Nigeria: Federal Inland Revenue Service empowered to collect withholding tax as advance payment of income tax

Tax Appeal Tribunal Lagos Zone

Federal Inland Revenue Service empowered to collect

The Tax Appeal Tribunal Lagos Zone held that the Federal Inland Revenue Service is empowered by law to administer and collect withholding tax as an advance payment of income tax.

The tribunal also clarified that withholding tax is not another type of tax different from the companies income tax, but is an advance collection of income tax.

The tribunal also reaffirmed the subsidiary legislative function vested in the Minister of Finance under the Companies Income Tax Act to issue regulations for the administration of the withholding tax regime

The case is: Investment Holdings Limited v. Federal Inland Revenue Service

Read a May 2023 report [PDF 1.2 MB] prepared by the KPMG member firm in Nigeria



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