UU&BO Litigation Newsletter

The Nigerian Federal High Court Declares the Tax Appeal Tribunal Unconstitutional; Orders the Minister of Finance to Disband the Tribunal Forthwith and Affirms that Recharges are Deductible from the Turnover of a Foreign Company under the Turnover Basis of Assessment.

The Federal High Court, Abuja Division ("FHC or the Court" ) has in a judgment delivered on 30th October 2013 in suit No.FHC/Abj/TA/11/2012TSKJ Contruces Internationals Sociadade Unipessoal LDA v. the Federal Inland Revenue Service declared the Tax Appeal Tribunal ("the TAT or the Tribunal") to be an unconstitutional and illegal body; mandated the Minister of Finance to immediately disband the Tribunal and also affirmed that recharges are deductible expenses from the turnoverr of a non- resident company under the turnover basis of assesment.