COMPANIES INCOME TAX

1.0 INTRODUCTION Company income tax has been distinguished from personal income tax by enacting a separate legislation to cater for it. The legislation is known as Company Income Tax Act 1979 (CITA) as amended. The act defines a company, under section 84, as a corporation established by or under any law (such as the Companies…

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DOUBLE TAXATION RELIEF

1.0 INTRODUCTION Company income tax act requires that income received in or brought into Nigeria should be subjected to tax and any Nigerian who earns his income from abroad will be taxed in the country where the income originates and at the same time such income would also be taxed in Nigeria where the recipient…

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TAXATION OF INCOME FROM TRUSTS, SETTLEMENTS AND ESTATES

1.0 INTRODUCTION Settlements, trust and estate administrations have given rise to issues of accounting and taxation. Usually, the administrators of deceased properties are expected to give detailed account of his stewardship to all the beneficiaries and tax authorities to their satisfaction. Hence, tax authorities use these accounts to assess the income of the deceased person…

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TAXATION OF BANKS

1.0 INTRODUCTION Bank’s taxation falls within the provisions of the Companies Income Tax Act of 1993 (CITA). Therefore, it shares the same corporation tax rate prevailing in every fiscal year with other companies. However, banks pay extra tax on any excess profit that emanates from their assessments. Therefore in this unit, you will be exposed…

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METHODS OF ASSESSING PERSONAL INCOME-PAY-AS-YOU-EARN (PAYE) SYSTEM

Methods of Assessing Personal Income-Pay-As-You-Earn(PAYE) System P.A.Y.E. as an abbreviation relates to how an employee is assessed to taxation. The assessment is on actual year basis, but operates on monthly basis throughout the year. It can simply be defined as a scheme whereby tax on employees’ income is deducted at source by the employer and…

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TAXATION OF INSURANCE COMPANIES CONTENTS

1.0 INTRODUCTION Insurance companies are owned either wholly by foreigners or Nigerians, or partly owned by both foreigners and Nigerians. These companies can either be for life or non–life insurance businesses. Section 14 (1 – 5) of CITA 1990 provides for the taxation of such companies, which gives them certain unique principles and methods that…

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TAX ADMINISTRATION IN NIGERIA

1.0 INTRODUCTION The administration of taxes in Nigeria rests on various tax authorities depending on the type of tax under consideration. Broadly speaking, we have three tax authorities, as shown below. The Federal Board of Inland Revenue (FBIR)  The State Internal Revenue Board (SIRB) The Local Government Revenue Committee The principles of fiscal federalism give…

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