Tax Practitioners – NBC Institute

AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

Question

YASSAR LIMITED imports baby wears and has been in business for some years now. The company is doing very well, and the Directors are impressed with the growth. The company’s Managing Director, Chief Agbaegonkiti, is a member of Enugu Sports Club. On January 14, 2015, after the morning aerobics in the club’s gym, a friend of Chief Agbaegonkiti, who is also the Finance Director of a trading outfit, narrated how the company he works for was subjected to a Tax Audit by the Federal Inland Revenue Service (FIRS), which resulted in payment of additional tax liabilities totaling N10.5 million.

The Finance Director attributed their company’s ordeal to the Board’s poor understanding of key tax-related issues. Chief Agbaegonkiti, after listening to his friend, was highly worried about such a fate befalling his company. As a proactive move, he enquired for seasoned tax practitioners, and your firm, Cutting-Edge & Co, Chartered Accountants, was referred to him.

As the Managing Partner, you are to take action and address the following:

REQUIRED:

a. Briefly explain what you understand by the terms Tax Avoidance and Tax Evasion. (2 marks)

b. State FIVE differences between Tax Avoidance and Tax Evasion. (5 marks)

c. Outline the key stages in the Tax Audit process. (3 marks)

d. State SIX objectives of a Tax Audit exercise. (5 marks)

Answer

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Tags: Tax Audit, Tax avoidance, Tax Evasion, Tax Exercise, Tax Practitioners
Level: Level 3

Topic: Tax Audits and Investigations

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

Question

When undertaking a professional activity, a tax practitioner may be faced with a conflict of interest when he:
A. Undertakes a professional service for a group of companies as per his brief
B. Undertakes a professional service for a new client
C. Undertakes a professional activity relating to a particular matter for two or more clients whose interests with respect to that matter are in conflict
D. Refuses to undertake a professional activity relating to a particular matter for two or more clients whose interests with respect to that matter are in conflict
E. Undertakes a professional activity relating to separate and distinct services for two different clients

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Interests, Conflict of Interest, Ethics, Professional Activity, Tax Practitioners
Level: Level 1

Topic: Ethical Issues in Tax Practice
Series: MAY 2021

AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

Question

As the Managing Partner, you are to take action and address the following:

REQUIRED:

a. Briefly explain what you understand by the terms Tax Avoidance and Tax Evasion. (2 marks)

b. State FIVE differences between Tax Avoidance and Tax Evasion. (5 marks)

c. Outline the key stages in the Tax Audit process. (3 marks)

d. State SIX objectives of a Tax Audit exercise. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Tax Audit, Tax avoidance, Tax Evasion, Tax Exercise, Tax Practitioners
Level: Level 3

Topic: Tax Audits and Investigations

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Interests, Conflict of Interest, Ethics, Professional Activity, Tax Practitioners
Level: Level 1

Topic: Ethical Issues in Tax Practice
Series: MAY 2021

Question Tag: Tax Practitioners

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AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

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AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

You're reporting an error for "AT – May 2016 – L3 – Q6 – Tax Audits and Investigations"

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice"

AT – May 2016 – L3 – Q6 – Tax Audits and Investigations

Define tax avoidance and evasion, outline the differences, and explain key stages and objectives of a tax audit.

You're reporting an error for "AT – May 2016 – L3 – Q6 – Tax Audits and Investigations"

TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice

Objective question about when a tax practitioner might face a conflict of interest in a professional activity.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q6 – Ethical Issues in Tax Practice"

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