Tax Appeal Tribunal Orders NLNG to Settle $27.5m in Final Tax Dispute
The Tax Appeal Tribunal has ruled that Nigeria Liquefied Natural Gas Limited (NLNG) must pay the Federal Inland Revenue Service (FIRS) $27.5 million as a full and final settlement of the revised Companies Income Tax (CIT) for the 2016 assessment year. This decision was announced as part of the tribunal’s judgment, chaired by Mrs. Alice Iriogbe, and was delivered in Abuja.
The judgment stems from a settlement agreement between the parties involved in the appeal. NLNG had initially contested a $141.75 million additional tax assessment issued by FIRS for the year under review. The company filed an appeal marked TAT/ABJ/APP/331/2022, seeking to restrain FIRS from collecting the disputed amount.
As reported by the News Agency of Nigeria, the tribunal noted that the parties continued their settlement discussions throughout the trial. According to the certified true copy of the judgment, dated Thursday and released on Tuesday, the tribunal stated, “On 10th July 2024, parties filed a term of settlement in the tribunal.”
The terms of the settlement required NLNG to remit $27.5 million to FIRS by 12th July 2024. The tribunal confirmed that NLNG had paid the agreed amount on 8th July 2024, leading to the adoption of the settlement terms as the final judgment.
In an earlier ruling, the tribunal dismissed an interlocutory motion by NLNG seeking to disqualify the tribunal from further proceedings. NLNG had argued that the presence of two panel members, who were former FIRS employees, posed a risk of bias. However, the tribunal found no merit in the motion, citing statutory provisions that upheld the panel’s integrity.
The tribunal’s decision marks the end of a protracted legal battle, providing a precedent for future tax disputes in Nigeria’s corporate sector.
