Education, as a way of learning, helps to inculcate the proper attitudes and social interaction on people. Tertiary education represents any form of education acquired after the secondary (or high) school level. This includes certificates from polytechnics, colleges of education,…
One of the main challenge facing the Nigeria Police is funding. President Muhammadu Buhari recently signed a new Act that creates additional source of revenue for the Nigeria Police. The Nigeria Police Trust Fund (Establishment) Act, 2019 aims to create…
In our previous article, we discussed the theory of capital allowance in Nigeria. Now, we shall consider three (3) examples on how to calculate capital allowance in Nigeria. Question 1: In January 2018, Company Bee bought plant and machinery…
The Court of Appeal has overruled the decision of the Federal High Court (“FHC”) in Stanbic IBTC Holdings Plc (“Stanbic”) vs Financial Reporting Council of Nigeria (FRCN) & Anor (2015), which declared that failure to get approval from NOTAP for…
June is one of the busiest tax filing seasons in Nigeria. It is the deadline for filing of companies income tax (CIT) returns for taxpayers with financial year-end of 31 December. For companies with connected persons, it also doubles as…
In Nigeria, the government generates revenue from the taxation of individuals and businesses. Nevertheless, the Federal Government of Nigeria may exempt a business from corporate income tax for a specific period. This type of tax exemption is known as a…
New companies in Nigeria are expected to file their first set of tax returns in line with the commencement rule. However, the Finance Act (2019) has changed the tax narrative. New companies, with effect from 13 January 2020, can now…
In financial accounting, net profit arises when revenue is greater than the cost otherwise it is a loss. The equation is different when it comes to assessable profit. Assessable profit is the profits from all sources in the year immediately…
Capital allowance is an allowance granted for income tax purposes instead of depreciation. It reduces the taxable profits and tax liability of a business. However, a taxpayer in Nigeria must fulfill four (4) conditions so as to claim capital allowance…
Businesses often buy items that will generate benefits above 12 months. When these items are also tangible and hard to convert into cash, they are called fixed assets. Each company is free to set a threshold for recognizing fixed assets…
