- 20 Marks
TAX – May 2021 – L1 – SB – Q3 – Personal Income Tax (PIT)
Definitions and explanations related to the taxation of employment income as per the Personal Income Tax Act.
Question
The Personal Income Tax Act Cap P8 LFN 2004 (as amended) defines employment to include any appointment or office whether public or otherwise for which remuneration is payable. An employer shall register with the relevant tax authority for the purposes of deducting income tax from its employees with or without formal notification or direction by the relevant tax authority.
Required:
a. Define an “itinerant worker”. (2 Marks)
b. Explain the conditions for taxation of income from employment. (10 Marks)
c. State the penalties payable by employers who failed to file returns of emoluments paid to employees in the preceding year on January 31, of each year, with the relevant tax authority. (8 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Employment, Itinerant Workers, Personal income tax, Tax Compliance, Tax Penalties
- Level: Level 1
- Topic: Personal Income Tax
- Series: MAY 2021
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