LAGOS STATE MINISTRY
OF FINANCE BOARD OF INTERNAL
REVENUE PERSONAL INCOME
TAX ACT 1993
NOTICE TO PREPARE
AND DELIVER RETURNS OF INCOME FOR THE YEAR 2004 ASSESSMENT
Pursuant
to Section 1 of the Personal Income Tax Act 104 of 1993
as amended and all other Laws enabling the Board of
Internal Revenue, Lagos State, in that behalf, notice
is hereby given to the following effect:
1. There is hereby imposed
a tax on the income of individuals, Communities and
families and arising to any trustee or executor under
any settlement, trustee or estate which shall be determined
under and be subjected to all the provisions of Act
104 of 1993, that is, any' individual or body of individuals
(including a family) and any Corporation Sole, Trustee
or Executor, having any income which is chargeable With
tax under the provisions of this Act whether personally
or in representative capacity shall within the period
of ninety days from commencement of the year of assessment
declare the income derived from all sources for the
purpose of assessment of income tax for the year 2004
in the prescribed Form A obtainable from the
Lagos State Board of Internal Revenue Offices given
in sub-paragraph 5 below. Furthermore, All employers
of labour are requested to collect and complete form
H1 ( Returns of Income form) from the Tax Office within
their jurisdiction and return them immediately. Alternatively,
all employers of labour may visit the website (www.lasg-ebs-rcm.com)
to download the form H1.
2. The Edict NO.4 of
January 3rd 1989 Introduced the payment of Development
Levy by every taxable adult residing in the State. The
general public Is hereby reminded that the edict is
still in force and that the levy is retained at N100.
The Board of Internal Revenue has been mandated to collect
this levy.
3. TREATMENT OF
TAX CLEARANCE CERTIFICATE: e TCC/ AUTOMATED REVENUE
RECEIPT
The general public is hereby informed that the Lagos
State Government has commenced the issuance of Automated
Revenue Receipt and Electronic Tax Clearance Certificate
(e-TCC).'The Guideline for collection of e- TCC is as
follows:
A.
PAYE APPLICATION
1.
Complete Tax from A at the beginning of the year obtainable
from:
i)Tax Stations.
ii)
BIR Headquarters; and
iii)
EBS-RCM website
2.
Complete e-TCC processing form obtainable from:
i)Tax Stations.
ii)
BIR Headquarters; and
iii)
EBS-RCM website (www.lasg-ebs-rcm.com)
3.
Attach completed and certified form H2;
4.
Submit the above at the Tax Station where his/her employer
is registered;
5.
Check back to collect card after 7 working days;
In the same vein, all
companies/organizations in Lagos State operating PAYE
tax system are hereby informed that applications made
for Tax Clearance Certificates for their employees must
be submitted en-bloc as no individual application will
be entertained. Please note that unless the above requirements
are met, applications made will not be processed. It
is further emphasized that NO application shall be treated
at the Headquarters.
Similarly, copies
of PAYE receipt with a schedule showing names and amount
remitted for each staff must be submitted to the Tax
Office within their jurisdiction every month.
B.
NON-PAYE APPLICANT: (i.e. self employed)
In
addition to the above requirement, the non-payee applicant
will include photocopy of tax assessment as well: as
payment receipt as evidence of tax remittance.
4.SELF ASSESSMENT
RETURNS
Self-assessment system was introduced in Nigeria with
effect from 1 st January 1991 and it has been operational
since then at the Federal Level and in Lagos State.
Under the scheme, tax payers are required to complete
the Self-Assessment Tax Return Form 1 R 30.4 Coy obtainable
free of charge from all the Board of Internal Revenue
Offices which are located in areas of the State as shown
in sub-paragraph 5 below or from the EBS-RCM website
(www.lasg-ebs-rcm.com) The completed tax return form
showing the computation of the liability together with
the relevant financial statements, detailed schedules
and accompanied with payment of the tax due Is to be
filed with the appropriate tax office within the time
permitted by law. There is also a general tax guide
which accompanies the self-assessment tax form to assist
tax payers in completing the Form. The guide/regulation
is also available on the EBS-RCM website.
5.All such taxable persons
referred to in paragraph 1 above and deemed to be resident
within Lagos State on the 1 st day of January 2004 shall
forward the return of his/her income to any of the following:
Lagos State Board of Internal
Revenue Tax Station Names and Addresses.
Tax Office
Address
1
Agbowa/Ikosi Tax Office
Agbowa, Lagos.
2
Agege Tax Office
Ipaja Road, Agege.
3
Aguda – Ijesha Tax Office
13, Olubunmi Alonge Street, Aguda, Lagos.
4
Ajegunle Tax Office
151, Kirikiri Road, Ajegunle.
5
Akowonjo Tax Office
15, Shasha Road, Akowonjo
6
Alakuko Tax Office
Km. 34, Lagos-Abeokuta Exp way, Alagbado
7
Alausa Tax office
78, Allen Avenue, Ikeja,Lagos.
8
Apapa Tax Office
2, Plateau Road, Apapa.
9
Badagry Tax Office
Market Street, Badagry
10
City-Hall Tax Office
City-Hall Building, Lagos.
11
Ebute-Metta Tax Office
20, Jebba Street, (West), Ebute-Metta.
12
Egbe Tax Office
122, Isolo Road, Egbe, Lagos.
13
Epe Tax Office
G.R.A. Road, Epe.
14
Ereko/Anikantamo Tax Office
Nnamdi Azikwe Shopping Centre, Tinubu, Lagos
15
Headquarters
The Good Shepherd House, Opp. Secretariat Maingate Alausa - Ikeja.
16
Ibeju-Lekki Tax Office
1, Kemfat Road, Off Lekki-Epe express way, Ajah
17
Iju Tax Office
73, College Road, Iju.
18
Ikeja Tax Office
Block 9, Old Secretariat, Ikeja.
19
Ikorodu Tax Office
51, Lagos Road, Ota Ona, Ikorodu
20
Ikoyi Tax Office
25, Biaduo Street, S.W. Ikoyi, Lagos.
21
Imota/Erinkorodo Tax Office
19 Oloruntedo way Imota, Lagos.
22
Ketu/Ojota Tax Office
582, Ikorodu Road, Ketu, Lagos.
23
Mushin Tax Office
13, Town Planning Way, Ilupeju
24
Ogba/Aguda Tax Office
6/8 Isheri Road,Omole-Ojodu,Lagos.
25
Ojo Tax Office
155, Olojo Drive, Ojo, Lagos.
26
Oko – Awo Tax office
13, Idoluwo Street, Lagos.
27
Olowogbowo Tax Office
19, Elegbeta Street, Lagos.
28
Oregun Tax Office
43, Oregun Road, Oregun, Lagos.
29
Orile-Iganmu Tax Office
85, Badagry Expressway Orile, Lagos.
30
Oshodi/Mafoluku Tax Offices
26, Afariogun Street, Oshodi, Lagos.
31
Oyingbo Tax Office
2, Willoughby Street, Oyingbo,Ebute – Metta.
32
Sogunle Tax Office
Old Secretariat, Ikeja.
33
Somolu Tax Office
33/35, Salami Saibu Street, Somolu.
34
Surulere Tax Office
17A, Alhaji Tokan Street, W/Avenue, Surulere
35
Tinubu Tax office
7Up Building, 33, Balogun Street, Lagos.
36
Victoria Island Tax Office
Itirin Court, Bishop Aboyade Cole, V/Island.
6. Employers of Labour are also required
when forwardIng Information to use the format shown hereunder:
A. DECLARATION OF RENTED OFFICE. RESIDENTIAL ACCOMMODATION
AND WAREHOUSE.
Location of Property |
Date Tenancy Commenced| Name
and Address of Owner |Annual
Rent Paid
We declare that the information herein
contained in this declaration is a true and correct statement
of our organisation's rented apartments and rent paid
thereon. B. DECLARATION OF PAYMENT OF DIVIDEND
Total Dividend Declared
& Paid | Total
Gross Dividend Paid to Lagos State Share-holders |
Withholding Tax Paid thereon | Evidence of Payment
We declare that the
information herein contained in this declaration is
a true and correct statement of dividends declared and
paid by our enterprise to our shareholders for the period
Indicated above. The two declarations above are to be
duly signed by the most senior Accounting Officer of
the organisation making each returns.
7.NOTICE OF WITHHOLDING TAX ON CONTRACTS
The General Public is also reminded of the provision of
the Miscellaneous Taxation Provisions decree of 1987 and
the charges contained in the 1 996 Budget. The 5 percent
rate of tax remains the same in the 2004 fiscal year.
Such tax withheld must be added up on monthly basis and
remitted directly to the government approved designated
banks with a schedule to obtain certificates of payment
for beneficiaries. Please note also that HENCEFORTH, all WHT remittances must be accompanied by the schedule of
the payees/contractors in order to obtain the certificate
of payment. .
8.RETURN ON CAPITAL
GAINS TAX
Individuals are directed to furnish the Board with information
on assets disposed by them.
9.COLLECTION OF
SALES TAX
The General Public is reminded that the collection of
Sales Tax on specific goods and services in the state
In accordance with the provisions of the Sales Tax Law
Cap. 175 Laws of Lagos State of Nigeria 1994 as amended
by Order 2000 is still in force. You are therefore enjoined
to give your full co-operation to the state government
by ensuring that all sales tax due to the state is adequately
collected and remitted to the revenue. Please visit
the EBS-RCM website to obtain your Sales Tax Registration
Number and Sales Tax Guide for the operations of sales
Tax.
10.BODY OF APPEAL
COMMISSIONERS
By provisions of Section 59 Sub-section 2A & 3 of the
Act, the constituted Body of Appeal Commissioners which
has its secretariat at No. 20 Jebba Street (West), 3rd
Floor, Ebute-Metta, Lagos is still very much in place.
The general public is hereby advised to take full advantage
of the existence of this body. Further information may
be obtained from the EBS-RCM website.
11.Finally, All Employers
of Labour are hereby notified that the 2004 PAYE guidelines
would be available, in all the tax offices stated above
and are to be collected free of charge. The guidelines
are also available at the EBS-RCM website.
SIGNED
OLUFOLARIN
O. OGUNSANWO
BOARD
SECRETARY LAGOS
STATE BOARD OF INTERNAL REVENUE.
The remittance procedures
are as follows:
TAX PAYER
1. Taxpayer goes to
the Tax Station to obtain Tax Assessment and Bank Payment
Advice
2. Taxpayer goes to
the bank with the assessment/ Bank Payment Advice, obtains
the customised teller, completes the set correctly and
pays to the bank
3. Taxpayer drops the
Accountant General’s copy of the teller in the box while
he/she goes away with two (2) copies of the teller temporarily.
4. Taxpayer goes back
to the bank after Value Date to collect the receipt.
5. Taxpayer presents
the Original Receipt at the Tax Station/Agency to complete
the transaction for which assessment was obtained (if
necessary).
NB: Only one receipt
will be issued per teller.
BANK
1. The bank ensures
that the tellers are properly completed and receives
deposits from the Taxpayers.
2. The bank transmits
information of daily transactions to Alpha-Beta Consulting
Limited in the specified format.
3. The bank returns
to Alpha-Beta Consulting Limited to collect receipts
for delivery to respective Taxpayers.
4. The bank obtains the
Agency Copy of the teller before release of the receipt
to the Taxpayer.
5. The bank returns
the Agency copy to the Agency through Alpha-Beta Consulting
Limited.
NB: The Bank must ensure
that both the Accountant General’s and Agency’s copies
of the tellers are clear and legible.
TAX AGENCY
1. Copy of daily manifest
will be sent to the agency for record purposes.
2. Any problem should
be referred to Alpha-Beta Consulting Limited for prompt
resolution. Please note that delay in the issuance of
receipts is usually due to the fact that Taxpayers do
not provide correct information to the banks or the
banks fail to transmit the information to Alpha-Beta
Consulting Limited promptly.
3. RECORDS OF DEDUCTION
An employer must provide
the following particulars regarding emoluments of each
employee on a monthly basis:
The name of the employee
The Taxpayer’s Identification
Number
The address of the
employee
The month of payment
The amount of emolument
for the month
The contribution by
the employee to approved pension funds in the month
The cumulative tax
free emoluments year-to-date
The cumulative net
emoluments year-to-date
The cumulative taxable
emoluments year-to-date
The corresponding cumulative
tax and
The tax, if any, deducted
or repaid on making the payment for the month.
This information may
be sent to the LSBIR through the collecting bank in
an electronic format.
Where an employee ceases
to be in employment, the employer must send to relevant
tax office, the following particulars about the employee:
The name of the employee
The Taxpayer’s Identification
Number
The address of the
employee
The date on which the
employment commenced
The date on which the
employment ceased
A Relief from income
tax, if any
The cumulative emoluments
at the date of leaving and
The corresponding cumulative
tax.
4. CHANGE
OF EMPLOYMENT
The employer must give
to an employee two copies of detail of tax deducted
from his emoluments as at the date the employment ceases.
On commencement of another employment, the employee
must deliver the two copies of detail of tax deducted
from his former employment to the new employer who must
1. Insert on the two
copies
-Staff Number
-The date on which
the employment commenced and
-The address of the
employee (if the employee has changed his address before
his new employment)
2. Send a copy to the
Tax Office where the employer has registered and retain
a copy.
3. Prepare a tax deduction
card in accordance with the detail of tax deductions
from his former employment and record on the card the
cumulative tax-free emoluments, if any and corresponding
cumulative tax as from the month the employee left his
former employment.
5. DEATH
OF EMPLOYEE
On the death of an
employee, the employer must send to the Tax Office (where
he is registered) the particulars of the employee including
name and address of the personal representative of the
deceased employee.
If any emoluments are
paid by employer to the deceased employee’s next of
kin, the employer must in making such payment, deduct
tax applicable.
6.
REMITTANCE OF TAX DEDUCTED
Within ten days of
the end of every month, an employer must pay all deductions
made from his employees as well as all other taxes due
to the nearest tax office or to any of the aforementioned
designated banks.
Government shall give
the employer a receipt (note that all receipts are now
automated i.e. computer generated) for the total amount
paid.
If Lagos State Board
of Internal Revenue discovers or is of the opinion that
an employer has not been remitting taxes, it may within
the year of assessment or within six years after the
expiration thereof assess the employer.
An employer who fails
to make proper tax deduction or fails to account properly
for deductions made commits an offence and is liable
on conviction to a penalty of the total sum of taxes
due and 10% per annum thereon. Employer are also liable
to interest and penalty for late or non-remittance.
7.
RETURNS FORM H1
Not later than 30 days
after the end of each year, an employer must render
to BIR or Tax Office where he is registered Form H1,
a return in respect of each employee showing the total
emoluments of each employee during the year, the tax
relief, if any and the total tax deducted from the employee.
8.
INSPECTION OF RECORDS
Every employer must
produce for inspection at the employer’s premises, all
wages records, tax deduction cards, vouchers and other
documents and records relating to payments of emoluments
to his employees and the deductions of tax thereof.
9.
FAILURE TO KEEP RECORDS
An employer who fails
to keep proper records or fails to collect and pay tax
or fails to submit returns to the Tax Office commits
an offence and liable on conviction to a penalty of
N5,000.00.
10.
OFFENCE BY BODY CORPORATE
Where an offence under
these regulations is committed by a body corporate,
firm or other association of individuals:
Every Director, Manager,
Secretary or Officer of the body corporate;
Every Partners or Officer
of the firm or
Every person concerned
in the management of the affairs of the body corporate
is severely liable for the commission of the offence.
11.
INSPECTION OF PREMISES
An authorised officer
or appointed representative of LSBIR may at any time
within working hours enter without warrant any business
premises in order to ascertain whether these regulations
are being compiled with and on entry may carry out necessary
inspections as may be specified by Lagos State Board
of Internal Revenue.
Such authorised Officer
may take with him such persons, as he considers necessary
for carrying out his functions under these regulations.
12. TAX
RELIEF AND ALLOWANCES
A. TAX RELIEFS
2002 - 2003
i) Personal Allowance
20% of Earned Income + N5000
ii) Claims for Children
N2500 per child maximum of 4 Children.
iii). Dependant Relative
N2000 per dependant subject to Maximum of 2 dependants.
iv) Earned Income exempted
from tax. Up to N30000.
All claims for children
allowance shall continue to be supported by photocopies
of birth certificates or payment of School fees.
B. LIFE ASSURANCE
AND CONTRIBUTION TO PENSION
SCHEME.
The restriction on
approved claims has been removed for the year. It should
be carefully noted that taxpayers are expected to attach
the photocopies and receipts as proof of their claims
while the originals should be made available for inspection
at the tax office (s).
C. FRINGE BENEFITS.
These are taxable whether
they are monetised or in kind
I. (a) Employer’s assets
put in the employees’ use: 5% of the acquisition cost
if known or 5% of the market value of the asset at the
time of acquisition.
(b) Where an employer
rents or hires an asset which he puts into use of an
employee, the employee will be charged with the difference
between the amount incurred by the employer and any
amount refunded to the employer by the employee.
(c) The following benefits
are exempted from tax.
i. Meals in the employer’s
canteen or non-transferable luncheon vouchers.
ii. Uniforms, overall
or protective clothing and
iii. Removal expenses.
II. RENT
ALLOWANCES.
(a) Where the employer
provides free accommodation to the employee, the rateable
value of the property is to be used in arriving at the
Benefit in kind of the employee for tax purpose.
(b) Where the employer
pays directly to the employee the law remains 28% of
the salary but now subject to a maximum of N150,000.00
per annum with effect from 1/1/2001.
III.
TRANSPORT ALLOWANCES
The
maximum non-taxable allowance with effect from 1st
January 2002 is N20,000 per annum.
IV.
LEAVE ALLOWANCE.
A
maximum sum of 10% of annual basic salary of the taxpayer
is allowed from 1/1/99. Any amount in excess of this
is therefore taxable.
V.
MEAL SUBSIDY/ ALLOWANCE
The
upper limit of tax exemption for meal subsidy/Allowance
is N5,000 00 per annum effective from 1/1/99.
VI.
UTILITY ALLOWANCE
The
maximum limit of tax exemption for utility allowance
with effect from 1/1/99 is N10,000.00
VII.
DISABILITY ALLOWANCE.
Disability
allowance of N2,000.00 is granted to a disabled person
per annum if the person should be using special
equipment and the service of an attendants in the course
of his employment.
D.
COMPENSATION FOR LOSS OF OFFICE.
From
January 1,1996 payment for loss of office or employment
is totally exempted from tax.
E.
RETIREMENT GRATUTIES
From
January 1, 1996 all retirement gratuities are exempted
from tax. In respect of these exemptions companies are
to apply to the office of the chairman, LSBIR for approval.
For the avoidance of doubt, no company should make any
such payment without obtaining the necessary clearance
from the office of the Chairman of the Board of Internal
Revenue.
F.
PENSION FOR SELF-EMPLOYED INDIVIDUALS.
Tax
exemption is to be granted in respect of premium paid
to an insurance company in respect of pension or annuity
paid by a self employed person provided that such premium
does not exceed 10% of the self employed person’s total
income. This is in addition to any premium paid in respect
of life assurance scheme.
G.
ENTERTAINMENT ALLOWANCE.
The
upper limit of tax exemption on Entertainment Allowance
is N6,000.00 per annum with effect from 1/1/99.
H.
ALLOWANCE FOR INTEREST ON LOAN IN RESPECT OF OWNER OCCUPIER
PREMISES.
All
applications for the allowance should be forwarded through
the Tax Offices to the Office of the Chairman, LSBIR.
13.
(A) PERSONAL INCOME TAX RATE STRUCTURE.
The
table below is applicable with effect from 1st January 2001.The Maximum tax rate
is still 25%.
The
rates are as follows:
Income
to be taxed
Rate of Tax
Percentage
For
every Naira of the first N30, 000
5k per N
5%
For
every Naira of the next N30, 000
10k per N
10%
For
every Naira of the next N50, 000
15k per N
15%
For
every Naira of the next N50. 000
20k per N
20%
For
every Naira above N160, 000
25k per N
25%
Employers
of labour are enjoined to adhere strictly to this tax
rate structure.
14.
TAX CLEARANCE CERTIFICATE
Lagos State has
changed from paper-based Tax Clearance Certificate to
Electronic Tax Clearance Certificate (e-TCC). All workers in Lagos State either in
paid employment or otherwise must obtain or renew their
e-TCC every year. All employers are mandated to process
e-TCC applications together at once on behalf of their
employees. Each employee must have completed e-TCC
application form to enable his/her employer to process
the e-TCC. Self-employed persons are to apply
for their e-TCC directly. The e-TCC application forms are obtainable
from:
1.
Tax offices.
2.
Lagos State Board of Internal Revenue Headquarters and
3.
Could be downloaded from EBS-RCM website (
(www.lasg-ebs-rcm.com)
15. AGGRIEVED BY
AN ASSESSMENT
A taxable person being aggrieved by an assessment to
income tax made upon him, having failed to agree with
relevant tax authority in the manner provided in subsection
(3) of section 57 of Personal Income Tax Act (PITA)
1993, may appeal against the assessment on giving notice
as provided in section 61 of this Act within thirty
days after the date of service of notice of the refusal
of the relevant tax authority to amend the assessment
as desired.
Sub-section (3) of section 57 of this Act says:
If a person
who has objected to an assessment agrees with the relevant
tax authority as to the correct amount of the tax chargeable,
the assessment shall be amended accordingly and notice
of the tax chargeable shall be served on the person.
Provided that,
if an applicant for revision under the provision of
this subsection fails to agree with the relevant tax
authority on the amount of the tax chargeable, the relevant
tax authority shall give notice of refusal to amend
the assessment as desired by that person and may revise
the assessment to such amount as the relevant tax authority
may, according to the best of its judgement, determine
and give notice of the revised assessment and of the
tax payable together with notice of refusal to amend
the revised assessment and, where requisite, any reference
in this Act to an assessment or to an additional assessment
shall be treated as revised under the provisions of
this proviso
TIME LIMIT FOR APPEAL
Section 60 explains the time limit
for appeal. A taxable person being aggrieved by an assessment
to income tax made upon him, having failed to agree
with relevant tax authority in the manner provided in
subsection (3) of section 57 of this Decree, may appeal
against the assessment on giving notice as provided
in section 61 of this Decree within thirty days after
the date of service of notice of the refusal of the
relevant tax authority to amend the assessment as desired.
NOTICE TO BE GIVEN TO RELEVANT
TAX AUTHORITY
Section 61 explains Notice to be
given to relevant tax authority
(1.) A
notice of appeal to be given under the provisions of
section 60 of this Decree shall be given in writing
to the relevant tax authority and shall set out:
(a) the name
and address of the applicant;
(b) the official
number and the date of the relevant notice of assessment
;
(c) the amount
of the assessable, total or chargeable income and of
the tax charged as shown by that notice and the year
of assessment concerned;
(d) the precise
grounds of appeal against the assessment;
(e) the address
for service of any notice of other documents to be given
to the applicant;
(f) the date
on which the applicant was served with notice of refusal
by the relevant tax authority to amend the assessment
as desired.
(2.)
As soon as may be after receipt of notice of appeal,
the secretary to the Appeal Commissioners, shall having
regard to the grounds of appeal therein disclosed and
to any relevant provisions of this Decree, deliver a
copy thereof to the relevant tax authority and the appeal
shall thereupon be listed by the secretary for hearing
accordingly.
(a) the name
and address of the applicant;
(b) the official
number and the date of the relevant notice of assessment
;
(c) the amount
of the assessable, total or chargeable income and of
the tax charged as shown by that notice and the year
of assessment concerned;
(d) the precise
grounds of appeal against the assessment;
(e) the address
for service of any notice of other documents to be given
to the applicant;
(f) the date
on which the applicant was served with notice of refusal
by the relevant tax authority to amend the assessment
as desired.
(3.) A notice or other document to be
given to the Appeal Commissioners shall be addressed
to the secretary and be delivered at or sent by registered
post to his official address.
(4.) A tax payer may discontinue an appeal by
him under this section on giving notice to the secretary
to the Appeal Commissioners in writing at any time before
the hearing of the appeal.
(5.) Notwithstanding that notice of appeal against
an assessment has been given by a tax payer under this
section the relevant tax authority may revise the assessment
in agreement with the tax payer, and on notice of the
agreement being given in writing by the relevant tax
authority to the secretary to the Appeal Commissioners
at any time before the hearing of the appeal, the appeal
shall be treated as being discontinued.
(6.) On the discontinuance of an appeal under
the provisions of this section, the amount or revised
amount of the assessment, as the case may be, shall
be deemed to have been agreed between the tax authority
and the tax payer under the provisions of subsection
(3) of section 57 of this Decree.
ESTABLISHMENT OF BODY OF APPEAL COMMISSIONERS
Section 59 explains the establishment of Body of Appeal
Commissioners thus:
(1.) The State Commissioner may, by notice in
the State Gazette, establish a Body of Appeal Commissioners.
(2.) An Appeal Commissioner -
(a.) shall be appointed by the State Commissioner,
by notice in the State Gazette, from among persons appearing
to him to have had experience and shown capacity in
the management of a substantial trade or business or
the exercise of a profession of law, accountancy or
taxation in Nigeria;
(b.) shall, subject to the provisions of this
subsection, hold office for a period of three years
from the date of his appointment;
(c.) may at any time resign as an Appeal Commissioner
by notice in writing addressed to the State Commissioner,
except that on the request of the State Commissioner
he may continue to act as an Appeal Commissioner after
the date of his resignation and sit at any further hearing
in a case in which he has already sat before that date
to hear an appeal, until a final decision has been given
with respect to that appeal;
(d.) shall cease to be an Appeal Commissioner
if the State Commissioner determines that his office
be vacant and on notice of the determination being published
in the State Gazette or on his acceptance of a political
appointment.
(3.) The State Commissioner shall designate a
public officer to be the secretary to the body of Appeal
Commissioners and the official address of the secretary
shall be published in the State Gazette.
(4.) Subject to this section, the body of Appeal Commissioners
shall remain in office until a new body is sworn in.
PROCEDURES BEFORE APPEAL COMMISSIONERS
According to Section 62 of Personal Income Tax Act (PITA
1993) - Procedures before Appeal Commissioners are as
follows:
(1.) The Appeal Commissioners shall, as often as may
be necessary, meet to hear appeals in any town in which
is situated an office of the relevant tax authority
and, subject to the provisions of the next following
subsection, at any such meeting-
(a) any three or more Appeal Commissioners may hear
and decide an appeal; and
(b) the Appeal Commissioners present shall elect one
of their number to be the chairman for the meeting.
(2) An Appeal Commissioner who has a direct or indirect
financial interest in a tax payer or being a relative
of a person having such an interest, and having knowledge
thereof, shall, when any appeal by such tax payer is
pending before the body of Appeal Commissioners, declare
such interest to the other Appeal Commissioners and
give notice to the relevant tax authority in writing
of such interest or relationship and interest, and he
shall not sit at any meeting for the hearing of that
Appeal.
(3) The provisions of subsection (2) of this section
shall also apply where an Appeal Commissioner is a legal
practitioner or an accountant, and the tax payer is
or has been a client of that Appeal Commissioner.
(4) The secretary to the appeal Commissioners shall
give seven clear days notice to the relevant tax authority
and to the applicant of the date and place fixed for
the hearing of an appeal except in respect of an adjourned
hearing for which the Appeal commissioners have fixed
a date at their previous hearing.
(5) All notices, precepts and documents, other than
decisions of the Appeal Commissioners may be signified
under the hand of the secretary.
(6) All appeals before the Appeal Commissioners shall
be held in camera.
(7) A tax payer who appeals against an assessment shall
be entitled to be represented at the hearing of the
appeal:
Provided that, if the person intended by the tax payer
to be its representative in an appeal is unable for
good cause to attend the hearing thereof, the Appeal
Commissioners may adjourn the hearing for such reasonable
time as they think fit, or admit the appeal to be made
by some other person or by way of written statement.
(8) The onus of proving that the assessment complained
of is excessive shall be on the appellant.
(9) At the hearing of an appeal, if the representative
of the relevant tax authority proves to the satisfaction
of the appeal Commissioners or the court hearing the
appeal in the first instance that-
(a) the appellant has, contrary to subsection (1) of
section 41 of this Decree, for the year of assessment
concerned, failed to prepare and deliver to the relevant
tax authority the statement mentioned in that subsection;
or
(b) the appeal is frivolous or vexatious or is an abuse
of the appeal process; or
(c) it is expedient to require the appellant to pay
an amount as security for processing the appeal, the
Appeal Commissioners or, as the case may be, the court
may adjourn the hearing of the appeal to any subsequent
day and order the appellant to deposit with the relevant
tax authority before the day of the adjourned hearing
an amount, on account of the tax charged by the assessment
under appeal, equal to the tax charged on the appellant
for the preceding year of assessment, or one half of
the tax charged by the assessment under appeal, whichever
is the lesser.
(10) If the appellant fails to comply with an order
under subsection
(9) of this section, the assessment against which he
has appealed shall be confirmed and the appellant shall
have no further right of appeal whatsoever with respect
to that assessment.
(11) The Appeal Commissioners may confirm, reduce, increase
or annul the assessment or make such order thereon as
they see fit.
(12) A decision of the Appeal Commissioners shall be
recorded in writing by their chairman and a certified
copy of the decision shall be supplied to the appellant
or the relevant tax authority by the secretary, on a
request made within three months of the decision.
(13) where on the hearing of an appeal-
(a) no accounts, books or records relating to profits
were produced by or on behalf of the appellant; or
(b) those accounts, books or records were so produced
but the Appeal Commissioners rejected the same on the
ground that it has been shown to their satisfaction
that they were incomplete or unsatisfactory; or
(c) the appellant or his representative, at the hearing
of the appeal has neglected or refused to comply with
a precept delivered or sent to him by the secretary
to the Appeal Commissioners without showing any reasonable
excuse; or
(d) the appellant or a person employed, whether confidentially
or otherwise, by the appellant or his agent ( other
than his legal practitioner or accountant acting for
him in connection with his liability to tax) has refused
to answer any question put to him by the Appeal Commissioners,
without showing any reasonable cause, the chairman of
the Appeal Commissioners shall record particulars of
the same in his written decision.
(14)The State Commissioner may make rules prescribing
the procedure to be followed in the conduct of appeal
before the Appeal Commissioners.
PROCEDURES OF ALLOWING DECISION OF APPEAL COMMISSIONERS.
According to Section 63 of Personal Income Tax Act (PITA
1993)- Procedures of allowing decision of Appeal Commissioners
are as follows:
(1) Notice of the amount of the tax chargeable under
the assessment as determined by the Appeal Commissioners
shall be served by the relevant tax authority on the
tax payer or on the person in whose name the tax payer
is chargeable.
(2) Where the tax chargeable on a tax payer or a year
of assessment in accordance with a decision of the Appeal
Commissioners does not exceed two hundred Naira no further
appeal by the tax payer shall lie from that decision
except with the concept of the Board.
(3) Notwithstanding that a further appeal is pending,
tax shall be paid, in accordance with the decision of
the Appeal Commissioners, within one month of notification
of the amount of the tax payable pursuant to subsection
(1) of this section, and if it is not so paid, with
or without applying the provisions of section 55 of
this Decree as the relevant tax authority thinks fit,
proceedings may be taken for its recovery in accordance
with section 54 of this Decree.
APPEAL TO COURT
According to Section 64 of Personal Income Tax Act (PITA
1993) - Procedures of Appealing to Court are as follows:
(1) Subject to provisions of subsection (2) of section
63 of this Decree, a tax payer who, having appealed
against an assessment made on him to the Appeal Commissioners
under the provisions of section 60 of this Decree is
aggrieved by the decision of the Appeal Commissioners
may appeal against the assessment and the decision to
the High Court of the State on giving notice in writing
to the relevant tax authority within thirty days
of the date on which the decision was given.
(2) Where no body of Appeal Commissioners has been appointed
with jurisdiction to hear an appeal against an assessment
made on a tax payer, the relevant tax authority in the
manner provided in subsection
(3) of section 57 of this Decree, may appeal against
the assessment to the High Court of the State on giving
notice in writing to the relevant tax authority within
thirty days after the date of service of notice of the
refusal by the relevant tax authority to amend the assessment
as desired.
(4) If the relevant tax authority is dissatisfied with
a decision of the Appeal Commissioners, it may appeal
against that decision to the High Court of the state
on giving notice in writing to the other party to the
appeal within thirty days after the date on which decision
was given.
(5) Seven clear days notice of the date fixed for the
hearing of the appeal shall, unless rules made hereunder
otherwise provide, be given to all parties thereto.
(6) The provisions to subsections (7), (8) and (9) of
section 62 of this Decree and of subsection (1) of section
63 of this Decree shall apply to an appeal under this
section with any necessary modifications.
(7) All appeals shall be heard in camera unless the
Judge shall, on the application of the tax payer, otherwise
direct.
(8) If on the hearing of an appeal from a decision of
the Appeal Commissioners given under the provisions
of section 62 of this Decree a certified copy of that
decision is produced before the High Court and the decision
contains a record by reference to-
(a) paragraph (a) of subsection
(13) of section 62 of this Decree, the High Court shall
dismiss the appeal; or
(b) paragraph (b) of subsection
(13) of section 62 of this Decree, the High Court may
dismiss the appeal on prima facie evidence, with respect
of the accounts, books or
records having been incomplete or unsatisfactory, as
the court may seem sufficient ;or (
c) paragraph (c) or (d)
of subsection (13) of section 62 of this Decree, the
High Court shall dismiss the appeal unless it considers
that the cause of the neglect or refusal
was reasonable.
(9) Notwithstanding anything contained in section 67
of this Decree, if in a particular case the judge, from
information given at the hearing of the appeal, is of
the opinion that the tax may not be recovered, he may,
on application being made by or on behalf of the relevant
tax authority, require the appellant to furnish within
such time as may be specified security for payment of
the tax and if the security is not given within the
time specified by the tax assessed shall become payable
and recoverable forthwith.
(10) The costs of the appeal shall be in the discretion
of the Judge hearing the appeal and shall be a sum fixed
by the Judge.
(11) The Chief Judge of the State may make rules providing
for the method of tendering evidence before a Judge
on appeal, the conduct of the appeals and the procedure
to be followed by a judge.
(12) an appeal against the decision of a Judge shall
lie to the Court of Appeal and thereafter to the Supreme
Court-
(a) at the instance of the tax payer,
where the decision of the Judge is to the effect that
the tax chargeable on the tax payer for the relevant
year of assessment exceeds four
hundred Naira; and
(b) at the instance of or with the
consent of the relevant tax authority, in any other
case: Provided that no costs shall be awarded against
the tax payer in an appeal instituted
by the relevant tax authority under this subsection
unless the decision of the Judge was to the effect mentioned
in paragraph (a) of this subsection.
ASSESSMENT TO BE FINAL AND CONCLUSIVE.
Section 65 says:
(1) Where no valid objection or appeal has been lodged
within the time limited by section 57 or 60 of this
Decree or where due notice has not been given of a further
appeal against a decision of the Appeal Commissioners
or a Judge, as the case may be an assessment as made,
or agreed to under the provisions of subsection (3)
of section 57 of this Decree determined under the proviso
to that subsection or on appeal, as the case may be,
shall be final and conclusive for all purpose of the
Decree as regards the amounts of the assessable, total
or chargeable income and the tax charged thereby.
(2) If the full amount of the tax charged by a final
and conclusive assessment is not paid within the appropriate
period or periods prescribed by this Decree, the provisions
thereof relating to the recovery of tax, and to any
penalty under section 75 of this Decree, shall apply
to the collection and recovery of the tax or penalty
subject only to the set-off of the amount of any tax
repayable under any claim made under a provision of
this Decree which has been agreed to by the relevant
tax authority or determined on an appeal against a refusal
to admit that claim: Provided that
(a) where an assessment has become final and conclusive
any tax overpaid, including any amount deposited with
the relevant tax authority on account of the tax charged
by the assessment, shall be paid;
(b) nothing in section 57 of this Decree shall prevent
the relevant tax authority from making an assessment
or additional assessment for any year which does not
involve reopening any issue, on the same facts, which
has been determined for that year of assessment under
subsection (3) of that section or on appeal.
16. LEGAL PROCEEDINGS
Proceeding
may be brought against any employer for the recovery
of all arrears of taxes outstanding against his employees.
