Memorandum of Understanding

ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

Question

i. Describe briefly your understanding of the term “Memorandum of Understanding” as it applies to Petroleum Profits Tax computation. (3 Marks)

ii. State FOUR highlights of the Year 2000 Memorandum of Understanding. (4 Marks)

Answer

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Tags: Memorandum of Understanding, Petroleum Profits Tax, Tax computation
Level: Level 3

Topic: Petroleum Profits Tax (PPT)

AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

Question

a. Outline FIVE objectives of the Memorandum of Understanding which the Federal Government of Nigeria entered into with the Oil Producing Companies on January 1, 1986.

b. SALIM CONSULTANTS LIMITED, incorporated in 2012, is a corporate advisory firm in Nigeria. In 2015, it expanded to Burundi to explore business opportunities there. The directors are interested in the Double Taxation Agreement but have not benefited from it before.

Below is a summary of the Income Statements for the year ended December 31, 2016:

Description	Nigeria (N)	Burundi (N)	Total (N)
Gross Advisory fees	57,000,000	21,750,000	78,750,000
Other Income	960,000	1,800,000	2,760,000
Total	57,960,000	23,550,000	81,510,000
Deduct Expenses:
Deal Execution Expenses	(30,225,000)	(9,750,000)	(39,975,000)
Office Rent	(1,800,000)	(675,000)	(2,475,000)
Depreciation	(5,100,000)	(2,700,000)	(7,800,000)
Loss on sale of Non-Current Assets	–	(525,000)	(525,000)
Foreign Exchange Loss Provision	(960,000)	–	(960,000)
Other Operating Expenses	(3,240,000)	(1,380,000)	(4,620,000)
Net Operating Profit	16,635,000	8,520,000	25,155,000

Additional information:
(i) N2,130,000 was paid to the Burundi Tax Authority after claiming N4,800,000 Capital Allowance. Capital Allowance claimable in Nigeria was N7,800,000.
(ii) Other income of N960,000 is profit from the sale of Non-Current Assets, while N1,800,000 is gains from the disposal of securities.

Required:
a. Explain briefly what is meant by Double Taxation Relief.
b. Compute the Double Tax Credit claimable by the Company assuming there is a Double Taxation Agreement with Burundi.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double Taxation, Memorandum of Understanding, Tax computation, Tax Credit
Level: Level 3

Topic: Double Taxation Reliefs and Credits
Series: NOV 2017

ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

Question

i. Describe briefly your understanding of the term “Memorandum of Understanding” as it applies to Petroleum Profits Tax computation. (3 Marks)

ii. State FOUR highlights of the Year 2000 Memorandum of Understanding. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Memorandum of Understanding, Petroleum Profits Tax, Tax computation
Level: Level 3

Topic: Petroleum Profits Tax (PPT)

AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

Question

a. Outline FIVE objectives of the Memorandum of Understanding which the Federal Government of Nigeria entered into with the Oil Producing Companies on January 1, 1986.

Below is a summary of the Income Statements for the year ended December 31, 2016:

Description	Nigeria (N)	Burundi (N)	Total (N)
Gross Advisory fees	57,000,000	21,750,000	78,750,000
Other Income	960,000	1,800,000	2,760,000
Total	57,960,000	23,550,000	81,510,000
Deduct Expenses:
Deal Execution Expenses	(30,225,000)	(9,750,000)	(39,975,000)
Office Rent	(1,800,000)	(675,000)	(2,475,000)
Depreciation	(5,100,000)	(2,700,000)	(7,800,000)
Loss on sale of Non-Current Assets	–	(525,000)	(525,000)
Foreign Exchange Loss Provision	(960,000)	–	(960,000)
Other Operating Expenses	(3,240,000)	(1,380,000)	(4,620,000)
Net Operating Profit	16,635,000	8,520,000	25,155,000

Required:
a. Explain briefly what is meant by Double Taxation Relief.
b. Compute the Double Tax Credit claimable by the Company assuming there is a Double Taxation Agreement with Burundi.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Double Taxation, Memorandum of Understanding, Tax computation, Tax Credit
Level: Level 3

Topic: Double Taxation Reliefs and Credits
Series: NOV 2017

Question Tag: Memorandum of Understanding

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ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

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ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

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AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

You're reporting an error for "AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits"

ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)

Explain "Memorandum of Understanding" in PPT computation and highlight the Year 2000 MOU details.

You're reporting an error for "ATAX – May 2017 – L3 – Q7b – Petroleum Profits Tax (PPT)"

AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits

Outline objectives of the MOU with oil companies and compute double tax credit for Salim Consultants.

You're reporting an error for "AT – Nov 2017 – L3 – Q3 – Double Taxation Reliefs and Credits"

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