Answered: Mr Eben Annan a computer scientist used…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Mr Eben Annan a computer scientist used to live in Durban, South Africa but he is now settled in Kumasi Ghana. The following information is contained in his tax returns relating to 2013 year of assessment. Mr Annan is married and has four children who, are attending recognized-schools in Accra and Kumasi. He remits GHS 100 per month to his aged father and mother who live in the village.

Income earned in Ghana:

Business income GHS20,000 Director fee (net) GHSl,500 Bank Interest GHS3,000

Mr Eben Annan bought some shares in a mining company in South Africa when he was working there. During the 2013 year of assessment, he earned gross dividend amounting GHS6,000 from South Africa. Tax deducted from this income was GHS900 and he received the net amount in Ghana in 2013. There exists a double taxation agreement between Ghana and South Africa.

You are required to determine:

foreign tax credit relief to be granted to Mr Eben Annan. AN(9)
His net tax liability for 2013 year of assessment. AP(8)
Discuss the role the finance minister plays in a tax system focusing on statutory roles.

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