Badges of Trade – Knowsia

TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

Question

a. The difficulty in determining what constitutes a trade has led to many litigations and the huge number of tax cases that exist on the issue. The problem from the decided cases is that of finding an absolute test for identifying a trade.

The conclusion had always been that there are no fixed rules but that each case could be examined on its own facts.
Required:
State FOUR considerations that influence the identification of badges of trade. (8 Marks)

b. Ndakogi Nigeria Limited commenced business in 2007. The extract of the statement of profit or loss of the company for the year ended December 31, 2021, has revealed the following:

Required:
Compute the minimum tax payable

Answer

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Tags: Badges of Trade, Minimum Tax, Nigerian Tax Law, Tax computation
Level: Level 2

Topic: Tax Administration and Enforcement
Series: MAY 2022

TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

Question

Which of the following is NOT a consideration that influences the identification of badges of trade?
A. The subject matter of the realisation
B. The length of period of ownership
C. The frequency or number of similar transactions
D. The circumstances that were responsible for the realisation
E. The date of incorporation of the company

Answer

Find Related Questions by Tags, levels, etc.

Tags: Badges of Trade, Business Activities, Business Analysis, Taxation
Level: Level 1

Topic: Tax Planning and Management
Series: MAY 2021

TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

Question

b. Ndakogi Nigeria Limited commenced business in 2007. The extract of the statement of profit or loss of the company for the year ended December 31, 2021, has revealed the following:

Required:
Compute the minimum tax payable

Answer

Find Related Questions by Tags, levels, etc.

Tags: Badges of Trade, Minimum Tax, Nigerian Tax Law, Tax computation
Level: Level 2

Topic: Tax Administration and Enforcement
Series: MAY 2022

TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Badges of Trade, Business Activities, Business Analysis, Taxation
Level: Level 1

Topic: Tax Planning and Management
Series: MAY 2021

Question Tag: Badges of Trade

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TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

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TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

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TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management"

TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement

Identify the badges of trade and compute the minimum tax payable for a given year of assessment.

You're reporting an error for "TAX – May 2022 – L2 – SA – Q6 – Tax Administration and Enforcement"

TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management

Objective question on identifying the factor that does NOT influence the identification of badges of trade.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q18 – Tax Planning and Management"

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