ABC Ltd is a company under self-assessment and prepares accounts to 31st March each year. Its estimated chargeable income for the year 2016 was GH¢ 1.2 million. However, the Company’s Returns which were submitted to the Large Tax Payers Office at the VAT House on 1st April, 2017 showed a chargeable income of GH¢1.8 million. During this period, Bank of Ghana policy rate was constant at 24% per annum. ABC Ltd made its first installment payment on 31st March, 2016. Required i. Compute the Interest payable by the company. ii. Determine the outstanding liability payable by the company to GRA. (Hint: Your answers should be in line with section 70 of Revenue Administration Act 2016 (Act 915))
ABC Ltd is a company under self-assessment and prepares accounts to 31st March each year. Its estimated chargeable income for the year 2016 was GH¢ 1.2 million. However, the Company’s Returns which were submitted to the Large Tax Payers Office at the VAT House on 1st April, 2017 showed a chargeable income of GH¢1.8 million. During this period, Bank of Ghana policy rate was constant at 24% per annum. ABC Ltd made its first installment payment on 31st March, 2016. Required i. Compute the Interest payable by the company. ii. Determine the outstanding liability payable by the company to GRA. (Hint: Your answers should be in line with section 70 of Revenue Administration Act 2016 (Act 915))
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Ltd is a company under self-assessment and prepares accounts to 31st March each year. Its estimated chargeable income for the year 2016 was GH¢ 1.2 million. However, the Company’s Returns which were submitted to the Large Tax Payers Office at the VAT House on 1st April, 2017 showed a chargeable income of GH¢1.8 million. During this period, Bank of Ghana policy rate was constant at 24% per annum. ABC Ltd made its first installment payment on 31st March, 2016.
Required
i. Compute the Interest payable by the company.
ii. Determine the outstanding liability payable by the company to GRA.
(Hint: Your answers should be in line with section 70 of Revenue Administration Act 2016 (Act 915))
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