Tax Appeal Tribunal- Transfer Pricing Judgment

Introduction

On 19 February 2020, the Nigerian Tax Appeal Tribunal (the “Tribunal”), sitting in Lagos delivered its first ever judgement on a transfer pricing (TP) dispute under Nigeria's Income Tax (Transfer Pricing) Regulations No 1, 2012 (TP Regulations) in the tax appeal filed by Prime Plastichem Nigeria Limited (the “Appellant”) against the Federal Inland Revenue Service (the “FIRS” or “Respondent”).

In its judgment, the Tribunal upheld the Respondent's TP assessment of about $4.8 million against the Appellant.

Background of the Case

Prime Plastichem Nigeria Limited, the Appellant in the case, is a company registered in Nigeria which purchases industrial plastics and petrochemicals from its related supplier, Vinmar Overseas Limited (VOL) and distributes to its customers.