Excess Dividend Tax (s.19 CITA) applies when:
ADividends exceed turnover
BDividends are paid out of an amount higher than the taxable profit (subject to exemptions)CORRECT
CDividends are foreign
DDividends are under ₦1m
CITNCompany Taxation
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Why the answer is B, and why the others tempt you.
S.19 imposes tax (30%) where dividends are paid out of amounts higher than taxable profit, with exemptions for already-taxed retained earnings.
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