Multichoice Nigeria to pay NGN900bn tax debt to FIRS
Multichoice Nigeria Limited (Multichoice) offers entertainment platforms such as DStv and GOtv. In April 2021, the Federal Inland Revenue Service (FIRS) issued a demand notice of NGN1.8trillion to Multichoice over an alleged NGN1.8 trillion tax evasion. Next, Multichoice appealed with the Tax Appeal Tribunal (TAT) in Lagos over FIRS’ demand note. Before the sitting, an…
TAT says WHT is exempt on specific sales – TetraPak Vs. FIRS
The Tax Appeal Tribunal (TAT) ruled that sales in the ordinary course of business are not subject to withholding tax (WHT). The decision was reached in a WHT dispute on 30 November 2020 between Tetra Pak West Africa Limited and FIRS (Federal Inland Revenue Service). Background The principal activity of Tetra-Pak West Africa Limited…
LIRS introduces online meeting for tax audit reconciliation
After the tax authority conducts an audit on business records, the next step is usually a tax audit reconciliation meeting. The purpose is to resolve any outstanding tax issues in a physical visit to the tax office. However, the COVID-19 impact has reduced the need for a face-to-face meeting, and tax authorities are gradually embracing…
TAT affirms excess dividend tax in Ecobank and FIRS
The Tax Appeal Tribunal (TAT) ruled that a company should pay excess dividend tax of NGN1.63billion on the tax-exempt profits distributed to shareholders. In the case between the Federal Inland Revenue Service (FIRS) and Ecobank Nigeria Plc. (Ecobank or the Bank). FIRS conducted a tax audit on Ecobank for the 2015 and 2016 financial years….
Prime Plastichem and FIRS – TAT upholds TP liability of N1.7b
Recently, the Tax Appeal Tribunal affirmed that the additional liability of ₦1.74 billion on Prime Plastichem Nigeria Limited was legal. The decision in a transfer pricing dispute on 19 February 2020 between Prime Plastichem Nigeria Limited and FIRS (the Federal Inland Revenue Service). Federal Inland Revenue Service (FIRS or the tax authority) performed a TP…
Tax Appeal Tribunal settles DeltaAfrik and Akwa Ibom SBIR
On 22 January 2020, the Tax Appeal Tribunal in South-South zone decided that a tax authority is not allowed to carry out PAYE tax audit on a taxpayer beyond 6 years except in cases of fraud, wilful default or neglect; in the case between DeltaAfrik Engineering Nigeria and Akwa Ibom State Board of Internal Revenue. …
FIRS issues circular for claiming tax treaty benefits in Nigeria
Nigeria has a tax treaty or double taxation agreement (DTA) with 16 countries. A tax treaty is a bilateral agreement between two countries that helps to settle issues on double taxation. Four (4) legislation on income tax already contains rules on double taxation relief. They are Sections 45 and 46 of the Companies Income Tax…
Tax Appeal Tribunal settles Polaris Bank and Abia State BIR
The Tax Appeal Tribunal (TAT) on 21 August 2019 ruled that a taxpayer can pay a tax audit liability when the process for issuing the assessment is in line with the tax law; in the case between Polaris Bank Plc. (Polaris) and the Abia State Board of Internal Revenue (ABIABIR). ABIABIR issued a demand notice…
Court of Appeal confirms VAT on imported services
On 24 June 2019, the Court of Appeal (CoA), supported the ruling of the Federal High Court (FHC), in Vodacom Business Nigeria Limited (Vodacom) and Federal Inland Revenue Service (FIRS) on the issue of value-added tax (VAT) on imported services rendered by a non-resident company outside Nigeria. A non-resident company (NRC) is a company incorporated…
