Tax Liability – NBC Institute

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

Question

ABCEE Limited has been in the business of clearing and forwarding in Nigeria since 2007. The company has a standing policy of declaring dividends to the shareholders and has continued to do so despite the dwindling business activities in recent years. The following information was extracted from the ABCEE Limited’s income tax returns submitted to the Federal Inland Revenue Service for the 2016 year of assessment:

Description	Amount (N)
Total profit per 2016 tax computation	10,899,000
Tax assessed based on total profit @ 30%	3,269,700
Dividend declared	14,000,000

Required:

As the desk officer in charge of ABCEE Limited, compute the revised tax liability of the company in line with Section 19 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended).

Answer

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Tags: Companies Income Tax, Dividend, Section 19, Tax Liability
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2019

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

Question

Trincao Ghana, a branch of Trincao International, declared a loss of GH¢500,000 in 2020. Below are the extracts from the company’s returns for the 2022 year of assessment:
Items Amount (GH¢)
Net Profit as per Accounts 20,000,000
Depreciation 82,500
Loss from 2016 49,230
Capital Allowance Agreed with GRA 95,360
Corporate tax rate is 25%.

Required:
Determine the tax payable on profit by Trincao Ghana for the 2022 year of assessment.
(10 marks)

Answer

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Tags: Capital Allowance, Corporate Tax, Depreciation, Tax Liability, Taxable Profit
Level: Level 2

Topic: Capital allowance, Corporate Tax Computation, Depreciation
Series: NOV 2023

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

Question

c) The following data is relevant to Naab Ltd tax affairs for 2018 year of assessment:

Self-assessment returns submitted:

Tax paid on self-assessment: GH¢1,000,000
Chargeable income: GH¢4,000,000
Actual Returns submitted:

Chargeable Income: GH¢6,000,000
Correct amount – Tax payable: GH¢1,500,000

Required:
What is the amount of tax underpayment to be subject to interest computation?
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Interest Computation, Self Assessment., Tax Liability, Tax Underpayment
Level: Level 2

Topic: Tax Administration
Series: NOV 2019

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

Question

b) The only tool for communicating a tax liability to a taxpayer is through a notice of assessment.

Required: What are the elements of a notice of tax assessment?
(8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Notice of Assessment, Tax Assessment, Tax Liability, Taxpayer
Level: Level 2

Topic: Tax Administration
Series: NOV 2019

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

Question

Description	Amount (N)
Total profit per 2016 tax computation	10,899,000
Tax assessed based on total profit @ 30%	3,269,700
Dividend declared	14,000,000

Required:

As the desk officer in charge of ABCEE Limited, compute the revised tax liability of the company in line with Section 19 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Income Tax, Dividend, Section 19, Tax Liability
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2019

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

Question

Required:
Determine the tax payable on profit by Trincao Ghana for the 2022 year of assessment.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Corporate Tax, Depreciation, Tax Liability, Taxable Profit
Level: Level 2

Topic: Capital allowance, Corporate Tax Computation, Depreciation
Series: NOV 2023

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

Question

c) The following data is relevant to Naab Ltd tax affairs for 2018 year of assessment:

Self-assessment returns submitted:

Tax paid on self-assessment: GH¢1,000,000
Chargeable income: GH¢4,000,000
Actual Returns submitted:

Chargeable Income: GH¢6,000,000
Correct amount – Tax payable: GH¢1,500,000

Required:
What is the amount of tax underpayment to be subject to interest computation?
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Interest Computation, Self Assessment., Tax Liability, Tax Underpayment
Level: Level 2

Topic: Tax Administration
Series: NOV 2019

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

Question

b) The only tool for communicating a tax liability to a taxpayer is through a notice of assessment.

Required: What are the elements of a notice of tax assessment?
(8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Notice of Assessment, Tax Assessment, Tax Liability, Taxpayer
Level: Level 2

Topic: Tax Administration
Series: NOV 2019

Question Tag: Tax Liability

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TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

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TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

You're reporting an error for "TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)"

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

You're reporting an error for "PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities"

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

You're reporting an error for "PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities"

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

You're reporting an error for "PT – Nov 2019 – L2 – Q1b – Tax Administration"

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

You're reporting an error for "TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)"

PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities

Computation of tax payable by a company after adjustments for depreciation, capital allowance, and brought-forward losses.

You're reporting an error for "PT – Nov 2023 – L2 – Q4b – Corporate Tax Liabilities"

PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities

Determines the amount of tax underpayment for Naab Ltd to be subjected to interest computation.

You're reporting an error for "PT – Nov 2019 – L2 – Q1c – Corporate Tax Liabilities"

PT – Nov 2019 – L2 – Q1b – Tax Administration

Describes the essential elements included in a tax assessment notice issued by the Commissioner-General.

You're reporting an error for "PT – Nov 2019 – L2 – Q1b – Tax Administration"

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Customer

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