- 8 Marks
TAX – May 2021 – L1 – SB – Q4a – Companies Income Tax (CIT)
Conditions for the allowability of donations under the Companies Income Tax Act.
Question
Under the provisions of Companies Income Tax Act Cap C21 LFN 2004 (as amended), for an expenditure to be allowable for tax purposes, it should be an expenditure incurred wholly, exclusively, necessarily, and reasonably in earning the income of the company. Despite the above-stated assertion, some donations are still allowable for tax purposes.
Required:
State the conditions that must be met before a donation is allowed for tax purposes.
Find Related Questions by Tags, levels, etc.
- Tags: Companies Income Tax, Donations, Tax Allowability, Tax Compliance
- Level: Level 1
- Topic: Companies Income Tax (CIT)
- Series: MAY 2021
