ACC201 ___________ is the transfer of real economic resources from the private sector to the public sector to finance public sector activities *Taxation* The principle of ------------- in taxation advocates that a system should not discriminate between tax payers under similar *Impartiality* Under the canons of taxation a good tax system should be ------------- in distribution of tax burden *Equitable* ------------- was initiated to discourage tax avoidance with the use of heavy capital allowance and reliefs *Minimum tax* ------------- refers to income from sources other than those gotten from employment business or reward for services rendered *Unearned Income* ------------ where the taxable individual is not in employment and the identification and address of the individual possess a major challenge *Assessment* Tax clearance certificate certifies that all taxes due for the ---------------- immediately preceding years of assessment have been settled in full *Three* A -------------- implies the way a person earns his living *Vocation* Intellectual or specialized skill is a ----------------- *Profession* ----------------- is the quantum of income, earnings or proceeds chargeable to tax under the personal income Tax Act (PITA) *Assessable profit* The ------------------- year loss relief principle allows losses to be relieved against prior year profit *Current* The year the business of the company ceased to exist is known for tax purposes as the ------------- *Ultimate year* For an on-going or subsisting business, the __________ basis is used in computing the assessable profit *Preceding year* ----------------year loss relief is not available to corporate entities *Current* The Nigeria tax law permits companies to only use------------- loss Relief *Carry forward* Tax relief for small companies or business or trade is applicable for the first --------------- of the business or trade *5 years* Lagos Nigeria Ltd has been in business for some time now. In 2015, turnover was ₦1,425,000, adjusted profit ₦1,170,000, capital allowance ₦750,000. What is the total profit? *₦420,000* What is the method of collecting tax due on employment income? *Pay as you earn system* Unrelieved loss which can no longer be carried forward upon the cessation of a business is known as ---------- *Terminal loss* State if preliminary expenses is an allowable or non-allowable expense for tax purpose under the Companies income Tax Act. *Non – allowable* How is income from dividend rent and royalties categorized under personal income Tax? *Unearned Income* In determining whether or not an expense is to be admitted for tax purpose, it must be shown that such expense has been --------------, reasonably, exclusively and necessary incurred for the purpose of the trade or business. *Wholly* The ---------- advises the federal government on request with respect to double taxation arrangement concluded or under consideration with any other country *Joint Tax Board* Which tax authority is empowered to collect taxes at the state government level? *State Internal Revenue Service* -------------- Tax is levied on the value of the product being taxed *Value added* The type of assessment that requires the tax payer to display some level of trust is ------------ *Self – assessment* ------------ tax authority collects pools betting, lotteries, gambling and casino taxes *State government* Motor park levies are collected by the *Local Government* An individual or a person who works in more than one place in Nigeria or who earns daily wages is an *Itinerant worker* Where investment incomes are received net of withholding tax, they are termed---------------- *Franked Investment Income* The basis of tax assessment under trusts, settlements and estates is on a *Preceding year basis* The tax year before the year of cessation is the ------------------- *Penultimate tax year* Goods and services purchased by diplomats under value added tax is an example of ------------------ goods and services *Zero-rated* --------------- are taxes on documents and not on transactions or persons. *Stamp duties* The charge on gains made from the disposal of a chargeable asset is called --------- *Capital gains tax* Abuja Ltd commenced business on 1st October 2017 and prepared accounts to 30th June, 2018. The adjusted profit for nine months to 30th June, 2018 is ₦1,200,000. Determine the assessable profits for 2017 tax year ₦1,200,000 Kebbi Ltd has been in business for many years and ceased trading on 30th September 2018. The company’s year-end has been to 30th June every year. Adjusted profits for year ended 30th June 2018 is ₦130,000 and for 3 months to 30th September 2010 is ₦30,000. Calculate the assessable profits for 2018 Tax year ₦30,000 Edo Ltd has presented the following information as follows: Year ended 30/6/16 Year ended 30/6/17 Period ended 31/12/17 Year ended 31/12/18 What tax year did the business changed its accounting state? 2016 Tax year An abnormal basis period is obtained under any of the following situations except: Actual year basis The basis period for assessable profit for the penultimate year is on the ------------ for cessation of business Cessation basis The functions of the Joint tax board should include the following except: To advice the federal Government in respect of double taxation arrangements ----------- collects the taxes and levies with respect of On and Off liquor licence fees Federal Government Services exempted from VAT include the following except: Medical Services From the following taxes which is a direct tax VAT The turnover of Best LTD is 450,000, Gross profit is 350,000, Net Asset is 800.000, and Paid up share capital is ₦1,000,000. Compute the minimum tax ₦4000 The total profit of a company is ₦2,400,000. What is the tax liability of the company? ₦720,000 --------------- is levied on all companies at the rate of 2% of their assessable profits Value added Tax ------------- Is levied on the value of the product being taxed Direct tax An assessment raised by the tax authority on tax payer either on the account submitted or at the discretion of the relevant tax authority is ----------- Additional assessment The list of persons assessed under personal income is referred to as The Assessment list Mr Goody with a consolidated monthly salary of ₦400,000. In addition he receives ₦100,000 monthly for his accommodation. His trading results for 2016 and 2017 were ₦6,000,000 and ₦10,000,000 respectively. Determine my Goody’s earned income for 2017 assessment year. ₦16,000,000 Mr Easy received gross dividends for 2015 and 2016 assessment years as ₦900,000 and ₦1,200,000 respectively and gross rent for 2015 and 2016 as ₦200,000 and ₦500,000. Determine the Unearned Income of Mr Easy for 2016 year of assessment ₦1,700,000, Reimbursements other than cash enjoyed by employees in the course of their employment in Nigeria is known as Reimbursement income The imposition by legal authority of tax, penalties and fines is known as Levy A system where a company pays tax by instalment and it’s allowed to estimate the company’s chargeable income and tax payable there on is Estimated tax system --------------- is an example of deductions not allowed from profits of companies Any sum recoverable under an insurance or contract of indemnity Tax relief for a small company is applied for the first--------------- Four (4) years The applicable Tax rate for a small company is 20% Loss incurred from ------------------ business or trade is not allowed to be relieved on current year basis Agricultural Who has the right of election in a company during commencement of business? The tax authority The year the business of the company ceased to exist is known for tax purposes as Ultimate year Where a person dies and leaves a valid will, the person has died Testate An example of a beneficiary in an estate is : A testator ------------- refers to the amount paid to the tax authorities which reflects the difference between the total VAT collected from customers on sales Net VAT VAT rate is computed at ------------------ of the value of vatable goods and services 10% Royal Humble received rental income (Gross) as follows: 3/3/2017 500,000 10/8/2017 760,000 25/7/2018 360,000 30/12/2018 150,000 What is the value of rental income for 2018 Tax year? ₦150,000 Michael Korrs Ltd provides Mrs Rossy Peters an official car;Toyota Prado with a market value of ₦20,000,000 and also pays ₦6,000,000 per annum on her official accommodation. What is the benefit in kind accruable to Mrs Rossy Peters on her employment with Michael Korrs ₦1,300,000 The following are the basic characteristics of VAT EXCEPT: It is a consumption TAX The following are goods exempt items from VAT EXCEPT: Basic food items VAT is administered and managed by: FIRS