pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDERAll the above principles will not be considered by the courts in deciding whetheran activity constitutes a trade or not as was done in the case of Arbiz limited vFederal Inland Revenue Service.(ii) Foreign employment“Foreign employment” means an employment the duties of which are whollyperformed outside Nigeria, save during any temporary visit of the employee toNigeria.An individual who holds a foreign employment on the first day of January in ayear of assessment, who first becomes liable to income tax in Nigeria for that yearby reason of his entering that employment during that year, shall be deemed to beresident for that year in the territory in which the principal office of hisemployment is situated on that day, or on the day his foreign employmentcommences, as the case may be.EXAMINERS‟ REPORTThe question tests the candidates‟ ability to compute the assessment of individual taxpayers.Many candidates attempted the question and demonstrated a good understanding ofit with the exception of foreign income where the performance was poor.The commonest pitfall was the inability of candidates to present the solution in a flow.Candidates are advised to learn presentations of the assessment of individuals.INTERMEDIATE EXAMINATION - NOVEMBER 201074