In a series of judgements released by the Tax Appeal Tribunal (TAT) in April, the Tribunal has emphasised the employer’s exposure to penalties and interest where it defaults in its obligations to calculate, deduct and remit the applicable tax on employees’ emoluments. The common appellant in all 4 suits was the Lagos State Board of Internal Revenue (LSBIR” or “the Revenue”).
The TAT also ruled on its lack of jurisdiction to legislate on laws promulgated by the State Houses of Assembly. In the ruling, it was highlighted that liabilities in respect of strict State taxes and levies like the Development and Business Premises levies are outside the jurisdiction of the Tribunal. It is therefore important for taxpayers to carefully consider the issue of jurisdiction before instituting actions so that cases are not dismissed on technical grounds.
Please read our Tax Alert below: