Tax & Business Matters - Nigeria

FIRS waives penalties for taxpayers who are able to file all outstanding TP returns and CbCR notification forms by 30 June 2024

The Federal Inland Revenue Service (FIRS) has issued a Public Notice granting taxpayers up till 30 June 2024 to regularise and file their outstanding Transfer pricing (TP) returns and Country by Country Reporting (CbCR) notifications. Based on the Public Notice, taxpayers that file on or before 30 June 2024 can enjoy a waiver of all administrative penalties (previously imposed or to be imposed by the FIRS) under the TP Regulations and CbCR Regulations. 

 

The Public Notice also announces that the filing of TP returns and CbCR notifications have been migrated from e-TP Plat to the TaxProMax platform. The migration takes effect immediately and will apply to all future TP filings. Taxpayers may also choose to refile their previously filed returns on the TaxPro-Max. 

 

Our key takeaways

• The Public Notice gives taxpayers the opportunity to enjoy a waiver of the administrative penalties stipulated in the TP Regulations and CbCR Regulations for all outstanding TP related filings up to 30 June 2024;
• The FIRS has now migrated the filing of TP returns and CbCR notifications from e-TP plat to TaxProMax. The TaxProMax platform can be accessed using the same login credentials used for the income tax filings.
• Taxpayers are currently facing challenges accessing the TaxProMax platform to file their TP returns and CbCR notifications. As such, taxpayers are advised to begin their filings as early as possible, to avoid any issues that may happen close to the deadline.  

Please see Public Notice here:

 

Download Public notice on migration of TP filing to TaxPro-Max

FHC nullifies the requirement to pay security deposits before appeal at the TAT and the courts

The Federal High Court (FHC) of Nigeria recently made a significant ruling in the case of Joseph Bodunrin Daudu SAN v. Minister of Finance Budget and National Planning & 2 Ors. The FHC struck down provisions that required taxpayers to pay security deposits before filing appeals at the Tax Appeal Tribunal (TAT) and the courts. These provisions, found in various rules and Practice Directions, were deemed to infringe upon taxpayers' constitutional right to fair hearing and were consequently declared null and void.

The FHC's decision highlighted the importance of the right to appeal as a constitutional right and criticised the deposit requirements for imposing an undue burden on taxpayers. The offending provisions were struck down, allowing taxpayers to file appeals without payment of any deposit.

While the ruling is lauded for upholding taxpayers' rights, questions remain regarding the interpretation of relevant laws and the standardisation of deposit requirements which still exist in the FIRS Establishment Act. The constitutionality of rules of court and practice directions also remains contentious, indicating potential further legal challenges.

Overall, the ruling provides clarity on taxpayers' rights in Nigeria's tax dispute resolution process and underscores the need for transparent and fair procedures in tax administration.

Please see our tax Alert  and the FHC ruling below:

Download Tax Alert_FHC nullifies the requirement to pay security deposits

Download JB DAUDU SAN V HON M 1