Question: A good tax system should be in the distribution of tax burden

Answer:Equitable

Question: was initiated to discourage tax avoidance with the use of heavy capital
allowances and reliefs
Answer:Mininmum tax

Question: One of the major challenges of business taxation in Nigeria is that of

and
Answer:Tax evasion and avoidance

Question: Other problems militating against business taxation in Nigeria include

all EXCEPT
Answer:Uniformity of assessment

Question: When a person pays less than he ought to pay by taking advantage of
loopholes in a tax system is
Answer:Tax avoidance

Question: Which of the term best suits the meaning of a trade

Answer:it is not controlled by the intellectual skill of the operator

Question: In Nigeria taxes imposed on a trade or profession simply connotes

Answer:Personal Income taxes

Question: Statutory income refers to

Answer:Earned and Unearned income

Question: The aggregate of economic benefits the taxpayer derives during a year is
Answer:Gross Income

Question: An allowance claimable on qualifying expenditure incurred on plant and

machinery tools equipment etc is known as
Answer:Investment allowance

Question: Which of the following statement is true of donations that are allowable
Answer:Donations should not be of a capital nature

Question: Amount of reserve made out of profits for research development of a

company is subject to a ceiling ie maximum value of of the total profits of the
company before the deduction is made
Answer:01

Question: Overlapping of basis periods occurs mostly under the rule

Answer:Commencement

Question: Where two basis periods overlap the period common to both shall be deemed
to fall in the basis period ending at the
Answer:earlier date

Question: allowance is computed on a straight line basis

Answer:Annual

Question: Given that an asset with a tax written down value of 250000 is sold for
480000 Compute the balancing allowance or charge
Answer:230000 Balancing charge

Question: An allowance that can be prorated or apportioned if there is an element

of private use is
Answer:Initial allowance

Question: The amount left in the account for tax purposes until the asset is
finally disposed is
Answer:Residual value

Question: loss relief is not available to corporate entities

Answer:Current Year

Question: The current year loss would be relieved from of income accruing to the
tax prayer
Answer:All Sources

Question: The period between the date of death and the date of the executor is able
to set up a trust or distribute the residue of the estate is known as
Answer:Administrative period

Question: The dealing with the estate of a deceased person that is collecting
assets paying debts and distributing any surplus among the persons entiltled to is
Answer:Administration

Question: Allowance granted to a company in a free trade zone which has incurred an
expenditure in its qualifying building and plant equipment is
Answer:100 capital allowance

Question: In Nigeria companies in free trade zones can be assessed to tax based on
Answer:Best of judgement assessment

Question: The following expenses are not allowable in a free trade zone EXCEPT
Answer:levy paid to National Science and technology fund NSTF

Question: The taxation of transportation and telecommunication businesses will

arise on the
Answer:Preceding Year basis

Question: Special businesses in Nigeria constitute the following EXCEPT

Answer:free trade zone enterprises

Question: For any comapany that wants to take advantage of special business tax
provision a formal application to be assessed on the basis of the two ratios should
be made not later than years from the year of assessment concerned
Answer:Six

Question: Calculate the Nigerian Income from Diamond Airline in 2016 tax year with
respect to the following Income from passengers from Kenya to Nigeria 6m Income
from cargo from New york to Nigeria 10m Income from passengers from Nigeria to
Gatwick 18m Income from cargo from Nigeria to Ghana 2m
Answer: 20 Million

Question: Nigerian Adjusted profit in special businesses is derived as

Answer:Adjusted profit Ratio x Nigerian Income

Question: loss relief principle allows lossess to be relieved against prior year
profit
Answer:The current year

Question: The rate of minimum tax for individuals was increased to under the
personal Income Tax Amendment Act 2011
Answer:1 of gross income
Question: Most development projects or activities are said to have been financed by
the revenues generated from taxes in the area of business taxation emanating from
Answer:Company tax

Question: Tax clearance certificate is usually issued by the Tax authority to any
taxpayer who may have fully paid the assessed tax in the last immediately
preceding the current year of assessment
Answer:Three3 consecutive years

Question: Earinings from royalty trademark dividend and rentals are examples of
Answer:Unearned income

Question: Under section 24d of the personal income Tax Act CAP P8 LFN 2004 who has
the right of election when there is commencement of business
Answer:The taxpayer

Question: The basic principles of taxation that guide tax administation as well as
the implementation of the provisions of relevant tax laws is known as
Answer:cannons of taxation

Question: specifically refers to all incomes that emanates from a trade business
profession vocation or employment carried on or excercised by an individual
Answer:Earned Income

Question: The amount of capital allowance claimable in any year of assessment for
non manufacturing and non agricultural companies is restricted to
Answer:23 of assessable profit

Question: An allowance granted in place of depreciation charges is

Answer:Capital allowance

Question: The year the business of the company ceased to exist is known for tax
purposes as
Answer:Ultimate Year

Question: For an on going subsisting business is used in computing the assessable

profit
Answer:The preceding Year basis

Question: The legal basis for assessing resdent comapanies to tax is the
Answer:Company Income Tax Act CAPC 21 LFN 2004

Question: Where a person dies and leaves no valid will the person has died
Answer:Intestate

Question: The Tax written down value TWDV of an assest is

Answer:cost minus initiall allowance and annual allowance of the asset

Question: Example of a beneficiary in an estate is

Answer:A Legatee

Question: Companies other than can carry forward losses indefinitely

Answer:Insurance companies

Question: Whenever there is a change in accounting date who has the right of
election in a company
Answer:The tax authority
Question: Loss incurred from busines or trade is not allowed to be relieved on
current year basis
Answer:property letting