To determine Kwaku Danso's total tax liability for the 2011 year of assessment, we need to consider his various sources of income and eligible deductions. Let's break down the information provided:
To determine Kwaku Danso's total tax liability for the 2011 year of assessment, we need to consider his various sources of income and eligible deductions. Let's break down the information provided:1. Employment Income: - Consolidated salary with Daakye Timbers Limited: GHC 3,600 per annum.2. Self-Employment Income: - Business started on 1/1/11 with an initial capital of GHC 10,000. - No proper records, but income generated from trading in Africa print and ladies headgear.3. Other Income: - £450 remitted as his net share of partnership profits from the UK.4. Investment and Savings: - Savings with Access Bank: GHC 150,000.5. Expenses: - Rent: GHC 1,000 per month. - Italian furniture purchase: GHC 60,000. - Fridge and DVD player purchase: GHC 40,000. - Daily food expenses: Estimated at an average of GHC 300 per day. - Club, party, and dance expenses: Estimated at an average of GHC 600 per month. - Contribution to a football rally: GHC 500. - Drawings for personal use: GHC 50,000. - Christmas presents to family: GHC 20,000. - Monthly remittance to sister: GHC 500. - Capital for sister's trading: GHC 50,000. - Medical bills and drugs: GHS 500 for himself and GHS 1,000 for sister. - Lotto staking: Estimated at an average of GHC 400 per month.6. Outstanding Loan: - Outstanding loan to a friend: GHC 10,000.Now, you'll need to calculate the tax liability for each source of income and consider any eligible deductions and exemptions. In Ghana, tax rates may vary based on the type of income. Also, some expenses may be deductible. For example, the rent, medical bills, and specific business expenses could be deductible.It's important to consider Ghana's tax laws and regulations for each type of income and applicable exemptions. Given the complexity of this scenario, it is advisable to consult a tax professional or accountant who is well-versed in Ghana's tax code to ensure accurate and compliant tax calculations.Regarding your second question, the Commissioner-General of the Ghana Revenue Authority may, by notice, require a person to file a tax return before the due date for filing tax returns under the following circumstances:1. When there are reasonable grounds to believe that the person's income exceeds the threshold for filing a tax return.2. When there is evidence of non-compliance or underreporting of income.3. When the person has engaged in activities subject to taxation and has not filed a return.4. When there are discrepancies or inconsistencies in the person's financial records.5. When the person is involved in certain taxable transactions or business activities.The Commissioner-General has the authority to issue such notices to ensure timely and accurate reporting of income and compliance with tax laws.