Tax exemption – NBC Institute

ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

Question

Ajanaku Nigeria Limited was incorporated as a pioneer company on March 15, 2011, focusing on aluminum roofing sheets. It received a Pioneer Certificate with Production Day as July 1, 2011. Extracts from its Audited Financial Statements are as follows:

Gross dividends declared:

2013: N600,000
2014: N1,500,000

Withholding tax rate on dividends for these years is 10%. Ignore Minimum Tax provisions. The initial tax relief period was not extended.

You are required to:

Compute the tax liabilities for the relevant years of assessment relating to Pioneer Status only.
State the amount of Withholding Tax due from the shareholders. (11 Marks)

Answer

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Tags: Adjusted Profit, Dividends, Pioneer Status, Tax exemption, Withholding Tax
Level: Level 3

Topic: Tax Incentives and Reliefs

AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

Evaluate whether Singapura PTC Limited, a Singaporean company, qualifies for tax exemption in Nigeria due to the Nigeria-Singapore double taxation agreement (DTA). Outline the benefits available under the DTA to Singaporean residents and identify scenarios where the company would still be liable for tax in Nigeria.

Question

Singapura PTC Limited, a company registered in Singapore, derived various income streams from Nigeria in 2021. Following this, the Nigerian tax office issued an assessment based on the Companies Income Tax Act, prompting Singapura PTC Limited to request an objection. The company claims that, as a Singapore resident, it should not be liable for Nigerian taxes due to the double taxation agreement between Nigeria and Singapore.

Required:

Do you agree with the company, that its residence in Singapore qualifies it for tax exemption in Nigeria?
(5 Marks)
What are the benefits that may be available to a resident of Singapore under the double taxation agreement between Nigeria and Singapore?
(5 Marks)
State FIVE circumstances under which a company registered in Singapore will be liable to tax in Nigeria.
(5 Marks)

Answer

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Topic: Double Taxation Reliefs and Credits
Series: NOV 2022

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Zealow Ltd, a car battery dealer, holds 26% voting power of Aboye Ltd, an energy and power distribution company. Both companies are resident in Ghana. Aboye Ltd declared a dividend, and the portion of the dividend that should be credited to the accounts of Zealow Ltd is GH¢78,900.

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

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Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

Question

Section 7(m) of the Income Tax Act, 2015 (Act 896) as amended indicates that “the income of an individual from employment in the public service of the government of a foreign country in Ghana is exempt from tax.”

Required:

Identify FOUR (4) conditions for granting such an exemption.
(2 marks)

Answer

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Tags: Foreign Government, Public Service Employment, Tax exemption, Tax Laws
Level: Level 3

Topic: International taxation
Series: MAY 2019

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

Question

Mmabia University has written to a financial consultancy firm you work for requesting for a clarification in respect of the taxability or otherwise of its profits. The Financial Controller Bubu Moon signed the letter. It indicated that per the University’s understanding, Mmabia is not liable to tax as Government has amended the laws exempting private universities from payment of taxes.

The Financial Controller indicated in his letter that the response from your firm would be shared with other universities to take note also.

The Manager in charge of tax has invited you as his team member to respond to this request for clarification on the matter as expressed by Mmabia University to help clarify the matter better.

Required: Write a response on the clarification setting straight the tax provision on the matter and also, comment on the decision to share the response with other universities.

Answer

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Tags: Educational institutions, Private universities, Tax Administration, Tax exemption
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2020

ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

Question

Gross dividends declared:

2013: N600,000
2014: N1,500,000

Withholding tax rate on dividends for these years is 10%. Ignore Minimum Tax provisions. The initial tax relief period was not extended.

You are required to:

Compute the tax liabilities for the relevant years of assessment relating to Pioneer Status only.
State the amount of Withholding Tax due from the shareholders. (11 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjusted Profit, Dividends, Pioneer Status, Tax exemption, Withholding Tax
Level: Level 3

Topic: Tax Incentives and Reliefs

AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

Evaluate whether Singapura PTC Limited, a Singaporean company, qualifies for tax exemption in Nigeria due to the Nigeria-Singapore double taxation agreement (DTA). Outline the benefits available under the DTA to Singaporean residents and identify scenarios where the company would still be liable for tax in Nigeria.

Question

Required:

Do you agree with the company, that its residence in Singapore qualifies it for tax exemption in Nigeria?
(5 Marks)
What are the benefits that may be available to a resident of Singapore under the double taxation agreement between Nigeria and Singapore?
(5 Marks)
State FIVE circumstances under which a company registered in Singapore will be liable to tax in Nigeria.
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Topic: Double Taxation Reliefs and Credits
Series: NOV 2022

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

Question

Required:

Identify FOUR (4) conditions for granting such an exemption.
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Foreign Government, Public Service Employment, Tax exemption, Tax Laws
Level: Level 3

Topic: International taxation
Series: MAY 2019

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

Question

The Financial Controller indicated in his letter that the response from your firm would be shared with other universities to take note also.

The Manager in charge of tax has invited you as his team member to respond to this request for clarification on the matter as expressed by Mmabia University to help clarify the matter better.

Required: Write a response on the clarification setting straight the tax provision on the matter and also, comment on the decision to share the response with other universities.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Educational institutions, Private universities, Tax Administration, Tax exemption
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2020

Question Tag: Tax exemption

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ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

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ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

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AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

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PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

You're reporting an error for "TX – May 2019 – L3 – Q2b – Anti-avoidance measures"

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

You're reporting an error for "AT – May 2020 – L3 – Q5a – Tax administration in Ghana"

ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs

Calculates tax liabilities for a pioneer company and withholding tax on dividends during the pioneer period.

You're reporting an error for "ATAX – Nov 2016 – L3 – Q5b – Tax Incentives and Reliefs"

AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits

You're reporting an error for "AT – Nov 2022 – L3 – Q6 – Double Taxation Reliefs and Credits"

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

TX – May 2019 – L3 – Q2b – Anti-avoidance measures

Identify conditions for tax exemption for individuals employed in public service by foreign governments in Ghana.

You're reporting an error for "TX – May 2019 – L3 – Q2b – Anti-avoidance measures"

AT – May 2020 – L3 – Q5a – Tax administration in Ghana

Respond to Mmabia University's request for clarification on the taxability of its profits as a private university in Ghana.

You're reporting an error for "AT – May 2020 – L3 – Q5a – Tax administration in Ghana"

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