Assume that the estimated chargeable income for BANKU LTD for the 2016 year of assessment was...

 

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Assume that the estimated chargeable income for BANKU LTD for the 2016 year of assessment was GH¢100,000,000 but its actual chargeable income declared at the end of the year was GH¢160,000,000. The return was submitted on 30th April, 2017. The BOG discount or prevailing rate is 25% and the corporate tax is also 25%. You expected to calculate (if any) the penalty for underestimation. Assume that the estimated chargeable income for BANKU LTD for the 2016 year of assessment was GH¢100,000,000 but its actual chargeable income declared at the end of the year was GH¢160,000,000. The return was submitted on 30th April, 2017. The BOG discount or prevailing rate is 25% and the corporate tax is also 25%. You expected to calculate (if any) the penalty for underestimation.

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The rate of penalty shall be fifty per cent of the tax payable on underreport... View the full answer