TAT says capital gains tax is applicable on gains arising from the sale of rights in an oil field

A company operating in Nigeria’s upstream petroleum sector was awarded 90% participating interest in an oil mining lease. It subsequently assigned half of its interest in the lease to another company. The FIRS assessed capital gains tax on the first company in respect of the gains derived from the assignment.

The company appealed to the Tax Appeal Tribunal (TAT) which holds that CGT is indeed applicable on the gain.

Please read more in our Tax Alert Below:

Download PwC Tax Alert – TAT rules that Capital Gains Tax applies on gains on the sale of rights in oil fields