Investment income – NBC Institute

AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

Question

Mr. James Zonto lived in Canada for thirty years and decided to settle down permanently in Nigeria with effect from January 2007.

Based on advice from his secondary school classmate, Mr. James Zonto repatriated a huge amount of money to Nigeria. He took advantage of the better investment climate in Nigeria and acquired the following properties:

Uyo Duplex: Bought on 2 March 2008 for N25,320,000. Rental income: N855,000 per annum (net of withholding tax).
Fixed Deposit Account: Invested N14,000,000 on 4 January 2008 with Doronine Bank Plc, yielding interest (net of withholding tax) of N180,000 per month.
Onitsha Property: Acquired on 6 October 2008 for N31,500,000 with incidental expenses of N2,400,000. Annual rent: N1,800,000.
Okija House: Bought for N10,000,000 as a personal residence; not rented out.

In 2012, he decided to resettle in Toronto and took the following actions:

Uyo House: Sold for N47,450,000 after incurring the following expenses:
- Advertising: N650,000
- Valuation fees: N2,000,000
- Estate Agent’s Commission: N2,372,500
- Legal fees: N1,500,000
Fixed Deposit: Matured on 31 December 2011; not rolled over.
Onitsha Property: Sold one of the four duplexes for N14,175,000. Remaining duplexes valued at N40,500,000.
Okija House: Sold for N36,500,000 after incurring incidental expenses of N3,650,000.

Required:
(a) Compute the Total Income for Income Tax purposes for 2011 year of assessment.
(b) Compute the Capital Gains Tax payable for the relevant year of assessment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Disposal of assets, Fixed Deposit Income, Investment income, Rental Income, Tax computation
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: NOV 2014

PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

Question

The following information relates to Atta Panin:

Required:
Compute the tax payable. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Investment income, Shares, Tax computation
Level: Level 2

Topic: Taxation of Capital Gains
Series: MAR 2024

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

Question

With reference to the Income Tax Act, 2015 (Act 896):

i) State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allowable expenses, Deduction Rules, Income from Business, Income Tax Act, Investment income
Level: Level 2

Topic: Income Tax Liabilities
Series: MAR 2024

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

Question

ABC Ltd declared profit (loss) as provided for in the table below:

Required:
Explain how the unrelieved losses will be treated.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business income, Investment income, Loss relief, Unrelieved losses
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2020

AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

Question

Mr. James Zonto lived in Canada for thirty years and decided to settle down permanently in Nigeria with effect from January 2007.

Uyo Duplex: Bought on 2 March 2008 for N25,320,000. Rental income: N855,000 per annum (net of withholding tax).
Fixed Deposit Account: Invested N14,000,000 on 4 January 2008 with Doronine Bank Plc, yielding interest (net of withholding tax) of N180,000 per month.
Onitsha Property: Acquired on 6 October 2008 for N31,500,000 with incidental expenses of N2,400,000. Annual rent: N1,800,000.
Okija House: Bought for N10,000,000 as a personal residence; not rented out.

In 2012, he decided to resettle in Toronto and took the following actions:

Uyo House: Sold for N47,450,000 after incurring the following expenses:
- Advertising: N650,000
- Valuation fees: N2,000,000
- Estate Agent’s Commission: N2,372,500
- Legal fees: N1,500,000
Fixed Deposit: Matured on 31 December 2011; not rolled over.
Onitsha Property: Sold one of the four duplexes for N14,175,000. Remaining duplexes valued at N40,500,000.
Okija House: Sold for N36,500,000 after incurring incidental expenses of N3,650,000.

Required:
(a) Compute the Total Income for Income Tax purposes for 2011 year of assessment.
(b) Compute the Capital Gains Tax payable for the relevant year of assessment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Disposal of assets, Fixed Deposit Income, Investment income, Rental Income, Tax computation
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: NOV 2014

PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

Question

The following information relates to Atta Panin:

Required:
Compute the tax payable. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Investment income, Shares, Tax computation
Level: Level 2

Topic: Taxation of Capital Gains
Series: MAR 2024

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

Question

With reference to the Income Tax Act, 2015 (Act 896):

i) State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allowable expenses, Deduction Rules, Income from Business, Income Tax Act, Investment income
Level: Level 2

Topic: Income Tax Liabilities
Series: MAR 2024

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

Question

ABC Ltd declared profit (loss) as provided for in the table below:

Required:
Explain how the unrelieved losses will be treated.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business income, Investment income, Loss relief, Unrelieved losses
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2020

Question Tag: Investment income

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AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

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Question Tag: Investment income

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AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

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PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

You're reporting an error for "PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains"

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

You're reporting an error for "PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities"

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

You're reporting an error for "AT – May 2020 – L3 – Q4b – Business income – Corporate income tax"

AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)

Compute total income for 2011 tax assessment and capital gains tax for relevant year.

You're reporting an error for "AT – Nov 2014 – L3 – SC – Q7 – Capital Gains Tax (CGT)"

PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains

Compute the tax payable by Atta Panin on the sale of shares.

You're reporting an error for "PT – Mar 2024 – L2 – Q5b -Taxation of Capital Gains"

PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities

State the general and residual deduction rules governing the ascertainment of a person’s income from business and investment.

You're reporting an error for "PT – Mar 2024 – L2 – Q4a – Income Tax Liabilities"

AT – May 2020 – L3 – Q4b – Business income – Corporate income tax

Explain the treatment of unrelieved losses for ABC Ltd based on given business and investment income/loss for 2017 and 2018.

You're reporting an error for "AT – May 2020 – L3 – Q4b – Business income – Corporate income tax"

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