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LAGOS STATE MINISTRY OF FINANCE
INTERNAL REVENUE SERVICE
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 Internal Revenue Service, 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 Internal Revenue Service 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 Internal Revenue Service 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) IRS Headquarters; and
              iii) EBS-RCM website
         2. Complete e-TCC processing form obtainable from:
              i)Tax Stations.
             ii) IRS 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 Internal Revenue Service 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 Internal Revenue Service 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 (I) Tax Office 13, Town Planning Way, Ilupeju
24 Mushin (II) Tax Office Idi Oro Bus stop, Mushin
25 Ogba/Aguda Tax Office 6/8 Isheri Road,Omole-Ojodu,Lagos.
26 Ojo Tax Office 155, Olojo Drive, Ojo, Lagos.
27 Oko Awo Tax office 13, Idoluwo Street, Lagos.
28 Olowogbowo Tax Office 19, Elegbeta Street, Lagos.
29 Oregun Tax Office 43, Oregun Road, Oregun, Lagos.
30 Orile-Iganmu Tax Office 85, Badagry Expressway Orile, Lagos.
31 Oshodi/Mafoluku Tax Offices 26, Afariogun Street, Oshodi, Lagos.
32 Oyingbo Tax Office 2, Willoughby Street, Oyingbo,Ebute Metta.
33 Sogunle Tax Office Old Secretariat, Ikeja.
34 Somolu Tax Office 33/35, Salami Saibu Street, Somolu.
35 Surulere Tax Office 17A, Alhaji Tokan Street, W/Avenue, Surulere
36 Tinubu Tax office 7Up Building, 33, Balogun Street, Lagos.
37 Victoria Island (I) Tax Office Itirin Court, Bishop Aboyade Cole, V/Island.
38 Victoria Island (II) Tax Office 1st Floor Wema Bank Building, Idowu Taylor Victoria 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 IRS 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 INTERNAL REVENUE SERVICE.
List of Active Banks
BankName HQAddress ContactName CBNCode
ACCESS BANK PLC. Plot 1665, Oyin Jolayemi Street, V/I, P.M.B. 12935, Lagos. Bimbo Abraham (01-271-2059), Gbenga Olawale (0704-011-6048) 044
CITIBANK NIGERIA LIMITED 27, Kofo Abayomi Street, Victoria Island, Lagos. Mfonis Epoo (01-279-8642) 023
DIAMOND BANK PLC Plot 1261, Adeola Hopewell Street, Victoria Island, Lagos. Gbenga (0803-401-5870), Omoni Gbenga (0808-529-7583) 063
ECOBANK PLC 2, Ajose Adeogun Street, Victoria Island. Ademola (0812-900-9631), Akin (0803-816-2101) 050
Enterprise Bank Limited Plot 143, Ahmadu Bello Way, Victoria Island, Lagos. Solomon (0805-655-5930), Ude Daniel (0803-203-5206) 084
Fidelity Bank Plc. 2, Kofo Abayomi Street, V/I, Lagos. Sunday Salako (0703-800-0734), Frances Bakre (0702-883-1391), Olaide Adeyemo (0805-521-7437) 070
Finbank PLC 4/6, Adetokunbo Ademola, Street, V/I, Lagos. Wale Alimi (0802-339-9774) 247
FIRST BANK OF NIGERIA PLC 35 Marina, Lagos. Mosebalatan Uwaechi (0802-326-1426) 011
FIRST CITY MONUMENT BANK PLC 17A, Tinubu Street, Primerose Towers, Lagos Island, Lagos. Tunde Salami (0802-701-6649) 214
Guaranty Trust Bank Plc. The Plaza, 6, Adeyemo Alakija Street, Victoria Island, Lagos. Busola Fadeshe (0802-303-5184), Nike (0802-301-5152) 058
HERITAGE BANKING COMPANY LIMITED Plot 292B, Ajose Adeogun Street, Victoria Island, Lagos. 030
INTERCONTINENTAL BANK PLC Intercontinental Plaza, 999c, Danmole Street, Victoria Island, Lagos. 069
Keystone Bank Limited Plot 707, Adeola Hopewell Street, V/I., Lagos. Website:www.platinumbanklimited.com Yetunde Jaiyesimi (0802-312-3876) 082
Lagos Building Investment Co ASSIBIFI Road, Alausa, Ikeja Dehinde Tunwashe 1996
LASG STATE TREASURY/AG OFFICE Alausa, ikeja Mrs J. O. Williams 1902
Mainstreet Bank Limited 94, Broad Street, Lagos Ann Chinwe (0803-509-1115) 014
Oceanic Bank International Nig. Plc Waterfront Plaza, Ozumba Mbadiwe Avenue, Victoria Island, Lagos. 056
SKYE BANK PLC Plot 708/709, Adeola Hopewell Street, V/I, P.M.B. 12764, Lagos. Tutu Alimi (0805-502-5128), Gabriel (0803-404-4522) 076
Stanbic IBTC Bank PLC Plot 157, Idejo Street, Off Adeola Odeku Street, Victoria Island, Lagos. Samuel Ogundaisi (0805-527-6159), Ogechukwu (0803-201-2748) 039
Sterling Bank Plc 67, Marina, P.M.B.12933, Lagos. Ayo Adebayo (0803-337-5722), Joshua (0802-472-6888) 232
UNION BANK OF NIGERIA PLC. 36, Marina, Lagos. Bolade (0802-303-1282), Leye (0807-781-6916) 032
United Bank For Africa Plc. 97/105, Broad Street, Lagos. Tony Adigwe (01-280-8109, 0802-332-7205), Chinwe (0808-470-2219), Davidson (0803-569-9110) 033
UNITY BANK PLC Area 3, Plot 785, Herbert Macauley Way, Abuja Tonia Aikionbare (0803-560-1837), Alade Emmanuel (0805-267-7508) 215
WEMA BANK PLC. Wema Towers, 11th Floor, 54, Marina Street, Lagos. Blessing (0802-340-9863), Kemi Adeneye (0802-340-9863) 035
ZENITH BANK PLC Plot 84, Ajose Adeogun Street, Victoria Island, Lagos. Bukky (0802-389-6265) 057

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 LIRS 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 Internal Revenue Service 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 IRS 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 LIRS 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 Internal Revenue Service.

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. CONSOLIDATED RELIEF ALLOWANCE (CRA)

All existing relief and allowances have been consolidated to N200, 000 or 1% of Annual Gross Income (whichever is higher) plus 20% of Annual Gross Income

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 monetized 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.

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, LIRS 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 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.

 

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, LIRS.

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 N300, 000          7k per N                7%

For every Naira of the next N300, 000        11k per N              11%

For every Naira of the next N500, 000        15k per N              15%

For every Naira of the next N500.000         19k per N              19%

For every Naira of the next N1, 600, 000    21k per N              21%

For every Naira above N3, 200,000             24k per N              24%

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 Internal Revenue Service 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 IRS.
(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.

 

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