Skip to main content
Article
TAX TREATMENT OF DERIVATIVE INSTRUMENTS
FINANCIAL NIGERIA( DEVELOPMENT AND FINANCE JOURNAL) (2015)
  • Oluwaseun Viyon Ojo, Lagos State University
Abstract

The article provides an analysis of the various types of derivative instruments traded on the capital markets. As derivative instruments become frequently tradable in the Nigerian Financial market in the near projected future, it is expedient that the concerned companies plan adequately for the tax implications of such transactions and the appropriate tax authorities know how to treat the instrument of derivatives for the purpose of imposition of relevant taxes. This paper therefore dealt with the treatment of these instruments under the Capital Gains Tax Act (CGTA) and Companies Income Tax Act (CITA), though there are no specific rules for taxing the instruments but the general rules of taxation become applicable. It proposes that guidelines should be issued by the RTAs to provide direction to all revenue staff, tax practitioners, consultants, tax payers and the general public on the tax implications of derivatives

Keywords
  • derivatives,
  • options,
  • swaps,
  • futures,
  • forwards,
  • capital gains tax,
  • companies income tax
Publication Date
Summer October, 2015
Publisher Statement
It is a very instructive article and every one should read it as a matter of expedience.
Citation Information
Oluwaseun Viyon Ojo. "TAX TREATMENT OF DERIVATIVE INSTRUMENTS" FINANCIAL NIGERIA( DEVELOPMENT AND FINANCE JOURNAL) Vol. 8 Iss. 87 (2015)
Available at: http://works.bepress.com/oluwaseun_ojo/14/