Question 7
ICAN
•
2023
•
TAXATION
•
mixed
Case Stimulus
The Federal Government in a bid to further boost the growth in foreign exchange earnings, create new jobs, facilitate economic diversification, industrialisation and provide access to foreign technology, came up with its export processing zones (EPZs) policy.
EPZ is regarded as a customs area where an enterprise is allowed to import plant, machinery, equipment and raw materials, process them, and then export them to the world market, under security and without paying duty.
To facilitate better understanding of the above assertions, the Managing Director of a would-be client approached you for the explanations of the relevant provisions of the Nigerian Export Processing Zones Act Cap. N107 LFN 2004 (as amended) and Companies Income Tax Act Cap. C21 LFN 2004 (as amended).
Requirements
(
a
)
Discuss SIX special tax incentives for enterprises operating in an export processing zone.
(
b
)
Explain the penalties for non-compliance with section 55(1) of CITA (as amended).
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About This Question
This is
Ican
2023
Taxation
Question 7.
It is one of the
mixed
questions from the
2023
Ican
Taxation
examination.