Tax provisions – NBC Institute

CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

Question

Mr. Ojoowuro, the director of a grocery store, has noticed that the tax charge for his company is N15million on profits before tax of N105million. This is an effective rate of 14.3%. Another company, Irin Plc, has an income tax charge of N30million on profit before tax of N90million. This is an effective rate of tax of 33.3%, yet both companies state that the rate of income tax applicable to them is 25%. Mr. Ojoowuro has also noticed that in the statements of cash flows, each company has paid the same amount of tax of N24million.

Required:
Advise Mr. Ojoowuro on the possible reasons why the income tax charge in the financial statements as a percentage of the profit before tax may not be the same as the applicable income tax rate and why the tax paid in the statement of cash flows may not be the same as the tax charge in the statement of profit or loss and other comprehensive income. (7 Marks)

Answer

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Tags: Cash Flow Variances, Deferred Tax, Effective Tax Rate, Financial Statements, Income Tax, Tax adjustments, Tax provisions
Level: Level 3

Topic: Income Taxes (IAS 12)
Series: NOV 2013

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

Question

Explain the provisions of the law on cessation of business.

Answer

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Tags: Cessation of Business, Tax provisions, Trading Income
Level: Level 2

Topic: Personal Income Tax
Series: NOV 2016

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

Question

a) You have recently been employed to join Kwame Adom Consult as a tax professional. Your partner has tasked you to present a paper on the circumstances under which “Repairs and Improvement” under Act 896 (Act 2015) are capitalised and capital allowance granted.

Required:
Submit a seasoned paper on the tax provision on “Repairs and Improvement” and the conditions under which capital allowance may be granted.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Depreciable assets, Improvements, Repairs, Tax deduction, Tax provisions
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2017

CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Flow Variances, Deferred Tax, Effective Tax Rate, Financial Statements, Income Tax, Tax adjustments, Tax provisions
Level: Level 3

Topic: Income Taxes (IAS 12)
Series: NOV 2013

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

Question

Explain the provisions of the law on cessation of business.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cessation of Business, Tax provisions, Trading Income
Level: Level 2

Topic: Personal Income Tax
Series: NOV 2016

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

Question

Required:
Submit a seasoned paper on the tax provision on “Repairs and Improvement” and the conditions under which capital allowance may be granted.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Allowance, Depreciable assets, Improvements, Repairs, Tax deduction, Tax provisions
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2017

Question Tag: Tax provisions

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CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

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CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

You're reporting an error for "CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)"

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

You're reporting an error for "TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)"

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

You're reporting an error for "AT – May 2017 – L3 – Q5a – Business income – Corporate income tax"

CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)

Discuss reasons for variances in effective tax rates and differences between tax charges and tax payments.

You're reporting an error for "CR – Nov 2014 – L3 – SB – Q2b – Income Taxes (IAS 12)"

TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)

Explain the legal provisions on the cessation of business.

You're reporting an error for "TAX – Nov 2016 – L2 – Q1b – Personal Income Tax (PIT)"

AT – May 2017 – L3 – Q5a – Business income – Corporate income tax

Submit a paper explaining the tax provisions on repairs and improvements and the conditions under which capital allowance may be granted.

You're reporting an error for "AT – May 2017 – L3 – Q5a – Business income – Corporate income tax"

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