Loss relief – NBC Institute

TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

Question

Gab Pal Limited commenced business on 1 May 2008. The company makes up its accounts to 31 August each year. Below is the data for the company’s trading activities:

Year	Adjusted Profit/Loss (₦’000)
Period ended 31 August 2009 (16 months)	(390,000)
Year ended 31 August 2010	170,000
Year ended 31 August 2011	150,000

The capital allowances for the relevant assessment years are as follows:

Assessment Year	Capital Allowance (₦’000)
2008	20,000
2009	18,000
2010	12,000
2011	8,000
2012	5,000

Requirements:

a. Determine the basis periods and the tax liabilities for the relevant years. (Ignore the Taxpayer’s right of election) (10 Marks)

b. State the TWO types of Loss reliefs acceptable to the tax authority. (2 Marks)

c. State the conditions that must be satisfied by a taxpayer to enjoy the loss reliefs stated in (b). (5 Marks)

d. State the conditions for the grant of Capital Allowances to taxpayers

Answer

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Tags: Basis Period, Capital Allowance, Loss relief, Tax liabilities
Level: Level 2

Topic: Companies Income Tax (CIT), Tax Administration and Enforcement
Series: NOV 2014

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

Question

A company that makes a loss from its trade or business is entitled to relieve such loss by carrying it forward for set-off against the assessable profits of subsequent assessment years commencing from the year following that in which the loss occurs.

Required:
Explain current year loss relief and carry forward loss relief.
(8 Marks)

Answer

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Tags: Carry Forward Loss, Current Year Loss, Loss relief, Tax Set-Off
Level: Level 1

Topic: Tax Incentives and Reliefs
Series: NOV 2020

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

Question

Explain FIVE rules governing loss relief for companies.

Answer

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Tags: Corporate Losses, Loss relief, Tax Rules
Level: Level 2

Topic: Tax Incentives and Reliefs
Series: NOV 2021

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

Question

Ajani-Ogun Ventures Limited was incorporated on February 1, 2012, and commenced business on September 1, 2013. The company makes up accounts to August 31, every year. The following additional information is provided:

Adjusted (loss)/profit:
- Year ended August 31, 2017: (N95,000)
- Year ended August 31, 2018: N55,000
- Year ended August 31, 2019: N35,000
- Year ended August 31, 2020: N65,000
Capital Allowances for each year of assessment:
- Year ended August 31, 2018: N6,500
- Year ended August 31, 2019: N5,000
- Year ended August 31, 2020: N4,200
- Year ended August 31, 2021: N4,000

The Finance Director was worried that the tax officials would soon conduct a tax
audit of their financial transactions and he wanted to know the tax liabilities
payable to the Federal Inland Revenue Service for the relevant assessment years.
During the year ended August 31, 2020, the company achieved a revenue of
N20,000,000.

Required:
a. Compute the income tax for 2018 to 2021 years of assessment, taking into consideration the provisions of the Finance Act, 2019. Ignore minimum tax computation. (15 Marks)

Answer

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Tags: Capital allowances, Corporate Tax, Income Tax, Loss relief
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: NOV 2021

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

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

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

TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

Question

Gab Pal Limited commenced business on 1 May 2008. The company makes up its accounts to 31 August each year. Below is the data for the company’s trading activities:

Year	Adjusted Profit/Loss (₦’000)
Period ended 31 August 2009 (16 months)	(390,000)
Year ended 31 August 2010	170,000
Year ended 31 August 2011	150,000

The capital allowances for the relevant assessment years are as follows:

Assessment Year	Capital Allowance (₦’000)
2008	20,000
2009	18,000
2010	12,000
2011	8,000
2012	5,000

Requirements:

a. Determine the basis periods and the tax liabilities for the relevant years. (Ignore the Taxpayer’s right of election) (10 Marks)

b. State the TWO types of Loss reliefs acceptable to the tax authority. (2 Marks)

c. State the conditions that must be satisfied by a taxpayer to enjoy the loss reliefs stated in (b). (5 Marks)

d. State the conditions for the grant of Capital Allowances to taxpayers

Answer

Find Related Questions by Tags, levels, etc.

Tags: Basis Period, Capital Allowance, Loss relief, Tax liabilities
Level: Level 2

Topic: Companies Income Tax (CIT), Tax Administration and Enforcement
Series: NOV 2014

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

Question

Required:
Explain current year loss relief and carry forward loss relief.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Carry Forward Loss, Current Year Loss, Loss relief, Tax Set-Off
Level: Level 1

Topic: Tax Incentives and Reliefs
Series: NOV 2020

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

Question

Explain FIVE rules governing loss relief for companies.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Losses, Loss relief, Tax Rules
Level: Level 2

Topic: Tax Incentives and Reliefs
Series: NOV 2021

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

Question

Adjusted (loss)/profit:
- Year ended August 31, 2017: (N95,000)
- Year ended August 31, 2018: N55,000
- Year ended August 31, 2019: N35,000
- Year ended August 31, 2020: N65,000
Capital Allowances for each year of assessment:
- Year ended August 31, 2018: N6,500
- Year ended August 31, 2019: N5,000
- Year ended August 31, 2020: N4,200
- Year ended August 31, 2021: N4,000

Required:
a. Compute the income tax for 2018 to 2021 years of assessment, taking into consideration the provisions of the Finance Act, 2019. Ignore minimum tax computation. (15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital allowances, Corporate Tax, Income Tax, Loss relief
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: NOV 2021

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: Loss relief

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TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

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.

TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

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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TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

You're reporting an error for "TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)"

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs"

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

You're reporting an error for "TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs"

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

You're reporting an error for "TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)"

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"

TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)

Determine basis periods, tax liabilities, and conditions for loss reliefs and capital allowances for Gab Pal Limited.

You're reporting an error for "TAX – Nov 2014 – L2 – Q3 – Companies Income Tax (CIT)"

TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs

Explain current year loss relief and carry forward loss relief.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q1b – Tax Incentives and Reliefs"

TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs

Explanation of the rules governing loss relief for companies, including carry forward, loss limitation, and cessation rules.

You're reporting an error for "TAX – Nov 2021 – L2 – Q4b – Tax Incentives and Reliefs"

TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)

Computation of income tax payable for Ajani-Ogun Ventures Limited from 2018 to 2021 years of assessment.

You're reporting an error for "TAX – Nov 2021 – L2 – Q4a – Companies Income Tax (CIT)"

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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