- 5 Marks
ATAX – Nov 2018 – L3 – Q4b – Capital Gains Tax (CGT)
Computation of capital gains tax for jewelry sold on installment with multiple assessment years.
Question
(b) Fidelis Agom recently decided to relocate to Sweden as a result of a new appointment offered to him by a multinational company. His wife, Chioma, decided to sell all her jewelry, which she acquired for a sum of N6.3 million. The buyer, Chief Mrs. Ngozi Danladi, was unable to pay immediately the sum of N8.4 million. She therefore decided to enter into a sale agreement with Chioma Agom to pay in four installments within an interval of three months as follows:
- N3.5 million
- N2.1 million
- N2.1 million
- N0.7 million
The first installment was paid on November 10, 2013, which was the day of the sale.
You are required to:
Compute the capital gains tax for the relevant years of assessment.
(5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Assessment Year, Capital gains tax, Installment Payment, Jewelry Sale, Tax computation
- Level: Level 3
- Topic: Capital Gains Tax (CGT)
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