obitaxanswer

COMMENCEMENT RULE. This rule below applies when the business is new. YR1=DATE OF COMMENCEMENT TO 31 DECEMBER OF THE SAME YR YR2=12MONTH FRM DATE OF COMMENCEMENT. YR3=PYB=WHERE NOT POSSIBLE REPEAT 2 ND  YEAR FIGURE=WHERE LESS THAN A YEAR AND MORE THAN A YEAR. The result is compared with Actual year basis. The lower tax result is elected. The finance act 2020 has  changed the rule  of taxation based on the actual profit for the year TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting and accounting. For more information see  www.tconceptpro.com  or call +234 (0)8067922530. Disclaimer : Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice.  Copyright(c)2018-Obi Azubuike

CHANGE OF ACCOUNTING DATE Business has right to change their accounting date. When this happens  assessment is based on the old or the new accounting date for the first three years from the date of change. The result that gives the higher tax is elected by the tax authority. ILLUSTRATION ABC & CO YEAR ENDED         =31/09/2012                                   =31/09/2013                                  =31/12/2013                                   =31/12/2014        ...

DURING CEASATION OF BUSINESS THIS RULE APPLIES PENULTIMATE YEAR.( YEAR BEFORE CEASATION)=PYB ULTIMATE YEAR=FROM 1 ST  JANUARY-CEASTION DATE TAX AUTHORITY CAN ELECT  THE RIGHT TO APPLY ACTUAL YEAR BASIS(AYB) ON THE PENULTIMATE YEAR. TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting and accounting. For more information see  www.tconceptpro.com  or call +234 (0)8067922530. Disclaimer : Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice.  Copyright(c)2018-Obi Azubuike