- 15 Marks
AT – May – 2018 – L3 – SC – Q7 – Tax Incentives and Reliefs
Information on corporate tax reliefs and incentives, with specific focus on start-ups and export-oriented businesses in Nigeria.
Question
Mr. Nwatakaibeya, who studied in Germany and had been working there for over 20 years, finally returned to Nigeria in 2015. He has saved some funds to start a new business and incorporated Nwatakaibeya Investments Limited in January 2016. However, since his return, he has been overwhelmed by reports of start-up and existing businesses that shut down due to harsh economic conditions.
He has read in newspapers that, as part of the government’s commitment to improve the ease of doing business in Nigeria, the Federal Government has periodically reviewed and enhanced reliefs and incentives available to corporate taxpayers. This has given him hope, and he is eager to gather more information to avoid potential challenges.
Given his concerns about the current business environment in Nigeria:
a. Explain briefly SIX reliefs and incentives available to corporate taxpayers. (12 Marks)
b. Outline THREE conditions a company must fulfill to qualify for tax incentives for export-oriented business. (3 Marks)
(Total 15 Marks)
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