- 20 Marks
Question
Tosin Oguntona was an employee of a Federal Government parastatal in Nigeria. While in service, he invested his earnings in various investments, deriving incomes from them along with his monthly pension. The following details were provided:
| Assessment Years | 2013 | 2014 |
|---|---|---|
| Dividend Income | ||
| Dividend from Nigerian companies | N1,200,000 | N1,500,000 |
| Dividend from abroad paid into a domiciliary account | $4,000 | $4,500 |
| Rental Income | ||
| Rent from buildings in Ibadan | N630,000 | N720,000 |
| Rent from buildings in Abuja | N1,500,000 | N1,740,000 |
| Rent from buildings in Oyo | N420,000 | N520,000 |
| Rent from buildings in Lagos | N750,000 | N780,000 |
| Expenses | ||
| Repairs and maintenance | N90,000 | N96,000 |
| Personal income tax paid | N240,000 | N280,000 |
| Water rate | N40,000 | N50,000 |
| Depreciation on building | N620,000 | N700,000 |
| Agent’s commission | N96,000 | N108,000 |
| Insurance | N120,000 | N150,000 |
| Depreciation on plant | N150,000 | N162,000 |
| Interest Incomes | ||
| Interest received from bank | N360,000 | N420,000 |
| Interest on domiciliary account | $1,200 | $1,500 |
Other information:
- Capital allowances agreed with the revenue authority for 2013 and 2014 assessment years were N150,000 and N180,000 respectively.
- Insurance on properties included N24,000 and N30,000 for 2013 and 2014, respectively, for his private residence.
- Pension of N80,000 per month was received.
- Exchange rate: N160 to $1.
Required:
Compute the Assessable Incomes of Tosin Oguntona for 2013 and 2014 Assessment Years.
Answer
Tosin Oguntona Computation of Assessable Incomes for 2013 and 2014 Assessment Years
- Tags: Capital allowances, Dividend income, Interest Income, Rental Income
- Level: Level 2
- Topic: Taxation of Trusts and Estates
- Series: MAY 2018
- Uploader: Kofi