Nigeria: Taxpayer’s deposit with FIRS found sufficient for tribunal’s jurisdiction
Amount deposited by the taxpayer with the tax administration satisfied certain statutory prerequisites
Amount deposited by taxpayer with tax administration satisfied statutory prerequisites
The Tax Appeal Tribunal (Lagos) on 20 October 2021 held that the amount deposited by the taxpayer with the tax administration (Federal Inland Revenue Service or FIRS) satisfied certain statutory prerequisites and was sufficient for the tribunal to commence its substantive hearing of the judicial action.
The tax administration previously argued that the deposit was statutorily required as a condition precedent before the substantive case could be heard by the tribunal. This position was contested by the taxpayer, through the tribunal held for the tax administration on this issue.
At issue was the amount required to be deposited by the taxpayer. The taxpayer asserted that an amount equal to the last year’s tax (after the audit) was sufficient, whereas the FIRS claimed that the taxpayer had to deposit an amount equal to the tax charged for the preceding 10 years of assessment. The tribunal agreed with the taxpayer on this issue.
The case is: Multichoice Nigeria Ltd. v. Federal Inland Revenue Service
Read a November 2021 report prepared by the KPMG member firm in Nigeria
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.