TAX – Nov 2020 – L1 – SA – Q17 – Personal Income Tax (PIT)

Identify which tax subject is not covered under the Personal Income Tax Act.

Question

Which of the following does NOT relate to the provision of the Personal Income Tax Act Cap P8 LFN 2004 (as amended)?
A. Taxation of employees
B. Taxation of estates, trusts, and settlements
C. Taxation of partners
D. Taxation of sole traders
E. Taxation of limited liability companies

Answer

E. Taxation of limited liability companies

Explanation:
The Personal Income Tax Act (PITA) Cap P8 LFN 2004 covers the taxation of individuals, including employees, estates, trusts, settlements, partners, and sole traders. However, limited liability companies are not covered under PITA; they are taxed under the Companies Income Tax Act (CITA).

Tags: Nigerian Tax System, Personal income tax, PITA, Taxation Scope
Level: Level 1

Topic: Personal Income Tax
Series: NOV 2020

Uploader: Dotse