- 15 Marks
TAX – May 2023 – L2 – SC – Q7 – Tax Incentives and Reliefs
Explain tax incentives and penalties for enterprises in export processing zones.
Question
The Federal Government in a bid to further boost the growth in foreign exchange earnings, create new jobs, facilitate economic diversification, industrialization, and provide access to foreign technology, came up with its export processing zones (EPZs) policy.
EPZ is regarded as a customs area where an enterprise is allowed to import plant, machinery, equipment, and raw materials, process them, and then export them to the world market, under security and without paying duty.
To facilitate a better understanding of the above assertions, the Managing Director of a would-be client approached you for explanations of the relevant provisions of the Nigerian Export Processing Zones Act Cap. N107 LFN 2004 (as amended) and Companies Income Tax Act Cap. C21 LFN 2004 (as amended).
Required:
a. Discuss SIX special tax incentives for enterprises operating in an export processing zone. (12 Marks)
b. Explain the penalties for non-compliance with section 55(1) of CITA (as amended). (3 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: CITA Penalties, Export Processing Zones, Foreign Investment, Tax Compliance
- Level: Level 2
- Topic: Tax Incentives and Reliefs
- Series: MAY 2023