FOUNDATION
Principles of Taxation
Course Contents
- TAXATION PRINCIPLES
- Tax as a creation of law
- Chargeability to tax, income chargeable
- Tests of trade
- Definition of employment
- Differences between employment and engagement on contract
- Revenue Income/Expenses, Capital Income/Expense
- Principles of residence and permanent establishment
- Measurement of income
- Income recognition and accounting
- Fiscal year
- TAX ADMINISTRATION
- The constitutional powers
- The composition, rights, powers and functions of the various tax organs
- The Joint Tax Board
- Local Government Revenue Committee
- Joint State Revenue Committee
- Federal Inland Revenue Service
- State Board/Internal Revenue Service
- Body of Appeal Commissioners/Tax Appeal Tribunal
- Technical Committee of the Board (to include both Federal and
State) - The Judicial system
General Principles of Law
Course Contents
- Introduction to Revenue Law
- Banking Law
- Bankruptcy Law
- Insurance Law
- Labour Law
- Law of Contract
- Law of Agency
- Sale of Goods
- Hire Purchase, Leasing and Credit Sale
- Partnership
- Company Law
- Introduction to Constitution
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PROFESSIONAL 1
Revenue Law
Course Contents:
- DEFINITION, CLASSIFICATION AND SOURCES OF LAW
- Nigerian Legal System
- Sources of government revenue-Federation Account,
Consolidated Revenue Fund - Revenue Mobilisation, allocation and Fiscal Commission Act
- GENERAL PRINCIPLES OF TAXATION
- Definition
- Objective and Functions
- Classification of Taxes
- Division of Taxing powers
- Interpretation of Taxing Statutes
- Tax Administration and Tax Payers’ Rights
- Company Income Tax
- Federal Inland Revenue Service (FIRS)
- State Boards of Internal Revenue
- Local Government Revenue Committee
- Joint Tax Board (JTB)
- Tax Appeal Tribunal
- Companies Income Tax
- Petroleum Profit Tax Act
- Personal Income Tax
- Capital Gains Act
- Custom and Excise Management Act
- Stamp Duty Act
- Value Added Tax (VAT) Act
- Education Tax Act
- Technology Tax Act
- Traffic Acts
- Fiscal Responsibility Act
- Land: Road and Rail
- Air
- Sea
Income Taxation
Course Contents
- TAX ADMINISTRATION
- The constitutional powers to impose tax
- The composition, rights, powers, and functions of the various tax organs
- The Joint Tax Board
- The Federal Inland Revenue Service
- The State Internal Revenue Service
- Joint State Revenue Committee
- Local Government Revenue Committee
- Joint State Revenue Committee
- The Tax Appeal Tribunal/Body of Appeal Commissioners
- Technical Committee of the Board (to include both Federal and
State) - The Judicial System
- TAXATION PRINCIPLES
- Tax as a creation of law
- Chargeability to tax, income chargeable
- Definition of trade, business, profession and vocation. Tests of
trade - Definition of employment
- Difference between employment and engagement on contract
- Revenue income/revenue expenses. Capital
income/capital expenses - Principles of residence and permanent establishment
- Non-resident individuals deriving income from Nigeria
- Measurement of income
- Income recognition and accounting
- Fiscal year
- TAXATION OF INCOME / PROFITS
- Taxable income, investment income and others
- Income exempted from tax
- Allowable expenses
- Qualifying capital expenditure
- Capital allowances
- Adjustment of income for tax purposes
- Loss relief
- Commencement rule, change of accounting date and cessation
rule - Processing of income tax clearance certificate
- Withholding taxes
- Value Added Tax
- Capital Gains Tax
- COMPUTATION OF TAX LIABILITY OF INDIVIDUALS
- Earned income
- Unearned income
- Benefits-in-Kind
- Reliefs, charges and statutory deductions
- INCOME TAX ASPECTS OF TRUSTEESHIP, ETC.
- Trusts
- Settlements
- Estates
- Partnerships
- Existing partnership
- Commencement of partnership
- Dissolution of partnership
- Admission of new partner(s)
- Treatment of withholding taxes
- Tax assessment and collection
- Taxpayer Identification Number (TIN)
- E-payment
- Offences, penalties and tax enforcement
- Objections/Appeals process
- COMPANIES INCOME TAX
- Administration of companies income tax
- Taxable income, investment income and others
- Commencement rule, change of accounting date and cessation
rule - Allowable expenses
- Qualifying capital expenditure
- Capital allowances
- Non-taxable income
- Adjustment of income for tax purposes
- Loss relief
- Processing of income tax clearance certificate
- TAXATION OF COMPANIES IN SPECIAL CIRCUMSTANCES
- Insurance companies
- Unit trusts
- Mergers, acquisitions, takeovers and restructuring
- Non-resident companies
- Air transportation and shipping companies
- Industrial Development (Pioneer legislation)
- Banks and other financial institutions
- Agricultural businesses
- Export/free trade zone business
- EDUCATION TAX
- Persons chargeable
- Determination, assessment and collection of education tax
- Objection/Appeal process
- Different treatments under Companies Income Tax Act and Petroleum
Profits Tax Act
- ADMINISTRATION AND COMPUTATION OF CAPITAL GAINS TAX
- ADMINISTRATION AND COMPUTATION OF WITHHOLDING TAX
- ADMINISTRATION AND COMPUTATION OF DEFERRED TAXATION
- NATIONAL TECHNOLOGY DEVELOPMENT AGENCY ACT (Information
Technology Levy)
13. TREATMENT OF TAXATION IN COMPANIES ACCOUNTS
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Indirect Taxation
Course Contents
PART 1: CUSTOMS & EXCISE
A. VALUATION
B. TARIFF CLASSIFICATIONS
C. PREFERENCES – IMPORT AND EXPORT
- Meaning
- Countries concerned
- Eligibility and rules of origin
- Free circulation
- Warehousing
- Documentation
- Re-exporting
- Transport rule
D. EXPORTS OUTSIDE THE ECOWAS
- Procedures
- Effects
- Community transit and simplified Procedures
E. LICENSES
- Licensing arrangements
- Regulators
- Notices to importers
- Requirements
- Official journal
- Restrictions on imports
F. TARIFF QUOTAS
- The System
- Regulators
- Special provisions
- Claims
- How to claim
- Customs checks
- Critical quotas
- Deferred claims
G. DUTY RELIEFS
- Permanent reliefs
- Temporary importation
- Type
- Requirements to be met
- Control
- Inward processing relief
- Authorisation
- Suspension
- Drawback
- Compensatory interest
- Equivalence
- Using warehouses or free zones
- Aircraft
- End – use relief
- Authorization
- Imports
- Records
- Completion or transfers
- Special procedures
- Outward processing relief
- Authorization
- Exporting goods
- Importing goods
- Information documents
- Returned goods relief
- Introduction
- Conditions for relief
- Customs Duty
- VAT
- Export procedures
- Re-importation
H. FREE ZONES
- Introduction
- Entering goods into a free zone
- Work carried out in the free zone
- Removal of goods from a free zone
- Payment of duty etc.
- Records required
PART 2: EXCISE DUTIES
- BETTING DUTIES
- General betting duties
- Registration and security
- Records and accounts
- Legal powers and penalties
- Liability to duty
- Notification and payment
- Records and accounts
- Other conditions
- Rate and calculation of duty
- Returns
- Customs & Excise powers
- Pool betting duty
- Who pays duty
- Definition
- Permits
- Paying duty
- Records and accounts
- Amusement machine licence duty
- Duty liability rates
- Licences
- Payments
- Transfers
- Customs & Excise powers
PART 3: NIGERIAN TAXATION STANDARD
PROFESSIONAL 2
- Taxation of E-Commerce
Course Contents
PART 1: e-COMMERCE
- Definition of e-commerce
- History of e-commerce
- Legal implications of e-commerce
- Legal issues and challenges of e-commerce
- Regulation of offshore e-commerce
- Offshore e-commerce facilities
- Offshore professional and financial services
- Offshore e-commerce applications
- VAT and e-commerce
- Withholding tax and e-commerce payment
- Tax residence
- Double taxation treaties
- Income characterization
- Auditing of e-commerce taxation
- Information bases
- Website
- Technology interface
- Internet economy
- Complications of taxing e-commerce
- Offline transactions
- Online transactions
- Encryption transactions
- Administration of tax technological challenges
- Challenges before tax authorities
- Judicial approach to taxation issues
- Transaction test
- Personal services principle
- Legislative approach
- Tax evasion and internet
PART 2: e-BUSINESS
- Definition of e-Business
- Impact of e-Business
- Tax implications of e-Business
- Integration of e-Business in companies
PART3: INFORMATION SYSTEM
- INTRODUCTION TO INFORMATION SYSTEM
- What is an information system?
- What are the roles in information system?
- SYSTEM THEORY AND CONCEPTS
- Definition of a system
- Different levels in a system
- Types of Systems
- INFORMATION SYSTEMS CONCEPT
- Data, Hardware, Software.
- Factors affecting the value of information in organizations
- INFORMATION PROCESSING CYCLE
- Data input
- Data Validation
- Processing
- Storage and retrieval
- Output, Communication and Disposal
- Uses of information systems in achieving organizational goals
- TYPES OF INFORMATION SYSTEMS
- Transaction Processing – types
- Office Automation System – types
- Management Information System
- Executive Support System
- INFORMATION SYSTEMS SOFTWARE AND HARDWARE
- Operating Systems software
- Applications Software
- Enterprise Resource Package
2. Tax Audit and Investigation
Course Contents
- TAX AUDIT/INVESTIGATION PRINCIPLES
- Definition and nature of tax audit/investigation
- Rules and objectives of tax audit/investigation
- Difference between a tax audit and a tax investigation
- Reasons for tax audit and tax investigation
- Appointment of tax auditors
- Duties, rights and obligations of tax auditors
- Professional responsibilities
- PLANNING TAX AUDIT AND INVESTIGATION
- Sources of taxpayers’ financial and business information
- General consideration, nature of business, industry, business
cycle and tax compliance - History
- Audit/Investigation staffing and logistics
- Preparation of tax audit/investigation programmes
- Power of search and seizure under investigation
- CONTROLLING AND RECORDING AN
AUDIT/INVESTIGATION
- Review of accounting system
- Allocation and supervision of work
- Documentation of work done
- Management of working papers
- Evidence of proper review, conclusion and action steps
- Management of commencement and close-out meetings
- Preparation of audit report and investigation report
- Decision making after tax audit / investigation
- Conflicts resolution and settlement of tax controversies
- INTERVIEW TECHNIQUES
- Preparation for interview
- Managing the interview process
- Documentation of minutes of meetings and interviews
- Human relation aspects of field interview
- AUDIT EVIDENCE, TECHNIQUES AND PROCEDURES
- Nature of audit evidence
- Relevance and reliability of audit evidence
- Audit techniques, inspection, observation, enquiry
- Independent confirmation
- Computation and checks, sampling techniques
- Reliance on the work of other auditors, including statutory auditors
- STATUTORY POWERS OF TAX AUDITORS
- Power to obtain information
- Power to enter premises
- Power to obtain third party confirmation from banks, etc
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3. International Taxation
Course Contents
- INTERNATIONAL TAX POLICY
- International tax
- Objectives of international tax rules
- Taxation of inward investments
- Taxation of outward investments
- Non-resident withholding taxes
- Controlled foreign companies
- Active/Passive income distinction
- Portfolio investment
- Double Taxation
- Source and residence tax jurisdiction
- Juridical double taxation
- Source and residence conflict
- Methods of reliefs under juridical double taxation
- Economic double taxation
- Full integration of corporate profits and shareholders’ income
- Methods of elimination of economic double taxation in an international tax context
- DOUBLE TAX TREATY
- What is double tax treaty
- Purpose of double tax treaty
- Prevention of fiscal evasion
- History of double tax treaty
- Model of bilateral convention (OECD, UN)
- STRUCTURE OF DOUBLE TAX TREATIES
- General framework
- Application articles
- Distributive rules
- Active income
- Passive income
- Other income
- Elimination of double taxation
- Prevention of tax avoidance and fiscal evasion
- Scheduler nature of distributive rules
- Ordering rules
- Procedural aspects of double tax treaties
- STAGES IN THE LIFE OF DOUBLE TAX TREATIES
- RESIDENCE
- Individual residence
- Ordinary residence
- Domicile
- Residence of corporations
- Tax Havens
- Dual residency
- EFFECTS OF OFFSHORE JUDICIAL DECISIONS
- International judicial decisions
- FOREIGN TAX PAYERS AND THE NIGERIAN TAX SYSTEM
- Place of business
- Allocation of expenses
- Capitalization
- Debt conversion
- NIGERIAN MODEL DOUBLE TAX TREATY
- Nigerian Tax Treaties and Reliefs
- Typical clauses
- Treaty relief by credit
- Unilateral tax credit
- Reforms and planning
- CONCEPT OF PERMANENT ESTABLISHMENT
- Application of domestic laws
- Business profits
- Meaning of permanent establishment
- Basic-rule permanent establishment
- Examples of permanent establishment
- Excluded activities
- Dependent and independent agents
- THIN CAPITALISATION AND NIGERIAN TAXATION
- THE CONCEPT OF TRANSFER PRICING AND NIGERIAN TAXATION
- Arms-length principles
- Transfer pricing methods
- comparable uncontrolled price methods (CUP)
- Resale price methods
- cost plus method
- Difficulties in applying traditional method
- Transactional net-merging methods (TNMM)
- Profit sprint method
- Global formulary apportionment method
- INTERNATIONAL TAX AVOIDANCE AND NIGERIAN TAXATION
- Tax evasion and avoidance
- Tax avoidance and tax planning
- General principles of domestic laws
- Tax savings
- Decided cases
PROFESSIONAL 3
- OIL AND GAS TAXATION
Course Contents
- UPSTREAM OIL & GAS INDUSTRY – CONCEPTUAL
FRAMEWORK
- i.The business arrangement
- a. Participation of foreign controlled companies
- b. The Nigerian Content and Indigenous Companies
- c. Concept of Subsidiary, Affiliates and permanent establishment / fixed bases of operations
- ii. All aspects of Petroleum Profits Tax, Cap P13 LFN 2004 in
- respect of upstream operations, including:
- Definition of terms
- Petroleum operation
- Chargeable profits
- Chargeable tax
- Assessable profits
- Assessable tax
- Adjusted profits
- Oil prospective license
- Oil mining lease
- Intangible profit
- Intangible drilling cost
- Associated and non associated gas
- Accounting period
- Non-productive rent
- Royalties
- The nature and classification of income
- The nature and classification of costs
- The concept and computation of posted prices
- Computation of adjusted profit and imposition of costs
- Allowable and non-allowable deductions
- Assessable profit and loss
- Computation of capital allowance
- Tax offsets, petroleum investment allowance, computation of
chargeable profit, chargeable tax and the concept of
additional tax - Computation of assessable profits and payment of tax due
- Processing of income tax clearance certificate
- Offences and penalties
- Incentives available to companies engaged in the utilization of
associated gas and objectives for the incentives
- FISCAL REGIME
- Concept of :
- Joint Venture Arrangement (JVC) and
- Production Sharing Contract (PSC)
- Service Contract
- Sole Risk Operations
- Marginal Fields
- Hybrids as they apply to petroleum operations;
- Memorandum of Understanding (MOU)
- Fiscal arrangements: rent, royalty, taxes , profits and
compensation
- REGULATORY AGENCIES IN THE OIL AND GAS INDUSTRIES
- Agencies for control of petroleum upstream operations
- Impact of Organization of Petroleum Exporting Countries
(OPEC)
- COMPANIES INCOME TAX
- Incentives available to companies engaged in the utilization of
associated gas & objectives for the incentives - Downstream operations – computation of companies income
tax payable and payment procedure - Agencies for control of downstream operations – (DPR, PPMC, PPPRA, NNPC, e.t.c.)
ii. Solid Minerals Taxation
Course Contents
- TAXATION OF MINERAL SECTOR
- Definition of Mineral taxation
- Evolution of mineral taxation
- MINING ROYALTY INSTRUMENTS
- Purpose of mineral royalties
- Type of royalties and assessment methods
- Comparison of royalties selected nations
- Private party royalties
- FISCAL REGIMES AND TYPES OF TAXES
- Direct Tax Instruments
- Corporate Income tax
- Withholding tax
- Resource rent tax
- Progressive profit tax
- Indirect Tax Instruments
- Royalties
- Import duties
- Value Added Tax
- Non-Tax Instruments
- Fixed fees and bonus payments
- Production sharing
- State equity
- THE CHOICE BETWEEN TAX AND NON-TAX INSTRUMENTS
- IMPACT OF TAXES
- Neutrality
- Risks
- KEY CHARACTERISTICS OF FISCAL MINERAL RELIEFS IN
SELECTED DEVELOPING COUNTRIES
- APPLICABLE PROVISIONS OF THE NIGERIAN MINERALS AND MINING ACT, 2007
- APPLICABLE PROVISIONS OF THE NIGERIAN INCOME TAX
ACT, 2007
- TAX INCENTIVES, TAX CONCESSIONS AND TAX AVOIDANCE
- PECULIARITIES OF THE INDUSTRY AND APPLICABLE TAX
LEGISLATION
- TRANSPARENCY, GOVERNANCE AND MANAGEMENT OF
REVENUE STREAMS
- The case of transparency
- General Principles of Disclosure and Reporting
- Key challenges in disclosure
- The Extractive Industries Transparency Initiative Emerging
Lessons - Emerging lesson
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iii. TAX MANAGEMENT
Course Contents
- STRATEGIC TAX PLANNING
- Definition of tax planning
- Tax planning and management strategies
- Taxation and present value analysis
- Basic principles of tax planning
- Factors affecting tax planning
- TAX STRATEGIES FOR NEW BUSINESS
- Organizational forms for business entities, corporate formation, partnership formation, single proprietor formation
- Basic tax consequences of entity choice
- Sale or lease of property to controlled entities
- Other strategies for transferring property to controlled entities
- Employee compensation strategies:
- Proprietor compensation, employee compensation, fringe
benefits - Deferred compensation, equity based compensation,
employee stock plans/option; - Partnership interest as payment for services
- Proprietor compensation, employee compensation, fringe
- TAXATION AND BUSINESS OPERATING STRATEGIES
- Profit Measurements and Reporting
- The Entity’s Accounting Year, Tax Accounting Methods
- Differences (permanent and temporary) Between Book Profit
and Taxable Profit - Accounting for Income Taxes: Deferred Tax Assets and Liabilities,
Corporate Tax Payment Requirements - Tax Incentive Provisions:
- Tax Incentives and After-Tax Business Value, Criticisms of Tax
Incentives; and - Restrictions on their Benefits
- Tax Incentives and After-Tax Business Value, Criticisms of Tax
- DISTRIBUTIONS TO BUSINESS OWNERS
- Corporate Distributions, Partnership Distributions, Sole
- Proprietor Distributions
- Anti-Avoidance Schemes
- STRATEGIES FOR BUSINESS GROWTH AND EXPANSION
- Multiple-Entity Business Structures
- Business Reasons for Multiple Entity Structures
- International Business Expansion
- Taxation and Capital Marketing Activities
- Disposition of Equity Interest in Business Entities
- Sales and Exchanges of Corporate Stock, Stock Redemptions, Tax effects of Stock
- Disposition on the Stock Market
- Corporate Acquisitions, Mergers and Divisions
- Overview of Corporate Acquisitions – Assets or Stock?
Purchase of Targets Assets - Limitation on use of Target’s Tax Attributes, Corporate Divisions – Spin-Offs
- Split-Offs and Split-Ups
- USE OF HOLDING COMPANIES
- FINANCING ACTIVITIES
- Choice between debt and equity
- Use of intra-group financing companies
- Asset financing
- DERIVATIVE INSTRUMENTS
- Definition of derivative
- Main types, features, e.t.c.
- Tax treatment of derivatives
- Derivatives and tax planning
- Intellectual Property Management
- Creation of intellectual property
- Management of intellectual property
- Migration of intellectual property
iv. PRACTICAL CASES IN TAXATION
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