Capital Allowances : ICAN Nigeria Taxation & Advanced Tax ( Finance ACT 2020)-Questions & Solutions

[@fridayvincent3494]

This man is too intelligent, detailed and clear in his explanation

[@PeaceObuseh-m9x]

God bless you Sir. Your videos aided me in passing my Advanced Taxation.. Thank you Sir..

[@DaraSola-ow9cf]

Thank you sir I am glad my friend temi told me about your page.

[@Ezikan]

Glory be to God

[@oto-obongrobert9005]

Thank you for the good work done, Sir.

[@Ezikan]

Glory be to God

[@cxtiedammie]

May God continue to bless you. Thanks for this

[@Ezikan]

Amen

[@asotiepraize5015]

thank you so much sir. another knowledge added to me, thanks for been so generous to share

[@Ezikan]

Thanks you very much

[@bakareadesanya487]

Good work sir

[@ayanugwoemeka523]

The A.A for F/F is supposed to be 180000. 100/20% =5 900000/5=180000

[@Ezikan]

Thank you, it is human error, I have discovered it

[@Eby4Christ]

@ayanugwoemeka523 you are right I got 180,000 too he made a mistake.

[@Eby4Christ]

@@Ezikan thank you sir this video is so helpful. I now understand CA better thank you sir.

[@Ezikan]

@Eby4Christ I have said it is a human error

[@asotiepraize5015]

yeah, i observed too but it is all an example after all, so convert back your 20% to 25%, and you will get 225,000

[@hafsatolajumoke8822]

Well explained... 👏👏👏

[@odimegwuchiamaka8533]

This came in very timely,thank you sir

[@ugheghelegodstime5951]

Thank you you sir... The lecture was impactful 😊

[@sahidbasirat7672]

The useful Iife of furniture &fittings is 100/20=5 , AA will be 1200000-300000/5 =180000 not 225000

[@Ezikan]

Yes

[@johnvictoria9792]

Pls cross check the calculation of furniture and fittings under anual allowance you divide it by 4 instead of 5, because 100 divide by 20 is 5 not 4

[@Ezikan]

It was a mistake

[@estherernest5066]

Well done sir very helpful ❤️

[@Ezikan]

Thanks

[@ObafemiOlayinka]

Weldone sir

[@josephbabs8649]

GREAT JOB

[@emmanuelosakuni8647]

Nice Video sir.Please, I have a question. If the asset was acquired before the commencement of the business, doesn't that mean that the qualifying expenditure on the asset was not incurred in any basis period? But the first condition you gave was : "Qualifying Capital Expenditure must be incurred in a basis period"

[@Ezikan]

The assets acquired before the commencement will be deemed to have been incurred on the first day of the commencement of business.

[@omotokeshodipo1865]

God bless u more sir...

[@Ezikan]

Amen, thanks

[@IbrahimAlkali-by1nh]

Good day sir, Did you make a presentation on taxation of ESTATE, TRUST AND SETTLEMENTS?

[@Ezikan]

It is in my mind. These days, it will be considered

[@IbrahimAlkali-by1nh]

May the Almighty God strengthen you!

[@adejimiopeyemi635]

Can you please look at step acquisition and partial disposal under group accounting ?

[@Ezikan]

I will consider that today

[@adejimiopeyemi635]

God bless you

[@seyiraphealband7426]

Thank sir.. but what is the finance Act saying concerning investment allowance... I believe it has been abolished sir?

[@Ezikan]

It has been removed . There is no retrospective application of finance ACT

[@IbrahimAlkali-by1nh]

Sir, the Office Equipment was acquired on 1st April, 3moths after MV. Are we suppose to charge AA for the same length of periods for both OE & MV?

[@Ezikan]

What determines the number of months annual allowance should be prorated which can only happens in the year of commencement and cessation is not the date of acquisition but the number of months in the basis period. The date of acquisition is to identify when the qualify Capital expenditure first qualify for capital allowance

[@light-up1]

Thanks sir for your time and effort... I thunk the Annual allowance on equipment and fittings should be porated since the asset was acquired in sept 2020 nd also the annual allowance calculated should be 5yrs against 4 years used...pls look into it sir. Thanks

[@Ezikan]

Annual Allowance rate for plant and equipment is 25% (100 /25 = 4 and annual Allowance rate for Furniture and Fittings is 20% ,(100/20 = 5). That is what I used. The annual Allowance for 2021 year of assessment was prorated because the number of months in the basis period is 6months while the annual Allowance for 2022 years of assessment is to be charged in full because we now have full year( 12months) . The date of acquisition is to determine the time the asset will first qualify for assessment. Don't think because the asset is acquired in September, it annual Allowance have to be prorated. If the number of month in the basis period it is acquired is up to 12 months, it annual Allowance will not be prorated. The only mistake Iade is that, I miskenly use four years in the second year instead of 5 years for furniture and fittings but the explanation is still correct Also check the solution from ICAN

[@light-up1]

@@Ezikan thanks so much for clearing my doubt

[@mesofavy6435]

Thank you so much sir Can u please make a video of withholding tax

[@diana-abasiakpan9164]

I was so confused how it became 4years not until now

[@amazinggrace.2341]

Hello sir. please what about explanation of hire purchase on capital allowance.

[@Ezikan]

I have a video on it

[@omolaraeny]

Sir,when can we have new video on capital allowance based on finance act of 2023 that delisted investment allowance on plant and machinery

[@Ezikan]

I will consider that later but I want to cover more topics first. More also, inclusion of investment allowance in the existing videos does not make any difference. Just remove investment allowance and you have what is obtainable in 2023 finance ACT

[@delightwaheed6222]

Thank you so much sir.

[@oghenekumeprosper1999]

Sir please can you do a video on learning curve theory with ican past questions 🙏🙏🙏🙏🙏🙏, exam is in 2 weeks

[@OkeaguChinyere-wo6yx]

What of the question where the commencement of business was before 2020, something like 2018 or so? Does the new finance act rule still apply?

[@Ezikan]

No, use old rule

[@olufunkeadeola3093]

Well done ,wen is Tax written down value divided by N -p used

[@Ezikan]

When you have an existing asset whose Initial and annual Allowances have been claimed in the previous year

[@olufunkeadeola3093]

@@Ezikan Can u explain more sir I don't get

[@olufunkeadeola3093]

Because some formula is Tax written down value divided by no of yrs only .....

[@olufunkeadeola3093]

Qualifying capital expenditure that was bought b4 commencement of business will it be added to it??

[@olufunkeadeola3093]

Will it be considered in capital Allowance

[@AnjelaWilliams-xp3sn]

Sir, how did u get ur capital allowance claim For 2022

[@Ezikan]

By summing up the initial and annual allowances calculated

[@isaacadelugba7444]

Excellent.

[@Ezikan]

Thank you very much. The Almighty God will grant you grace to succeed in your upcoming exams in Jesus name

[@akanbihaleemat347]

Well done sir But please why did you charge 4 years for furnitures and fittings instead of 5 years

[@Ezikan]

Mistake. I have stated it to be 5 years

[@Editingclipz_]

Please I wanted to know sir if this finance act is still in place for this diet

[@Ezikan]

It is still relevant. If the year of assessment in question is 2023, don't include investment allowance but if otherwise, you should include it

[@Editingclipz_]

@@Ezikanthank you Sir

[@dammyatilola4248]

I need clarity on when to use Tertiary education tax rate @ 2% and 2.5%

[@Ezikan]

It is currently 2.5% , 2% is the rate given in the question paper where the question is obtained

[@OkwuegbuNnaemeka]

Sir what of situations whereby the company purchased an asset of plant and machinery on 2/05/2012 at #50,000.durinf it's accounting period year ended 32/12/2024 . addition was made on plant and machinery at #10,000 at Initial allowance 20 % & annual allowance 10 % Compute the capital allowance till 2017

[@Ezikan]

There are inconsistency in the information provided. I want to assume the year end is December 2014 and not 2024

[@Ezikan]

If the year end of the business is December, the first acquisition of #50,000 on 2/05/2012 will qualify in 2013 year of assessment and you will claim the initial, annual and investment allowance in 2013 assessment year.In 2014 assessment year, you will claim only annual allowance on the first acquisition. The addition which was made on 31/12/2014 will qualify in 2015 year of assessment. You will claim the initial, annual and investment allowance on the addition and you will also claim annual allowance on the existing asset in 2015. In 2016 you can only claim annual allowance on the first and second category of asset. 2016 is the fourth year of the 1st plant and machinery (2013,2014,2015 and 2016). That mean the first plant and machinery would complete it lifecycle for capital allowance purpose in 2016 and you will then retain a nominal residue of #10. The first machinery will not be available for capital allowance in 2017. That mean you can only claim annual allowance on the 2nd machinery in 2017 year of assessment . There capital allowance for 2017 will be A.A 10,000-5000 divided by 4 = 1,250

[@wasiumichael5473]

Sir, what if we are given quantity and unit price. How will I solve that For example: 1/5/2019 Motor van quantity (2) unit price is 3,000,000. Additional information states that one of the van was for private use

[@Ezikan]

You cannot calculate Capital allowance on the vehicle used privately. So, if the cost of the two vehicles is #3000,000, you divide it by 2

[@josephbabs8649]

pls sir we are expecting mire videos on taxation,the exam is here already

[@Ezikan]

Be expecting more videos

[@idowurofiat487]

Please sir will the initial allowance be charged once in the case of hire purchase

[@Ezikan]

No, on the due date of each instalment. I have a video on it. Go and watch it

[@Ezikan]

No, on the due date of each instalment. I have a video on it. Go and watch it

[@annieemmanuel9339]

Sir pls make a video on pioneer legislation

[@Ezikan]

Noted

[@taiwobabatunde5573]

Hello Ezikan, kindly look at this working again. Office equipment was bought 1st of April 2020 meaning the calculation should be 3/12*Annual allowance intead of 6/12 for 2020 basis period. Thank you.

[@Ezikan]

The date of acquisition is just to identify when the asset qualify. While the number of months in the basis period determine whether to apply the time apportionment or not.

[@sanniabdulakeem1247]

​@@Ezikanweldone prof

[@David_shola2]

This is wonderful sir But the video is dark sir. There isn’t much light here

[@Ezikan]

I have improved on my subsequent videos

[@popoolalateefat1302]

For the Annual Allowance of Furniture and fittings should be #180,000 not #225,000 I think there is a mistake sir

[@Ezikan]

Yes

[@hafsatolajumoke8822]

Yes, that was because he used 4years as estimated useful life instead of 5years. But it's well understood

[@alittleabouteverything4784]

Thank you Sir

[@iamfola]

Sir, why did you calculate tertiary education tax ? Is it necessary?

[@Ezikan]

Yes, it is necessary if question ask you to compute tax

[@popoolalateefat1302]

Pleae why are you making use of the rate CITA 2004 and not PITA 2004 rates

[@Ezikan]

For calculating what?

[@popoolalateefat1302]

Capital allowance sir

[@mmesomastevens]

Thank you sir

[@fidelisokeke7775]

Well done Mr Ezikan, you're doing a great job. But in your example on capital allowance on big city, I observed you used 25% instead of 20% on FF AA. ie by dividing by 4yrs instead of 5yrs. Also you still used 2% on TET instead of 2.5%. Please help throw more light on these.

[@Ezikan]

It was mistake

[@anneikonoh20]

Thank you sir

[@luckyoborevwori840]

Thank you sir

[@ChelleOfem]

Thank you so much sir

[@Ezikan]

Glory be to God

[@popoolalateefat1302]

For the Annual Allowance of Furniture and fittings should be #180,000 not #225,000 I think there is a mistake sir

[@Ezikan]

Yes

[@rotimioyekan]

That was what I came to comment now🥲

[@temiloluwaolatunji6316]

Thank you sir

[@VISIONMEDIA9JA]

Thank you sir.

[@Ezikan]

Glory be to God

[@RaphaelOluwafunmibi]

Thank you sir

[@Ezikan]

Glory be to God