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


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