How to login to NOUN Elearn Portal
You can now use you matric number to login as your username and password in a lowercase.
https://elearn.nouedu2.net/login/
Note that you are to change your passw...
NATIONAL OPEN UNIVERSITY OF NIGERIA
UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
MARCH/APRIL 2015 EXAMINATION
COURSE CODE: ACC318
CREDIT UNIT: 3
COURSE TITLE: ADVANCED TAXATION
TIME ALLOWED: 2 ½ HRS
INSTRUCTIONS: 1. Attempt question Number one (1) and any other three (3).
2. Question number 1 is compulsory and carries 25marks, while the other three questions carry 15marks each
3. Present all points in a coherent and orderly manner
QUESTION 1:
Mr. Ajasin has been in employment of a company for ten years and also runs a private business centre on part-time basis.
|
Mr. Ajasin’s income from various sources for the relevant years is stated thus: 2008 |
N |
|
Salary and wages |
420,000 |
|
Christmas Bonus |
42,000 |
|
Overtime |
73,000 |
|
Benefits in kinds |
64,000 |
|
Profits from business center operation (2007) |
194, 000 |
|
Profit from business centre operation (2008) |
260,000 |
|
Other income in 2008 |
|
|
Dividend (gross) |
14, 000 |
|
Rent (gross) |
80, 000 |
Mr. Ajasin is married with three children; all of them are below 16 years. He also maintains his aged mother up to N42,000 per annum. He pays N15,000 as annual mortgage interest on his personal building and an approved subscription in the sum of N12,000 per annum.
You are required to compute:
(a) Mr. Ajasin Chargeable Income for 2008 Assessment Years; and
(b) Tax Due on him for 2008 using Current Tax Table. (25 marks)
QUESTION 2:
- Explain the two types of tax audit (8 marks)
- Differentiate between direct and indirect tax. (7 marks)
QUESTION 3:
- Explain the two possible forms of anti-avoidance (8 marks)
- Differentiate between tax evasion and tax avoidance (7 marks)
QUESTION 4:
- A pharmaceutical company who deals in Drugs also sells gift items in order to attract customer.
Details of sales and purchases for December 2008 were:
|
N |
|
|
Sales pharmaceutical product |
640,000 |
|
Sales of gift items and supply of performs |
179,920 |
|
Total sales for the month |
820,820 |
|
Vat paid on purchases for December 2008 amounted to |
6,950 |
|
Required: Calculate VAT payable to the tax office (10 marks)
QUESTION 5:
QUESTION 6: CLARK & CLARKE Associates commenced a retail business on 1 October 2006 and makes up accounts to 30 September of every year. The following qualifying capital expenditure on plant and machinery were incurred. Date Amount ( 1/10/06 520,000 1/11/06 535,000 15/4/07 725,000 Required: Compute capital allowances for the relevant years of assessment. |
|
|
|
|
