Advisory

Corporate Income Tax

1. Review the Company’s corporate income tax calculations for the covered tax years and any adjustments for reasonableness based on the Company’s annual corporate income tax returns provided to us. 
2. Perform a test on the Company’s tax depreciation./capital allowance calculation or any gain/loss resulting from the disposal/write off of fixed assets for each covered tax year.
3. Review relevant tax advice/opinions received by the Company and correspondence with the tax authorities to identify any material tax issues and/or disputes for the tax to be covered under the engagement.
4. Comment on the tax implications of the change in the Company’s shareholders
5. Review for adequacy of the tax provisions/assessment in the financial statements
6. Assess the tax exposures of the Company during the years under review
7. Advise on measures to mitigate the identified risk.
8. Prepare CIT file to enable the company respond and defend during a tax audit by GRA.

Withholding Taxes

1. Review of key withholding taxes/returns processes 
2. Review the Company’s withholding tax returns for the years under review.
3. Perform reconciliations between expenses subject to withholding tax recorded in the Company’s profit and loss account and withholding tax as per their withholding tax returns for the covered tax years, which may show indicate an underpayment/overpayment of tax withheld.
4. Review withholding tax rate compliance with respect to payments to both residents and non-residents.
5. Review imported services (management, professional, and technical services) including inter-company transactions to assess whether withholding tax was properly accounted for.
6. Test for withholding tax per the financial statement or management accounts as against the withholding tax payments to identify any underpayment and explanation where necessary
7. Assess the tax exposures with regards to Withholding tax non-compliance during the period under review
8. Advise on measures to mitigate the identified risk
9. Prepare WHT audit file for the records for ease of reference and information for GRA during an audit

Value Added Tax (“VAT”)

1. Conduct reconciliations between the revenue declared in VAT and LEVIES returns and the annual corporate income tax returns. 
2. Conduct test on output and input VAT and LEVIES invoices to assess whether the VAT treatment was correct and in line with the law 
3. Review of the main supplies by Company from a VAT and LEVIES perspective, in order to determine if the correct VAT treatment was applied to all supplies. 
4. Perform reconciliation of Bank Inflow and Revenue per Financial statement or management accounts to identify possible under declaration of both revenue and VAT 
5. We will comment on local compliance and detail any VAT and Levie exposures of Company. 
6. Assess the tax exposures relating to VAT and Levies non-compliance during the period under review 
7. Advise on measures to mitigate the identified risk 
8. Assist in preparation of File to enable the company respond to Audit queries during GRA Tax Audit.

Stamp Duty (where applicable)

1. We will identify any transactions within the period identify transactions which require stamp duty to be paid; 
2. We will comment on the compliance with local legislation with respect to stamp duty 
3. Advise on measures to mitigate the identified risk 

Historical tax audit assessment and correspondences with tax authority regarding the above taxes

1. Review the historical tax audit assessment status and correspondences with tax authority 
2. Identify the tax audit status of the Company (i.e. open/ closed tax years), considering the applicable statute of limitation. 
3. Review any tax final decisions obtained by the Company as a follow up action after the tax audit process. 

Transfer Pricing (If Applicable)

1. Transfer pricing documentation.
2. Understand the transfer pricing policy of the company’s and the nature of inter-company transactions and related party transactions. 
3. Review of all filed transfer pricing returns for the covered period.
4. Review the TP documentation of the company (if any).
5. Assess and comment on transfer pricing exposures with regards to filing of transfer pricing returns.
6. Advise on measures to mitigate the identified risk.

Employment Tax (PAYE)

1. Review the accuracy of monthly PAYE calculations.
2. Review the employment contracts and compare the details with actual monthly payroll information in respect of basic salary, cash and non-cash allowances and benefits in kind.
3. Review the accuracy of PAYE calculations on bonus payments (if and when applicable).
4. Compare the monthly PAYE as per our independent calculations to the actual PAYE paid to the GRA.
5. Review the dates on which payments to the tax authorities were made, to evaluate if monthly PAYE payments have been done timeously.
6. Assess and comment on tax exposures relating to PAYE non-compliance during the period under review.
7. Advise on measures to mitigate the identified risk.