Tax Authorities – NBC Institute

ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

Question

DIY Limited was incorporated on June 12, 2010, and commenced commercial activities on October 1, 2011.
The primary activities of the company are the manufacture, distribution, and sale of solar panels for domestic use. DIY Limited has its main factory in Daura, Katsina State, Northern Nigeria, and distributors in Kaduna, Abeokuta, Onitsha, and Ilorin.

Extracts from the company’s audited financial statements for 2016 to 2018 are as follows:

Note:

20% of “other overheads” represent depreciation and amortization for each year.
Capital allowances for the respective years represent 150% of depreciation and amortization.

Chief Musa Jugula (MJ), the owner and founder of DIY Limited, owns 70% of the shares of the company while the remaining 30% shares are currently held by his three children and two wives.

Chief MJ is considering expanding into Ghana, exploring either a branch or a subsidiary model. He is also interested in the African Continental Free Trade Area agreement and its implications compared to the ECOWAS region.

Forecast financial performance for 2021 to 2023:

Required:

a. Compute the Companies Income Tax (CIT) and Tertiary Education Tax (TET) payable by DIY Limited for 2017 to 2019 years of assessment and comment on any issues you consider as enablers or hindrances to investment promotion in Nigeria. Assume a tax written-down value of qualifying capital expenditure (QCE) of ₦230 million, unutilized losses of ₦28 million, and capital allowances brought forward of ₦50 million for the 2017 year of assessment.

b. As the Managing Partner of Poknos & Co, write a brief advice to Chief Musa Jugula about the African Continental Free Trade Area agreement and how the treaty compares to that of Economic Community of West African States (ECOWAS) region from the perspective of trade in goods. Your advice should cover both opportunities and challenges that may arise from the implementation of the African Continental Free Trade Agreement. (10 Marks)

c. Advise with reasons:
i. If DIY Limited is liable to prepare and submit Country-by-Country Reports (CbCR). (5 Marks)
ii. The relevant tax authority where the Country-by-Country Reports (CbCR) should be submitted, assuming it is applicable to the company. (5 Marks)

Answer

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Topic: Taxation of Companies

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

Question

i. Briefly highlight the main features of Withholding Tax.
ii. State the relevant tax authorities in relation to Withholding Tax in Nigeria.
iii. Enumerate the contents of a Payment Schedule for the remittance of Withholding Tax.

Answer

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Tags: Income Tax, Payment Schedule, Tax Authorities, Withholding Tax
Level: Level 2

Topic: Withholding Tax (WHT)
Series: NOV 2015

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

Question

A settlement is a means by which enjoyment of an estate or part of it is transferred to another person, either through a disposition, trust or covenant, agreement, arrangement, or transition of assets by reference to a trust for the benefits of persons specified.

The term “trust” relates to an equitable obligation, binding a person, called the trustee, to deal with a property over which he/she has custody (which is called the trust property), for the benefit of persons (beneficiaries) of which he/she may be one.

Required:
a. State the relevant tax authorities of a trust or settlement and the beneficiaries.
(8 Marks)

b. State the special provisions in respect of settlement on unmarried children.
(12 Marks)

Total: 20 Marks

Answer

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Tags: Beneficiaries, Settlements, Special Provisions, Tax Authorities, Trusts, Unmarried Children
Level: Level 1

Topic: Taxation of Trusts and Estates
Series: NOV 2020

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

Question

The present economic recession in Nigeria has called for the review of the activities of every State Board of Internal Revenue. One State Government from the South West recently called for the forum of Tax Consultants. As one of the consultants, you are required to explain the following:

a. Composition of the State Board of Internal Revenue and what constitutes a quorum. (7 Marks)
b. Any THREE functions of the State Board of Internal Revenue. (6 Marks)
c. Any SEVEN taxes collectible by a State Government. (7 Marks)

Answer

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Tags: State Board of Internal Revenue, State Taxes, Tax Authorities, Tax Collection
Level: Level 2

Topic: Tax Administration and Enforcement
Series: NOV 2016

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

Question

Mr. Chukwudi, your mentee from childhood, has always been guided by your advice. He travelled to the United States to actualise his dreams. He subsequently obtained a degree in accountancy/taxation from a leading University and worked in the United States until November 30, 2016, when he returned to Nigeria. In January 2017, he attended a written interview for a post of a tax manager at the Federal Inland Revenue Service but failed the interview because of his poor knowledge of the Nigerian tax laws. Mr. Chukwudi is likely to be shortlisted for the position of inspector of taxes in his state of origin and has sought your advice on some areas of the Nigerian tax laws.

You are required to provide explanations on the following:

(a) (i) The various tiers of government and their revenue authorities, responsible for the collection of levies and taxes in Nigeria. (3 Marks)
(ii) Four specific taxes and levies collectible by different tiers of government. (6 Marks)
(iii) A resident individual in Nigeria, for a particular year of assessment. (3 Marks)

Answer

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Tags: Nigerian Tax Law, Resident Individual, Tax Authorities, Tax Collection, Tiers of Government
Level: Level 2

Topic: The Nigerian Tax System
Series: MAY 2019

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

Question

Recently, the Federal Inland Revenue Service offices across the country embarked on a nationwide sensitisation programme. At a forum organised for this purpose in one of their offices in the South West zone, consultants were invited to present papers. As one of the tax consultants, you are required to explain:
(i) Three main features of withholding tax (3 Marks)
(ii) The relevant tax authorities in relation to withholding tax in Nigeria (3 Marks)

Answer

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Tags: Tax Authorities, WHT Features, WHT in Nigeria, Withholding Tax
Level: Level 2

Topic: Withholding Tax (WHT)
Series: NOV 2018

ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

Question

Extracts from the company’s audited financial statements for 2016 to 2018 are as follows:

Note:

20% of “other overheads” represent depreciation and amortization for each year.
Capital allowances for the respective years represent 150% of depreciation and amortization.

Chief Musa Jugula (MJ), the owner and founder of DIY Limited, owns 70% of the shares of the company while the remaining 30% shares are currently held by his three children and two wives.

Forecast financial performance for 2021 to 2023:

Required:

Answer

Find Related Questions by Tags, levels, etc.

Topic: Taxation of Companies

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income Tax, Payment Schedule, Tax Authorities, Withholding Tax
Level: Level 2

Topic: Withholding Tax (WHT)
Series: NOV 2015

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

Question

Required:
a. State the relevant tax authorities of a trust or settlement and the beneficiaries.
(8 Marks)

b. State the special provisions in respect of settlement on unmarried children.
(12 Marks)

Total: 20 Marks

Answer

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Tags: Beneficiaries, Settlements, Special Provisions, Tax Authorities, Trusts, Unmarried Children
Level: Level 1

Topic: Taxation of Trusts and Estates
Series: NOV 2020

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

Question

Answer

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Tags: State Board of Internal Revenue, State Taxes, Tax Authorities, Tax Collection
Level: Level 2

Topic: Tax Administration and Enforcement
Series: NOV 2016

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

Question

You are required to provide explanations on the following:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Nigerian Tax Law, Resident Individual, Tax Authorities, Tax Collection, Tiers of Government
Level: Level 2

Topic: The Nigerian Tax System
Series: MAY 2019

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Tax Authorities, WHT Features, WHT in Nigeria, Withholding Tax
Level: Level 2

Topic: Withholding Tax (WHT)
Series: NOV 2018

Question Tag: Tax Authorities

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ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

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ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

You're reporting an error for "ATAX – May 2021 – L3 – Q1 – Taxation of Companies"

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

You're reporting an error for "TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)"

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates"

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

You're reporting an error for "TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement"

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

You're reporting an error for "TAX – May 2019 – L2 – Q3a – The Nigerian Tax System"

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

You're reporting an error for "TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)"

ATAX – May 2021 – L3 – Q1 – Taxation of Companies

Computation of CIT and TET for 2017-2019, advisory on AfCFTA impacts on trade, and evaluation of Country-by-Country Reporting obligations.

You're reporting an error for "ATAX – May 2021 – L3 – Q1 – Taxation of Companies"

TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)

This question involves highlighting the features of withholding tax and determining relevant tax authorities.

You're reporting an error for "TAX – Nov 2015 – L2 – Q5a – Withholding Tax (WHT)"

TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates

State the tax authorities of a trust or settlement and special provisions for unmarried children.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates"

TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement

Explain the composition and functions of the State Board of Internal Revenue and list taxes collectible by State Governments.

You're reporting an error for "TAX – Nov 2016 – L2 – Q2 – Tax Administration and Enforcement"

TAX – May 2019 – L2 – Q3a – The Nigerian Tax System

Explain tax collection responsibilities of different government tiers and define residency rules for tax purposes in Nigeria.

You're reporting an error for "TAX – May 2019 – L2 – Q3a – The Nigerian Tax System"

TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)

Explain the main features of withholding tax and the relevant tax authorities for WHT in Nigeria.

You're reporting an error for "TAX – Nov 2018 – L2 – SC – Q6a – Withholding Tax (WHT)"

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