Background On 28 May 2021, the Tax Appeal Tribunal (TAT) South-South Zone, sitting in Benin, delivered a judgment in a matter between Ecobank Nig. Ltd (“the Bank”) v Delta State Board of Internal Revenue (“the Revenue”). The matter bordered on the legality or otherwise of the Revenue carrying out tax
Background The Companies and Allied Matters Act 2020 (CAMA 2020 or the Act) was signed into law and gazetted with a commencement date of 7 August 2020. The Act, which repeals the 1990 Company Act, introduces wide-range of changes to Nigeria’s business environment. It is important that business owners and
What is Personal Income Tax? Personal income tax (PIT) is the tax imposed on the income of individuals, corporate sole or body of individuals, partners in partnership business, trustees or executors of any settlement or estate. Personal income tax in Nigeria is on a Pay As You Earn Basis
On 24 January 2021, President Muhammadu Buhari ordered the Federal Inland Revenue Service (FIRS) to collect the statutory levy applicable under the National Agency for Science and Engineering Infrastructure (NASENI) Act. The Federal Government of Nigeria established the Agency (NASENI) in 1992 with the primary mandate to create an enabling,
Background It is important to recall that the Finance Act (FA) 2020 introduced an amendment to the Federal Inland Revenue Service Establishment Act (FIRSEA), empowering the Service to deploy proprietary technology to automate the tax administration process in Nigeria. The FIRS however, must give 30 days’ notice to taxpayers before
Today we’ll discuss What CGT is, what assets qualify for CGT, who pays CGT, and the percentage charged. What is Capital Gains Tax? Capital gains tax is charged on the gains arising from disposal of a chargeable asset. So, if Company A buys a generator for day-to-day use (a
Background Tourist Company of Nigeria Plc (TCN or the Appellant) engages in the gaming and hospitality business including the operation of a casino, in Nigeria. The FIRS assessed TCN to ₦88m in unpaid VAT (inclusive of penalties and interests) for the 2016 year of assessment (YOA). TCN objected to this
Background Section 30(1)(b) of the Companies Income Tax Act (CITA) grants FIRS the discretion to assess foreign companies to tax on a reasonable percentage of their turnover where it appears to FIRS that the company either has no assessable profits or has assessable profits that are less than expected, or
Withholding tax (WHT) is an advance payment of income tax which may be used to offset or reduce income tax liability or claimed as a refund. It is an advance payment to be applied as tax credit to settle the income tax liability of a taxpayer for the relevant
Background On 30 November 2020, the Tax Appeal Tribunal (TAT or the Tribunal) sitting in Lagos decided in the case of Tetra Pak West Africa Limited (Tetra Pak or the Appellant) and Federal Inland Revenue Service (FIRS or the Respondent) that sales in the ordinary course of a company’s business