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TAX IS LEVIED WHERE THE PERSON RESIDES

Dictum

The issue here is that of Personal Income Tax provided for by the PITA 2015. The tax is levied where the person resides.

— I.E. Ekwo, J. Daudu v FIRS (2023) – FHC/ABJ/TA/1/2021

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REVENUE PROVISIONS WILL BE CONSTRUED IN FAVOUR OF PUBLIC INTEREST

Let us not forget that the tax being scuffled over is the tax of the appellant’s employees from 2005-2010 which would have long time been deducted from the employees’ salaries but which the appellant failed to remit to the appropriate authority. The tax of 2011 to date has not yet become an issue. I must...

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TRANSACTION LOCATION, AND NOT RESIDENCE, DETERMINE WITHHOLDOING TAX

It is clear to me that the residence of third parties engaged in transactions attracting WHT with a payee is not material. The significant factor is the venue or place the transactions were effected. Once it is shown the transactions with third parties were implemented in Oyo State by way of supplying the transacted items...

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PURPORT OF WITHHOLDING TAX

✓ Withholding Tax (WHT) or retention tax is really a term of art/generic expression (or sui generis) devised by tax authorities for tax administration through the method of deduction of tax at source from income including payments due to a benefiting party, by the paying party, for onward remittance to the appropriate tax authority of...

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SERVING NOTICE OF TAX ASSESSMENT ON THE TAX PAYER MUST BE DONE

In this regard, the case of Fasogbon v. Layande (1999) 11 NWLR (Pt. 6280) 543 becomes very apt, wherein it was held at pages 556 557 that: “From the steps that must be taken before the tax payable is evolved, to argue that serving notice of assessment on the tax payer is not part of the procedure under the decree is unthinkable. It is like a Romeo without a Juliet. In the realm of the law, to say that the tax payer who by operation of personal income tax is legally indebted to the tax authority for the assessed income tax is not informed of the assessment of the income tax payable would be an imposition, an arbitrary act that affects his civil rights and therefore infringes upon his civil rights and of fair hearing under Section 36 of the 1999 Constitution of the Federal Republic of Nigeria.”

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TAX LAWS ARE STRICTLY OR NARROWLY INTERPRETED

Tax laws are strictly or narrowly interpreted from the bare words used in the enactment. There is no presumption or equity about a tax – See Ahmadu and Anor. v. The Governor of Kogi State and Ors. (2002) 3 NWLR (Pt. 755) 502 at 522 thus – “In a taxing legislation, one has to look...

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PROCEDURE BY TAX AUTHORITY WHERE FAILURE TO MAKE NECESSARY TAX RETURNS

My understanding of the aforestated, is that where a taxable person fails to make the necessary tax returns in a year as prescribed by the relevant tax authority, the latter shall after the expiration of the period allowed proceed to make necessary assessment of the amount of tax due based on its best of judgment...

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