Bond And Debentures, Shares, Income Tax Value Added Tax SS3 Mathematics Lesson Note

Instructional Resources; Showing students examples of receipts that show VAT 

Presentation  

Step I: Identification of Students Prior Ideas 

Mode: Whole class  

Teacher Activities: The teacher leads the students in explaining the following 

TAX: Is that part of the money paid to the government and is called income tax i.e 

  VALUE ADDED TAX (VAT): This is a direct tax charged on goods and services expressed as a percentage of the cost of an item. If the rate of VAT is x%, the VAT paid to the government Is 

  COMMISSION: A payment to a person for selling goods or promoting services on behalf of another (principal). The commission is paid to the Agent. The advantage of commission is that it attracts an increase in sales. 

DISCOUNT: whenever the price of goods is reduced it is called a discount. (Usually for bulk payment) 

Student Activities: Students were seen copying their note 

Step II: Exploration Mode: Whole class 

Teacher activities: The teacher explains to the students the table of the rates of tax payable on various levels of income. 

Taxable income(₦)       T ax band (₦)                       Rate of tax 

1-400,000 400000         10% 

400,001-800,000       Next 400000                                 20% 

800,001-2,000,000       Next 1200000                       40% 

2,000,001 and above       Above 2 million                         60% 

 The second table shows common allowances. 

Type of allowance                       Amount allowed 

Personal allowance                           ₦100,000 +  % of total income 

Spouse allowance                     ₦50,000   (for 1 spouse only) 

Child allowance                               ₦40,000 for each child under 16 years of age 

(not exceeding 4 children) 

Dependent relative                     Up to ₦60,000 

Life insurance                               The total insurance premiums (for self and 1 spouse) 

 If both husband and wife are earners, the spouse and child allowances are subtracted from the husband’s income only. 

Student Activities: Students were seen copying their note 

Step III: Discussion  

Mode: Whole class 

Teacher activities: The teacher leads the students

     E.g 

1. A person earns N280,000. What is her taxable income? 

• If she pays tax at the rate of 25% on her taxable income, how much tax does she pay? 
• How much of her salary is she left with? 

(Using the table above) 

1.  A married man has no children but claims allowances of N22,500 for a dependent relative and N26,000 for insurance premiums. If his annual salary is N1,864,000, calculate his monthly tax payment (to the nearest N10). Use the table on page 42. 
2. During the 1st quarter of 2011, a trading company collected a total of N840,000 as VAT which was transferred to the Government. What was the amount of the total pre-vat sales of the company during that period?   
3. The advertised price of a plasma TV is N99,990 including VAT at 5%. If the government raises VAT to 8%, calculate the new price of the TV (to the nearest N10 Solution. 

 Student Activities: Students asked questions that they did not understand. 

Step IV: Application Mode: Whole Class 

Teacher activities: The teacher leads the students to solve problems  

E.g 

1. A firm employs a salesman who receives a 5% commission on his sales. Find his commission on sales which totals up to ₦65,000 and how much the salesman paid to the company. 

Solution  

Commission   

Money paid to the company = ₦ 65,000 – ₦ 3250 

= ₦61,750 

e.g. (2) A bookseller gives a 15% discount to a school for a book that is expected to be sold for N1000. If a school should buy 20 copies of the books, how much discount is given  Solution 

Step V: 

Evaluation Mode: The whole class 

Teacher Activities: The teacher asks the following  

• Define tax 
• Define value-added tax 
• The pre-VAT cost of the refrigerator is N32,000 what would be the selling price if VAT is at (a) 15% and (b) 8%  

Assignment: 

Exe 5c no 6, 7 and 11 of New General Mathematics for SS3 

References: 

• J. Olowofeso et al(2019) Multipurpose Mathematics for senior secondary schools  Feso  Educational Publication  
• A.O Kalejaiye (2016), New General Mathematics for SS3, Pearson publication limited 
• H.N Odogwu et al (2016), New General Mathematics for SS 3, Learn Africa Publication