Foreign Taxation – NBC Institute

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

Question

Apex Communications Limited is a British company engaged in the business of transmission of messages by cable or any other form of wireless technology.

Its worldwide operating results for the year ended December 31, 2014, are as follows:

You are provided with the following information:
(i) The British Tax Authority has certified the Adjusted Profit and Depreciation allowance ratios.
(ii) Included in Overhead Expenses are disallowable items totaling ₦12,500,000.
(iii) The Federal Inland Revenue Service is satisfied that tax is computed and assessed in Britain, the home country of the foreign company, on the same basis as Nigeria.

You are required to:
Compute the Tax Liabilities payable by the company in Nigeria for the relevant assessment year. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cable Message Income, Foreign Taxation, Tax liabilities
Level: Level 3

Topic: Taxation of Non-Resident Companies and Individuals

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

Question

Sunproof International Inc. has been in the tyre manufacturing business in Nigeria and Sierra Leone for over ten years.

The Company’s operating results for the year ended 31 December 2012 were as follows:

Particulars	N
Income from Nigeria	75,000,000
Income from Sierra Leone	33,000,000
Overheads	60,000,000
Depreciation – Nigeria	6,750,000
Depreciation – Sierra Leone	1,125,000
Donations to Island Club	375,000
Foreign tax suffered	6,300,000

Other information:

Net profit attributable to the Company in Sierra Leone was N7,725,000.
Capital allowances agreed with Tax Officials for operations in Nigeria and Sierra Leone were N5,310,000 and N2,175,000 respectively.
Assume the Company is a wholly Nigerian company.

Required:
i. Identify the Double Taxation Relief available to the Company. (4 Marks)
ii. Compute the tax liability of the Company for the relevant Year of Assessment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double taxation relief, Foreign Taxation, Income Tax Computation, International Taxation, Tax Compliance, Tax Liability
Level: Level 3

Topic: Double Taxation Reliefs and Credits
Series: NOV 2014

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

Question

Apex Communications Limited is a British company engaged in the business of transmission of messages by cable or any other form of wireless technology.

Its worldwide operating results for the year ended December 31, 2014, are as follows:

You are required to:
Compute the Tax Liabilities payable by the company in Nigeria for the relevant assessment year. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cable Message Income, Foreign Taxation, Tax liabilities
Level: Level 3

Topic: Taxation of Non-Resident Companies and Individuals

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

Question

Sunproof International Inc. has been in the tyre manufacturing business in Nigeria and Sierra Leone for over ten years.

The Company’s operating results for the year ended 31 December 2012 were as follows:

Particulars	N
Income from Nigeria	75,000,000
Income from Sierra Leone	33,000,000
Overheads	60,000,000
Depreciation – Nigeria	6,750,000
Depreciation – Sierra Leone	1,125,000
Donations to Island Club	375,000
Foreign tax suffered	6,300,000

Other information:

Net profit attributable to the Company in Sierra Leone was N7,725,000.
Capital allowances agreed with Tax Officials for operations in Nigeria and Sierra Leone were N5,310,000 and N2,175,000 respectively.
Assume the Company is a wholly Nigerian company.

Required:
i. Identify the Double Taxation Relief available to the Company. (4 Marks)
ii. Compute the tax liability of the Company for the relevant Year of Assessment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double taxation relief, Foreign Taxation, Income Tax Computation, International Taxation, Tax Compliance, Tax Liability
Level: Level 3

Topic: Double Taxation Reliefs and Credits
Series: NOV 2014

Question Tag: Foreign Taxation

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Foreign Taxation

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

You're reporting an error for "ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals"

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

You're reporting an error for "AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits"

ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals

Compute the tax liabilities payable in Nigeria for Apex Communications Limited, a foreign company with income originating, routed, and terminating in Nigeria.

You're reporting an error for "ATAX – May 2016 – L3 – Q7b – Taxation of Non-Resident Companies and Individuals"

AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits

Identify double taxation relief and compute the tax liability for a Nigerian company with foreign operations.

You're reporting an error for "AT – Nov 2014 – L3 – SC – Q6a – Double Taxation Reliefs and Credits"

Our offerings

Contact Info

Customer

Get In Touch

admin