- 15 Marks
Question
Gringrin Nigeria Limited is proposing to embark on two courses of action:
i) Change its accounting date from March 31 to June 30; or
ii) Change its accounting date from March 31 to December 31.
The adjusted profits in each scenario are as follows:
- Change to June 30:
| Period | Adjusted Profits (N’000) |
|---|---|
| Year ended March 31, 2011 | 30,000 |
| Year ended March 31, 2012 | 33,000 |
| Period ended June 30, 2013 (15 months) | 78,000 |
| Year ended June 30, 2014 | 34,000 |
- Change to December 31:
| Period | Adjusted Profits (N’000) |
|---|---|
| Year ended March 31, 2011 | 50,000 |
| Year ended March 31, 2012 | 60,000 |
| Period ended December 31, 2013 (21 months) | 180,000 |
| Year ended December 31, 2014 | 70,000 |
As the Tax Consultant, you are required to:
Compute the relevant tax liabilities. (15 Marks)
Answer
(b)
GRINGRIN NIGERIA LIMITED
COMPUTATION OF TAX LIABILITIES
ASSESSMENT YEARS 2013, 2014 and 2015
- Tags: Accounting Date Change, Adjusted Profit, Basis Period, Corporate Tax, Tax implications
- Level: Level 3
- Uploader: Kofi