11 Questions
What is the basis of assessing banks to tax under the Companies Income Tax Act?
Their total profit
Under the CITA 2004, when is interest on loans granted by banks to a company for manufacturing goods for export exempted from tax?
If the recipient company exports 50% of its goods and does not re-export them to Nigeria
What must the beneficiary company do to qualify for the interest exemption on loans granted by banks for manufacturing goods for export?
Obtain a certificate of export from the Nigeria Export Promotion Council
What is a specific provision that affects banks differently than other companies under the CIT Act?
Exemption on loan interests
In what situation would a bank not be liable for tax under the CIT Act?
If they do not make any profits
What is the tax exemption percentage allowed for repayment periods between 5 to 7 years according to Table 2 schedule 3 of CITA 2004?
40%
Which of the following types of production is NOT considered as primary according to the text?
Primary manufacturing production of raw materials
How long must a company engaged in the fabrication of local plant, machinery, and tools allow as a moratorium to qualify for interest exemption according to the text?
18 months
Interest received by banks on Federal and State Government Development loan stocks or bonds is exempted from tax according to the text. Which of the following is NOT exempted from tax based on the information provided?
Rent earned in Nigeria
What type of interest is exempted from tax if at least 12 months moratorium is allowed and the rate does not exceed the base lending rate for loans granted by banks for primary agricultural production?
Interest on loans for primary agricultural production
Which of the following loan provisions are NOT allowed in taxation of banks and other financial institutions as per the information provided above?
Provisions for non-performing loans
Test your knowledge on how banks are assessed for tax liabilities under the Companies Income Tax Act. Explore specific provisions that are unique to banks and affect their assessable profit, total profit, and taxes payable.
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