EST 414 Theory Questions: Withholding Tax Analysis on Rental Properties in Nigeria

400 Level Estate Management And Valuation Department exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.

Questions:

• Adebami and Company, a firm of Estate Surveyors and Valuers in Nigeria, recently let the following properties:

a. A multi-storey building at Abuja belonging to Otunba Dide to Senator Joke at an annual rent of N6,000,000.00 with 2-year rent payment.

b. A block of 6 flats at Ikoyi, Lagos belonging to GG and Company to Boro International PLC at a rent of N6,000,000.00 p.a. with 6-month rent payment in advance.

c. Wilko’s bungalow at Abookuta to Amo at an annual gross rent of N500,000.00

i. Calculate withholding tax payable in each transaction.
ii. Who is the tax authority in each case?
iii. What roles will Adebami and Company, respective tenants and tax authorities play with regard to withholding tax?

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