Dispute resolution under Nigeria's TP Regulations: Is the DRP necessary?
Section 59 (1) of the Federal Inland Revenue Service (Establishment) Act, 2007 (FIRSEA) established the Tax Appeal Tribunal (TAT) with powers to settle disputes between tax authorities and taxpayers in Nigeria.
The dispute settlement powers of the TAT is very broad and covers the principal tax legislations – Companies' Income Tax Act (CITA), Petroleum Profits Tax Act (PPTA), Capital Gains Tax Act, (CGTA), Value Added Tax Act (VATA), Stamp Duties Act (SDA), the Taxes and Levies (Approved List for Collection) Act, as well as:
- All regulations, proclamation, government notices or rules issued in terms of these legislationAny other law for the assessment, collection and accounting of revenue accruable to the Government of the Federation as may be made by the National Assembly from time to time or regulation incidental to those laws, conferring any power, duty and obligation on the Service
- Enactment or Laws imposing Taxes and Levies within the Federal Capital Territory
- Enactment or Laws imposing collection of taxes, fees and levies collected by other government agencies and companies including signature bonus, pipeline fees, penalty for gas flared, depot levies and licenses, fees for Oil Exploration License (OEL), Oil Mining License (OML), Oil Production License (OPL), royalties, rents (productive and non-productive), fees for licenses to operate drilling rigs. Fees for oil pipeline licenses, haulage fees and all such fees prevalent in the oil industry but not limited to the above listed.
Under CITA (and by extension all regulations, proclamation, government notices or rules issued under it as envisaged under schedule 1 of FIRSEA), an aggrieved taxpayer may appeal to TAT within 30days of receiving a tax assessment or Notice of Refusal to Amend (NORA) from the FIRS or any of the State Boards of Internal Revenue (SBIR).