Question 7
ICAN
•
2023
•
ADVANCED TAXATION
•
mixed
Case Stimulus
Tax incentives are those special exclusions, exemptions or deductions from income or tax credits offered to taxpayers by the government as an encouragement to engage in specified activities. These fiscal incentives have generated a lot of debates among Nigerian lawmakers, economists, accountants, tax practitioners, tax administrators and the public.
The Federal Government is, however, optimistic that the positive effects tax incentives have on the economy far outweigh the negative effects (via reduction in revenue).
A notable wealthy businessman and Chairman of a conglomerate company, High Level Group of Companies, was surprised to know during legislative debate that over N6 trillion in tax incentives was provided for in the forthcoming national budget.
The Chairman of the conglomerate has just approached your professional accounting firm to provide advice on some salient issues in respect of tax incentives available to companies in some specific areas.
Requirements
(
a
)
Tax incentives available to a mining business (under the Minerals and Mining Act 2007)
(
b
)
Tax incentives available to gas utilisation (downstream operations) business
(
c
)
Tax incentives available to a company that is eligible for road infrastructure tax credit scheme
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About This Question
This is
Ican
2023
Advanced Taxation
Question 7.
It is one of the
mixed
questions from the
2023
Ican
Advanced Taxation
examination.