₦airaland Forum

I keep getting that prompt but thank God I read through before clicking ok. its daylight robbery

happy new year to everyone out there. hope we are all having a nice time with friends and family. this holiday gives me some time to post on nairaland and its nice.

let me broach on the subject of CIT which is the same as Company income Tax, governed by Companies income tax Act amended 2011 and administered by FIRS.

this is a form of taxation of companies and it has 2 components- Tertiary Education Tax (from Tertiary education Trust Fund Act) which is 2% of assessable profits and companies income tax which is 30% of taxable profit.

before we go on, we should know that CIT is expected to be 30% of the profit before tax reported by a company but due to the differences in tax and accounting methods of treating some expense or income items it may not be so and this gives rise to deferred tax. a topic for another day.

Now let's say you have a newly incorporated company and are wiling to compute your taxes both for payment to FIRS, for provisioning in the statement of comprehensive income to determine what your retained earnings/reserves are and for preparation of your cash flow statement, these are the steps (Caveat- this topic is not exhaustible in a single post but would try to break them down in bits over time):

- for a newly formed company you compute your income taxes based on the COMMENCEMENT RULE which is as follows

:determine the first 3 tax years FIRST TAX YEAR is from the date of COMMENCEMENT OF BUSINESS (not necessarily incorporation) till 31 December of the same year, SECOND TAX YEAR is from date of commencement of business till 12 months ended while THIRD TAX YEAR is the PRECEEDING YEAR basis period. an example is a company with year ended of 1 May 2009 to 30 April 2010.

basis period for 1st tax year is 30 April 2010 till 31 Dec. 2010 which is 2010 year of assessment
basis period for 2nd tax year is 30 April 2010 till 31 March 2011 which is 2011 year of assessment
basis period for 3rd tax year is 1 May 2010 to 30 April 2011

You would observe that there some overlapping periods during these dates. where a company reports profits over an overlapping period it pays the tax twice but where it records losses it claims the loss once. there is some tax planning around this .
there is also the option to apply for RIGHT OF ELECTION where the company thinks it is suffering too much exposure to overlapping profits and taxes.

now I will give a very brief explanation of how to compute your income taxes (please note that there is a lot of adjustment to be made when computing companies income tax and this is just a sketch).

Net profit for the year XXXXX
Add Unallowed expenses (i.e. Depreciation, penalties, unrealized exchange loss Generic provisions etc) XXXXX
Deduct non-taxable income (i.e. unrealized exchange profits, profits on sale of fixed assets etc.) (XXXXX)
Assessable profit (being the difference) XXXXX
Add Balancing charge XXXXX
Deduct Capital allowance and Balancing allowance and lossess (XXXXX)
Taxable profit (being the difference and there is a lot of tax planning that goes into these items) XXXXX

The above is done for the first 3 years based on commencement rule and the taxes are disclosed in the appropriate financial statements and paid to FIRS.

all these must be done on or before the end of 6 months from the company's year end or there are penalties and interest charges.

we'll continue again some time

the report is misleading and unscientific at best

hi guys, please what causes the screeching sound once you press on the brakes ? though they are still as sharp as a needle and still brings my suv to a halt over a little distance

adzabaz@yahoo.co.uk 07036763061

i'm back. can you program tomorrow ?

baconline:
10k

yawning

my line of thoughts. we don't need to keep forming more and more associations. lets identify with and build on the work of an existing association. all for one, one for all.

Fhemmmy:
[b]Just because an association has not achieved or recognized yet by the government is not a sign of failure, it might mean that the missing link is you, Soft77, robonski and the rest of the people here . . . We are all a part of the bigger picture and till we see that, we are heading no where . . I can bet you that those small group you talking about has the vision to one day sit and dine with the president and have meetings in the USA as the world known fish farmers but they are yet to.

By the way, any association that is registered with the government is qualified to be names recognized by the government, or what define an association as being recognized?

I do agree that it is important to audit any association however, their mission and vision is key and not what they have done. . . It is like saying you wont hire someone that is fresh from university (Which is what is happening in Nigeria anyways and all over the world) because the person has no experience and if no one will give the person a chance, tell me how will the person acquire the experience and become employable?

Let us work with objectivity.

Mind you, i am just a Novice with little or no knowledge at all in the business.[/b]

@Soft 777. words will not carry the appreciation i and many have for your contributions. Keep up the good great work

i love that lady. she always amazes me. she must be an EXPATRIATE !

Personally I've got an issue with the way he kept praying for and blessing our past corrupt presidents. OBJ, Jonathan etc. Is he by that saying he is not aware of their level of corruption cos I also don't remember him voicing out against it like other pastors eg pastor bakare

I've stopped giving tithes and frivolous offerings in church. Rather I give to the needy and helpless. I feel better that way. God help us. Church is no longer within the buildings but in our hearts

@soft777. nice one, waiting for next episode

i must say i quite agree. those that have discerning mind would surely profit. see you at the very top

How do you connect with buyers

thanks.

from experience, how profitable is goat, pig and turkey farming

this op must be suffering from colour blindness

just wondering if the house owner is aware and supportive of you posting the building map and inner workings of his soon to be house. by the way, its a great job you're doing there.

See enjoyment

my oga, sorry to digress a bit but i have a question, where a landlord has issued 3 months quit notice is the tenant to pay rent for those months ?

i am trying to get a 1kva prag inverter and 200ah battery. would need someone to help with installation

that's why she doesn't have a man. epitome of beauty and epitome of loneliness

CONGRATS!!!

Hi Mikky,

Can you help me with this item: http://www.ebay.com/itm/Rear-Right-ABS-Wheel-Speed-Sensor-for-Mitsubishi-4WD-Outlander-Lancer-07-12-/171340418821?fits=Year%3A2008%7CMake%3AMitsubishi%7CModel%3AOutlander%7CSubmodel%3AXLS%7CEngine+-+Liter_Display%3A3.0L&hash=item27e4af4f05&vxp=mtr

good to know, thanks.

Time2Smile:
You are likely to me mailed by a scammer. You are the one that is supposed to mail Mikky and establish a line of secure communication. Mail him using the email address on the first page of this thread. BEWARE OF SCAMMERS.

hello house, i have an issue with the radiator of my 2008 outlander. though the radiator is fine, one of the plastics hinging the radiator to the body of the vehicle is leaking water and i'm trying to fix or replace it.

my mechanic says the radiator is hard find and suggests i import it. i rather think he is looking for an easy route.

can the plastic be replaced or glued or something ? please see a picture of the plastic (black colour)

can it go for 25k ?

can it go for 30k ?

how much, and what is the meaning of "hacked" ?