2.6ICAG Level 2100 marks

Principles of Taxation

The Ghanaian system of taxation — basic principles for individuals and corporations, capital gains tax, VAT, customs duties, and tax administration.

Builds on: New topic at Level 2

About This Paper

What is Principles of Taxation?

Principles of Taxation introduces candidates to the Ghanaian tax system and the practical skills required to compute tax liabilities for individuals and companies. It covers the major taxes — income tax, corporate tax, capital gains tax, VAT, and customs duties — within the framework of Ghana's tax legislation. Candidates develop an appreciation of tax policy, the principles of good tax design, and the compliance obligations of taxpayers. This paper is the prerequisite for Advanced Taxation at Level 3.

Syllabus Content

What You'll Study

01

Principles of taxation

Canons of taxation (Adam Smith), equity, efficiency, certainty, convenience, and the design of a good tax system.

02

Income tax for individuals

Residency, taxable income, employment income, PAYE, reliefs, and computation of individual tax liability.

03

Corporate income tax

Chargeable income, allowable deductions, capital allowances, industry concessions, and corporate tax computation.

04

Capital gains tax

Chargeable assets, computation of gains, exemptions, reliefs, and CGT payment procedures.

05

Value Added Tax (VAT)

Registration, taxable supply, VAT computation, input/output tax, returns and the VAT refund process.

06

Customs and excise duties

Import duties, tariff classification, customs valuation, and compliance procedures.

07

Tax administration in Ghana

The role of the Ghana Revenue Authority, assessment, appeals, penalties, and tax clearance certificates.

All Key Topic Areas

Ghanaian tax systemPersonal income taxCorporate taxCapital gains taxVAT & customs dutiesTax administrationTaxpayer obligations
Professional Development

Skills You'll Develop

01
Tax computation
02
Legislative interpretation
03
Compliance skills
04
Attention to detail
05
Analytical reasoning
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Exam Strategy

How to Pass Principles of Taxation

Tax computation questions must follow the correct statutory layout — marks are allocated for correct structure as well as correct figures. Memorise the standard income tax, corporate tax, and VAT computation frameworks and practise them until they are automatic.

Career Outcomes

Where This Paper Takes You

Tax Associate

Tax Compliance Officer

Revenue Service Officer

Finance Manager

Tax Consultant

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