Tax Digest

50% DEPOSIT FOR PROSECUTION OF TAX APPEALS IN NIGERIA AND COMPLIANCE ESSENTIALS FOR BUSINESSES

Appeals at the Tax Appeal Tribunal

The practice at the Tax Appeal Tribunal ("TAT" or "Tribunal") requiring an aggrieved taxpayer to pay 50% of a disputed tax amount into a designated account, as security for the prosecution of a tax appeal, is traceable to the provisions of paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) (the "FIRS Act"). The provisions grant the TAT the power to adjourn the hearing of a tax appeal and direct the appellant to deposit a prescribed amount with the FIRS before the adjourned date, as security for the appeal. However, the TAT can only make an order for payment of security deposit under the stated provisions, if the FIRS is able to prove to the satisfaction of the Tribunal that: