UNIVERSITY OF GHANA

(All rights reserved)

SCHOOL OF LAW
SEMESTER 2023/2024
ACADEMIC YEAR
COURSE SYLLABUS

FLAW411 LAW OF TAXATION I

3 Credits

Lecture Period(s) and Venue: Tuesdays, 5:30pm – 8:30pm; Auditorium

Course Instructor(s)
 Dr. Abdallah Ali-Nakyea – Course Co-ordinator
 Second Floor – UGSoL
 [email protected]

 Dr. Benjamin Kunbuor

 Second Floor – UGSoL
 [email protected]

 Mrs. Clara Kowlaga Kasser-Tee

 Ground Floor - UGSoL
 [email protected]

 Mr. William Kofi Owusu Demitia

 Second Floor - UGSoL
 [email protected]

 Mr. Courage Akanwunge Asabagna

 Second Floor - UGSoL
 [email protected]

Introduction/Subject or Course Overview

This course will introduce students to the fundamental concepts in tax law. Students will be
introduced to the history of taxation in Ghana, the jurisdiction to impose taxes in Ghana, role of
taxation in an economy, the rules for the interpretation of tax laws and how to determine the
assessable and chargeable income of individuals, partnerships, trusts and companies.
Course Objective/Goals:
The course will:
1. Develop knowledge and understanding of basic principles of taxation.
2. Identify key issues and applicable principles in jurisdiction to impose tax.
3. Evaluate both theory and practical determination of assessable and chargeable of taxable
persons.
4. Develop the capacity to analyse and evaluate the rules of interpretation of tax laws.

Learning Outcomes
On completion of the course, students should be able to:
1. Understand the history of taxation in Ghana and the power to impose taxes in Ghana.
2. Understand the role of taxation in an economy.
3. Understand the rules for the interpretation of tax laws.
4. Identify the categories of income and determine the assessable and chargeable income of
individuals, partnerships, trusts and companies.
Course Delivery (optional): Lectures, presentations, and tutorial discussions.

Plagiarism policy
Plagiarism in any form is unacceptable and shall be treated as a serious offence. Appropriate
sanctions, as stipulated in the Plagiarism Policy, will be applied when students are found to have
violated the Plagiarism policy. The policy is available at http://www.ug.edu.gh/aqau/policies-‐
guidelines. ALL students are expected to familiarize themselves with the contents of the Policy.

Assessment and Grading (as applicable)

Average of:
Interim Assessment – 50%
Final Exam - 50%

Grading Scale:
Refer to Undergraduate Handbook.

Reading List /Required Text

1. Benjamin, Kunbuor (Dr): A Survey of the Developments of the Law of Taxation in Ghana. (1st
edn 2021)
2. Benjamin, Kunbuor (Dr), Abdallah Ali-Nakyea & William Kofi Owusu Demitia: Law of Taxation
in Ghana. (4th edn 2017)
3. Abdallah, Ali-Nakyea: Taxation in Ghana: Principles, Practice & Planning (3rd edn 2014) (Black
Mask Limited)
4. Abdallah Ali-Nakyea & William Owusu Demitia - “The Need for a Substantial Presence Test in
Ghana” Tax Notes International Vol. 81, No. 2, January 11 2016, p. 175
5. Demitia, W.K.O. “The Taxation of Foreign-Source Income of Ghana Residents” Tax Notes
International Vol. 83, No. 7, August 15, 2016 p. 621
6. Citizenship-based Taxation: Outrageous or Broadening the Tax base? A Ghanaian Perspective by
Clara K. Beeri Kasser-Tee and Tawia Akyea, GIMPA Law Review, Issue 5 (2020).
7. Davies Principles of Tax Law (7th edn 2012. S&M)
8. Ridgeway, Philip: Revenue Law (Cavendish Publishing Limited 1996)
9. Cairncross, Introduction to Economics (Chapter on Taxation/Finance)
10. Hansen, Positive Economics (chapter on taxation/finance)
11. Samuelson, P. An Introduction to Economics (chapter on taxation/public finance)
12. Kwame Adjei-Djan: Income Tax Law in Ghana, Exposition and Critique (2020) (Black
Mask Limited)
13. C. N. Beatle: Elements of the Law of Income and Capital Gains Taxation (9th ed. Stevens)
14. Barry Pinson: Revenue Law (15th ed. S & M)
15. Chris Whitehouse, Revenue Law: Principles &Practice (21st ed.)
16. Adjei-Djan, K. (ed.): A Guide to Income Tax, Capital Gains Tax and Gift Tax Laws of Ghana,
(GPC,2005)
17. Mills, J.E.A-- Ghana's Income Tax Law and the Investor (1978) (UPP)
18. Mills, J.E.A.- “Ghana’s New Investment Code: An Appraisal” (1990-1992)18 UGLJ 1-4
&22-29
19. Mills, J.E.A.- “Taxation of Periodical or Deferred Payments Arising from the Sale of
Fixed Capital”. 11UGLJ 170
20. Mills, J.E.A. “Taxation of gains or profits from isolated transactions” (1978)10 RGL 52
21. Mills, J.E.A.- “The Basis of Liability to Ghana Income Tax: Setting the record straight
after Republic v. Commissioner of Income Tax: ExParte Maatschappij de Fijnhouthandel
N.V. (Fynhout)” - (1978-81) 15 UGLJ1
22. Adjei-Djan, K.- “Withholding Taxes” (2004) 1BFLJG214
23. Helalwell- “Taxation and Economic Development” - [1969] 6 UGLJ 88
*BFLJG---BANKING AND FINANCIAL LAW JOURNAL OF GHANA
24. Income Tax Act, 2015 (Act 896), as amended.
25. Income Tax Regulations, 2016 (L.I. 2244), as amended.
26. Interpretation Act, 2009 (Act 792)
27. Ghana Revenue Authority Act, 2009 (Act 791)
28. Revenue Administration Act, 2016 (Act 915), as amended.
 COURSE DELIVERY SCHEDULE
SEMESTER 1
TOPICS READINGS
Lecture 1 GENERAL PRINCIPLES AND References
BACKGROUND TO TAXATION Kunbuor, B: A Survey of the
Developments of the Law of Taxation in
This topic seeks to give the student a general Ghana. (1st edn 2021), Chapter 1
background on the Law of Taxation. It Kunbuor, B., Ali-Nakyea, A and
draws the student attention to the origins of Demitia, W. (2017), Law of Taxation in
tax in economics and other social fields. It Ghana, (4th Edition) (Type Publishers)
then tries to locate tax as a legal category Adjei-Djan, K: Income Tax Law in
and its basis as part of the body of Laws in Ghana, Exposition and Critique (2020)
Ghana. (BlackMask Limited)

Cases
Development Data & 2 Ors v National
Petroleum Authority & Anor Suit no. BC
553 (Unreported)
Campania General de Tabacos de
Filipinas v Collector of Internal Revenue
275 US 87 (1927)

Legislation
1992 Constitution, Article 174
Revenue Administration Act, 2016 (Act
915)

Lecture 2 INTERPRETATION OF TAX Reference

STATUTES Kunbuor, B: A Survey of the
Developments of the Law of Taxation in
This topic seeks to introduce the student to Ghana. (1st edn 2021), Chapter 10
early approaches to the interpretation of tax Kunbuor, B., Ali-Nakyea, A and
statutes by the courts. It will highlight the Demitia, W. (2017), Law of Taxation in
equation of tax statutes to penal statutes and Ghana, (4th Edition) (Type Publishers)
the subsequent shifting of grounds to a Adjei-Djan, K: Income Tax Law in
liberal and a purposive approach admitting Ghana, Exposition and Critique (2020)
of extraneous materials. (BlackMask Limited)

Cases
Russel v Scott [1948] AC 422 at 433
Mangin v IRC [1971] ALL ER 179 at
182
IRC v Longman Green Co Ltd (1932) 17
TC 272 at 282
Cape Brandy Syndicate v. I.R.C [1921]
1KB 64)
Pepper v Hart [1993] 1 ALL ER 42
 Multichoice Ghana Limited v The
Commissioner, Inland Revenue Service
[2011] 35 G.M.J, 87-102
Scancom, Ghana Telecom Company and
Millicom Ghana Limited v The
Commissioner, Ghana Revenue
Authority
Suit No FTRM 76/12 (Unreported) High
Court, (Economic Crime Division)
James v IRC [1977] 2 ALL ER 897
London County Council v. Attorney
General [1901] AC 26 at 35
Pool v. Guardian Investment Trust Co.
Ltd. (1921) 8 TC 167
Jeffs v. Rightons Ltd. [1986] All ER 144

Legislation
Article 107(b) of the 1992 Constitution
Section 10 of the Interpretation Act, 2009
(Act 792)

Lecture 3 IMPOSITION OF TAX ON INCOME Reference

Kunbuor, B: A Survey of the
This topic addresses the fundamental issue Developments of the Law of Taxation in
that tax cannot be collected unless a law Ghana. (1st edn 2021), Chapters 2 and 3
says so. The student is made to understand Kunbuor, B., Ali-Nakyea, A and
the fact that tax is not levied on the world at Demitia, W. (2017), Law of Taxation in
large and on all activities. The topic seeks Ghana, (4th Edition) (Type Publishers)
to draw the student’s attention to how Adjei-Djan, K: Income Tax Law in
Ghana’s tax legislation captures “who and Ghana, Exposition and Critique (2020)
what activity are the subject of tax”- (BlackMask Limited)
jurisdictional basis of taxation. The topic
seeks to address the following related Articles
questions: Mills, J.E.A.- “The Basis of Liability to
a) Do you tax income from activities Ghana Income Tax: Setting the record
taking place only in Ghana? straightafter Republic v. Commissioner
of Income Tax: ExParte Maatschappij de
b) Do you tax income from sources outside Fijnhouthandel N.V. (Fynhout)” - (1978-
Ghana and under what circumstances? 81) 15 UGLJ1
Mills, J.E.A. “Taxation of gains or profits
c) What types of income activities are from isolated transactions” (1978)10
taxed? RGL 52

Cases
Griffiths v J.P Harrison [1962] 1 ALL
ER 909 at 917
Ransom v Higgs [1974] 3 ALL ER 949
Kowloon Stock Exchange Ltd v
Commissioner of Inland Revenue [1984]
STC 602
Marson v Morton [1986] 1WLR 1343
Rutledge v IRC (1929) 14 TC 490
Martin v Lowry [1972] AC 312
Kubi & Ors v Dali [1984-86] GLR 501
Commissioner of Taxation v Kirk [1990]
AC 588 at 592
Esso Standard Eastern Inc. v Income Tax
[1971] E.A.L.R 127
Liquidator, Rhodesia Metals Ltd v
Commissioner of Taxes [1940] AC 744
Commissioner for Inland Revenue v.
Lever Brothers and Unilever [1946]
S.A.T.C. 441 at 499
Pickles v. Foulsham (1923-25) 9 T.C.
261 Fleming v. Wilkinson (1924-26) 10
T.C. 416.
In the Matter of the Non-Natives- Income
Tax (Protectorate) 11 N.L.R 144
C.O.T. v. Shein (1958) S.A.L.R 14
The Republic v. Commissioner of
Income Tax: Ex Parte Maatschappij de
Fijnhouthan del N.V. (Fynhout) [1971] 1
G.LR. 213; [1974] 1 G.L.R. 283; [1976]
1 G.L.R. 380.
Harrison Ltd. v. Griffiths [1963] AC 1

Employment income – Office or

Employment?
Great Western Railway Co. v Bater
[1920] 3 KB 266
Edwards v Clinch [1981] 3 All ER 543
Davis v BraithWaite (supra),
Macmillan v Guest [1942] AC 561
Dale v IRC [1954] AC 11
Mitchell & Edon v Ross [1962] 2 AC
813 Ellis v Lucas [1967] Ch. D 858
IRC v Brander Cruickshank [1971] All
ER 36
Ministry of Housing and Local
Government v Sharp [1969] All ER 223,
[1970] 1 All ER 1022
Blackburn v Cross Ltd. (1960) 39 TC
164
Fall v Hitchen (1973) STC 66

Emoluments must derive from office

Hochstrasser v Mayes [1959] Ch. D 22
Brumby v Milner [1976] All ER 636
Beecham Group Ltd. v Fair [1984] STC
15
Heasnan v Jordan [1954] Ch D 744

Permanent establishment
Commissioner of Income Tax, A.P.-I v.
Visakhapatnam Port Trust (1983) 144
ITR 146
Georges Simenon v Commissioner of
Internal Revenue 44 T.C. 820 (1965)
Joseph Fowler v. M.N.R. (1990) 90
D.T.C. 1834
Formula One World Championship
(FOWC) v Commissioner of Income Tax
[Civil Appeal No. 3849 of 2017]
Dudney v. The Queen 99 DTC 147

Badges of Trade – Subject matter

Rutledge v IRC (supra)
Johnston v Heath [1970] 3All ER 915

Badges of Trade – Period of ownership

Turner v. Last (1965) 42TC 517

Badges of Trade – Frequency of

transactions
Martin v. Lawry (supra)
Leach v Pogson (1962) 40 TC 585

Badges of Trade – Supplementary

work
Martin v. Lawry (supra)
Cape Brandy Syndicate v IRC [1921] 2
KB 403

Badges of Trade – Circumstances of

Realisation
West v Philip (1958) 38 TC 203

Badges of Trade - Motive

IRC v Reinhold (1953) 34 TC 389
The Reinhold case has to be contrasted
with Pilkington v Randall (1966) 42 TC
662
Grove v YMCA (1903) 4 TC 613

Mutual Trade
Municipal Mutual Insurance Co. v Hills
(1932) 16 TC 430
Falconbridge v National Employers’
Mutual General Insurance Association
Ltd. (1952) 33 TC 103
English & Scottish Joint Co-operative
Society Ltd. v Assam Agricultural
Income Tax Commissioner [1948] All
ER 395
Fletcher v Jamaican Commissioner of
Income Tax [1972] AC 414

Illegal Trading
Lindsay v IRC (1932) 18 TC 43 Mann v
Nash [1932] 1 KB 752
IRC v Aken [1988] STC 69
James v United States 366 U.S. 213
(1961)

Taxation of profits in discontinuance

of trade
IRC v Nelson (1938) 22 TC 716 O’Kane
& Co. v IRC (1922) 12 TC 303
IRC v Old Bush Mills Distillery Co. Ltd.
(1928) 12 TC 1148

Meaning of Trade under Ghana Law

H. Co.Ltd. v. The Commissioner of
Income Tax 1 E. A. T. C 65.

Profession or Vocation
IRC v Maxse [1919] 1 KB 647 at 656
Partridge v Mallendaine (1886) 18 QB
276

Articles
Mills, J.E.A (1978) ‘Taxation of Gains
and Profits from Isolated Transactions”,
in Vol. X Review of Ghana Law No. 1
[pp. 52-59].

Legislation
Income Tax Jurisdiction of Ghana
(Income Tax Act, 2015 Act 896)
- Source and Residence Rules – s. 3
- Income sourced from Ghana s. 105
What is employment? Who is an
employee? Emoluments from
employment (benefits in cash and in
kind) s.4 & s. 133
 Taxation of Business Income:
i. Meaning of business (trade,
profession and vocation) s.5 and s.
133
ii. Isolated transactions.
Taxation of Employment Income:
Taxation of Investment Income
s. 9 and s. 133

Lecture 4 ASCERTAINMENT OF INCOME Reference

Kunbuor, B: A Survey of the
Quite often students of tax law take it for Developments of the Law of Taxation in
granted that income is a concept everybody Ghana. (1st edn 2021), Chapters 2 and 3
understands yet this is a very problematic Kunbuor, B., Ali-Nakyea, A and
area in tax law. Therefore, this topic is Demitia, W. (2017), Law of Taxation in
designed to equip the student with an Ghana, (4th Edition) (Type Publishers)
understanding of income from capital Adjei-Djan, K: Income Tax Law in
sources. Therefore, the legal understanding Ghana, Exposition and Critique (2020)
of income is different from the economist’s (BlackMask Limited)
notion of the concept. The topic also
prepares the student’s mind on how you
proceed from an identification of income, to Cases
what income is assessable to tax and how Van den Berghs Ltd v. Clark (1935) AC
much of such income is chargeable with tax. 431 at 439
This topic also prepares the student for an Viscount Cave in British Insulated &
understanding of how one arrives at an Helsby Cables Ltd. v Atherton [1926] AC
assessable income and a chargeable income 205 at 213
in the next topic – what expenses are Vollambrosa Rubber Co. Ltd. v Farmer
allowed or not allowed under the tax British and Salinson Aero-Engineering
statutes. Ltd. v IRC
Stow Bardolph Gravel Co. Ltd. v Poole
(1954) 35 TC 459
H. J. Rorke Ltd. v IRC
Bentley and Stokes Lowless v Deeson
(1952) 33 TC 491

Travelling expenses
Rickets v Colquhoun [1926] AC 1
Newson v Robertson [1953] Ch D 7 or 33
TC 452
Pook v Owen [1970] AC 44, TC 571

Medical expenses
Murgatroyd v Evans-Jackson [1967] 1 All
ER 881; 43 TC 581
 Lucas v Cattell (1972) TR 83, 48 TC 353

Expenses on professional services

Smith’s Potato Estates Ltd. v Bollard
[1948] AC 508, 30 TC 267

Legislation
Sections, 7, 9 - 13, 16, 97 - 100 and 130 of
Income Tax Act, 2015 (Act 896).

Lecture 5 ASCERTAINMENT OF ASSESSABLE Reference

AND CHARGEABLE INCOME Kunbuor, B: A Survey of the
Developments of the Law of Taxation in
This topic seeks to draw the important Ghana. (1st edn 2021), Chapters 2 and 3
distinction between assessable income and Kunbuor, B., Ali-Nakyea, A and
chargeable income. The student is Demitia, W. (2017), Law of Taxation in
introduced to how to interpret the statutory Ghana, (4th Edition) (Type Publishers)
provisions on how a taxpayer’s tax is to be Adjei-Djan, K: Income Tax Law in
computed and how to compute the tax to be Ghana, Exposition and Critique (2020)
paid. The computation of the tax liabilities (BlackMask Limited)
of three tax entities (individuals,
partnerships and companies) are introduced
practically to the student. Articles
To compute tax liability effectively, the Adjei-Djan, K.- “Withholding Taxes”
student’s attention is drawn further to tax (2004) 1BFLJG214
reliefs (including double taxation reliefs)
exemptions and the rate of tax applicable to Cases
the three tax entities mentioned above. Whitney v IRC (1925) 10 TC 88
Because of the peculiar nature of capital
allowances as a deduction, it is treated under Taxation of Partnerships
this topic to enable the student appreciate Waddington v O’Callaghan (1931) 16 TC
how it is computed. In a nutshell, this topic 187
is devoted to computation of income tax of Saywell v. Pope [1979] STC 824
individuals and corporate bodies. O’Kane & Co v. CIT (supra)
Stekel v. Ellice [1973] 1 All ER 465

Capital allowances
Yarmouth v. France (1887) 19 Q.B.D
647 at 658
Jarold v. John Good & Sons [1963] 1 All
ER 141(moveable office partitioning)
Hinton v. Maiden and Ireland Ltd [1959]
3 All ER 356 (knives and lasts used in
manufacturing shoes)
Cooke v. Beach Station Caravans Ltd.
[1974] 3 All ER 159 (swimming pools)
Daphne v. Shaw (1926) 11 TC 256
Ross and Co. (Wallpaper and Paints) v.
Campbell(1967) 44 TC 500 (Ch D)

Withholding taxes
Taylor & Taylor Co. Ltd v Ghana
Revenue Authority Civil Appeal No.
H1/69/2016

Legislation
Sections 1- 4 of Act 896
Section 18 of Act 896
First Schedule to L.I 2244

Special Industries
Sections 63,65, 67, 71, 76, 77, 78, 79, 80,
81, 82, 83 , 87, 88, 89, 9, 97, and 100 of
Act 896
Petroleum (Exploration and Production)
Act, 2016 (Act 919)

Public, Mutual and Non-Profit causes

Sections 95-100 of Act 896

Expenses generally allowable as

deductions
Sections 9, 10, 1, 16, 23, 68, 82 and 100
of Act 896

Chargeability of Trustee, Agents,

Personal Representatives
Sections 56 and 57 of Act 896

Tax Reliefs (individuals)

Section 51 and Fifth Schedule to Act 896

Capital Allowances
Section14, Third Schedule to Act 896
and Regulation 35 of LI 2244

Withholding Taxes
Sections 71, 85, 115 and 116 of Act 896

Final Withholding Taxes

Section 119 of Act 896
 Effect of Withholding tax
Section 117(3)-(5) of Act 896

Tax Credit Certificates

Section 118 of Act 896

Rates of tax
First Schedule to Act 896

Tax Exemptions and Industry

Concessions
Sections 7 and 134; Sixth Schedule to
Act 896

Computation of Chargeable Income

of:
Employees - Section 3(4), Fourth
Schedule to Act 896, and Regulations 3-
10 of LI 2244
Self-Employed Persons - Section 1(5);
and Second Schedule to Act 896
Partners of a Partnership - Sections 53-
55 of Act 896
Companies – Sections 58-60 of Act 896

Lecture 6 REALISATION Reference

Kunbuor, B., Ali-Nakyea, A and
This topic analyses the tax treatment of Demitia, W. (2017), Law of Taxation in
assets and liabilities that change in a manner Ghana, (4th Edition) (Type Publishers)
that the law determines amounts to a taxable Adjei-Djan, K: Income Tax Law in
gain. These assets in the hands of taxable Ghana, Exposition and Critique (2020)
persons or entities attract tax consequences. (BlackMask Limited)
This topic examines the scope of realisation
under Ghanaian tax law and the various Articles
instances where the law deems an event as Mills, J.E.A.- “Taxation of Periodical or
having amounted to a realisation and worthy Deferred Payments Arising from the Sale
of tax treatment. . of Fixed Capital”. 11UGLJ 170

Cases

Legislation
Sections 15, 35, 38-62 of Act 896