyright: GH¢250,000. On 10th may, 2018, expansion work that cost GH¢15,000,000
was completed on the store. The copyright was acquired for a period of 8 years. What is the
capital allowance of Administration building for 2020 year of assessment?

• A. GH₵30,000

• B. GH₵30,500

• C. GH₵32,000

• D. GH₵30,500

The following is relevant for the operation of Makeni Limited, operating in the upstream
petroleum sector for 2018 year of assessment: Revenue: $100,000,000; Cost: $80,000,000;
Profit: $20,000,000. The following additional information forms part of the above: (i) The
revenue above includes financial gain from swaps of $1,100,000; (ii) The financial cost of
$1,400,000 was added to cost; (iii) The cost includes a depreciation of $200,000; (iv) Research
and development of $400,000 incurred was added to the cost of operation; (v) Revenue on
20,000 barrels of oil sold was added to revenue. It came to light that the disputed price used on
the 20,000 barrels was $70 per barrel in its tax returns. What has finally been agreed now is $65
per barrel and this has been certified by the Petroleum Unit of the Ghana Revenue Authority.
Written down value as of 31/12/2017 was $1,600,000 after granting capital allowance the third
time as of 2017-year end. This information is yet to be adjusted.Computation of Financial Cost
to be carried forward.

• A. $200,000

• B. $1,100,000

• C. $1,400,000

• D. $300,000

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2019 year of assessment of income from domestic sales?

• A. GH₵25,000

• B. GH₵40,000

• C. GH₵20,000

• D. GH₵60,000

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2019 year of assessment?

• A. GH₵60,000

• B. GH₵85,000

• C. GH₵25,500

• D. GH₵40,000
Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2019 year of assessment of income other than domestic sales?

• A. GH₵60,000

• B. GH₵40,000

• C. GH₵20,000

• D. GH₵70,000

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2019 and 2020 year of assessment show a income/(loss) of (GH₵50,000)
GH₵200,000 respectively. What is the tax liability of Manna Limited in 2020 year of
assessment?

• A. GH₵25,000

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵50,000

Below are the various contracts awarded to KPP Books and Stationery limited by the Ghana
Water Company for the 2018 year of assessment: ( i) 1st contract was for the supply of stationery
costing GH¢1,000 in January 2018. (ii) 2nd contract was for the supply of Station Diaries costing
GH¢900 on March 2018. (iii) 3rd contract for the supply of additional stationery costing
GH¢900 on August 16 2018. What amount of withholding tax is due to Ghana Revenue
Authority in the year 2018 from Ghana Water Company?

• A. GH¢32.00

• B. GH¢35.00

• C. GH¢84.00
 • D. None of the above

Kofi graduated from UGBS aged 25. He established an Agro processing business on
January 1, 2015 at Nankani in the Central regional capital of Ghana operating as Kofikuma
Limited. During the period the company has been enjoying a concessionary tax rate of 1%. The
available records in 2020 year of assessment show a taxable income of GH₵200,000. What is the
tax liability of Kofikuma Limited in 2020 year of assessment?

• A. GH₵0

• B. GH₵20,000

• C. GH₵10,000

• D. GH₵50,000

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵200,000 respectively. What is the tax liability of Manna
Limited in 2018 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. Nil

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total tier
2 contribution by Professor Know All for 2020 year of assessment?

• A. GH¢2,508

• B. GH¢5,928
 • C. GH¢2,280

• D. GH¢1,400

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total tier
2 contribution by Professor Know All for 2020 year of assessment?

• A. GH¢2,508

• B. GH¢5,928

• C. GH¢2,280

• D. GH¢1,400

• A person is said to be resident for tax purposes if that person is except:

• A. a citizen of Ghana who has no permanent home outside Ghana for a whole year of
assessment;

• B. present in Ghana for a period of 182 days or more in a year of assessment;

• C. an employee or official of government of Ghana posted abroad during the year;

• D. a citizen of Ghana who is temporarily absent from Ghana for less than 365 continuous
days and has a permanent home in Ghana.

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2020 year of assessment?
 • A. GH₵240,000

• B. GH₵340,000

• C. GH₵120,500

• D. GH₵40,000

Egya Egyapayena is a scholar and a board member of Top Holding Ltd. As a board member he
receives GH¢1800 (net) monthly for the year as fees. He is also a part-time lecturer at the
Wisconsin University College. He received GH¢6,750 (net of withholding tax) for lecturing
during the second semester in 2019. He has invested in the Treasury Bill and the value of a 182-
day Treasury Bill he rolls-over rose from GH¢45,000 in January 2018 to GH¢54,900 as at 31st
December 2019. The tenant in his house located in Dansoman renewed her tenancy and paid
GH¢41,400 for rent covering the half year of 2019. Konogo Kaya Contractor Ltd is constructing
a new house at Domiebra in the Central Region for Egya Egyapayena. He pays GH¢126,000
(inclusive of 12 ½ % VAT) for the works in November 2019. How much will Egya Egyapayena
will withhold when paying Konogo Kaya Contractor Ltd?

• A. GH₵6,300

• B. GH₵8,960

• C. GH₵3,360

• D. GH₵5,600

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵200,000 respectively. What is the tax liability of Manna
Limited in 2019 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. Nil
Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of this income comes from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2019 year of assessment?

• A. GH₵250,000

• B. GH₵200,000

• C. GH₵120,000

• D. GH₵100,000

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of this income comes from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2019 year of assessment?

• A. GH₵250,000

• B. GH₵200,000

• C. GH₵120,000

• D. GH₵100,000

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2020 year of assessment of income other than domestic sales?

• A. GH₵240,000

• B. GH₵340,000

• C. GH₵120,500

• D. GH₵40,000
Maame Ltd incurred expenses on repairs and improvement of GH₵60,500 on a Plant and
Machinery and also declared a profit of GH₵ 1,000,000 for the 2016 year of assessment. The
Written down value of the applicable pool before capitalizing any excess is GH₵ 600,000.
Calculate the excess amount of repairs and improvement to be added to the depreciation basis of
the appropriate pool.

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000

• D. GH₵30,500

The following is relevant for the operation of Makeni Limited, operating in the upstream
petroleum sector for 2018 year of assessment: Revenue: $100,000,000; Cost: $80,000,000;
Profit: $20,000,000. The following additional information forms part of the above: (i) The
revenue above includes financial gain from swaps of $1,100,000; (ii) The financial cost of
$1,400,000 was added to cost; (iii) The cost includes a depreciation of $200,000; (iv)
Research and development of $400,000 incurred was added to the cost of operation; (v)
Revenue on 20,000 barrels of oil sold was added to revenue. It came to light that the
disputed price used on the 20,000 barrels was $70 per barrel in its tax returns. What has
finally been agreed now is $65 per barrel and this has been certified by the Petroleum Unit
of the Ghana Revenue Authority. Written down value as of 31/12/2017 was $1,600,000 after
granting capital allowance the third time as of 2017-year end. This information is yet to be
adjusted.Compute tax payable

• A. $6,342,000

• B. $6,342,400

• C. $6,340,400

• D. $7,000,000

The Commissioner-General shall cancel the registration of a taxable person where the
Commissioner-General is satisfied the following except.

• A. No longer exists

• B. Is not carrying on a taxable activity and has no fixed place of business or abode
 • C. Is required or entitled to apply for registration

• D. Has not kept proper accounting records related to a business activity carried on by
that person

Below are the various contracts awarded to KPP Books and Stationery limited by the Ghana
Water Company for the 2018 year of assessment: ( i) 1st contract was for the supply of stationery
costing GH¢1,000 in January 2018. (ii) 2nd contract was for the supply of Station Diaries costing
GH¢900 on March 2018. (iii) 3rd contract for the supply of additional stationery costing
GH¢900 on August 16 2018. What amount of withholding tax is due to Ghana Revenue
Authority in month of March 2018 from Ghana Water Company?

• A. GH¢27.00

• B. GH¢57.00

• C. GH¢84.00

• D. None of the above

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵100,000 respectively. What is the tax liability of Manna
Limited in 2020 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵5,000

The records of Bobolibobo Ltd revealed a tax outstanding amount of GH¢ 200,000 for the period
of 6 months. Assuming an annual statutory rate of 20%, compute the total tax liability from the
above.

• A. GH¢225,338.83

• B. GH¢226,238.83
 • C. GH¢226,328.83

• D. GH¢226,338.83

Manna Limited is manufacturing business located in Accra Central. The available records in
2018, 2019 and 2020 year of assessment show a income/(loss) of (GH₵10,000), (GH₵50,000)
and GH₵160,000 respectively. What is the tax liability of Manna Limited in 2020 year of
assessment?

• A. GH₵18,750

• B. GH₵25,000

• C. GH₵37,500

• D. NIL

Mike Kotex, a resident individual received interest from the following: Resident Financial
Institution-Bank: GH¢ 10,000; Pearl Micro-Finance: GH¢9,000; and ABC Ltd –Oil Marketing
Company :GH¢8,000. Compute the tax payable on payment to Mike Kotex by Pearl Micro-
Finance.

• A. GH¢800

• B. GH¢80

• C. GH¢640

• D. None of the above

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total
relief available to Professor Know All for 2020 year of assessment?

• A. GH¢10,408

• B. GH¢11,008
 • C. GH¢3,908

• D. GH¢1,400

Maame Ltd incurred expenses on repairs and improvement of GH₵60,500 on a Plant and
Machinery and also declared a profit of GH₵ 1,000,000 for the 2016 year of assessment. The
Written down value of the applicable pool before capitalizing any excess is GH₵ 600,000. Per
section 12 (1) (a) of Act 2015 (Act 896), calculate the revenue expenditure that would be
deductible as repairs and improvement.

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000

• D. GH₵30,50

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of this income comes from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2020 year of assessment?

• A. GH₵500,000

• B. GH₵440,000

• C. GH₵420,000

• D. GH₵480,000

Boys Girls Hotel is a 3-star hotel located in Accra. The available records in 2018, 2019 and 2020
year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and GH₵2,000,000
respectively. Boys Girls Hotel has established that 20% of these incomes come from investment
of which final dividend has already been paid. What is the total tax liability of Boys Girls Hotel
in 2019 year of assessment from the hotel operation?

• A. GH₵125,000

• B. GH₵110,000
 • C. GH₵80,000

• D. GH₵88,000

Identify the offences associated with the following: The Accountant of Side Track Ltd has a
classmate working with the Osu office of the GRA. His mate has been assisting him to file the
company’s annual tax return by using “creative accounting” for years at a fee.

• A. Making false or misleading statements

• B. Aiding or abetting

• C. Failing to maintain documents

• D. Failure to pay tax on due date

As a board member of Top Holding Ltd, Mr. William Baffour receives GH¢1800 (net) monthly
for the year as fees. He is also a part-time lecturer at the Wisconsin University College. He
received GH¢7,406.50 (net of withholding tax) for lecturing during the second semester in 2016.
The tenant in his house located in Dansoman renewed her tenancy and paid GH¢9,600 for rent
covering the half year of 2016. The house attracts a property rate of GH¢200 per year. What is
the tax paid on the rent?

• A. GHS768

• B. GHS752

• C. GHS1,440

• D. GHS960

Fredizzo group of companies is noted for employing fresh graduates. In the 2017 year of
assessment the company paid a sum of GH¢100,000 as salaries to the fresh graduates. Assuming
4.5% of the total workforce of the company were fresh graduates, how much deduction will the
company be entitled to?

• A. GH¢4,500

• B. GH¢30,000

• C. GH¢15,000
 • D. GH¢10,000

Identify the offences associated with the following: Some clients who are personal friends of the
Managing Director of New Love Ltd negotiate and pay only the VAT exclusive amount of goods
they buy from the company.

• A. Making false or misleading statements

• B. Aiding or abetting

• C. Failing to maintain documents

• D. Failure to pay tax on due date

Kaato Mining Company Ltd (Kaato) has been operating in the mining sector for some time now.
The following data is relevant to the company’s operations for 2017 year of assessment.
Adjusted profit GH¢100,000,000 The following additional information is relevant: (i) Financial
cost of GH¢900,000 inclusive interest on working capital loan of GH¢20,000 was adjusted in
arriving at the adjusted profit. (ii) Financial gain from derivatives of GH¢600,000 was adjusted
in arriving at the adjusted profit above. (iii) Depreciation of GH¢125,000 was adjusted to the
profit above. (iv) Written down value brought forward from 2016 after 1 year capital allowance
was granted stood at GH¢1,000,000. This was accordingly certified by the Audit Unit of the
Ghana Revenue Authority. (v) Mineral Royalty GH¢60,000,000 was not calculated for 2017.
What is the amount of unrealized finance cost to be carried forward for 5 years

• A. GH¢300,000

• B. GH¢300,500

• C. GH¢280,000

• D. GH¢280,500

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of these income come from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2020 year of assessment of income other than lending to farming business?

• A. GH₵480,000
 • B. GH₵400,000

• C. GH₵420,000

• D. GH₵80,000

The following relates to payments by Makeni Limited, a company resident in Ghana to another
resident company, both companies are not exempt from withholding taxes: Goods:
GH¢3,000,000; Services: GH¢2,000,000; and Works: GH¢1,200,000. Upon scrutiny of the
company’s records, the following additional information emerged: (i) It came to light that the
goods above includes a dividend payment of 10%. (ii) The services above relate to 50%
management and technical services and 50% consultancy services. What is the withholding tax
on Works?

• A. GH¢36,000

• B. GH¢60,000

• C. GH¢120,000

• D. None of the above

King Peter is a Junior Staff member of Sir James Company Limited. His monthly basic salary is
GH¢700.00. He was paid an overtime totaling GH¢50.00 during the month of January 2019. In
the month of February, 2019, King Peter was paid overtime totaling GH¢500.00. Compute his
tax liability on the overtime payments for the month of February, 2019

• A. GH¢32.00

• B. GH¢35.00

• C. GH¢32.50

• D. None of the above

The following relates to payments by Makeni Limited, a company resident in Ghana to another
resident company, both companies are not exempt from withholding taxes: Goods:
GH¢3,000,000; Services: GH¢2,000,000; and Works: GH¢1,200,000. Upon scrutiny of the
company’s records, the following additional information emerged: (i) It came to light that the
goods above includes a dividend payment of 10%. (ii) The services above relate to 50%
management and technical services and 50% consultancy services. What is the withholding tax
on consultancy services?
 • A. GH¢150,000

• B. GH¢50,000

• C. GH¢75,000

• D. None of the above

Manna Limited is manufacturing business located in Cape Coast. The available records in 2018,
2019 and 2020 year of assessment show a income/(loss) of (GH₵10,000), (GH₵50,000) and
GH₵160,000 respectively. What is the tax liability of Manna Limited in 2020 year of
assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵26,250

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of these income come from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2018 year of assessment of income from lending to farming business?

• A. GH₵40,000

• B. GH₵200,000

• C. GH₵240,000

• D. GH₵25,000

Mr. Kojo Obi is employed by Enyidado Consulting Group as on Assistant Manager on basic
monthly salary of GH¢5,000.00. He is entitled to cash allowance totalling GH¢350.00 per
month. He is provided accommodation by his employers towards which he pay GH¢132.50 per
month as rent to his employers. He contributes to the Social Security Fund. Calculate Mr. Kojo
Obi’s monthly chargeable income from employment.
 • A. GH₵5,025

• B. GH₵5,075

• C. GH₵5,632

• D. GH₵5,350

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of these income come from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2018 year of assessment of income other than lending to farming business?

• A. GH₵240,000

• B. GH₵200,000

• C. GH₵120,500

• D. GH₵40,000

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total tier
one contribution by Professor Know All for 2020 year of assessment?

• A. GH¢2,508

• B. GH¢5,928

• C. GH¢2,280

• D. GH¢6,156

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total tier
one contribution by Professor Know All for 2020 year of assessment?
 • A. GH¢2,508

• B. GH¢5,928

• C. GH¢2,280

• D. GH¢6,156

Somesonka Enterprise began business on 1st October 2016 making accounts to 30th September.
Assets as at 1st October 2016 were as follow: Administration building GH¢300,000; Store: GH¢
180,000; Copyright: GH¢250,000. On 10th may, 2018, expansion work that cost GH¢15,000,000
was completed on the store. The copyright was acquired for a period of 8 years. What is the
capital allowance of copy right for 2019 year of assessment?

• A. GH₵25,000

• B. GH₵10,500

• C. GH₵31,500

• D. GH₵31,250

Kaato Mining Company Ltd (Kaato) has been operating in the mining sector for some time now.
The following data is relevant to the company’s operations for 2017 year of assessment.
Adjusted profit GH¢100,000,000 The following additional information is relevant: (i) Financial
cost of GH¢900,000 inclusive interest on working capital loan of GH¢20,000 was adjusted in
arriving at the adjusted profit. (ii) Financial gain from derivatives of GH¢600,000 was adjusted
in arriving at the adjusted profit above. (iii) Depreciation of GH¢125,000 was adjusted to the
profit above. (iv) Written down value brought forward from 2016 after 1 year capital allowance
was granted stood at GH¢1,000,000. This was accordingly certified by the Audit Unit of the
Ghana Revenue Authority. (v) Mineral Royalty GH¢60,000,000 was not calculated for 2017.
Compute the taxes payable.

• A. GH¢14,054,350

• B. GH¢14,054,200

• C. GH¢14,054,255

• D. GH¢14,054,250
Asempa Limited, an equipment hiring company, on 15th of March 2020 raised an invoice in the
sum of GH¢800,000.00 in respect of hiring of equipment services to Adiepena limited. This
amount excludes Value Added Tax, National Health Insurance Levy and Ghana Education Trust
Fund Levy. Asempa Limited makes a markup profit of 25% on every service rendered. Assume
that this is the only supply of value-added activity done by Asempa limited in the period and
purchases are also taxable activities. Calculate the VAT payable by Asempa Limited to Ghana
Revenue Authority (GRA) assuming the company is registered under the VAT flat rate Scheme.

• A. GH₵100,000

• B. GH₵24,500

• C. GH₵24,100

• D. GH₵24,000

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵70,000 respectively. What is the tax liability of Manna
Limited in 2020 year of assessment?

• A. GH₵8,750

• B. GH₵1,500

• C. GH₵7,500

• D. GH₵1,250

A person is said to be resident for tax purposes if that person is except:

• A. a citizen of Ghana who has no permanent home outside Ghana for a whole year of
assessment;

• B. present in Ghana for a period of 182 days or more in a year of assessment;

• C. an employee or official of government of Ghana posted abroad during the year;

• D. a citizen of Ghana who is temporarily absent from Ghana for less than 365 continuous
days and has a permanent home in Ghana.
Egya Egyapayena is a scholar and a board member of Top Holding Ltd. As a board member he
receives GH¢1800 (net) monthly for the year as fees. He is also a part-time lecturer at the
Wisconsin University College. He received GH¢6,750 (net of withholding tax) for lecturing
during the second semester in 2019. He has invested in the Treasury Bill and the value of a 182-
day Treasury Bill he rolls-over rose from GH¢45,000 in January 2018 to GH¢54,900 as at 31st
December 2019. The tenant in his house located in Dansoman renewed her tenancy and paid
GH¢41,400 for rent covering the half year of 2019. Konogo Kaya Contractor Ltd is constructing
a new house at Domiebra in the Central Region for Egya Egyapayena. He pays GH¢126,000
(inclusive of 12 ½ % VAT) for the works in November 2019. What is the withholding tax
payable by Egya Egyapayena for 2019 Year of Assessment?

• A. GH₵12,500

• B. GH₵12,660

• C. GH₵12,500

• D. GH₵12,600

Below are the various contracts awarded to KPP Books and Stationery limited by the Ghana
Water Company for the 2018 year of assessment: ( i) 1st contract was for the supply of stationery
costing GH¢1,000 in January 2018. (ii) 2nd contract was for the supply of Station Diaries costing
GH¢900 on March 2018. (iii) 3rd contract for the supply of additional stationery costing
GH¢900 on August 16 2018. What amount of withholding tax is due to Ghana Revenue
Authority in the month January 2018 from Ghana Water Company?

• A. GH¢30.00

• B. GH¢50.00

• C. GH¢75.00

• D. None of the above

King Peter is a Junior Staff member of Sir James Company Limited. His monthly basic salary is
GH¢700.00. He was paid an overtime totaling GH¢50.00 during the month of January 2019.
Compute his tax liability on overtime for the month of January, 2019

• A. GH¢2.00

• B. GH¢2.50

• C. GH¢5.00
 • D. None of the above

The Value Added Tax must be imposed and charged on the following except:

• A. Every supply of goods and services made in Ghana

• B. Every importation of goods

• C. Supply of any imported services, other than exempt goods and services

• D. Supplies of personal items not connected with a taxable person’s taxable activity

Maame Ltd incurred expenses on repairs and improvement of GH₵60,500 on a Plant and
Machinery and also declared a profit of GH₵ 1,000,000 for the 2016 year of assessment. The
Written down value of the applicable pool before capitalizing any excess is GH₵ 600,000.
Calculate the deductible amount for repairs and improvement.

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000

• D. GH₵30,500

The following is relevant for the operation of Makeni Limited, operating in the upstream
petroleum sector for 2018 year of assessment: Revenue: $100,000,000; Cost: $80,000,000;
Profit: $20,000,000. The following additional information forms part of the above: (i) The
revenue above includes financial gain from swaps of $1,100,000; (ii) The financial cost of
$1,400,000 was added to cost; (iii) The cost includes a depreciation of $200,000; (iv) Research
and development of $400,000 incurred was added to the cost of operation; (v) Revenue on
20,000 barrels of oil sold was added to revenue. It came to light that the disputed price used on
the 20,000 barrels was $70 per barrel in its tax returns. What has finally been agreed now is $65
per barrel and this has been certified by the Petroleum Unit of the Ghana Revenue Authority.
Written down value as of 31/12/2017 was $1,600,000 after granting capital allowance the third
time as of 2017-year end. This information is yet to be adjusted.Computation of Financial Cost
to be carried forward.

• A. $200,000

• B. $1,100,000
 • C. $1,400,000

• D. $300,000

Per the Income Tax Act 2015, (Act 896), the following are taxed as individual except:

• A. Maame Serwa Enterprise

• B. Amidu & Associates

• C. AB & Associates Ltd

• D. Navasa & Partners

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of this income comes from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2020 year of assessment of income from lending to farming business?

• A. GH₵200,000

• B. GH₵400,000

• C. GH₵420,000

• D. GH₵80,000

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2018 year of assessment of income from domestic sales?

• A. GH₵25,000

• B. GH₵40,000

• C. GH₵50,000
 • D. GH₵60,000

Who is liable to pay consumption tax? Section 2 of Valued Added Tax Act, 2013 (Act 870)
provides that, the tax shall be paid as follows except:

• A. In the case of a taxable supply, by the taxable person making the supply

• B. In the case of an import of goods, by the importer

• C. In the case of an import of services, by the importer of the services

• D. In the case of an unregistered, non-resident person who provides telecommunication

services or electronic commerce to persons for use or enjoyment in the country, the non-
resident is liable for the payment of the tax.

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵60,000 respectively. What is the tax liability of Manna
Limited in 2020 year of assessment?

• A. GH₵8,750

• B. GH₵1,500

• C. GH₵7,500

• D. NIL

For an input tax to be deductible where the taxable activity of that person is subject to the
condition except:

• A. The supply is a taxable supply

• B. In respect of purchases made in Ghana, the taxable person is in possession of a tax

invoice

• C. In respect of import or removal of goods from a bonded warehouse

• D. An input tax that is incurred in making exempt supply

Asafuah Limited has engaged you as the company’s tax consultant to advise on a number of
issues confronting the business. The company has been facing liquidity issues in recent times and
as a result has not been able to meet deadlines for filing tax returns and paying taxes due. It is
estimated that the company’s chargeable income under self-assessment returns submitted to
GRA is GH¢5,000.00. However, the company actual returns submitted to the GRA office on 7th
January 2019 was GH¢8,000,000. The corporate tax rate of the company and the Bank of Ghana
rediscount rate are 25% and 22% respectively. What is the amount of tax underpayment to be
subjected to interest computation?

• A. GH₵550,000

• B. GH₵500,000

• C. GH₵555,000

• D. GH₵550,500

Kaka Limited is a mining company operating in Ghana for some years now. In 2019 year of
assessment, Kaka Limited recruited 10 fresh graduates, 4 of the fresh graduates completed
universities in the United States of America while the others completed University for
Development Studies in Ghana. They were paid GH¢120,000 as salaries. Total workforce for
2019 year of assessment was 60.

• A. GH¢37,000

• B. GH¢60,000

• C. GH¢36,000

• D. GH¢30,000

Maame Ltd incurred expenses on repairs and improvement of GH₵60,500 on a Plant and
Machinery and also declared a profit of GH₵ 1,000,000 for the 2016 year of assessment. The
Written down value of the applicable pool before capitalizing any excess is GH₵ 600,000. . Per
section 12 (1) (a) of of Act 2015 (Act 896), what do you consider as a capital expenditure of the
repairs and improvement to be added to the depreciation basis of the appropriate pool.

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000
 • D. GH₵30,500

Below are the various contracts awarded to KPP Books and Stationery limited by the Ghana
Water Company for the 2018 year of assessment: ( i) 1st contract was for the supply of stationery
costing GH¢1,000 in January 2018. (ii) 2nd contract was for the supply of Station Diaries costing
GH¢900 on March 2018. (iii) 3rd contract for the supply of additional stationery costing
GH¢900 on August 16 2018. What amount of withholding tax is due to Ghana Revenue
Authority in the year 2018 from Ghana Water Company?

• A. GH¢32.00

• B. GH¢35.00

• C. GH¢84.00

• D. None of the above

Egya Egyapayena is a scholar and a board member of Top Holding Ltd. As a board member he
receives GH¢1800 (net) monthly for the year as fees. He is also a part-time lecturer at the
Wisconsin University College. He received GH¢6,750 (net of withholding tax) for lecturing
during the second semester in 2019. He has invested in the Treasury Bill and the value of a 182-
day Treasury Bill he rolls-over rose from GH¢45,000 in January 2018 to GH¢54,900 as at 31st
December 2019. The tenant in his house located in Dansoman renewed her tenancy and paid
GH¢41,400 for rent covering the half year of 2019. Konogo Kaya Contractor Ltd is constructing
a new house at Domiebra in the Central Region for Egya Egyapayena. He pays GH¢126,000
(inclusive of 12 ½ % VAT) for the works in November 2019. How much will Egya Egyapayena
will withhold when paying Konogo Kaya Contractor Ltd?

• A. GH₵6,300

• B. GH₵8,960

• C. GH₵3,360

• D. GH₵5,600

Somesonka Enterprise began business on 1st October 2016 making accounts to 30th September.
Assets as at 1st October 2016 were as follow: Administration building GH¢300,000; Store: GH¢
180,000; Copyright: GH¢250,000. On 10th may, 2018, expansion work that cost GH¢15,000,000
was completed on the store. The copyright was acquired for a period of 8 years. What is the
capital allowance of copy right for 2020 year of assessment?
 • A. GH₵25,500

• B. GH₵30,500

• C. GH₵31,250

• D. GH₵31,500

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵200,000 respectively. What is the tax liability of Manna
Limited in 2018 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. Nil

Kofi graduated from UGBS aged 25. He established an Agro processing business licensed under
the young entrepreneurs in January 1, 2016 at Nankani in the Northern region of Ghana
operating as Kofikuma Limited. The available records in 2020 year of assessment show a taxable
income of GH₵200,000. What is the tax liability of Kofikuma Limited in 2020 year of
assessment?

• A. GH₵0

• B. GH₵20,000

• C. GH₵10,000

• D. GH₵50,000

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the
marriage or responsibility relief available to Professor Know All for 2020 year of assessment?

• A. GH¢200

• B. GH¢7,900

• C. GH¢1,200

• D. None of the above

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵100,000 respectively. What is the tax liability of Manna
Limited in 2020 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵5,000

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2020 year of assessment show a taxable income of GH₵100,000. What is the
tax liability of Manna Limited in 2020 year of assessment?

• A. GH₵25,000

• B. GH₵12,500

• C. GH₵37,500

• D. GH₵50,000

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2020 year of assessment of income from domestic sales?

• A. GH₵100,000

• B. GH₵340,000

• C. GH₵120,500

• D. GH₵240,000

The following unstructured invoice has been forwarded to Adamu Ltd from Asigra Ltd, a
standard rated supplier: Goods invoiced (VAT inclusive) GH¢3,375,000. The above transactions
relate to payment for goods in January 2019. Compute the penalty payable, assuming Adamu Ltd
filed the withholding tax return 15 days after the due date?

• A. GH¢620

• B. GH¢520

• C. GH¢650

• D. GH¢630

Asempa Limited, an equipment hiring company, on 15th of March 2020 raised an invoice in the
sum of GH¢800,000.00 in respect of hiring of equipment services to Adiepena limited. This
amount excludes Value Added Tax, National Health Insurance Levy and Ghana Education Trust
Fund Levy. Asempa Limited makes a markup profit of 25% on every service rendered. Assume
that this is the only supply of value-added activity done by Asempa limited in the period and
purchases are also taxable activities. Calculate the output VAT to be shown on the face of
Asempa Limited’s monthly VAT Return assuming the company is registered under the VAT
standard rate scheme.

• A. GH₵100,000

• B. GH₵104,000

• C. GH₵105,000

• D. GH₵24,000
Maame Ltd incurred expenses on repairs and improvement of GH₵60,500 on a Plant and
Machinery and also declared a profit of GH₵ 1,000,000 for the 2016 year of assessment. The
Written down value of the applicable pool before capitalizing any excess is GH₵ 600,000. Per
section 12 (1) (a) of Act 2015 (Act 896), calculate the revenue expenditure that would be
deductible as repairs and improvement.

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000

• D. GH₵30,500

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of these income come from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2018 year of assessment of income other than lending to farming business?

• A. GH₵240,000

• B. GH₵200,000

• C. GH₵120,500

• D. GH₵40,000

Amos is a Senior Staff member of Sims Company Limited. His monthly basic salary is
GH¢1,490.00. He was paid an overtime totalling GH¢650.00 during the month of January, 2019.
Compute his tax liability on overtime for the month of January, 2019

• A. GH¢32.00

• B. GH¢35.00

• C. GH¢32.50

• D. None of the above

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total
relief available to Professor Know All for 2017 year of assessment?

• A. GH¢10,408

• B. GH¢11,008

• C. GH¢3,908

• D. GH¢4,108

Kofi graduated from UGBS aged 25. He established an Agro processing business on January 1,
2015 at Nankani in the Northern region of Ghana operating as Kofikuma Limited. During the
period the company has been enjoying a concessionary tax rate of 1%. The available records in
2020 year of assessment show a taxable income of GH₵200,000. What is the tax liability of
Kofikuma Limited in 2020 year of assessment?

• A. GH₵0

• B. GH₵20,000

• C. GH₵10,000

• D. GH₵50,000

Asempa Limited, an equipment hiring company, on 15th of March 2020 raised an invoice in the
sum of GH¢800,000.00 in respect of hiring of equipment services to Adiepena limited. This
amount excludes Value Added Tax, National Health Insurance Levy and Ghana Education Trust
Fund Levy. Asempa Limited makes a markup profit of 25% on every service rendered. Assume
that this is the only supply of value-added activity done by Asempa limited in the period and
purchases are also taxable activities. Calculate the input VAT deduction that will be available to
Asempa Limited assuming the company is registered under the VAT standard rate scheme

• A. GH₵83,333.33

• B. GH₵80,0000.50

• C. GH₵80,000.00
 • D. GH₵83,333.00

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. In December 2020,
while on the official duty, he had an accident and his left leg was amputated. What is the
disability relief available to Professor Know All for 2020 year of assessment?

• A. GH¢11,400

• B. GH¢11,008

• C. GH¢950

• D. GH¢22,408

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2020 year of assessment show a taxable income of GH₵200,000. What is the
tax liability of Manna Limited in 2020 year of assessment?

• A. GH₵20,000

• B. GH₵25,000

• C. GH₵37,500

• D. GH₵50,000

The following unstructured invoice has been forwarded to Adamu Ltd from Asigra Ltd, a
standard rated supplier: Goods invoiced (VAT inclusive) GH¢3,375,000. The above transactions
relate to payment for goods in January 2019. Compute the penalty payable, assuming Adamu Ltd
filed the withholding tax return 30 days after the due date?

• A. GH¢620

• B. GH¢520

• C. GH¢850
 • D. GH¢800

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of these income come from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2018 year of assessment?

• A. GH₵240,000

• B. GH₵250,000

• C. GH₵120,000

• D. GH₵200,000

The following data is relevant to Naab Ltd tax affairs for 2018 year of assessment: Self –
assessment returns submitted: Tax paid on self-assessment GH¢1,000,000; Chargeable income
GH¢4,000,000. Actual Returns submitted: Chargeable Income GH¢6,000,000. Correct amount-
Tax payable GH¢ 1,500,000 Required: What is the amount of tax underpayment to be subject to
interest computation?

• A. GH¢270,000

• B. GH¢300,000

• C. GH¢350,500

• D. GH¢350,000

The following unstructured invoice has been forwarded to Adamu Ltd from Asigra Ltd, a
standard rated supplier: Goods invoiced (VAT inclusive) GH¢3,375,000. The above transactions
relate to payment for goods in January 2019. What is the invoice value exclusive of VAT, NHIL
and GETFUND payable by Adamu Ltd.

• A. GH¢2,857,142.86

• B. GH¢3,775,000.00

• C. GH¢3,375,000.00
 • D. GH¢3,000,000.00

Mr. Kojo Obi is employed by Enyidado Consulting Group as on Assistant Manager on basic
monthly salary of GH¢5,000.00. He is entitled to cash allowance totalling GH¢350.00 per
month. He is provided accommodation by his employers towards which he pay GH¢132.50 per
month as rent to his employers. He contributes to the Social Security Fund. Calculate Mr. Kojo
Obi’s monthly cash emolument.

• A. GH₵5,300

• B. GH₵5,025

• C. GH₵5,632

• D. GH₵5,350

Asempa Limited, an equipment hiring company, on 15th of March 2020 raised an invoice in the
sum of GH¢800,000.00 in respect of hiring of equipment services to Adiepena limited. This
amount excludes Value Added Tax, National Health Insurance Levy and Ghana Education Trust
Fund Levy. Asempa Limited makes a markup profit of 25% on every service rendered. Assume
that this is the only supply of value-added activity done by Asempa limited in the period and
purchases are also taxable activities. Calculate the VAT payable to GRA under the VAT
standard rate scheme.

• A. GH₵21,666.67

• B. GH₵21,666.00

• C. GH₵25,000.00

• D. GH₵21,666.50

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. In December 2020,
while on the official duty, he had an accident and his left leg was amputated. What is the total
relief available to Professor Know All for 2020 year of assessment?
 • A. GH¢10,408

• B. GH¢11,008

• C. GH¢11,958

• D. GH¢22,408

Somesonka Enterprise began business on 1st October 2016 making accounts to 30th September.
Assets as at 1st October 2016 were as follow: Administration building GH¢300,000; Store: GH¢
180,000; Copyright: GH¢250,000. On 10th may, 2018, expansion work that cost GH¢15,000,000
was completed on the store. The copyright was acquired for a period of 8 years. What is the
capital allowance of Administration building for 2017 year of assessment?

• A. GH₵60,500

• B. GH₵30,500

• C. GH₵30,000

• D. GH₵30,500

What constitutes a Tax Return?

• A. It is an official statement that contains the income of the person and any allowable
deduction for any year of assessment from employment, business and or investment.

• B. It is an income statement that contains the income of the person and any allowable
deduction for any year of assessment from employment, business and or investment.

• C. It is a statement that contains the income of the person and any allowable deduction
for any year of assessment from employment, business and or investment.

• D. It is an official statement that contains the income of the person and any allowable
deduction for any year of assessment from employment, business and or investment. It is
statutory.

Ecobank Ghana Limited is a resident financial institution. The available records in 2018, 2019
and 2020 year of assessment show a taxable income of GH₵1,000,000, GH₵500,000 and
GH₵2,000,000 respectively. Ecobank has established that 20% of this income comes from
lending to farming businesses in Ghana. What is the total tax liability of Ecobank Ghana Limited
in 2019 year of assessment of income from lending to farming business?

• A. GH₵20,000

• B. GH₵10,000

• C. GH₵40,000

• D. GH₵25,000

The following relates to payments by Makeni Limited, a company resident in Ghana to another
resident company, both companies are not exempt from withholding taxes: Goods:
GH¢3,000,000; Services: GH¢2,000,000; and Works: GH¢1,200,000. Upon scrutiny of the
company’s records, the following additional information emerged: (i) It came to light that the
goods above includes a dividend payment of 10%. (ii) The services above relate to 50%
management and technical services and 50% consultancy services. What is the withholding tax
on goods?

• A. GH¢90,000

• B. GH¢150,000

• C. GH¢135,000

• D. GH¢81,000

Manna Limited is manufacturing business located in Awutu Bawjiase in the Awutu District. The
available records in 2018, 2019 and 2020 year of assessment show a income/(loss) of
(GH₵10,000), (GH₵50,000) and GH₵200,000 respectively. What is the tax liability of Manna
Limited in 2020 year of assessment?

• A. GH₵17,500

• B. GH₵18,750

• C. GH₵37,500

• D. GH₵50,000
Mike Kotex, a resident individual received interest from the following: Resident Financial
Institution-Bank: GH¢ 10,000; Pearl Micro-Finance: GH¢9,000; and ABC Ltd –Oil Marketing
Company :GH¢8,000. Compute the total taxes payable on payment to Mike Kotex if any

• A. GH¢2,500

• B. GH¢80

• C. GH¢640

• D. GH¢80

Kakama Limited is a company located in Free Zones areas. The company has been having
special incentives under the Free Zones, Act 1995 (Act 504) more than 15 years. The available
records in 2018, 2019 and 2020 year of assessment show a taxable income of GH₵1,000,000,
GH₵500,000 and GH₵2,000,000 respectively. Kakama Limited has established that 20% of
these income come from domestic sales. What is the total tax liability of Kakama Limited in
2018 year of assessment of income other than domestic sales?

• A. GH₵120,000

• B. GH₵40,000

• C. GH₵50,000

• D. GH₵70,000

The records of Bobolibobo Ltd revealed a tax outstanding amount of GH¢ 200,000 for the period
of 6 months. Assuming an annual statutory rate of 20%, compute the interest payable.

• A. GH¢25,338.83

• B. GH¢26,238.83

• C. GH¢26,328.83

• D. GH¢26,338.83

Asempa Limited, an equipment hiring company, on 15th of March 2020 raised an invoice in the
sum of GH¢800,000.00 in respect of hiring of equipment services to Adiepena limited. This
amount excludes Value Added Tax, National Health Insurance Levy and Ghana Education Trust
Fund Levy. Asempa Limited makes a markup profit of 25% on every service rendered. Assume
that this is the only supply of value-added activity done by Asempa limited in the period and
purchases are also taxable activities. Determine the total penalties and interest payable if Asempa
Limited files his VAT tax return for the transaction above on the 12th of May 2020.

• A. GH₵620

• B. GH₵660

• C. GH₵610

• D. GH₵611

Mamivi Ltd runs a business with a basis period from January to December each year. The
following information is relevant to its business operations for 2018 year of assessment.
Chargeable Income from business operations GH¢100,000. The chargeable income was arrived
at after the following adjustments were made: Financial cost incurred on hedged transactions
GH¢200,000. Financial gain from hedged transactions GH¢80,000. Compute the unrelieved
financial cost to be carried forward for five years.

• A. GH¢25,000

• B. GH¢20,000

• C. GH¢90,000

• D. GH¢10,000

Egya Egyapayena is a scholar and a board member of Top Holding Ltd. As a board member he
receives GH¢1800 (net) monthly for the year as fees. He is also a part-time lecturer at the
Wisconsin University College. He received GH¢6,750 (net of withholding tax) for lecturing
during the second semester in 2019. He has invested in the Treasury Bill and the value of a 182-
day Treasury Bill he rolls-over rose from GH¢45,000 in January 2018 to GH¢54,900 as at 31st
December 2019. The tenant in his house located in Dansoman renewed her tenancy and paid
GH¢41,400 for rent covering the half year of 2019. Konogo Kaya Contractor Ltd is constructing
a new house at Domiebra in the Central Region for Egya Egyapayena. He pays GH¢126,000
(inclusive of 12 ½ % VAT) for the works in November 2019. What is the withholding tax
payable by Egya Egyapayena for 2019 Year of Assessment?

• A. GH₵12,500
 • B. GH₵12,660

• C. GH₵12,500

• D. GH₵12,600

The following relates to payments by Makeni Limited, a company resident in Ghana to another
resident company, both companies are not exempt from withholding taxes: Goods:
GH¢3,000,000; Services: GH¢2,000,000; and Works: GH¢1,200,000. Upon scrutiny of the
company’s records, the following additional information emerged: (i) It came to light that the
goods above includes a dividend payment of 10%. (ii) The services above relate to 50%
management and technical services and 50% consultancy services. Compute the withholding
taxes payable (if any). Mike Kotex, a resident individual received interest from the following:
Resident Financial Institution-Bank: GH¢ 10,000; Pearl Micro-Finance: GH¢9,000; and ABC
Ltd –Oil Marketing Company :GH¢8,000. Compute the tax payable on payment to Mike Kotex
by Resident Financial Institution-Bank

A. GH¢255,000

B. GH¢60,000

C. GH¢120,000

D. GH¢315,000

E. GH¢1,000

F. GH¢750

G. GH¢800

H. None of the above

Professor Know All aged 61years is divorced and has two children under the age of 15years and
lives with a niece aged 16years at Tema who attend government approved schools. Monthly, he
sends GH¢300 to his mother aged 90years through mobile money and GH¢250 to his 85years
old uncle. During the year, he attended a continuing professional development, and the course
fee was GH¢800. As a Managing Partner of AB & Associates, his monthly basic salary is
GH¢3,800 and the social security fund contribution is deducted each month. What is the total
relief available to Professor Know All for 2017 year of assessment?

• A. GH¢10,408
 • B. GH¢11,008

• C. GH¢3,908

• D. GH¢4,108

The following unstructured invoice has been forwarded to Adamu Ltd from Asigra Ltd, a
standard rated supplier: Goods invoiced (VAT inclusive) GH¢3,375,000. The above transactions
relate to payment for goods in January 2019. Compute the penalty payable, assuming Adamu Ltd
filed the withholding tax return 12 days after the due date?

• A. GH¢620

• B. GH¢520

• C. GH¢650

• D. GH¢630

The following relates to payments by Makeni Limited, a company resident in Ghana to another
resident company, both companies are not exempt from withholding taxes: Goods:
GH¢3,000,000; Services: GH¢2,000,000; and Works: GH¢1,200,000. Upon scrutiny of the
company’s records, the following additional information emerged: (i) It came to light that the
goods above includes a dividend payment of 10%. (ii) The services above relate to 50%
management and technical services and 50% consultancy services. What is the withholding tax
on dividend?

• A. GH¢30,000

• B. GH¢22,500

• C. GH¢24,000

• D. None of the above