Topic: Taxation of Specialized Businesses

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ATAX – May 2017 – L3 – Q4a – Tax Incentives and Reliefs

List five incentives provided by the Federal Government of Nigeria to attract investors to the solid minerals sector.

Question

Oil and Gas are major sources of revenue for the Federal Government of Nigeria (FGN). This has become a burden to the government due to its inability to control the volume of production and price. To ameliorate this burden, the FGN is seeking alternative sources of revenue, and solid minerals have been identified.

Required:
State FIVE incentives put in place by the Federal Government of Nigeria (FGN) to attract potential investors to the solid minerals sector. (5 Marks)

Answer

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Tags: Federal Government, Investment, Nigeria, Solid Minerals, Tax Incentives
Level: Level 3

Topic: Tax Incentives and Reliefs, Taxation of Specialized Businesses

ATAX – May 2017 – L3 – Q2b – Tax Incentives and Reliefs

List five tax incentives for companies utilizing associated gas in downstream operations.

Question

State FIVE incentives available to a company engaged in the utilization of associated gas. (5 Marks)

Answer

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Tags: Associated Gas Utilization, Capital Allowance, Petroleum Profits Tax, Tax Incentives
Level: Level 3

Topic: Tax Incentives and Reliefs, Taxation of Specialized Businesses

ATAX – May 2017 – L3 – Q2a – Taxation of Specialized Businesses

Explain the concepts of load factor, G-factor, and compute the value of chargeable natural gas sold.

Question

Oron Itu Petroleum Company Limited has been in the Oil and Gas business for several years. The company has just secured its first two contracts to supply consignments of Natural Gas to two companies in Ghana and Gambia.

The consignment to Ghana was valued at N589,000,000 while that to Gambia was valued at N375,500,000.

The relevant arm of the Nigerian National Petroleum Corporation (NNPC) issued Certificates of Export as follows:

Contract No	Amount (N)	Load Factor
I	589,000,000	580
II	375,500,000	620

The Managing Director, who has just resumed duty, could not understand the meaning of Load Factor. He has approached you as the Tax Consultant to advise him on the points raised.

The table below is provided for reference:

Load Factor	G-Factor (% per annum)
500	16.9
600	15.5
700	14.3
1000	13.6

You are required to:

(a) Explain briefly the following:
i. The reason behind having a load factor on the Consignee’s Certificate. (3 Marks)
ii. G-Factor. (1 Mark)
iii. Value of Chargeable Natural Gas. (2 Marks)
iv. Compute the Value of Gas sold. (9 Marks)

Answer

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Tags: Export Certificates, G-Factor, Load Factor, Natural Gas Valuation
Level: Level 3

Topic: Taxation of Specialized Businesses

ATAX – May 2019 – L3 – Q7a – Taxation of Specialized Businesses

Provide a report on fiscal incentives in Nigeria’s oil and gas sector, including gas production, exploitation of associated gas, and free trade zone investments.

Question

The Federal Government of Nigeria, in the third quarter of 2018, announced the discovery of a huge hydro-carbon deposit in the Chad Basin area of Borno State. This information has attracted interest from local and foreign investors in the Nigerian oil and gas sector. One such foreign investor is a Japanese billionaire, Mr. Sun Nagasaki, who has investments in oil and gas operations in the Middle East and Latin America.

Mr. Nagasaki is, however, not familiar with the regulations guiding operations and the incentives available to investors in the oil and gas sub-sector in Nigeria. You have been appointed as a tax consultant by Mr. Nagasaki’s representative in Nigeria.

Required:
a. Draft a report addressed to Mr. Nagasaki explaining the following issues of interest:

i. Fiscal incentives available in the gas production phase (2 Marks)
ii. Six incentives for the encouragement of exploitation and utilization of associated gas for commercial purposes (downstream operations) (3 Marks)
iii. Six incentives and fiscal measures that favour and encourage large investment in oil and gas free trade zones (4 Marks)

Answer

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Tags: Fiscal Incentives, Investment, Nigeria, Oil and gas, Tax Relief
Level: Level 3

Topic: Taxation of Specialized Businesses

ATAX – May 2022 – L3 – Q4 – Taxation of Specialized Businesses

Compute tax liabilities and discuss incentives for Dutse Mines in mining solid minerals

Question

———————————————————————
Question:

As investors and policymakers adapt to the global energy transition in a bid to offer an effective hedge against swings in oil prices, the Federal Government has recognised that it is beneficial for the country to diversify its economy. The attention of the country is now towards the development of the solid minerals sector. The Nigeria Minerals and Mining Act 2007 (as amended) was enacted to regulate the industry. Incentives for operators in the sector are as provided for in Section 5 of the Act.

One of the earliest investors in the mining sector, Dutse Mines (Nigeria) Limited, was granted a mining title by the Mining Cadastre Office (MCO) for exploitation of limestone in Nkalagu in the south-eastern zone of Nigeria in 2008. In spite of so many challenges the company is facing, it has managed to remain afloat in business.

The company has, of recent, been having tax disputes with the relevant tax authority, and your firm of chartered accountants has been engaged to help resolve them. In the 2022 tax returns filed by the company, the major area of dispute between the company and the tax authority was disparity in the treatment of certified exploration and processing expenditure of ₦60,000,000 incurred during the course of the year.

Your firm is provided with the following extracts (and supporting documents) from the books of the company for the year ended December 31, 2021:

Additional Information:

Sundry income included ₦8,500,000 realised as profit from disposal of the old excavating machine.
Allowance for doubtful debts consisted of:
- Bad debts written off: ₦2,500,000
- General allowance for doubtful debts: ₦10,500,000
- Specific allowance for doubtful debts: ₦8,000,000
- Loan to customer written off: ₦5,000,000
Donation included ₦5,000,000 given to victims of environmental degradation, as part of the company’s social responsibility to the host community.
Legal fees included ₦750,000 paid as a penalty for late filing of tax returns.
The tax written down values of qualifying capital expenditure at the end of 2021 tax year were:
- Motor vehicles (2 years remaining): ₦25,000,000
- Furniture and fittings (utilised for 2 years): ₦22,500,000
- Mining expenditure (6 years remaining): ₦40,000,000

Required:

As the Manager (Tax Matters) assigned to handle this matter, you are to forward the report to your Senior Partner (Tax Matters) showing:

a. Computation of tax liabilities of the company for the relevant assessment year (14 Marks).
b. Comments on tax incentives available to a company in the mining of solid minerals in Nigeria (6 Marks).

Answer

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Tags: Allowable and Disallowable Expenses, Mining Taxation, Tax Incentives, Tax Liability Computation
Level: Level 3

Topic: Taxation of Specialized Businesses

ATAX – May 2023 – L3 – Q1 – Taxation of Specialized Businesses

Analyze the tax implications for Hyland Nigeria Ltd, including adjusted profit, tax payable, dividend tax implications, and tax benefits for reconstituted companies.

Question

Hyland Nigeria Limited commenced business as a manufacturer of stationery on January 1, 2021. The company, in December 2020, acquired all the assets and liabilities of a foreign company operating in Nigeria, Lowland Incorporated, and reconstituted it for turnaround and profitability.

The directors of the newly reconstituted company have considered the draft financial statements and annual tax returns for the year ended December 31, 2021. During a board meeting, there was disagreement over the tax treatment of dividends received (N3,600,000) from equity holdings in another Nigerian public limited liability company. The dividends are also part of the proposed profits to be distributed to shareholders.

Additionally, one director suggested that as a reconstituted company, Hyland Nigeria Limited may qualify for tax reliefs or incentives that could positively affect profitability. Following the board’s decision, the Managing Director contacted your firm to provide professional advice on these matters.

The following financial information is extracted from the company’s records:

The following additional relevant information was provided:
(i) Subscription and donations consisted of:

(ii) Allowance for doubtful debts included:

(iii) Repairs and maintenance was made up of:

(iv) Legal and professional fees included:

(v) Other operating expenses were:

(vi) Tax written down values of qualifying capital expenditure (QCE) as at December 31, 2020:

(vii) Additional assets acquired during the year ended December 31, 2021:

(viii) Unrelieved losses as at December 31, 2020 was N55,900,000.
(ix) Unutilised capital allowances as at December 31, 2020 was N16,155.000.

Required:

Calculate the Adjusted Profit of the company for the year ended December 31, 2021.
Compute the Tax Payable for the relevant assessment year.
Provide professional advice on the tax implications of the dividends received for the company and its shareholders.
Comment on tax benefits/incentives applicable to a reconstituted company in Nigeria as per the Companies Income Tax Act 2004 (as amended).

Answer

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Tags: Adjusted Profit Computation, Dividend Tax Implications, Tax Benefits, Tax Payable Computation
Level: Level 3

Topic: Taxation of Specialized Businesses

ATAX – Nov 2016 – L3 – Q2a&b – Taxation of Specialized Businesses

Outlines the activities of NPDC and the importance of Oil Mining and Prospecting Leases in Nigeria.

Question

Nigerian National Petroleum Corporation (NNPC) is a major regulatory body in Nigeria’s Oil and Gas sector, executing various functions through its subsidiaries.

Requirements:

a) State any FIVE activities of the Nigerian Petroleum Development Company (NPDC), a subsidiary of NNPC. (5 Marks)

b) State the importance of an Oil Mining Lease and an Oil Prospecting Lease. (2 Marks)

Answer

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Tags: Exploration, NPDC, Oil and gas, Oil Mining Lease, Oil Prospecting Lease, Production
Level: Level 3

Topic: Taxation of Specialized Businesses

AT – May 2024 – L3 – SB – Q2 – Taxation of Specialized Businesses

Calculation of hydrocarbon tax payable by New Rain Petroleum and analysis of tax implications for deep offshore investment.

Question

New Rain Petroleum Company Limited has been operating in the onshore and shallow water areas of the Niger Delta region for over fifteen years. The company was granted a petroleum mining lease license in January 2021. In its bid to improve profitability, the company’s management intends to apply for a license to operate in the deep-sea area starting from 2025. The decision of the management is expected to be presented to the company members at the 2023 annual general meeting, scheduled in the second half of 2024.

The following financial data were extracted from the book of accounts of New Rain Petroleum Company for the year ended December 31, 2023:

Income	N’ million
Fiscal value of crude oil sold	191,100
Value of condensate from associated gas	84,474
Value of natural gas liquid from associated gas	55,328
Other incidental income	151
Realized exchange gain	38
Gross total income	331,091

Expenses/Deductions	N’ million
Royalty incurred and paid	86,200
First exploration wells cost	6,800
First two appraisal wells costs	18,700
Joint cost – terminalling	12,000
Gas reinjection wells cost	3,420
Salaries and wages	9,300
Power cost	1,650
NDDC charge	125
Concessional rentals	60,430
Depreciation of assets	13,860
Allowance for doubtful debts	2,400
Host community trust fund contribution	4,800
Stamp duty	16
Staff welfare	350
Travelling	180
Donations and subscription	6
Decommissioning and abandonment	1,300
Environmental remediation fund contribution	1,250
General expenses	500
Finance costs	1,750
Total Expenses	225,037
Net Profit	106,054

Additional Information:

Data on Crude Oil, Condensate, and Natural Gas Sales:

Category Quantity (million barrels) Actual Price (USD) Fiscal Price (USD)

Crude oil 5.25 70 72

Condensate from associated gas 3.61 45 44

Natural gas liquid from associated gas 2.80 38 40
Omitted Record:
- A balancing charge of N1,500,000 was made from the disposal of an old oil equipment platform, which was omitted from the records.
Allowance for Doubtful Debts:

Type of Provision N’ million

Specific provisions 900

General provisions 1,500

Total 2,400
Donations and Subscription:

Recipient N’ million

Recognized orphanage homes 3.0

Host community’s cultural group 2.0

Subscription to oil and gas association 1.0

Total 6.0
General Expenses:

Expense N’ million

Penalty for gas flare 250

Printing of stationery items 140

State government levy 110

Total 500
Agreed Capital Allowances:

Category N’ million

Brought forward 167

For the year 2,105

Total 2,272
Production Allowance:

Type of Operation N’ million

Onshore operations 900

Shallow water operation 1,700

Total 2,600
Exchange Rate: The exchange rate averaged N520 to 1 USD during the year.
Assumption: Tax liabilities are to be paid in domestic (Naira) currency.

Category	Quantity (million barrels)	Actual Price (USD)	Fiscal Price (USD)
Crude oil	5.25	70	72
Condensate from associated gas	3.61	45	44
Natural gas liquid from associated gas	2.80	38	40

Type of Provision	N’ million
Specific provisions	900
General provisions	1,500
Total	2,400

Recipient	N’ million
Recognized orphanage homes	3.0
Host community’s cultural group	2.0
Subscription to oil and gas association	1.0
Total	6.0

Expense	N’ million
Penalty for gas flare	250
Printing of stationery items	140
State government levy	110
Total	500

Category	N’ million
Brought forward	167
For the year	2,105
Total	2,272

Type of Operation	N’ million
Onshore operations	900
Shallow water operation	1,700
Total	2,600

Required:
As the company’s Tax Manager, you are to advise the management, in accordance with the provisions of the Petroleum Industry Act 2021, on:

a. Hydrocarbon tax payable for the relevant assessment year (18 Marks)
b. Tax implications if the company decides to invest in deep offshore areas (2 Marks)

(Total 20 Marks)+

Answer

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Tags: Capital Allowance, Deep Offshore Investments, Hydrocarbon Tax, Petroleum Industry Act, Production Allowance
Level: Level 3

Topic: Taxation of Specialized Businesses
Series: MAY 2018

AT – May 2018 – L3 – SB – Q2a – Taxation of Specialized Businesses

Differentiate between “disposal” and “disposed of,” and discuss intangible drilling costs and oil mining leases.

Question

“Disposal” or “disposed of” are terminologies used frequently in relation to chargeable oil owned by an oil-producing company under the provisions of the Petroleum Profits Tax Act Cap P.13 LFN 2004.

Required:

(i) Differentiate between “disposal” and “disposed of”. (2 Marks)

(ii) Discuss the following:

Intangible drilling costs. (2 Marks)
Oil mining lease. (1 Mark)

Answer

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Tags: Chargeable Oil, Disposal, Intangible Drilling Costs, Oil Mining Lease, Petroleum Law, Petroleum Profits Tax
Level: Level 3

Topic: Taxation of Specialized Businesses
Series: MAY 2018

ATAX – Nov 2018 – L3 – Q2 – Taxation of Specialized Businesses

Calculation of petroleum profits tax for Olu Oil Limited considering local and export crude oil sales, gas contracts, and various expenses.

Question

Olu Oil Limited has been in the oil prospecting business in one of the major oil fields in the Niger Delta region of Nigeria since 2009. The company has provided the following operational results for the year ended December 31, 2015:

(i) Type of crude oil and sales statistics:

Bonny Light: 35,000 barrels exported at 39º API
Bonny Medium: 25,200 barrels exported at 35º API
Forcados: 16,300 barrels exported at 32º API

Price per barrel:

Bonny Light: $52.03 at 35º API
Bonny Medium: $49.04 at 35º API
Forcados: $48.29 at 35º API

Adjustment for API variance: Actual realized price was arrived at after adjusting for the variance in API. Thus, for every API, $0.03 was the variance in price at 35º API.

(ii) Local sales of crude oil: 32,750 barrels of crude oil was produced and sold in the domestic market at the rate of N345 per barrel.

(iii) Natural gas sales from two contracts:

Contract	Value (N)	Load Factor
Obi Ltd	42,285,000	62
Oba Ltd	27,775,000	74

(iv) Miscellaneous income: N125,800,300, including N105,500,000 from the sale of refined petroleum products. Attributable expenses of N88,240,000 were included in management and administrative expenses.

(vi) Miscellaneous income included N105,500,000, from the sale of refined petroleum products. An equivalent attributable expenses of N88,240,000 was included in management and administrative expenses.
(vii) Interest paid included N5,350,000, which was paid to Prince Limited, an associated company.
(viii) Donations included:

(ix) The pension scheme was approved by the Joint Tax Board.

(x) Exchange loss on remittance amounting to N3,200,000 was included in management and administrative expenses.
(xi) The schedule of qualifying capital expenditure includes:

(xii) Capital allowances brought forward was N12,700,000.
(xiii) The rate of exchange was N360 to a US Dollar.
(xiv) NNPC provides the relevant schedule as follows:

Required:
Evaluate the transactions and advise the management on:
(a.) Assessable profit (14 Marks)
(b.) Chargeable profit (2 Marks)
(c.) Chargeable tax (2 Marks)
(d.) Total tax liability payable (2 Marks)

Answer

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Tags: API Adjustment, Crude Oil Pricing, Donations, Miscellaneous Income, Natural Gas Contracts, Nigerian Oil Fields, Oil Prospecting, Petroleum taxation, Tax computation
Level: Level 3

Topic: Taxation of Specialized Businesses

AT – Nov 2023 – L3 – SC – Q7 – Taxation of Specialized Businesses

Calculation of tax liabilities under the Mining Act and an explanation of tax neutralities with applications to policy issues.

Question

Udi Nigeria Limited is a mining company which was established ten years ago. The company makes up its accounts to December 31 of every year. The Managing Director, who is an engineer, while having a chat with his former colleagues in the university during the week, heard for the first time, the concept of tax neutralities. He wondered how tax could be neutral.

On getting to the office the following week, he requested further information on tax neutralities from the accountant, but based on his personal opinion, the accountant’s response was not convincing enough.

The company is in the process of filing its annual returns for the year ended December 31, 2021, to the tax authorities. The Managing Director has directed the Financial Accountant to forward the following reports to you (being the company’s Tax Consultant) in respect of the company’s operational activities for the year:

Operational Results:

Description	N’000
Gross Turnover	125,490
Salaries and Wages	25,900
Depreciation of Mining Equipment	15,400
Transport and Traveling	2,100
Repairs and Maintenance	3,700
Allowance for Bad Debts	6,200
Electricity and Other Utilities	4,660
Legal and Professional Fees	4,850
Certified Exploration Expenditure	4,500
Administrative Expenses	1,450
Development and Processing Expenditure	2,500
Miscellaneous Expenses	3,420
Total Deductibles	74,680
Net Profit	50,810

Additional Information:

Repairs and maintenance included an amount of N1,500,000, being cost of fittings incurred at the operational site.
Capital allowances computed:
- Brought forward: N750,000
- Current year (excluding current year capital expenditure): N12,200,000
- Total: N12,950,000

Required:

As the company’s Tax Consultant, you are to prepare a report to the Managing Director of Udi Nigeria Limited, which will:

a. Show the tax liabilities payable by the company for the relevant assessment year in line with the provisions of Nigerian Minerals and Mining Act 2007 (as amended). (9 Marks)

b. Explain the concept of tax neutralities and its applications to specific policy issues. (6 Marks)

Answer

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Level: Level 3

Topic: Taxation of Specialized Businesses
Series: NOV 2023

AT – Nov 2023 – L3 – SA – Q1 – Taxation of Specialized Businesses

Compute adjusted profits, tax liabilities, and analyze Industrial Development (Income Tax Relief) Act provisions for a pioneer company.

Question

Paper World Nigeria Limited, Ibadan, a manufacturer of paper pulp, paper, and paperboard, was granted a pioneer certificate by the Federal Government on May 1, 2017, for an initial period of three years. Due to unfavorable business conditions and interference by the Ministry of Industry on dividend policy, loss treatment, and capital allowances, the company did not apply for an extension to the pioneer status.

The company’s financial statements for the first three years are as follows:

(i) Financial Data for the Years Ended

Year End	April 30, 2018	April 30, 2019	April 30, 2020
N’000	N’000	N’000
Net loss	(28,700)	(25,500)	(20,200)
After charging:
Salaries and wages	15,300	16,100	17,360
Transport and traveling	1,100	1,700	1,820
Depreciation	6,800	7,530	8,600
Rent and rates	1,200	1,400	1,500
Donations to social clubs	100	0	250
Allowance for doubtful debts:
Specific	1,400	1,200	1,500
General	1,850	1,750	1,800
General expenses	1,650	1,820	1,900

(ii) Qualifying Capital Expenditure (QCE) Certified by FIRS at Pioneer Period End

(iii) Additional QCE Acquired:

QCE	Number of Items	Amount (N’000)	Date of Acquisition
Furniture and fittings	2	500	June 12, 2020
Motor vehicles	1	2,200	March 7, 2021

(iv) Operational Result (April 30, 2021)

Description	N’000
Turnover	102,500
Dividend income (grossed up)	1,200
Other operating income	800
Total	104,500
Deductions:
Salaries and wages	39,600
Repairs and maintenance	3,500
Depreciation	15,300
Rents and rates	6,800
General and administrative expenses	9,970
Legal fees	2,500
Audit and accountancy fees	3,200
Allowance for doubtful debts	6,600
Bank charges	2,100
Net profits	14,930

Additional Information:

Dividend Income: From equity shares in a Nigerian listed company.
QCE Acquisitions:
- Non-industrial building: N10,000
- Industrial building: N25,600
- Manufacturing industrial plants: N12,600
- Furniture and fittings: N3,400
- Motor vehicles: N4,000

(vi) Repairs and Maintenance Breakdown:

Category	Amount (N’000)
Manufacturing plant repairs	1,500
Motor vehicle maintenance	800
Non-industrial building improvement	1,200

(vii) General and Administrative Expenses:

Category	Amount (N’000)
Transport and traveling	3,750
Advertisement	4,920
Transfer to revenue reserve	1,300

(viii) Legal Fees Breakdown:

Category	Amount (N’000)
Collection of trade debts	1,100
Fine for late tax filing	50
Legal expenses on new share issue	1,350

(ix) Doubtful Debts Allowance Breakdown:

Category	Amount (N’000)
Bad debts written off	2,800
Specific provision	2,500
General provision	3,700
Bad debts recovered	(2,400)

Required: As the company’s newly appointed Tax Consultant, prepare a report to the Managing Director stating the:

Adjusted Profits for the Relevant Periods (13 Marks)
Tax Liabilities Payable for the Relevant Assessment Year (11 Marks)
Provisions of the Industrial Development (Income Tax Relief) Act 2007 (as amended) in respect of a Pioneer Company’s:
- i. Dividend Payment (2 Marks)
- ii. Losses Made During the Pioneer Period (2 Marks)
- iii. Capital Allowances for Qualifying Capital Expenditure Acquired During the Pioneer Period (2 Marks)

Answer

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Level: Level 3

Topic: Taxation of Specialized Businesses
Series: NOV 2023

TAX – May 2023 – L2 – SC – Q5 – Taxation of Specialized Businesses

Explain solutions to multiple taxation and list causes.

Question

Multiple taxation is a tax regime under which various and similar taxes are imposed on taxpayers by different tiers of government. This has become a national problem discouraging taxpayers from performing their civic responsibilities. The 1999 Constitution of the Federal Republic of Nigeria seeks to eliminate multiple taxation at all levels of government as provided for in Part II, Paragraphs 7 to 10.

Required:

a. Explain FOUR Constitutional and other possible solutions provided on how to eliminate multiple taxes. (10 Marks)

b. State FIVE possible causes of multiple taxation. (5 Marks)

Answer

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Tags: Civic Responsibility, Constitutional Law, Taxation Issues, Taxpayer Rights
Level: Level 2

Topic: Taxation of Specialized Businesses
Series: MAY 2023

TAX – Nov 2020 – L1 – SA – Q5b – Taxation of Specialized Businesses

State six categories of properties exempted from land use charge in Lagos State.

Question

In 2018, the Lagos State Government promulgated the Land Use Charge Law to provide for the consolidation of property and land-based charges and make provisions for the levying and collection of land use charge in the state and for connected purposes.

Section 12 (1) of the Land Use Charge Law, 2018, of Lagos State, provides for the exemption of specified categories of properties from the payment of land use charge.

Required:
State SIX categories of properties exempted from land use charge.
(12 Marks)

Answer

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Tags: Exemptions, Lagos State Tax Law, Land Use Charge, Property Tax
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

Question

Luxury tax can simply be defined as tax imposed on goods and services that are considered by the government to be luxury goods and services. Luxury goods and services are those that are not considered to be essential by the government and which are consumed by the rich or wealthy class of the society.

Goods and services that are classified as luxury are usually assessed to tax as a percentage of the sales price but likely at a higher percentage than the regular sales tax or value added tax on essential commodities.

Required:
State FOUR benefits of taxation of luxury goods and services.
(8 Marks)

Answer

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Tags: Government Revenue, Luxury Tax, Non-Essential Goods, Taxation Benefits
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – Nov 2020 – L1 – SA – Q16 – Taxation of Specialized Businesses

Identify which factor does not affect the relief rate under the Land Use Charge Law of Lagos State, 2018.

Question

Under the Land Use Charge Law of Lagos State, 2018, relief rate may reflect the following factors, EXCEPT:
A. Status of the owner (the age and retirement)
B. State of origin
C. Depreciation rate of the property
D. Whether or not the owner is physically challenged
E. The length of time for which an owner has been resident in the property in question

Answer

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Tags: Lagos State Tax Law, Land Use Charge, Property Tax Relief, Relief Rate
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – Nov 2020 – L1 – SA – Q15 – Taxation of Specialized Businesses

Identify the definition of "market value" under the Land Use Charge Law of Lagos State, 2018.

Question

Under the Land Use Charge Law of Lagos State, 2018, “market value” means:
A. Total sum of land value and building development
B. Building development
C. The total developed floor area of building on the plot of land in square metres
D. The average construction value of medium quality buildings and improvement in the neighbourhood
E. The average market value of a land parcel in the neighbourhood

Answer

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Tags: Lagos State Tax Law, Land Use Charge, Market Value, Property Tax
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – May 2018 – L2 – Q5b – Tax Administration and Enforcement

Explain briefly conditions for granting capital allowances.

Question

Explain briefly THREE conditions for granting capital allowances.

Answer

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Tags: Capital allowances, Tax Compliance, Tax deductions
Level: Level 2

Topic: Taxation of Specialized Businesses
Series: MAY 2018

TAX – May 2018 – L2 – Q5a – Tax Administration and Enforcement

Explain rules that guide the determination of residence for individuals.

Question

Identify and explain FIVE rules that guide the determination of residence for different categories of individuals.

Answer

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Tags: Capital allowances, Tax Compliance, Tax deductions
Level: Level 2

Topic: Taxation of Specialized Businesses
Series: MAY 2018

TAX – May 2018 – L2 – Q4b – Tax Administration and Enforcement

Explain the rules guiding the cessation of business for Jobi Nig. Enterprises.

Question

State the rules guiding the cessation of business.

Answer

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Tags: Business Discontinuation, Cessation of Business, Tax Compliance
Level: Level 2