WHAT IS TAX APPEAL?

*Tax Appeals refers to the appeal of any and all penalties and/or interest imposed on the business by any federal, state, and/or local tax authorities* Tax appeals are a common way to resolve disagreements you have with the Relevant Tax Authorities (RTA). If you decide to go this route, there are procedures you must follow to ensure you retain your right to an appeal.
Tax appeal procedure in Nigeria encompasses steps taken by a party (or parties) dissatisfied with a tax assessment or any action of an authorized officer of a Tax Authority to challenge same starting from a written objection, through instituting an appeal at the Tax Appeal Tribunal (TAT) and further appeal to superior courts.
* In practice, a taxpayer who disagrees with the tax issued by the RTA can file a notice of objection to such RTA. The RTA can choose to heed the objection and reassess accordingly. It can also refuse to amend the assessment and issue a Notice of Refusal to Amend (NORA). Then, the party can choose to go through the internal dispute resolution mechanism of the RTA. The taxpayer can now appeal to the Tax Appeal Tribunal within 30 days of receipt or delivery of NORA. Appeals at TAT are made in the zone where the cause of appeal arose. TAT lacks jurisdiction to handle criminal matters. Failure of a party to file a written objection at the RTA does not bar an appeal to TAT.
There are a few innovations in the Tax Appeal Tribunal (Procedure) Rules.
Under the Rules, all processes / documents which may be filed at the secretariat of the TAT may be filed electronically as directed by the TAT. Similarly, processes / documents are properly served if sent by email or any other electronic means as directed by the TAT.
The Rules allow for virtual proceedings particularly for delivering rulings and applications using technology or platforms recommended by the TAT
The TAT sits in eight zones across Nigeria. Under the Rules, appeals may be filed at the secretariat of any of the eight zones, provided the Notice of Appeal and the accompanying document are properly headed in the name of the appropriate zone of the Tribunal where the matter is to be heard. The appeal would then be transferred to the correct zone as directed by the Chairman.
Now a taxpayer who intends to appeal must first pay 50% of the disputed tax into an account designated by the TAT as security for the appeal. In addition, the taxpayer must file a deposition along with the appeal to that effect.
Parties may dispense with oral hearing where a dispute can be resolved based on documentary evidence. In which case all that is required is for parties to file all relevant documents along with the Notice of Appeal or Reply, Witness Statement on Oath, Written Address. Etc.
Parties who intend to recover a debt or liquidated money demand can now appeal via a summary appeal procedure where the Appellant believes there is no defense to the appeal. However, where the TAT is satisfied that the Defendant’s defense has some merit, it would hear the appeal on trial.
The Tribunal now has discretion to order cost against a party, its representative or a legal practitioner for any misconduct, undue delays or defaults.
The TAT can order a Pre-trial conference for the purpose of narrowing issues in dispute to facilitate settlement.
The time frame upon which an appeal is to be heard, concluded and the ruling delivered must not exceed six months from the date the appeal is commenced. The TAT may approve a different time frame for the appeal process.