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ICAN Taxation 2026 past questions and answers

This 2026 ICAN Taxation set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2026 set with instant marking.

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Sample ICAN Taxation 2026 questions

1. In a 2026 Nigerian Tax Act 2025 setting, a state agency charges the same fixed levy on every small trader, despite substantial differences in ability to pay. Which tax principle is most directly at issue?
  1. Equity, because the burden may not reflect ability to pay
  2. Certainty, because a fixed amount is always unpredictable
  3. Convenience, because the levy is collected at the point of sale
  4. Economy, because every fixed levy costs more to collect

Answer: A. Equity, because the burden may not reflect ability to pay

Equity concerns fair distribution of the tax burden, often in relation to ability to pay. A fixed levy may be certain, but that does not by itself make its distribution equitable.

2. A tax manager is updating a Nigerian company's compliance manual for the 2026 year. The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced CITA, PITA, the VAT Act, the CGT Act and the Stamp Duties Act; the Nigeria Revenue Service replaced FIRS. Which statement reflects that transition?
  1. FIRS remains the federal revenue service and CITA remains the corporate tax statute
  2. The Nigeria Revenue Service administers the new framework, including the Nigeria Tax Act 2025
  3. The VAT Act remains the controlling VAT law, while only CITA was replaced
  4. The Nigeria Tax Act 2025 takes effect only for accounting periods beginning after 2026

Answer: B. The Nigeria Revenue Service administers the new framework, including the Nigeria Tax Act 2025

Under the stated transition, the Nigeria Revenue Service replaced FIRS and the Nigeria Tax Act 2025 took effect on 1 January 2026. The listed former tax Acts were replaced, not retained as the controlling statutes.

3. For a 2026 payroll review, assume salary and fixed cash allowances for an employee's personal use are employment income, while a reimbursement supported by receipts for wholly business-related travel is excluded. Ada receives annual salary of ₦6,000,000, a fixed personal meal allowance of ₦600,000 and ₦200,000 reimbursement for documented employer travel. What amount is employment income under these assumptions?
  1. ₦6,000,000
  2. ₦6,200,000
  3. ₦6,600,000
  4. ₦6,800,000

Answer: C. ₦6,600,000

Salary and the fixed personal meal allowance are included, giving ₦6,000,000 + ₦600,000 = ₦6,600,000. The ₦200,000 documented business-travel reimbursement is excluded under the rule stated in the question.

4. A Nigerian company's 2026 accounts show profit before tax of ₦6,000,000. It includes book depreciation of ₦600,000 and a ₦200,000 shareholder's personal holiday cost. For this question, depreciation and private costs are not deductible, a capital allowance of ₦400,000 is allowable, and all other items are deductible. What is the company's taxable profit?
  1. ₦5,200,000
  2. ₦6,000,000
  3. ₦6,200,000
  4. ₦6,400,000

Answer: D. ₦6,400,000

Add back depreciation and the private cost, then deduct the allowable capital allowance: ₦6,000,000 + ₦600,000 + ₦200,000 − ₦400,000 = ₦6,400,000. Simply deducting book depreciation or leaving the private expense in the tax computation would be incorrect.

5. In 2026, Koru Ltd earns taxable profits from its Nigerian trade. Its shareholders also have personal income. Under the separate-taxpayer principle, which statement is correct?
  1. The company is assessed on its taxable profits separately from its shareholders' personal income
  2. The shareholders automatically include the company's entire turnover in their personal income
  3. Only the shareholders can be assessed because a company cannot be a taxpayer
  4. The company and each shareholder must combine all income into one joint tax computation

Answer: A. The company is assessed on its taxable profits separately from its shareholders' personal income

A company is a taxpayer distinct from its shareholders and is assessed on its own taxable profits. Shareholders do not automatically include company turnover in their personal income computation.

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