obitaxanswer

Capital allowance is allowance given to tax payer for capital expenditure("fixed asset") incurred during the year.  The rate of capital allowance is  fixed by law. CAPITAL ALLOWANCE  involves the following 1. Initial allowance- once in a life of qualify asset. Full amount  even when not upto 12months=  2.Annual allowance- claimed annually. prorated in accordance to month. (cost-I.A)/N 3.Balancing charge = sales proceed > TWDV 4. Balancing charge= Sales Proceed <TWDV 5.Investment Allowance as specified  by law CAPITAL ALLOWANCE is allowance given by tax authority for ‘fixed asset’ used in the business . is used in replacement of depreciation. The rate is stipulated by law. Capital allowance is restricted to 2/3 of  assessable profit for any year of assessment except for agricultural and manufacturing business.     GET TAX PLANNING TEMPLATE FOR 70,000NGN  WHATSAPP 234 8098810999, 08067922530   Disclaimer: Obi Azubuike is not ...

People are talented, gifted;are born successful. What do you think? Let us start with analyzing the mind. Human mind is one of the amazing things God has given to each one of us. So why does some people   seem more successful than others. Research is on-going on the differentiation of the mind and brain. The mind is more of “Spiritual” and intangible trait than physical trait. The brain is a physical. That is why the mind powers the brain. Some computers or A.I has been able to imitate the brain but not the mind for the mind encompasses spiritual and ethical traits. Is one of the world’s mysteries?     Mind is the power house of imagination, emotional and rational processing and directs action and attitude.   The mind is not physical unlike the human brain. It involves emotion and reasoning. The mind is so powerful because it   is the power house of   spiritual ,logical and ethical traits. Computer and Artificial intelligent cann...

What is success?   Success means different thing to different people. There are different definition and perspective for what success means.   For some success means actualization of dream and worthwhile goal while some being fame and having power means success   In these modern days anything requires finance.   Some see success from financial viewpoint ignoring altogether health, human relationship, happiness and relationship with God.   Accomplishments of worthwhile goal seem to be determinant of success because the individual that achieve this seems to be more accomplished than other people.     Finance: In the world where money is the means of exchange .while having money to solve basic needs is important and contributes to success and happiness.   Wealth and money does not guarantee happiness and success.   Many wealthy people have attest to this fact.       Fame.   Many people believ...

  INNOVATION RULES THE WORLD!!!!!!  Search out for five highly capitalized companies in the world. They innovate. In all profession in the world innovation occur. They innovate or improve on the existing knowledge or process. Ecclesiastics 3:11NWT ‘He has made everything beautiful in its time. He has even put eternity in their heart; yet mankind will never find out the work that the true God has made from start to finish’ Even if we live for eternity. We will not discover all the prospects that God has created just as we cannot know the end of numbers. HUMAN BRAIN AND THE UNIVERSE. The human brain has immense capability. The power of the brain is superior to any available computer. And can retain almost ‘everything’. God created the universe with infinite prospect and potentials and has matched the brain with limitless potential to explore the physical world. Just as the holy book rightly pointed out. We cannot explore all the potential of the universe even if we leave fo...

  FUNDANENTAL ANALYSIS/VALUE ANALYSIS .  Analyzing  the financial  indices to determine the health of the business just as in the case of the example below. Is good to look at this indices for the past five years.  -TURNOVER  -NET PROFIT   -BEFORETAX -NET PROFIT AFTER TAX.  -DIVIDEND DECLARED/PROFIT SHARE  -DEBT/BANK BAL -CASH SALES(Get from cash flow -CORPORATE GOVERNANCE /BUSINESS SUSTAINABILITY.  -RISK MANAGEMENT STRATEGY  When this indices are positive and there are no future potential danger. SEE EXAMPLE FINANCIAL  TURNOVER/SALES-2,000,000 Cost of sale:100,000 Gross profit 1,900,000 Admin And Exp 900,000 NET PROFIT B/4 TAX.  1,000,000 Profit after Tax 700,000   Cash bal:1,000,000 Equity/Total asset:5,000,000 PROFIT AFTER  TAX 700,000 CASH BAL=1,000,000 Equity /Total  asset 5,000,000. Current debt=500,000. What is the return here say=700,000/5,000,000 = 14 percent The company seems to h...

YOU ONLY HAVE $100,000 TO INVEST IN AND THERE EXIST THE RISK THAT $100,000 WHEN INVESTED CAN BE LOST. HOW CAN YOU MITIGATE THE RISK OF INVESTING THIS AMOUNT?   You only have $100,000 to invest in and there exist the risk that $100,000 when invested can be lost. How can you mitigate the risk of investing this amount?   The investor can decide to invest the total amount of $100,000 into his business and thereby face the potential risk of losing the total in his business. The law of probability works the way increase exposure to risk works. The chance of failure of losing $100,000 when adversity or business uncertainty occurs is great.   HOW CAN THIS RISK BE REDUCED. Out of the $100,000. An investor can decide to invest $50,000 in stock/business; $25000 in treasury bills/fixed deposit and $25000 in Real estate. We can see that the investment is somehow diversified.   For example when the $50,000 stock investment fails, the treasury bills and re...

STAMP DUTY .  GUIDED BY STAMP DUTY ACT AS AMENDED   Stamp duties are taxes on document.  It is tax on instrument or a written document in Nigeria.  This is to be stamped within 40 days from date of execution.   Forms of Stamp duties -fixed duties-Irrespective of the value. The same duty is payable.  -Cheque and payment instruments.  -Notary public.  -proxy and guarantors form.    Ad-valoreum Varies according to value in accordance with scale fixed by govt.  -Bill of exchange and promissory notes. -share capitals of coy.  -life insurance policy and property valuation. -Debenture and mortgage loan.    Relevant authority -FIRS.    Commissioner of stamp duties -Admin head, stamping, custody, adjudication.    Instrument not properly stamped. Not admissible in court of law.  Exception.  -criminal proceedings  -prove o...