Dividend tax – NBC Institute

ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

Question

For the assessment year 2018, below are the extracts from the tax computations of Alaba Trading Limited:

Item	Amount (₦)
Assessable profit	8,200,000
Capital allowances	5,400,000
Dividend payable	6,000,000

Required:
Determine the total tax liabilities of Alaba Trading Limited for the assessment year.

Answer

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Tags: Capital allowances, Corporate Tax, Dividend tax, Tax computation, Tax liabilities
Level: Level 3

Topic: Corporate Tax Compliance and Reporting

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

Question

Manla Ltd, since its incorporation, has been providing Mining Support Services (MSS) in line with its mandate, and the following is relevant to its operations for the 2017 year of assessment:

Details	GH¢
Chargeable income	240,000,000
Loss from investment deducted in arriving at the chargeable income	700,000
Dividend (gross) received from A Ltd (a mining company) where Manla Ltd has 26% voting power	20,000
Provision for bad debts written off	400,000
Tax loss from 2014 deducted	20,000
Net dividend received from a US-based company after 5% withholding tax	9,500
Items worth GH¢ 60,000 granted to a powerful shareholder were adjusted in arriving at chargeable income	60,000

(Note: Manla Ltd has a basis period from January to December.)

Required:
i) Compute the taxes payable by Manla Ltd. (6 marks)
ii) Comment on the treatment of the investment loss of GH¢700,000. (2 marks)

Answer

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Tags: chargeable income, Dividend tax, Mining Support Services, Tax computation, Tax Losses
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2018

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

Question

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

Answer

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Tags: Bonus issue, Dividend tax, Retained Earnings, Withholding Tax
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2015

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

Question

In order to increase its stated capital, XYZ Ltd transferred an amount from its income surplus account. As a tax advisor, identify the types of taxes XYZ Ltd is exposed to on the above arrangement.

(4 marks)

Answer

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Tags: Corporate Tax, Dividend tax, Stamp Duty
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2017

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

Question

a) CJA Ltd is a resident company engaged in Real Estate Business. As part of efforts to diversify its operations, it plans to acquire interest in Don-bill Ltd, another resident company. At the last AGM held on 4th March 2017, some Shareholders were of the view that CJA should acquire 15% of the shares of Don-bill Ltd.

The Managing Director of CJA was of the view that the Company should rather invest and acquire 25% shares to give it enormous influence in Don-bill Ltd.

Your firm has been identified to give a professional advice on the two proposals to help in decision making.

Required:
What is the tax implication on the two proposals and which proposal will you advise CJA Ltd to adopt to leverage on the tax benefits.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Dividend tax, Investment decisions, Resident companies, Share Acquisition, Tax Benefits
Level: Level 3

Series: MAY 2017

ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

Question

For the assessment year 2018, below are the extracts from the tax computations of Alaba Trading Limited:

Item	Amount (₦)
Assessable profit	8,200,000
Capital allowances	5,400,000
Dividend payable	6,000,000

Required:
Determine the total tax liabilities of Alaba Trading Limited for the assessment year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital allowances, Corporate Tax, Dividend tax, Tax computation, Tax liabilities
Level: Level 3

Topic: Corporate Tax Compliance and Reporting

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

Question

Manla Ltd, since its incorporation, has been providing Mining Support Services (MSS) in line with its mandate, and the following is relevant to its operations for the 2017 year of assessment:

Details	GH¢
Chargeable income	240,000,000
Loss from investment deducted in arriving at the chargeable income	700,000
Dividend (gross) received from A Ltd (a mining company) where Manla Ltd has 26% voting power	20,000
Provision for bad debts written off	400,000
Tax loss from 2014 deducted	20,000
Net dividend received from a US-based company after 5% withholding tax	9,500
Items worth GH¢ 60,000 granted to a powerful shareholder were adjusted in arriving at chargeable income	60,000

(Note: Manla Ltd has a basis period from January to December.)

Required:
i) Compute the taxes payable by Manla Ltd. (6 marks)
ii) Comment on the treatment of the investment loss of GH¢700,000. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: chargeable income, Dividend tax, Mining Support Services, Tax computation, Tax Losses
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2018

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

Question

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bonus issue, Dividend tax, Retained Earnings, Withholding Tax
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2015

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

Question

In order to increase its stated capital, XYZ Ltd transferred an amount from its income surplus account. As a tax advisor, identify the types of taxes XYZ Ltd is exposed to on the above arrangement.

(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Dividend tax, Stamp Duty
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2017

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

Question

The Managing Director of CJA was of the view that the Company should rather invest and acquire 25% shares to give it enormous influence in Don-bill Ltd.

Your firm has been identified to give a professional advice on the two proposals to help in decision making.

Required:
What is the tax implication on the two proposals and which proposal will you advise CJA Ltd to adopt to leverage on the tax benefits.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Taxation, Dividend tax, Investment decisions, Resident companies, Share Acquisition, Tax Benefits
Level: Level 3

Series: MAY 2017

Question Tag: Dividend tax

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ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

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ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

You're reporting an error for "ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting"

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

You're reporting an error for "AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax"

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

You're reporting an error for "AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax"

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

You're reporting an error for "AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax"

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

You're reporting an error for "AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization"

ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting

Compute the total tax liabilities for Alaba Trading Limited for the 2018 assessment year, considering its assessable profit, capital allowances, and dividend payable.

You're reporting an error for "ATAX – May 2019 – L3 – Q7b – Corporate Tax Compliance and Reporting"

AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax

Computation of taxes payable by a mining support services company, including adjustments for dividends, tax losses, and investment deductions.

You're reporting an error for "AT – Nov 2018 – L3 – Q5b – Business income – Corporate income tax"

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

You're reporting an error for "AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax"

AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax

Identifying tax exposure on transfer from income surplus to stated capital.

You're reporting an error for "AT – Nov 2017 – L3 – Q3c – Business income – Corporate income tax"

AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization

Discuss the tax implications of acquiring either 15% or 25% of shares in another resident company and recommend the best option for tax benefits.

You're reporting an error for "AT – May 2017 – L3 – Q3a – Mergers, amalgamation, and reorganization"

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