CITN Exam Past Questions and Answers- PDF Download

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On this CITN Exam past questions and answers studypack, you’ll find hundreds of past and recent CITN Examination question papers and solutions to help you prepare adequately and guide your study. This Q/A study pack covers all CITN (Chartered Institute of Taxation of Nigeria) Courses which includes  Technical, Foundation, Professional courses for both April and October Exams. This is a downloadable product and is accessible as soon as your purchase is complete. The study pack is  in .PDF format.  Meaning that you could study it on all devices (Phones/Tabs/Laptops etc). To proceed with your instant download of this pack, just add it to your basket, then proceed to complete your order using any payment method of your choice. We provide full support on all our Study-packs, and we guarantee that this pack will be very helpful if you want to ace the exams with ease.

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Sample of CITN Exam Past Questions and Answers

2. (a) State Five (5) reasons why business organisations adopt accounting policy.
   (10 Marks)
   (b) List Five (5) users of accounting information and state briefly their financial needs.
   (10 Marks)
   (Total 20 Marks)
   SOLUTION TO QUESTION 2
   a. Reasons why business organizations adopt accounting policy:-
   i. To meet the economic decision-making needs of users.
   ii. To faithfully represent the financial position, financial performance and cash
   flows of the entity
   iii. To ensure that the entity is free from bias.
   iv. To ensure prudency.
   v. To make sure that the financial statements are complete in all material respects.
   vi. To comply with the concept of substance over form
   vii. To ensure compliance with specific accounting standards requirement. (10 Marks)
   b. Users of Accounting Information and their needs
   i. MANAGEMENT – The information needs include formulating the policies of the
   organization; planning the activities of the organization in the long, medium and short
   term; controlling the activities of the organization.
   ii. OWNERSHIP/SHAREHOLDERS – It is used to assess the profitability of the business
   entity; to determine their dividends expectation; to assess management efficiency.
   iii. INVESTORS – To determine the financial risk of the company; to determine their
   returns on investment.
   iv. GOVERNMENT – These include government agencies and regulatory bodies. The
   information needs include: assessing company to tax; to determine whether all the
   regulations have been complied with; to assess the status of the company for tax
   incentives.
   v. EMPLOYEES – To assess security of their employment as a basis for negotiating for
   higher wages and benefits; to evaluate the going concern status of the company as a
   basis for requesting for staff promotion.
   vi. CREDITORS – To assess the credit worthiness of the company; to evaluate the length
   of time it takes to pay its suppliers; to determine lending terms to the company.
   vii. CUSTOMERS – To monitor the source of supply of their products or raw materials; to
   evaluate the fairness of pricing policies.
   viii. FINANCIAL ANALYSIS – Computation of basic ratios and other analytical tools to
   determine trends in the economy and advising their clients regarding investing in a
   business.
   ix. COMPETITORS – Monitoring progress of other firms in the same industry and plan
   for improvement.
   x. GENERAL PUBLIC – Assessing the contribution of the business to the economy, their
   social responsibilities and the environmental care assessment.

EXAMINER’S REPORT
The question tests candidates’ knowledge of objectives of carrying out tax planning. The
question was very straight forward and performance was good. More than 50% of the
candidates score over 60% of the marks allocated.
The commonest pitfall was that some candidates repeated the same points under part (a) and
part (b) of the question. Candidates are advised to improve on their preparation for future
examinations.

2. It is a known fact that many state governments in Nigeria are facing serious challenges
   in their assessment and collection of taxes of self-employed persons.
   Required:
   (a) Explain what is meant by “Self-employed Persons”. (5 Marks)
   (b) What are their challenges? Suggest ways by which these challenges may be
   addressed. (10 Marks)
   (c) Describe the concept of presumptive tax regime. (5 Marks)
   (Total 20 Marks)
   SOLUTION TO QUESTION 2
   (a) Self Employed Persons
   These are tax payers who are not in regular/formal employment but generally engage
   in self-employment as traders, farmers, artisans/craftsmen, partners in a partnership,
   registered businesses, sole proprietors and entrepreneur. Most times they operate in the
   informal sector and may not be registered by any government agency.
   (b) (i) Challenges Faced in the Tax Administration of Self Employed Individuals are:

• Difficulty in establishing the data-base of such persons;
• Low level and ineffective of education and enlightenment;
• General tendency towards tax evasion;

Key Benefits of NEITI
(i) Demonstrating Commitment to Transparency
Implementation will send signal to stakeholders that Government is concerned
about the transparency and accountable payment and receipt of revenue from
Extractive Industry. This will make the companies adhere strictly to improving
transparency.
(ii) Efficiency in Revenue Collection
With increasing scrutiny of payment and revenues more revenue are generated
through tax collected from the industry.
(iii) Enhanced Communication
NEITI implementation will provide a platform for communication between all
stakeholders, and thus develop consensual solutions to problems.
(iv) Reduce Conflict
Implementation will reduce the risk of conflict and promote stability which will
promote a favourable investment climate.
(v) Improve Credit worthiness
Through regular NEITI reports on payments and revenues, a country may be
able to improve the credit worthiness of the government and of companies.
(vi) Disclosure and accountability
The implementation will provide the opportunity to disclose what has been paid
to different government agencies; the public will then be in position to hold
those agencies accountable for how these revenues are used in public
expenditure programmes.
(vii) Promote Stability
Implementation of NEITI will promote stability. Investing in Extractive
Industries is capital intensive and dependent on long-term stability to generate
returns.
(c) Protection Rights
(i) Where it had been customary for any citizen of Nigeria to win certain minerals
by virtue of his membership of that community whose custom is to win before
the commencement of the 1999 Decree such right is protected but subject to
Minister’s approval.
(ii) In the course of prospecting or mining, the Act prohibits any person from
carrying out operations on, in or under any area held to be sacred or permit
injury or destruction of any tree or other thing which is the object of veneration.