Klemm (2010) define tax incentives as all the measures that provide for an unambiguously more favourable tax
Question:
Klemm (2010) define tax incentives “as all the measures that provide for an unambiguously more favourable tax treatment of particular sectors, type of firms, activities or investments relative to the standard tax regime applying to general industry”. These tax incentives can take many forms, which include, but are not limited to, the following: tax holidays, special zones, investment tax credits, investment allowances, accelerated depreciation, and reduced tax rates.
Required:
Briefly explain any three (3), using practical examples in Ghana, each and distinguish between the following pair of terms with respect to tax planning:
- Tax holiday and Tax rebates/refund
- Tax Exemptions and Tax Reliefs
- Special Zones and Reduced Tax Rates for Different Locations
Cross Subsidization and Fiscal Stimulus to Private Businesses
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker