SUMMARY OF COURSE OUTLINE 1 2 INTRODUCTION TO TAXATION Background introduction to taxation What is taxation?

is taxation? Features or characteristics of tax Principle or attributes of a good tax system Reason for imposition of tax by Government Economic effects of tax Incidence of taxation Forms of tax Advantages & Disadvantages of tax Tax jurisdiction Tax liability, Relevant authority and source of legislation Some terminologies TAX ADMINISTRATION Introduction Composition, function, power and duties of Federal Board of Inland Revenue Service Composition, function and power of Joint Tax Board. Composition, function and power of State Board of internal Revenue Board. Composition, function and power of Local Government Revenue Committee Composition, function and power of Joint State Revenue Committee 3 TAX MANAGEMENT

Chargeability to tax Assessment Objection to assessment Appeals Collection, Recovery and Repayment of tax Artificial Transactions

4 BASIS PERIOD Definition Types of basis period i. Normal basis period ii. Abnormal basis period a. Commencement Period b. Change in accounting date c. Cessation of trade Tax payers option Post cessation transaction Appropriate date to cease

CAPITAL ALLOWANCE

Definition Qualifying Capital Expenditure Condition for granting capital allowance Types of capital allowance a. Initial allowance b. Annual allowance c. Investment allowance d. Rural investment allowance Basis Period for capital allowance Disposal of Qualifying Capital Allowance Restriction of capital allowance

Terminal capital allowance Building acquired on secondhand Asset acquired from connected person Disposal without change of ownership Hire purchase transaction

LOSS RELIEF

Definition Method of relieving losses a. Current Year Relief Method b. Carry Forward Relief Method Conditions for granting loss relief Loss claims and personal relief General

TAXATION OF INDIVIDUALS

Person chargeable a. Employees b. Sole trader c. Partners d. Trustees e. Executors Relevant tax authority Residency Income chargeable Benefit in-kind Non-Taxable income Reliefs

 Franked investment income Format for computation

TAXATION OF SOLE TRADERS Introduction Allowable expenses Non allowable expenses Non taxable income Treatment of capital allowance

9 PARTNERSHIP ASSESSMENT Introduction Computation of partnership income in taxation Change in partnership Format for computation of partnership tax liability

10 TAXATION OF SETTLEMENT, TRUST AND ESTATE Introduction Settlement Trust Estate Administration period Basis period Capital allowance

 Person liable Format for computation

11 TAXATION OF COMPANIES Introduction Persons chargeable to company income tax Profit chargeable to company income tax Exempted profit Determination of companys profit Badges of trade Allowable deductions Non allowable deductions Normal company tax rate Minimum tax Small business rate Format for computation of companys taxation

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TAXATION OF SPECIALISED BUSINESS

Introduction Companies in the air, sea and telecom business a. Nigerian company b. Non Nigerian company Insurance business a. Life insurance b. Non-life insurance

 Banks Unit trust scheme Advance level 13 CAPITAL GAIN TAX Introduction Administration of capital gain tax Chargeable asset Exemption fom capital gain tax Allowable & Disallowable expenses Cost of acquisition Partial disposal Consideration due after time of disposal Roll over relief Format for roll over relief 14 PIONEER LEGISLATION Definition Legal backing Pioneer list Certificate of qualifying capital expenditure Production day Application for pioneer certificate Contents of pioneer certificate Cancellation of pioneer certificate Pioneer period Tax relief available to pioneer company Profit from non-Pioneer activities 15 DOUBLE TAXATION RELIEF Definition Non-resident Principal place of residence

 Where there is no double taxation agreement Income exempted from double taxation relief Features of double taxation agreement Permanent establishment. 16 PETROLEUM PROFIT TAX Background Administration of Petroleum Profit Tax Assessment of Petroleum tax Ascertainment of profit Determination of profit of a petroleum company Allowable deductions Disallowable deductions Loss relief Capital allowance Petroleum investment allowance Investment tax credit Additional tax Format for computation Important definition.

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VALUE ADDED TAX Introduction Advantages of VAT Disadvantages of VAT Vatable goods Goods exempted from VAT Services exempted from VAT

 Offences and penalties General

18 EDUCATION TAX Introduction Objectives of education tax Composition of board of trustees Sharing ratio

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WITHHOLDING TAX

Introduction Relevant tax authority Income subjected to withholding tax Withholding tax rate Deduction and remittance of withholding tax Offences and penalties

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THE GENERAL PRINCIPLE OF STAMP DUTIES

Introduction Forms of stamp duties Administration of stamp duties Stamping of documents Adjudication Lost instrument

Stamp duty rate