VAT Compliance – NBC Institute

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

Question

HIDDEN TREASURES Limited is an agro-allied and trading organisation which specialises in Crop and Grain production, Animal husbandry, Sale and distribution of Grains (i.e. cowpeas, guinea corn, millet, rice, beans and groundnuts).

The company has been in business for many years and it has been filing annual Income Tax returns regularly except VAT returns. On 16 March 2015, the Federal Inland Revenue Service (FIRS) served a notice of Tax Audit covering 2010 – 2014 financial years.

The management believed erroneously that since it deals in VAT exempt goods, it did not need to file VAT returns on a monthly basis.

In preparation for the visit of the FIRS, the company’s management invited you on 23 March 2015, to their office and gave you the following extracts from the company’s Statement of Comprehensive Income and agreed Capital Allowances:

Year ended	Agric Production (₦)	Grain Distribution (₦)
Year ended 30/09/2010	Loss (770,000)	(225,000)
Year ended 30/09/2011	Profit 630,000	280,000
Year ended 30/09/2012	Loss (600,000)	(150,000)
Year ended 30/09/2013	Profit 990,000	140,000
Year ended 30/09/2014	Profit 30,000	120,000

Agreed Capital Allowances are as follows:

Tax Year	Capital Allowance (₦)
2011	70,000
2012	65,000
2013	125,000
2014	115,750
2015	85,000

You are required to:

a. State the provisions of the VAT law with regard to rendition of returns by Vatable persons. (2 Marks)

b. Show by analysis the amount of losses carried forward under each income head shown above. (8 Marks)

c. Compute the tax liabilities for each year. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agricultural Production, Capital Allowance, Grain Distribution, Loss Carried Forward, Tax liabilities, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: MAY 2015

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

Question

Mr. Danko Chinyere, who has worked in a neighboring African country for many years, returned to Nigeria in August 2018. He incorporated a private limited liability company known as ChiDan Limited located in Lagos on October 30, 2018. The company deals in processing and packaging of plantain chips for local consumption.

The directors of the company opened a business bank account with one of the leading commercial banks in November 2018. The company commenced full operations on January 2, 2019.

Your firm, Adama & Co., was appointed as the tax consultant to ChiDan Limited in January 2021. At the first engagement meeting with the company, you discovered that the company was yet to register with the Federal Inland Revenue Service (FIRS). Relevant taxes, including value-added tax (VAT), were not remitted to FIRS.

An extract of the company’s first set of financial statements made up to December 31, 2020, is as follows:

Required:
Advise management of the company on the following:
a. Due date for submission of audited financial statements to the tax office. (2 Marks)
b. Requirements for filing of VAT returns and remittance of VAT liabilities – Section 16 of VAT Act (as amended). (4 Marks)
c. Basis of assessment on commencement of business – Section 29 (3) of CITA
(as amended) (6 Marks)
d. The income tax liabilities payable for the relevant year of assessment
(18 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Commencement Rules, Corporate Tax, Nigerian Tax Law, Tax Filing, VAT Compliance
Level: Level 2

Topic: The Nigerian Tax System
Series: MAY 2022

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

Question

Under what condition are goods applied for own consumption treated as supply of goods?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Own Consumption, Supply of Goods, VAT, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties
Series: NOV 2021

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

Question

There are circumstances where a taxable supply by a taxable person will require adjustment so that the trader pays the required taxes to the Ghana Revenue Authority.

Required:
Explain THREE (3) of such circumstances.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Taxable Supply, Taxable Value, VAT Adjustments, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties
Series: NOV 2021

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

Question

Mr. Patapaa commenced trading on 1 April 2017 and has made the following sales:

Period	Monthly Sales (GH¢)
April to June 2017	29,500
July to September 2017	12,200
October to December 2017	21,500

These figures are stated exclusive of Value Added Tax (VAT). Mr. Patapaa’s sales are all taxable activities.

As a trainee Chartered Accountant, you have advised Patapaa in writing that he should be registered for VAT, but he has refused to register because he thinks his net profit is insufficient to cover the additional cost.

Required:
i) Explain what period Mr. Patapaa was required to compulsorily register for VAT and the implications of continuing to trade after this period without registering. (2 marks)
ii) What are the sanctions for failure to register for VAT? (4 marks)
iii) Briefly explain from an ethical viewpoint the issues you, as a trainee Chartered Accountant, should consider to deal with Mr. Patapaa’s refusal to register for VAT. (2 marks)
iv) State the activities or persons that are exceptions to the normal threshold rules. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Tax Ethics, Threshold Rules, VAT Compliance, VAT Penalties, VAT Registration
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2018

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

Question

The management believed erroneously that since it deals in VAT exempt goods, it did not need to file VAT returns on a monthly basis.

Year ended	Agric Production (₦)	Grain Distribution (₦)
Year ended 30/09/2010	Loss (770,000)	(225,000)
Year ended 30/09/2011	Profit 630,000	280,000
Year ended 30/09/2012	Loss (600,000)	(150,000)
Year ended 30/09/2013	Profit 990,000	140,000
Year ended 30/09/2014	Profit 30,000	120,000

Agreed Capital Allowances are as follows:

Tax Year	Capital Allowance (₦)
2011	70,000
2012	65,000
2013	125,000
2014	115,750
2015	85,000

You are required to:

a. State the provisions of the VAT law with regard to rendition of returns by Vatable persons. (2 Marks)

b. Show by analysis the amount of losses carried forward under each income head shown above. (8 Marks)

c. Compute the tax liabilities for each year. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agricultural Production, Capital Allowance, Grain Distribution, Loss Carried Forward, Tax liabilities, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: MAY 2015

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

Question

The directors of the company opened a business bank account with one of the leading commercial banks in November 2018. The company commenced full operations on January 2, 2019.

An extract of the company’s first set of financial statements made up to December 31, 2020, is as follows:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Commencement Rules, Corporate Tax, Nigerian Tax Law, Tax Filing, VAT Compliance
Level: Level 2

Topic: The Nigerian Tax System
Series: MAY 2022

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

Question

Under what condition are goods applied for own consumption treated as supply of goods?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Own Consumption, Supply of Goods, VAT, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties
Series: NOV 2021

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

Question

There are circumstances where a taxable supply by a taxable person will require adjustment so that the trader pays the required taxes to the Ghana Revenue Authority.

Required:
Explain THREE (3) of such circumstances.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana Revenue Authority, Taxable Supply, Taxable Value, VAT Adjustments, VAT Compliance
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties
Series: NOV 2021

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

Question

Mr. Patapaa commenced trading on 1 April 2017 and has made the following sales:

Period	Monthly Sales (GH¢)
April to June 2017	29,500
July to September 2017	12,200
October to December 2017	21,500

These figures are stated exclusive of Value Added Tax (VAT). Mr. Patapaa’s sales are all taxable activities.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Tax Ethics, Threshold Rules, VAT Compliance, VAT Penalties, VAT Registration
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2018

Question Tag: VAT Compliance

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: VAT Compliance

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

You're reporting an error for "TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)"

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

You're reporting an error for "TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System"

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

You're reporting an error for "PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties"

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

You're reporting an error for "PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties"

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

You're reporting an error for "AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana"

TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)

Analyze VAT compliance, loss carry forward, and compute tax liabilities for Hidden Treasures Limited based on provided financial data.

You're reporting an error for "TAX – May 2015 – L2 – SC – Q6 – Value-Added Tax (VAT)"

TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System

Discuss the tax filing obligations and implications of non-compliance for a new company, covering both corporate tax and VAT.

You're reporting an error for "TAX – May 2022 – L2 – SA – Q1 – The Nigerian Tax System"

PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties

Explain under what condition goods applied for own consumption are treated as supply of goods.

You're reporting an error for "PT – Nov 2021 – L2 – Q2c – Value-Added Tax (VAT), Customs, and Excise Duties"

PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the circumstances under which a taxable supply requires an adjustment in taxable value.

You're reporting an error for "PT – Nov 2021 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties"

AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana

Explanation of VAT registration period and consequences of failure to register, including ethical considerations and VAT exemptions.

You're reporting an error for "AT – Nov 2018 – L3 – Q4a – Tax administration in Ghana"

Our offerings

Contact Info

Customer

Get In Touch

admin