ACCOUNTING COMPANY LTD, a self-assessed tax payer with the LTO of GRA estimated its chargeable income for the assessment year 2013 to be GHC120,000,000.
The company commissioned a new plant in April 2013 and realized that its production capacity has improved significantly and hence revised its estimated chargeable income to GHC200,000,000 in May 2013.

In November, the same year after the third quarter interim accounts, the Directors were advised by the Auditors to adjust their chargeable income to avoid an imposition of a penalty by the LTO. This was adhered to and subsequently revised estimate further to GHC300,000,000.

The company submitted its 2013 annual returns on due date of 30th April 2014 and posted actual chargeable income of GHC520,000,000.

Required:

1. Compute the installment payment for the four (4) quarters in the assessment year 2013.

2. Compute any penalty payable by the company.

3. Determine the outstanding tax payable by the company assuming all the installment payments were made on due date.

Please note the following:

i. The company’s basis period is 1st January to 31st December.

ii. The corporate tax rate is 25%.

Answer rating: 100% (QA)

1 Installment payment for the four 4 quarters in the assessment ... View the full answer