ACC318 Tma Solutions
1. Which of the following statement is true of donations that are allowable
—>> Donations should not be of a capital nature
Maximum allowable donation is limited to 20% of the total profits
Donations must not be made out of profit
Donations must be made to approved traditional council only
2. The basic principles of taxation that guide tax administration as well as the implementation of the provisions of relevant tax laws is known as:
Tax administration
—>> cannons of taxation
principles of taxation
None of the above
3. _________ specifically refers to all incomes that emanates from a trade, business , profession, vocation or employment, carried on or excercised by an individual.
Unearned Income
—>> Earned Income
Employment Income
Business Income
4. The assessment of income from settlements, trusts and estates is governed by the provisions of
—>> Personal income Tax Act (PITA)
Companies Income Tax Act (CITA)
Trusts and Estates Tax Act (TETA)
Capital Gains Tax Act (CGTA)
5. The legal basis for assessing resident comapanies to tax is the:
Income tax Act, CAP C 21 LFN 2004
Company Income Tax Act, CAP 20 LFN 2004
—>> Company Income Tax Act, CAPC 21 LFN 2004
Personal Income Tax Act, CAP C20 LFN 2004
6. The applicable rate tax for small company is
0.1
—>> 0.2
0.3
0.35
7. Minimum tax computation is not applicable to to the following company EXCEPT:
—>> A company carrying on manufacturing business
A company carrying on agricultural trade or business
A company with at least 25% imported equity capital
A company within its first four calendar years of commencement of trade
8. 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
—>> Three(3) consecutive years
Three years
five(5) consecutive years
one (1) year
9. The year the business of the company ceased to exist is known for tax purposes as
Real Year
Penultimate Year
—>> Ultimate Year
Actual Year
10. Earnings from royalty, trademark, dividend and rentals are examples of :
Earned income
—>> Unearned income
Business Income
Dividend and rental income
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