Income Tax Computation – NBC Institute

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

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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

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

Question

Lord Pakro was seconded to Ghana from the Crops Scientists Institute in USA as a Crop Scientist to Crop Research Institute in Ghana, for a period of 5 months, starting from 1 August, 2018. He was based at Nyankpala (Northern part of Ghana), one of the farming sites of the Crop Research Institute.

His conditions of service were as follows:
GH¢

Salary: 6,000 per month
Expatriate allowance: 2,000 per month
Risk allowance: 1,000 per month
He was provided with a furnished bungalow and a Toyota Pick-up vehicle with driver and fuel for both official and private activities.

In addition to the above, the parent company agreed to meet his commitment at home during his six-month stay in Ghana at $1,200 per month. The average exchange rate has been $1=GH¢5.00.

Required:
Determine Lord Pakro’s chargeable income and tax liability, if any, during his stay in the country. Produce the related notes guiding your determination.
(6 marks)

Answer

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Tags: chargeable income, Expatriates, Income Tax Computation, Non-Residents
Level: Level 2

Topic: Income Tax Liabilities

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

Question

a) King Peter is a Junior Staff member of Sir James Company Limited. His monthly basic salary is GH¢700.00. He was paid overtime totaling GH¢50.00 during the month of January 2019.

Required:
i) Compute his tax liability on overtime for the month of January 2019. (2 marks)

In the month of February 2019, King Peter was paid overtime totaling GH¢500.00.

ii) Compute his tax liability on the overtime payments for the month of February 2019. (3 marks)

Answer

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Tags: Employment Income, Income Tax Computation, Overtime Taxation
Level: Level 2

Topic: Income Tax Liabilities
Series: NOV 2019

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

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

Question

His conditions of service were as follows:
GH¢

In addition to the above, the parent company agreed to meet his commitment at home during his six-month stay in Ghana at $1,200 per month. The average exchange rate has been $1=GH¢5.00.

Required:
Determine Lord Pakro’s chargeable income and tax liability, if any, during his stay in the country. Produce the related notes guiding your determination.
(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: chargeable income, Expatriates, Income Tax Computation, Non-Residents
Level: Level 2

Topic: Income Tax Liabilities

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

Question

a) King Peter is a Junior Staff member of Sir James Company Limited. His monthly basic salary is GH¢700.00. He was paid overtime totaling GH¢50.00 during the month of January 2019.

Required:
i) Compute his tax liability on overtime for the month of January 2019. (2 marks)

In the month of February 2019, King Peter was paid overtime totaling GH¢500.00.

ii) Compute his tax liability on the overtime payments for the month of February 2019. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Employment Income, Income Tax Computation, Overtime Taxation
Level: Level 2

Topic: Income Tax Liabilities
Series: NOV 2019

Question Tag: Income Tax Computation

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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.

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

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.

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

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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"

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

You're reporting an error for "PT – Nov2019 – L2 – Q3c – Income Tax Liabilities"

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

You're reporting an error for "PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities"

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"

PT – Nov2019 – L2 – Q3c – Income Tax Liabilities

This question focuses on determining the chargeable income and tax liability of an expatriate working in Ghana.

You're reporting an error for "PT – Nov2019 – L2 – Q3c – Income Tax Liabilities"

PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities

Computes King Peter’s tax liability on overtime for the months of January and February 2019.

You're reporting an error for "PT – Nov 2019 – L2 – Q3a – Income Tax Liabilities"

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