- 5 Marks
Question
An individual who is required to furnish the Commissioner-General (CG) with a return in relation to a gift has to do so to enable the CG subject it to appropriate tax.
Required:
Explain the treatment of a gift not received under employment or business.
Answer
An individual who receives a gift not related to employment or business can elect to have the market value of the gift taxed separately at a flat rate of 15%. The individual must furnish the Commissioner-General with a written return within 30 days of receiving the gift. The return is necessary to include the gift in the calculation of profits and gains of the individual, as required by the Income Tax (Amendment) (No. 2) Act, 2016 (Act 924)
- Tags: Business income, Employment Income, Gift tax, Income Tax
- Level: Level 2
- Topic: Income Tax Liabilities
- Series: AUG 2022
- Uploader: Theophilus