2017_1 TMA Solutions - LAW434, Law of Taxation II

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2017_1 TMA Solutions - LAW434, Law of Taxation II

Postby admin » Sun Sep 17, 2017 11:54 am

1 _______ is a tax system that takes on increasing proportion as income increases.


2 ___ is a form of tax which is demanded on from the very person is intended or desired to pay it.


3 Under income tax theory, tax is classified into proportional, progressive and regressive taxes.

proportional, Direct and indirect taxes

4 ___ tax system is not suitable for Nigeria.


5 In ___ system, the burden of incidence does not fall directively on the tax payer.


6 ___ system of tax encourages tax offences and discourages capital formulation.


7 _____ is a tax system that takes care of the economic needs of the poor masses that constitute the majority of the population.


8 The major advantage of ___ tax is that the burden of payment falls on the tax on payer.


9 ___ is a tax system where a high income person pays less tax than low income person.

Regres sive

10 ___ is that tax that is paid by each tax payers premises on the ratio to the amount to be raised as the value of his property bears the taxable income.

Proportiona l

11 The incidence of tax is of vital essence in classifying tax into ___.

Direct or indirect tax

12 The following are the advantages of proportionate tax system except ____.

It does not bring enough revenue as t ax rate is constant

13 In _____ tax system the percentage of tax rate remains the same as tax base increases.

Proportiona te

14 _____ canot be used in categorising tax.

Demend theory

15 All except ____ are characteristics of a tax.

imposed on minors

16 According to ___ tax is a monetary charge on a persons's or entity's income, property or transaction.

National Tax Policy of Nigeria

17 A tax can be said to be a _____ and definite amount levy on adult citizery of a country.

compulsor y

18 In defining tax it important to look at ___.

its essentia l characteristic

19 _____ defines tax as a compulsory extraction of money by a public authority\r\nfor public purposes.

Mathew vs Chicory Marketing B oard

20 All except ____ does not qualifies as tax.

a compulsory contribution backed by law

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Re: 2017_1 TMA Solutions - LAW434, Law of Taxation II

Postby admin » Sun Sep 17, 2017 11:57 am

1 Which Commission's recommendations to a larger extent reflected in the Section 155-163 of the 1954 Constitution Order-in-Council?

Sir Louis Chick Commission

2 The principle of independent revenue was a major idea of which of the Tax commission?

Hicks Phillipson Commission

3 In which part of the Nigeria constitution was the reference made to the powers of state governments in relation to taxation?

Item D-9 and 10 of the Concurrent Legislative List in the CFRN

4 ____ Local Governments in Nigeria transformed from mere administrative units status to a constitutional establishments.


5 Which Section of the Nigeria constitution provides for the power of the Local Government to generate fund?

Section 7

6 The Local Government has taxing power on _______.

petroleum profit tax
mining rent
***None of the above

7 What is the core of the decision in ''Shell Petroleum Development Company of Nigeria Limited Vs Burutu Local Government Council (1989) 9 NWLR (Pt. 165) 318 C.A''?

Any exercise of power beyond the units allowed by the constitutio n or the enabling law will be ultra vires, null and void

8 When was the report of Raisman Commission submitted?

June, 1958

9 Which of these Commissions' report has a greater influence on the Nigerian Constitution Order in Council 1960?

The Raisman Commission

10 Which of these commission was set up in 1951?

Hicks Phillipson Commmissi on

11 Which of these Commissions was set up in 1953?

Sir Louis Chick Commiss iion

12 Which of these was one of the earlier Commission that came before Raisman commission?

Sir Louis Chick Commission

13 Which commission was inaugurated to look into the issue of how to allocate taxing powers between the Regional and Federal governments and make recommendation that would ensure an equitable tax distribution.?

Raisman Commission

14 The taxing power of the Federal Government is spelt out under _________.

Constitut ion

15 What is the most significant aspect of taxing power?

Must be Constitutionally d erived

16 The power to tax is conceived as being inherent in _____ and essential of independent government.


17 From where is the authourity and piwer to levy Tax derived from?

The Law

18 Who or which authourity is/are empowered to levy tax in Nigeria.

All Tiers of Government

19 'The power of a level of government to impose a tax by its own law and prescribe conditions for the collection and due administration of the tax either by its own agency or that of another level of government'' is a definition given by who?


20 The power and authority by a tier of government to impose and collect taxes from the citizenry in that particular state is known as ____.

Taxing Power
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Re: 2017_1 TMA Solutions - LAW434, Law of Taxation II

Postby admin » Sun Sep 17, 2017 11:59 am

1 “A person may use lawful means to avoid income tax” what he may not do is to try to evade it.'' is a statement credited to which case?

Akinsete syndicate vs Senior Inspector of income tax F.S.C 164/63 30/10/64 unreported

2 Problem of Assessment as a Tax Problem has two basics legs, and these are identified as what?

Problem of identification of the person to be assessed and problem of identifying income for tax purpose

3 Which of the following is not a solution to Tax problems in Nigeria?

Forceful collection by Police

4 A situation where the tax payer fails to make return for income tax or capital gain tax is known as what?

Tax Evasion

5 Which of the following is not a method of Tax Evasion?

Destruction of Notice of assessment

6 Which of the following cases is one that does not bother on Tax issue?

Donogue v Stephenson

7 Tax evasion as the willful attempt to defeat or circumvent the tax law in order to illegally reduce one’s tax liability is a definition accroding to which writer?

Blacks L aw Dictionary

8 What system of tax can be described as tax that is based on the idea of vertical equity?

Progressive tax system

9 The definition of tax evasionas as ''the crime of deliberately not paying all the taxes that you should pay'' is given by which writer?

Hornb y

10 The Definition of tax evasion as ''a contravention of the tax laws, whereby a taxable individual or company neglects to pay the tax due, or reduces the tax liability by making fraudulent or untrue claims on the income tax form"' is a definition given by which writer?

Abdulra zaq

11 Which Tax Problem will qualify as a proper breach of the Law?

Tax Evasion

12 The Taxation Problem defined as ''the failure to pay one’s tax or the reduction of one’s tax liability through illegal or fraudulent returns or failure to make a return or even failure to pay tax on time'' is given by which writer?.


13 Failure to pay one’s tax or the reduction of one’s tax liability through illegal or fraudulent returns is a Tax problem known as what?

Tax Evasion

14 The statement ''the word avoidance… involves, I think, no notion of escaping by any device or artifice, escaping through not being called upon to pay'' is a statement made in which case?.

Federal Commissioner of Taxation Vs Westgarth (1985) 18 (C.L.R) 396 at 414

15 The position in the case of IRC v Fisher’s Executers (1962) A.C 395 is an example of which Tax problem situation?

Tax Avoidan ce

16 'Tax avoidance does not necessarily denote an activity that is in all cases obnoxious''. How will you justify this statement?


17 The legal ways by which a tax payer can get relief through the payment of less amount he or she ought to have paid for the assessed tax period is known as what?

Tax Avoidance

18 Which writer is associated with the definition of tax avoidance ''as ways of paying only smallest amount of tax that you legally have to''?


19 Which Taxation problem can be described as the act of taking advantage of legally available tax planning opportunities in order to minimize one’s tax liability?.

Tax Avoidance

20 What are the major taxation problem identified in Nigeria?

Avoidance and Evasion
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Re: 2017_1 TMA Solutions - LAW434, Law of Taxation II

Postby admin » Sun Sep 17, 2017 12:02 pm

1 When was Stamp Duty originally introduced in England?


2 Which law governs the stamping of Document for official recognition in Nigeria?

Stamp Duties Act 1939 as amended

3 Taxes paid to the federal or state government on documents for the purpose of conferment of legal approval or authority is called what?

Stamp Duty

4 Categories of duties that can be imposed by the government are stated in what part of the Constitution?

The second schedule to the constitution of the Federal Republic of Nigeria, (1999)

5 A duty that you pay on things that you bought especially those that you bring into a country can be regarded as what?


6 “An unstamped document shall be inadmissible in evidence except in criminal cases.''How will you justify this statement?


7 Which Court has the jurisdiction to entertain any issue that arise from adjudication?

The High Court

8 In which of these cases was it held as follows: ''if an instrument is not duly stamped, subsequently, adjudication cannot retrospectively make it duly stamped''?

Prudential Mutual Ass urance Investment and loan Association vs Curzo

9 The Stamp Duties Commissioner is expected to perform all of the following technical functions except one.

Preparation of Budget based on fund raised

10 Which of these is not a duty of the Stamp Duty Commissioner?

Appropriation of fund raised

11 Which of the following is not exempted from Stamp Duty?

Deed of Sales

12 Which of these document is exempted from Stamp duty?

Mortgage forming part of a Liquidation

13 Which of these document is exempted from Stamp duty?

Agreement Between Nigeria and Cameroun

14 Which of the following is not an item liable to stamp duties?

Offer of Ap pointment Letter

15 Which body is saddled with the responsibility of appointing the Stamp Duties Commissioner?

The Civil Service Commission

16 What are the two kinds of duties specified in the schedule of the Stamp Duties Act?

Fixed and Anvalorem

17 The stamp Duties Act is divided into how many parts?


18 The decision which stated that ''law of stamp duties is governed solely by statute and no document can be charged with stamp duty unless it comes within the clear words of an Act Parliament'' was reached in which case?

A.G. vs Camplough (1878) 3 ex 21 4

19 The process of determining formally the correct duty is known as what?

Adjudi cation

20 By what name is the personel that administer Stamp Duty Called?

Commissioner of Stam p duty

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