ACC 306: Taxation II

Learning Outcomes

At the end of this course, students should be able to:

1. discuss bases and computation of companies’ income tax;
2. compute tax relating to small, medium-sized and large companies, including pioneer companies;
3. compute tax of specialised businesses, including digital economies;
4. file tax returns in respect of taxes relating to different transactions;
5. discuss the underlying concepts and principles of tax audit and investigation;
6. explain the principles of Transfer Pricing;
7. identify allowable and disallowable expenses for tax purposes; and
8. illustrate the use of stamp duties and its application to business transactions.

Course Contents

Computation of companies’ income tax in relation to – principles and scope, commencement of business, change of accounting date and cessation of business. Allowable and disallowable expenses. Computation of income taxable and non-taxable income, loss relief, capital allowances. Computation of total profit, companies’ income tax and tertiary education tax.

Computation of taxes for small companies and pioneer companies.       Criteria for reliefs, exemptions and tax computation.

Computation of taxes for specialised businesses (e.g. extractive and mining industries). (Compute transaction taxes, such as stamp duties, luxury tax, land use charge, value added tax, withholding tax, customs and excise duties.

Transfer pricing regulations, including Nigerian Income Tax Transfer Pricing Regulations (2012), Income Tax Transfer Pricing Regulations (2018), Transfer Pricing Guidelines of Organization. Tax audit and investigation, back duty investigation/additional tax liability.