(a) John Smith, a prospective investor in Ghana is undecided whether to invest in farming or agro-processing....
Question:
(a) John Smith, a prospective investor in Ghana is undecided whether to invest in farming or agro-processing. He has contacted you on the tax implications of the two businesses he intends to invest in. Required: What advice would you give to John Smith to enable him to make a firm decision.
(b) The Commissioner-General of the Ghana Revenue Authority expects persons conducting business with Related Parties to ensure that the transaction is at arm’s length. Required: Explain the arm’s length principle in tax transactions.
(c) A globally recognized Training and Research Centre on peacekeeping and peace support operations in Ghana has engaged you as a tax consultant to provide tax opinion on how the following transactions should be treated:
i. The Centre engages part-time lecturers on its Master's Programmers which are run on a modular basis and run for a one year period. Payments for the fees of these lecturers are based on the number of hours done.
ii. The Centre engages facilitators who are to teach and direct the flow of class for courses that run for a short period. Payments for their services are based on hourly/daily work done.
iii. The Centre engages experts/consultants to assist in developing new courses or review existing courses being run by the center or undertake any other assignment as and when required by the Centre. Payment to this category of persons is also dependent on the duration of the task and based on man-days.
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin