Unit 12 Session 7
Transcript of Unit 12 Session 7
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UNIT 12
TAXATIONSession 7
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Topics Review of Last session
Test of baseline knowledge
Bases of assessment
Adjustments of profits and losses
Disallowed expenses
Tax Losses
Capital expenses and allowances
Tax FormsGo TopGo Top
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Review of Last session
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Test of baseline knowledgeTest of baseline knowledge
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Bases of assessment
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Requisites for income to be taxable
There must be gain or profit
Gain must be received or realized
Gain must not be excluded or exempt by law Gain need not be in cash
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Adjustments of profits andlosses
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Adjustments
Returns of Sale
Recovery of losses/ expenses
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Disallowed expenses
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No deduction shall in any case be
allowed in respect to(1) Personal, living or family expenses;(2) Any amount paid out for new buildings or for permanent
improvements, or betterments made to increase the value of
any property or estate;(3) Any amount expended in restoring property or in making
good the exhaustion thereof for which an allowance is or has
been made; or
(4) Premiums paid on any life insurance policy covering the life of
any officer or employee, or of any person financially
interested in any trade or business carried on by the taxpayer,
individual or corporate, when the taxpayer is directly or
indirectly a beneficiary under such policy.
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No deductions shall in any case be
allowed in respect of losses:(1) Between members of a family(2) An individual and corporation more than fifty percent (50%)
in value of the outstanding stock of which is owned, directly
or indirectly, by or for such individual; or(3) Two corporations more than fifty percent (50%) in value of
the outstanding stock of which is owned, directly or indirectly
(4) Between the grantor and a fiduciary of any trust; or
(5) Between the fiduciary of and the fiduciary of a trust and thefiduciary
(6) Between a fiduciary of a trust and beneficiary of such trust.
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Tax Losses
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Losses
Where total expenses are more than total income
for taxation purposes.
A business can incur a loss for tax purposes but
a profit for accounting purposes
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Capital expenses and
allowances
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Capital Expenditure
Payments by a business for fixed assets, like
buildings and equipment.
Capital expenses are not used for ordinaryday-to-day operating expenses of a business,
like rent, utilities, and insurance.
Another way to consider capital expenses is
that they are used to buy assets that have a
useful life of more than one year.
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Tax Forms
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Individual Tax Forms
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Individual Tax Forms
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Individual Tax Forms
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Individual Tax Forms
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Individual Tax Forms
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Tax Forms
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Tax Forms
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Tax Forms
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Topics for Research
Bases of assessment Corporate Tax
Scope of Corporate Tax
Accounting periods
Chargeable profits
Payment Dates
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Required
Complete relevant
documentation and returns
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