Types of Basis of Assessment

1. Actual Year Basis= The company/ individual is assessed to year the same accounting year
2. Preceding Year Basis= An entity is assessed to tax in the month following the accounting year.
2023 2024

Types of Basis Period

1 Normal Basis Period:
2. Abnormal Basis Period:

Circumstances
1. Commencement of Business
2. Changes in Accounting Date
3. Cessation of Business

1. Commencement of Business:
XYZ was incorporated on 1/7/2020 but started business on 1/10/2020

Rules of Commencement
Year 1: From the date of commencement to the first accounting year end
Year 2: A day after the first accounting year end to the second accounting year end
Year 3: A day after the second accounting year to the third accounting year end.

MIKELOLU LIMITED
Determination of Basis Period for Assessable Profit
YOA Basis Period for Assessment
2021 1/3/2020-31/10/2020
2022 1/11/2020-31/10/2021
2023 1/11/2021-31/10/2022

GOLGOTHA LIMITED
Determination of Basis Period for Assessable Profit
YOA Basis Period for Assessment
2021 1/4/2020-30/11/2020
2022 1/12/2020-30/11/2021
2023 1/12/2021-30/11/2022
2024 1/1/2022-30/11/2023

GBEMIDEBE LIMITED
Determination of Basis Period for 2019 -2022 Year of Assessment
YOA Basis Period of Assessable Profit Assessable Profit
2019 1/10/2019-31/12/2019 600000
(3/15 x3000000)
2020 1/10/2019-31/12/2019 Nil
 2021 1/1/2020-31/12/2020 2400000
(12/15 x 3,000,000)

SHEKEDIEDIE NIG. LIMITED

Determination of Basis Period for Assessable Profit for 2016- 2020 Years of Assessment
YOA Basis Period for Assessable Profit Assessable Profit
2016 1/1/2015-31/12/2015 180000
OLD BASIS
2017 1/1/2016-31/12/2016 240000
2018 1/1/2017-31/12/2017 252000
(12/16 x 336,000)
2019 1/1/2018-31/12/2018
(4/16 x 336,000) + (8/12 x 144000) 180000
96000+84000
672000

NEW BASIS
2017 1/5/2015-30/4/2016
(8/12 x 180000) + (4/12 x 240000) 200000
80000+120000
2018 1/5/2016-30/4/2017
(8/12 x 240000) + (4/16 x 336000) 244000
160000+84000
2019 1/5/2017-30/4/2018 252000
(12/16 x336000)
696000 696000
The tax authority will select the new date.
2020 1/5/2018-30/4/2019 144000

Ceasation of Business
Pen-ultimate year = The year before the company ceases operation. PYB
Ultimate Year = The year in which the company ceases operations
Before 30th June AYB
After 30th June PYB
The company is expected to file it returns within 6 months from the date of cessation

SOFOODA NIG LIMITED

Determination of Basis Period for Assessable Profit and Due Date
YOA Basis Period Assessable Profit Due Date
2020 1/1/2019-31/12/2019 30/6/2020
2020 1/1/2020-31/3/2020 30/9/2020
Scenario 2 Where the company ceases operation in 31/8/2020
YOA Basis Period Assessable Profit Due Date
2020 1/1/2019-31/12/2019 30/6/2020
2021 1/1/2020-31/8/2020 28/2/2021
 AKPABIO ABDULLAHI NIG. LTD
a. Determination of Basi Period for Assessable Profit
YOA Basis Period for Ass. Profit Basis Period for Capital Allowance Allocation of QCE
2022 1/6/2020-31/3/2021 1/6/2020-31/3/2021 Machinery, Factory Building, Furniture, Delivery Van
2023 1/4/2021-31/3/2022 1/4/2021-31/3/2022 Motor Car, Office Equipment.
2024 1/4/2022-31/3/2023 1/4/2022-31/3/2023

b. Determination of Capital Allowance for 2022 to 2024 Years of Assessment

Machinery Factory Building Furnitures Motor Vehicle Office Equipment Total
Investment Allowance 10%
Initial Allowance 50% 15% 25% 50% 50%
Annual Allowance 25% 10% 20% 25% 25%
2022 YOA N'000 N'000 N'000 N'000 N'000 N'000
Cost 3,600.00 4,200.00 720.00 900.00
Investment Allowance (360.00) (360.00)
Initial Allowance (Initial Allowance Rate x Cost of QCE) (1,800.00) (630.00) (180.00) (450.00) (3,060.00)
Annual Allowance (Cost- Initial Allowance) x A. A Rate x n/12 (375.00) (297.50) (90.00) (93.75) (856.25)
( Where n is the number of months in the basis period)
TWDV 1,425.00 3,272.50 450.00 356.25 (4,276.25)
2023 YOA
Additions 1,300.00 530.00
Initial Allowance (650.00) (265.00) (915.00)
Annual Allowance (New Asset) (162.50) (66.25) (228.75)
Annual Allowance (Old assets) (TWDV/X-1) (475.00) (363.61) (112.50) (118.75) 0.00 (1,069.86)
Where X = 100/Annual Allowance Rate
TWDV 950.00 2,908.89 337.50 725.00 198.75 (2,213.61)
2024 YOA
Annual Allowance (New Assets) (162.50) (66.25) (228.75)
Annual Allowance (Old) (475.00) (363.61) (112.50) (118.75) 0.00 (1,069.86)
TWDV 475.00 2,545.28 225.00 443.75 132.50 (1,298.61)
 JOHNBULL NIGERIA LIMITED
Computation of Capital Allowances for 2022-2026 YOA
P&E M.V F.B Total
Inv. All. 10%
Ini. Allowance 50% 50% 15%
Annual All. 25% 25% 10%
2022YOA N'000 N'000 N'000 N'000
Cost 500.00 300.00 400.00
Inv. All (50.00)
Initial Allowance (250.00) (150.00) (60.00) (460.00)
Annual Allowance (62.50) (37.50) (34.00) (134.00)
TWDV 187.50 112.50 306.00 (644.00)
2023 YOA
Additions 200.00 1,000.00
Inv. Allowance (20.00)
Initial Allowance (100.00) (500.00) (600.00)
Annual All. (Old) (62.50) (37.50) (34.00) (134.00)
Annual All. (New) (25.00) (125.00) 0.00 (150.00)
TWDV 200.00 450.00 272.00 (904.00)
2024 YOA
Annual Allowance (87.50) (162.50) (34.00) (284.00)
TWDV 112.50 287.50 238.00 (284.00)
2025 YOA
Disposal (37.50)
Annual Allowance (87.49) (125.00) (34.00) (246.49)
TWDV 25.01 125.00 204.00 (246.49)
2026 YOA
Disposal (0.01)
Annual Allowance (24.99) (124.99) (34.00) (183.98)
TWDV 0.01 0.01 170.00 (183.98)
Computation of Balancing Adjustments
M.V Eq. Total
Initial Allowance 50% 50%
Annual Allowance 25% 25%
2022 YOA N'000 N'000 N'000
Cost 300.00 200.00
Initial Allowance (150.00) (100.00) (250.00)
Annual Allowance (37.50) (25.00) (62.50)
TWDV 112.50 75.00 (312.50)
2023 YOA
Annual Allowance (37.50) (25.00) (62.50)
TWDV 75.00 50.00 (62.50)
2024YOA
Annual Allowance (37.50) (25.00) (62.50)
TWDV 37.50 25.00 (62.50)
2025 YOA
Sales Proceeds 400.00
Balancing Charge (362.50)
Annual Allowance (24.99) (24.99)
TWDV 0.01
2026 YOA
Sales Proceeds 50.00
Balancing Charge 49.99

Working
Determination of Basis Period of Assessable Profit, Capital Allowance and Allocation of QCE
YOA Basis Period of Assessable Profit Basis Period for Capital Allowance Allocation of QCE
2022 1/8/2020-31/7/2021 1/8/2020-31/7/2021 P&E; M.V; F.B
2023 1/8/2021-31/7/2022 1/8/2021-31/7/2022 M.V; P&E
2024 1/8/2022-31/7/2023 1/8/2022-31/7/2023
2025 1/8/2023-31/7/2024 1/8/2023-31/7/2024 M.V (Disposal)
2026 1/8/2024-31/7/2025 1/8/2024-31/7/2025 Eq(Disp)
 DADINKOWA NIGERIA LIMITED
Computation of Adjusted Profit for 2022 YOA
N'000 N'000
Net Profit / (Loss) (6,530.00)
Add: Disallowable Expenses
Depreciation 35,600.00
Loss on disposal of investment 1,750.00
Stamp duties for increase in share capital 1,500.00
Improvement to industrial building 700.00
Construction of company's gate 900.00
General Provision 17,400.00
Fines for driving offences 470.00
Donations 12,000.00 70,320.00
Deduct: Non Taxable Income
Excess of revaluation of investment 770.00
Dividend received (net) 3,460.00 4,230.00
Adjusted Profit Before Donations 59,560.00
Donations 5,414.55 (5,414.55)
(10/(100+10) x 59560)
Adjusted Profit /Assessable Profit 54,145.45
Deduct: Loss Relief 36,070.00 (36,070.00)
18,075.45
Deduct: Capital Allowances 56,368.48
Unutilized Capital Allowance 15,200.00
71,568.48
Utiliised Capital Allowance (18,075.45) (18,075.45)
Unutilized Capital Allowance 53,493.03
Total Profit (0.00)

Computation of Tax Liabilities

N'000
Company Income Tax @ 30% 0.00
Tertiary Education Tax @ 2.5% of Assessable
1,353.64
Profit
Total Tax Liability 1,353.64

Computation of Minimum
Minimum Tax @ 0.5% of Turnover + Other 1,946.65
income
Tertiary Education Tax @ 2.5% 1,353.64
Total Tax Liability 3,300.29
4

Workings
Computation of Capital Allowances for 2022 YOA
Industrial BuildingMan. Plants M.V F&F Total
Inv. Allowance
Initial Allowance 15% 50% 50% 25%
Annual Allowance 10% 25% 25% 20%
N'000 N'000 N'000 N'000 N'000
TWDV 84,000.00 28,000.00 14000 2700
Cost 1,600.00 0.00 4500 1200
Initial Allowance (240.00) 0.00 (2,250.00) (300.00) (2,790.00)
Annual Allowances (New) (Cost - Initial Allowance)
(136.00)x 10% 0.00 (562.50) (180.00) (878.50)
Annual allowance (old) (16,800.00) (27,999.98) (7,000.00) (900.00) (52,699.98)
TWDV 68,424.00 0.02 8,687.50 2,520.00 (56,368.48)