Tax & Business Matters - Nigeria

The Federal High Court dismisses decision on recharges by non residents, creates uncertainty over the jurisdiction of the Tax Appeal Tribunal

We learnt that the Federal High Court (FHC) sitting in Abuja delivered a judgment yesterday that the Tax Appeal Tribunal (TAT) does not have jurisdiction over corporate taxation such as companies’ income tax (CIT) and petroleum profit tax (PPT). The FHC therefore dismissed the recent judgment of the TAT on recharges in the case by Global Marine Baltic Incorporation against the Federal Inland Revenue Service. This effectively makes the earlier decision in the Halliburton case the only case law on recharges by nonresidents.

The Constitution of Nigeria gives the FHC the exclusive powers to determine any dispute regarding the revenue of the federal government. To the extent that some taxes such as CIT and PPT are for the federal government, the question had always been raised whether the TAT has the jurisdiction to entertain disputes on such matters. The FHC may have taken the view that TAT's jurisdiction to determine these disputes is inconsistent with the Constitution and therefore void.

This latest judgment will have implications for all past decisions of the TAT on similar taxes and pending cases. I will provide further update as soon as we obtain a certified copy of the judgment.

The hallmarks of a good tax system

All countries must raise taxes to meet social needs, develop infrastructure, influence economic decisions, and redistribute wealth without discouraging investments or stifling growth. The task of governments in meeting these requirements is not an easy one, particularly in the current economic circumstances. It is important how the tax system fulfills these objectives but regardless of the approach or strategy adopted, the system should encourage business growth.

Read my article in the Guardian Newspaper being the first in a series of White Papers published in conjuction with the Nigeria Leadership Initiative.

Download The hallmarks of a good tax system

Tax and Transparency: Nigeria and Beyond

Two days ago I participated in a panel discussion on “Tax and Transparency After the G8: Nigeria and Beyond” at the House of Commons in Westminster, England. Below is a link to the news as reported yesterday 11 October by the Guardian Newspaper Pg 4. An audio cloudcast of the event will also be available shortly via Mixcloud account of the Royal African Society at  www.mixcloud.com/royafrisoc

The panel session is one of the events designed to bring to fore the need for tax reform in Nigeria as outlined in the Nigeria Leadership Initiative (NLI) White Papers Volume 2. The White Papers were published by the NLI in partnership with PwC to highlight some of the critical issues in the Nigerian tax system covering policy, legislation and tax administration. The Papers demonstrate the urgent need for action and proffer practical solutions for tax reforms.

In the coming weeks, I will run a series of some of the articles in two of the leading newspapers in Nigeria – The Guardian and BusinessDay, so please watch out.

Tax transparency panel session

NLI White Papers Vol 2

Tax Calendar - October 2013

Happy Independence to Nigeria and Nigerians home and abroad.

Please find attached our tax calendar for the month.

Download Tax Calendar_Oct 2013