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1 TAXATION II ACC 318 Course Guide Course Developer/Writer: Edirin JEROH, PhD, ACA Department of Accounting Delta State University Course Editor Dr Salisu Mamman Department of Accounting Ahmadu Bello University Head of Department Dr (Mrs) Ofe Inua Department of Financial Studies National Open University of Nigeria Programme Coordinator Anthony I.

2 Ehiagwina Department of Financial Studies National Open University of Nigeria CONTENT Introduction Course Aim Course Objectives Study Units Assignments Tutor Marked Assignment Final Examination and Grading Summary INTRODUCTION You are holding in your hand the course guide for ACC318 ( TAXATION II). The purpose of the course guide is to relate to you the basic structure of the course material you are expected to study as a Accounting Student in National Open University of Nigeria.

3 Like the name course guide implies, it is to guide you on what to expect from the course material and at the end of studying the course material. COURSE CONTENT The course content consists basically of the treatment of transactions according to the provisions of the Nigerian tax laws. Specifically, background of business TAXATION , TAXATION of sole traders, partnership, limited liability companies and specialized businesses were the main focus of this course material. COURSE AIM The aim of the course is to bring to your cognizance the practical treatment of TAXATION of businesses in line with the Nigerian tax laws.

4 COURSE OBJECTIVES At the end of studying the course material, among other objectives, you should be able to know: 1. Overview of Business TAXATION in Nigeria 2. Objectives/Aims of Business TAXATION in Nigeria 3. Contribution of Business TAXATION in Nigeria 4. Challenges/Problems of Business TAXATION in Nigeria 5. Meaning of a Trade or Profession 6. Computation of Assessable Profit of a Trade or Profession 7. Taxable/Non-Taxable Incomes and Allowable/Non-Allowable Expenses 8. Determination of Basis Period for Assessment 9. Capital Allowance Computation 10. Loss Relief 11. Determination of Computation of Taxable and Non-Taxable 12.

5 Income of a Partner 13. Identification and Computation of Allowable and Non-Allowable Expenses of Partnership 14. Computation of Assessable and Chargeable Profit of Partnership 15. Determination and Treatment of Tax under Admission and Resignation of a Partner 16. Introduction to Company Income Tax 17. Determination of Basis Period for Assessment 18. Capital Allowance Computation 19. Loss Relief 20. TAXATION Provisions and Computation for Real Estate 21. Trust and Settlement Businesses in Nigeria 22. Tax Provisions and Computation for Transportation and Telecommunications Businesses in Nigeria 23.

6 Criteria to be Eligible for Small Company Relief 24. Basis for TAXATION of Enterprises in Free Trade Zones COURSE MATERIAL The course material package is composed of: The Course Guide The study units Self-Assessment Exercises Tutor Marked Assignment References/Further Reading THE STUDY UNITS The study units are as listed below: Module 1 Background of Business TAXATION Unit 1 Overview of Business TAXATION in Nigeria Unit 2 Objectives/Aims of Business TAXATION in Nigeria Unit 3 Contribution of Business TAXATION in Nigeria Unit 4 Challenges/Problems of Business TAXATION in Nigeria Module 2 TAXATION of Sole Traders Unit 1 Meaning of a Trade or Profession Unit 2 Computation of Assessable Profit of a Trade or Profession Unit 3 Taxable/Non-Taxable Incomes and Allowable/Non-Allowable Expenses Unit 4 Determination of Basis Period for Assessment Unit 5 Capital Allowance Computation Unit 6 Loss Relief Module 3 TAXATION of

7 Partnership Unit 1 Determination of Computation of Taxable and Non-Taxable Income of a Partner Unit 2 Identification and Computation of Allowable and Non-Allowable Expenses of Partnership Unit 3 Computation of Assessable and Chargeable Profit of Partnership Unit 4 Determination and Treatment of Tax under Admission and Resignation of a Partner Module 4 TAXATION of Limited Liability Companies Unit 1 Introduction to Company Income Tax Unit 2 Determination of Basis Period for Assessment Unit 3 Capital Allowance Computation Unit 4 Loss Relief Module 5 TAXATION of Specialized Businesses Unit 1 TAXATION Provisions and Computation for Real Estate Trust and Settlement Businesses in Nigeria Unit 2 Tax Provisions and Computation for Transportation and Telecommunications Businesses in Nigeria Unit 3 Criteria to be Eligible for Small Company Relief Unit 4 Basis for TAXATION of Enterprises in Free Trade Zones ASSIGNMENTS Each unit of the course has a self assessment exercise.

8 You will be expected to attempt them as this will enable you understand the content of the unit. TUTOR MARKED ASSIGNMENT The Tutor Marked Assignments (TMAs) at the end of each unit are designed to test your understanding and application of the concepts learned. Besides the preparatory TMAs in the course material to test what has been learnt, it is important that you know that at the end of the course, you must have done your examinable TMAs as they fall due, which are marked electronically. They make up to 30 percent of the total score for the course. SUMMARY It is important you know that this course material was actually adapted from ICAN study pack.

9 This provides you the opportunity of obtaining a BSc. degree in Accounting and preparation for your professional examinations. Therefore, it is very important that you commit adequate effort to the study of the course material for maximum benefit. Good luck. TAXATION II ACC318 Main Content Course Developer/Writer: Edirin JEROH, PhD, ACA Department of Accounting Delta State University Course Editor Dr Salisu Mamman Department of Accounting Ahmadu Bello University Head of Department Dr (Mrs) Ofe Inua Department of Financial Studies National Open University of Nigeria Programme Coordinator Anthony I.

10 Ehiagwina Department of Financial Studies National Open University of Nigeria TABLE OF CONTENT MODULE 1 BACKGROUND OF BUSINESS TAXATION Unit 1 Overview of Business TAXATION in Nigeria Unit 2 Objectives/Aims of Business TAXATION in Nigeria Unit 3 Contribution of Business TAXATION in Nigeria Unit 4 Challenges/Problems of Business TAXATION in Nigeria MODULE 2 TAXATION OF SOLE TRADERS Unit 1 Meaning of a Trade or Profession Unit 2 Computation of Assessable Profit of a Trade or Profession Unit 3 Taxable/Non-Taxable Incomes and Allowable/Non-Allowable Expenses Unit 4 Determination of Basis Period for Assessment Unit 5 Capital Allowance Computation Unit 6 Loss Relief MODULE 3 TAXATION OF PARTNERSHIP Unit 1 Determination of Computation of Taxable and Non-Taxable Income of a Partner Unit 2 Identification and Computation of Allowable and Non-Allowable Expenses of Partnership Unit 3 Computation of Assessable and Chargeable Profit of Partnership Unit 4 Determination and Treatment of Tax under Admission and Resignation of a Partner MODULE 4 TAXATION OF LIMITED LIABILITY