Ican 2023 Taxation Question 3

Taxation has been defined as the imposition of compulsory levies on individuals and entities by governments in most countries in the world. The primary objective of taxation is essentially to generate revenue or raise money for government expenditure on social welfare. You were appointed as the accountant of Specks Nigeria Limited on August 31, 2022. Based on self assessment, the company filed the audited financial statements for year ended December 31, 2021, together with its tax computations on June 7, 2022, and the relevant tax liabilities were fully paid on same date. On August 31, 2022, the Federal Inland Revenue Service raised an assessment that was not in line with the tax returns. At the meeting of the directors held in September 2022, this issue was discussed and you were mandated to quickly address same so that the assessment would not become final and conclusive.