TAXATION QUESTION ATTEMPT ALL QUESTIONS FROM THIS SECTION. Report from their Operations: Below is the Income Statement o

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TAXATION QUESTION
ATTEMPT ALL QUESTIONS FROM THIS SECTION.
Report from their Operations:
Below is the Income Statement of CADE Company Limited, located
in Techiman. The statement covers the year ended 31/12/2018.
GH¢000
GH¢ 000
Gross Profit
775,000
Other Income
10,000
785,000
Less: Management Salaries
43,750
Income tax 1/1/2017
4,000
Hire of Equipment
18,125
Depreciation
3,500
Staff Salaries
21,250
Office Rent
9,000
Office Expenses
22,500
Casual Labour
9,250
Provisions for Bad debt
250
Vehicle Repairs
19,500
Business Promotions
5,000
Donations
11,375
Repairs of Factory Premises
28,500
Drawings
1,250
Bad Debts
73,750
Advertisements
1,500
(272,500)
Net Profit
512,500
Notes to the Accounts:
Sale of Property:
SSA Company Limited in 2016, built a two story building with
four flats (two flats per floor) at Wenchi at a cost of GH¢
60,000.00. In the year 2017, owing to flooding caused by rainwater,
he had to undertake repairs to the building which cost him 5% of
the original cost of the building. Kakapeakaa has an insurance
policy with SIC Ltd for his family and his building in the sum of
GH¢2,000.00 and GH¢1,500.00 respectively. All premiums have been
duly paid to that value. He decided to relocate from Wenchi to
Kintampo and sold one floor to Dabidabi Construction Company
Limited, who were working on the Techiman-Kintampo road for GH¢
75,500.00 on 2nd August, 2018, through Realtime Estate
Agency who were paid 2% of the sales price as commission.
Required:
b. If SSA Company Limited used GH¢48,000.00 out of the proceeds
received from the sale of his building to acquire a building in
Kintampo as envisaged by him, 1 December 2018, what would be the
Capital Gains Tax payable by him, if any?
TAXATION QUESTION