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COMPANIES INCOME TAX ACT CAP. 60 L.F.N. 1990 ACT CAP. C21 L.F.N. 2004

SUBSIDIARY LEGISLATION: DOUBLE TAXATION RELIEF (BETWEEN THE FEDERAL REPUBLIC OF NIGERIA AND THE GOVERNMENT OF THE KINGDOM OF BELGIUM ORDER S.I. 15 1997

DOUBLE TAXATION RELIEF (BETWEEN THE FEDERAL REPUBLIC OF NIGERIA AND THE GOVERNMENT OF FRENCH REPUBLIC ORDER S.I. 16 1997

DOUBLE TAXATION RELIEF (BETWEEN THE FEDERAL REPUBLIC OF NIGERIA AND THE GOVERNMENT OF CANADA  ORDER S.I. 17 1997

DOUBLE TAXATION RELIEF (BETWEEN THE FEDERAL REPUBLIC OF NIGERIA AND THE GOVERNMENT OF ROMANIA  ORDER S.I. 18 1997

DOUBLE TAXATION RELIEF (BETWEEN THE FEDERAL REPUBLIC OF NIGERIA AND THE GOVERNMENT OF THE KINGDOM OF NETHERLANDS ORDER S.I. 19 1997

COMPANIES INCOME TAX (RATES, ETC. OF TAX DEDUCTED AT SOURCE (WITHOLDING TAX) REGULATIONS S.1 10 1997

INCOME TAX APPEALS (APPEAL COMMISSIONERS) RULES L.N. 169 of 1962[41]

 

COMPANIES INCOME TAX ACT

1979. No. 28.

 

An Act to consolidate the provisions of the companies Income Tax Act 1961 and to make other provisions relating

thereto.

 

Commencement. [See section 85]

PART I- ADMINISTRATION

Establishment and constitution of the Board

.1. (1) There shall continue to be a Board of which the official name shall be the Federal Board of Inland Revenue(hereafter in this Act referred to as the Board) whose operational arm shall be the Federal Inland Revenue Service (hereafter in this Act referred to as the Service)

(2) The Board shall comprise -

"(a) an Executive Chairman, who shall be a person within the service experienced in taxation to be appointed by the President

(b) the Directors and heads of department of the service

(c) the officer from time to time holding or acting in the post of Director with the responsibility for planning research and statistics matters in the Federal Ministry of Finance

(d) a member of the board of the National Revenue mobilization allocation and fiscal commission.

(e) a member from the Nigerian National Petroleum Corporation not lower in rank than an Executive Director

(f) a Director from the national Planning Commission

(g) a Director from the Department of customs and Excise

(h) the Registrar General of the Corporate Affairs Commission

(i) the Legal Adviser to the service

(3) Any seven members of the Board, of whom one shall be the chairman or a Director of a Department within the service shall constitute a quorum.

(4) the Secretary (who shall be an ex-officio member shall be nominated by the board from within the service

(5) Notwithstanding that the Legal Adviser to the Board is at any time a member of the Board, he may appear for and

represent the Board in his professional capacity in any proceedings in which the Board is a party; and the Legal Adviser shall

not in such circumstances give evidence on behalf of the Board.

(6) The Secretary shall summon a meeting of the board whenever the business requiring its attention so warrants, or upon any

request of a member; and a majority decision of the members on any matter obtained by him in written correspondence shall

be treated in all respects as though it were a decision of the Board in actual meeting unless any member has requested the

submission of that matter to such meeting.

2. (1) There shall be a technical committee of the board (hereafter in this Act referred to as the technical committee) which shall comprise

(a)   the Executive Chairman of the Board as Chairman.

(b)   All the Directors and heads of department of the service

(c)     the Legal Adviser in the Federal Inland Revenue Service

(d)   the Secretary to the Board

(2) the technical committee may co-opt from the service such staff as it may require for the discharge of its functions

(3) the functions of the technical committee shall be to

(a)   consider all tax matters that require professional and technical expertise and make recommendations to the board

(b)   advise the board on all the powers and duties specifically listed in section 2 of this Act and in the first schedule to this Act and;

(c)    attend to such other matters as may from time to time be referred to it by the board.[1]

Powers and duties of the Board.

3. (1) The due administration of this Act and the tax shall be under the care and management of the Board who may do all

such things as may be deemed necessary and expedient for the assessment and collection of the tax and shall account for all

amounts so collected in a manner to be prescribed by the Minister.

(2) Wherever the Board shall consider it necessary with respect to any tax or penalty due, the Board may acquire, hold and

dispose of any property taken as security for or in satisfaction of any such tax or penalty or of any judgement debt due in

respect of any such tax or penalty and shall account for any such property and the proceeds of sale thereof in a manner to be

prescribed by the Minister.

(3) The Board may sue and be sued in it official name and, subject to an express provision under any subsidiary legislation or

otherwise, the Board may authorise any person to accept service of any document to be sent, served upon or delivered to the

Board.

(4) The Board may by notice in the Federal Gazette or in writing-

(a) authorise any person within or outside Nigeria to perform or exercise, on behalf of the Board, any power or duty conferred

on the Board other than the powers or duties specified in the First Schedule, or to receive any notice or other document to be

given or delivered to, or served upon, the Board under or in consequence of this Act and any subsidiary legislation made

thereunder; and

(b) with the consent of the Minister, authorise the Joint Tax Board to perform or exercise, on behalf of the Board, any power

or duty conferred on the Board including the powers or duties specified in the First Schedule.

(5) In the exercise of the powers and duties conferred upon it, the Board shall be subject to the authority, direction and control

of the Minister and any written direction, order or instruction given by him after consultation with the Chairman shall be

carried out by the Board: Provided that the Minister shall not give any direction, order or instruction in respect of any

particular person which would have the effect of requiring the Board to raise an additional assessment upon such person or to

increase or decrease any assessment made or to be made or any penalty imposed or to imposed upon or any relief given or to

be given to or to defer the collection of any tax, penalty or judgement debt due by such person, or which would have the effect

of altering the normal course of any proceedings, whether civil or criminal, relating either to the recovery of any tax or

penalty or to any offence relating to tax.

(6) Every claim, objection, appeal, representation or the like made by any person under any provision of this Act or of any

subsidiary legislation made thereunder shall be made in accordance with this Act and subsidiary legislation.

(7) In any claim or matter or upon any objection or appeal under this Act or under any subsidiary legislation made thereunder,

any act, matter or thing done by or with the authority of the Board, in pursuance of any provisions of this Act or subsidiary

legislation made thereunder, shall not be thing as not or was not proved to be in accordance with any direction, order or

instruction given by the Minister.

Signification and execution of powers, duties, etc.

4. (1) Anything required to be done by the Board, in relation to the powers or duties specified in the First Schedule, may be

signified under the hand of the Chairman or of the Secretary.

(2) Any authorization given by the Board under or by virtue of this Act shall be signified under the hand of the Chairman

unless such authority is notified in the Federal Gazette.

(3) Subject to subsection (1) of this section, any notice or other document to be given under this Act, or under any subsidiary

legislation made thereunder, shall be valid if-

(a)it is signed by the Chairman or by any person authorised by him; or

(b)such notice or document is printed and the official name of the Board is duly printed or stamped thereon.

(4) Every notice, authorization or other document purporting to be a notice, authorization or other document duly given and

signified, notified or bearing the official name of the Board, in accordance with the provisions of this section, shall be

presumed to be so given and signified, notified, or otherwise without further proof, until the contrary is shown.

Power to amend the First Schedule.

5. The Minister may at an time by Order delete any of the powers of duties specified in the First Schedule to this Act or

include therein additional powers or duties or otherwise amend such Schedule or substitute a new Schedule therefor.

Official secrecy.

6. (1) Every person having any official duty or being employed in the administration of this Act shall regard and deal with all

documents, information, returns, assessment lists and copies of such lists relating to the profits or items of the profits of any

company, as secret and confidential.

(2) Every person having possession of or control over any documents, information, returns or assessment lists or copies of

such lists relating to the income or profits or losses of any person, who at any time communicates or attempts to communicate

such information or anything contained in such documents, returns, lists, or copies to any person-

(a)other than a person to whom he is authorised by the Minister to communicate it; or

(b)otherwise than for the purposes of this Act or of any enactment in Nigeria imposing tax on the income of persons other

than companies, shall be guilty of an offence against this Act.

(3) Any proceedings for an offence against this section may be taken by or in the name of the Board but not by any other

person except with the consent of the Attorney-General of the Federation.

(4) No person appointed under or employed in carrying out the provisions of this Act shall be required to produce in any court

any return, document or assessment, or to divulge or communicate to any court any matter or thing coming under his notice in

the performance of his duties under this Act except as may be necessary for the purpose of carrying into effect the provisions

of this Act, or in order to institute a prosecution, or in the course of a prosecution for any offence committed in relation to any

tax on income or profits in Nigeria.

(5) Where under any law in force in any Commonwealth country provision is made for the allowance of relief from income

tax in respect of the payment of income tax in Nigeria, the obligation as to secrecy imposed by this section shall not prevent

the disclosure to the authorised officers of the Government in that of such facts as may be necessary to enable the proper

relief to be given in case where relief is claimed from the tax in Nigeria or from income tax that country.

(6) Where any agreement or arrangement with any other country with respect to relief for double taxation of income or profits

includes provisions for the exchange of information with that country for the purpose of implementing that relief or prevented

by this section shall not prevent the disclosure of such information to the authorised officers of the Government of such

country.

(7) Notwithstanding anything contained in this section, the Board may permit the Auditor-General of the Federation or any

officer duly authorised in that behalf by him to such access to any records or documents as may be necessary for General or

any such officer shall be deemed to be a person employed in carrying out the provisions of this Act for the purposes of this

section.

Forms.

7. The Board may, from time to time, specify the form of returns, claims, statements and notices under this Act.

Service and signature of notices. Cap I23.

8. (1) Except where it is provided by this Act that service shall be effected either personally or by registered post, the

provisions of section 26 of the Interpretation Act (which related to service by post) shall apply to the service of a notice, if

such notice is addressed in accordance with the provisions of subsection (3) of this section.

(2) Where a notice is sent by registered post it shall be deemed to have been served on the day succeeding the day on which

the addressee of the registered letter containing the notice would have been informed in the ordinary course of events that

such registered letter is awaiting him at a post office, if such notice is addressed in accordance with the provisions of

subsection (3) of this section:

Provided that a notice shall not be deemed to have been served under this subsection if the addressee proves that no

notification, informing him of the fact that the registered letter was a awaiting him at a post office, was left at the address

given on such registered letter.

(3) A notice to be served in accordance with subsection (1) or (2) of this Act shall be addressed-

(a)in the case of a company incorporated in Nigeria, to the registered office of the company or any other known address of the company[2]; and

(b)in the case of a company incorporated outside Nigeria either to the individual authorised to accept service of process under

the Companies and Allied Matters Act at the address filed with the Registrar-General of companies, if any, or to the registered

office of the company wherever it may be situated; and

(c)in the case of an individual or body of persons to the last known business or private address of such individual or body of

persons.

(4) Without prejudice to sections 68 and 85(1)(c) of this Act, in any case where service of any notice under this Act has

proved impossible the notice may be served by being left at the appropriate office or address as determined under subsection

(3) of this section or by posting it at office or address or by publishing it in one issue of the Federal Gazette.

(5) Any person who abstracts any officer of the Board in the exercise of his function e under this Act or who uses violence on

such officer shall be guilty of an offence and shall on conviction-

(a)in the of a first offence, be liable to imprisonment for six months or to a fine of not less than N2,000 or sentenced to

imprisonment and fine; and

(b)in the case of a second or subsequent offence and in any case where violence is used on any such officer, be sentenced to

imprisonment for six months without the option of a fine.

PART II-IMPOSITION OF TAX AND PROFITS CHARGEABLE

Charge of tax.

9. (1) Subject to the provisions of this Act, the tax shall, for each year of assessment, be payable at the rate specified in

subsection (1) of section 40 of this Act upon the profits of company accruing in, derived from, brought into, or received in,

Nigeria in respect of-

(a)any trade or business for whatever period of time such trade or business may have been carried on;

(b)rent or any premium arising from a right granted or any other person for the use or occupation of any property; and where

any payment on account of such a rent as is mentioned in this paragraph is made before the expiration of the period to which

it relates and is included for the purposes of this paragraph in the profits to company, then, so much of the payment as relates

to any period beginning with the date on which the payment is made shall be treated for these purposes as accruing to the

company proportioned form day to day over the last-mentioned period or over the five years beginning with that date,

whichever is the shorter;

(c)dividends, interest, royalties[3] discounts, charges or annuities;

(d)any source of annual profits or gains not falling within the preceding categories;

Cap. P8

(e)any amount deemed to be income or profits under a provision of this Act or, with respect to any benefit arising from a

pension or provident fund, of the Personal Income Tax Act;

(f)fees, dues and allowances (whenever paid) for service rendered.

(g) any amount of profits or gains arising from acquisition and disposal of short term money instruments like Federal Government securities, treasury bills, treasury or savings certificates debenture certificates or treasury bonds[4]

(2) For the purposes of this section, interest shall be deemed to be derived from Nigeria if-

(a)there is a liability to payment of the interest by a Nigeria company or a company in Nigeria regardless of where or in what form the payment is made, or

(b)the interest accrues to a foreign company or person from a Nigerian company or a company in Nigeria regardless of whichever way the interest may have accrued.

(3) In this section, "dividend" means-

(a)in relation to company not being in the process of being wound up or liquidated, any profits distributed, whether such

profits are of a capital natural or not, including an amount equal to the nominal value of bonus shares, debentures or securities

awarded to the shareholders, and

(b)in relation to company that in being would up or liquidated, any profits distributed, whether in money or money's worth or

otherwise, other than those of a capital nature earned before or during the winding-up or liquidation.

"Identification of a company.

10. The incorporation number of a company to which the provisions of section 8 apply, shall serve as the identification

number of the company and shall be displayed by the company on all business transactions with other companies and

individuals and on every document, statement, returns, audited account and correspondence with Revenue Authorities,

including the Board of Customs and Excise, Ministries and all Government agencies.[5]

Charge of tax on interest relation to foreign and agricultural loans, and contain reliefs.

11. (1) Notwithstanding any other provisions of this Act but subject to the provisions of the following subsections, where

during any calendar year commencing on or after 1 January, 1971, any foreign loan of an amount (or of an aggregate

amount) which is not less than N150,000 is granted by a foreign company to any person carrying on any trade, business,

profession or vocation in Nigeria for the purposes of that trade, business, profession or vocation, then any interest derived by

the foreign company from that loan (being an interest which by virtue of sub-section 10 of this section derived or deemed to be

derived from Nigeria) shall-

(a)if the loan is not repayable by the borrower until after the expiration of a period of not less than ten years, commencing

from the date on which the loan is granted, be exempt from tax;

(b)if the loan is not repayable by the borrower until after the expiration of a period of less than ten years but not less than five

years, commencing from the date on which the loan is granted, be chargeable to tax for each relevant year of assessment at

half the rate of tax specified in section 40 of this Act.

(2) If, in any case to which subsection (1) of this section applies, any such event as is mentioned in subsection (3) of this

section occurs, no tax exemption or tax relief, as the case may be, shall be granted or made under the said subsection (1) or, if

any such exemption or relief has been granted or made, it shall be withdrawn.

(3) The events referred to in subsection (2) of this section are-

(a)in a case to which paragraph (a) of subsection (1) of this section applies, the loan is repaid to the foreign company within a

period of less than eight years;

(b)in a case to which paragraph (b) of subsection (1) of this section applies, the loan is repaid to the foreign company within a

period of less than four years.

(4) The President may by order direct that no tax exemption or tax relief shall be made or granted under this section in respect of any foreign loan specified in the order or, if any such exemption or relief has been granted or made, that it shall be withdrawn.

(5) All such additional assessments and adjustments of assessments shall be made as may be necessary for or in consequence of the withdrawal of any exemption or relief under this section, and may be so made at any time.

(6) Interest payable on any foreign loan granted on or after 1st April , 1978 shall be exempt from tax as prescribed in Table I in the Third Schedule to this Act.

 (7)      Interest on any loan granted by a bank on or  after 1st January 1977 to a company-

engaged in

(i)     agricultural trade or business, or

(ii)        the fabrication of any local plant and machinery    or

(b)        as working capital for any cottage industry established by the company under the Family    Economic  Advancement Programme,

Shall be exempted from tax, provided the moratorium is not less than eighteen months and the rate of interest  on the loan is not more than the base lending rate at the time the loan was granted.

(8) For the purposes of subsection (7) of this section, where a bank grants loan to a company, it shall disclose to the board the following information:

(a)   the amount of the loan

(b)   the moratorium

(c)    the date repayment is due to commence

(d)   the amount of repayment, showing capital and interest and

(e)    the full particulars of the recipient of the loan and its permanent address

(9) agricultural trade or business,  means any trade or business connected with 
(a) the establishment or management of plantations for the production of rubber, oil palm, cocoa, coffee, tea and similar crops;
(b) the cultivation or production of cereal crops, tubers, fruits of all kinds, cotton, beans, groundnuts, sheanuts, beniseed, vegetables, pineapples, bananas and plantains;
(c)animal husbandry, that is to say, poultry, piggery, cattle rearing fish farming and deep sea fish-trawling
 base lending rate means the weighted average of the cost of fund to any bank

"foreign company" means any company or corporation (other than a corporation sole) established by or under any law in force in any territory or country outside Nigeria;
"foreign loan", in relation to any foreign company, means any loan granted by that company with moneys brought into Nigeria from any territory or country outside Nigeria, or any loan granted by that company in any territory or country outside Nigeria, in a currency other than Nigerian currency.
(10) Interest payable on any loan granted by a bank on or after 1st April, 1980 for the purpose of manufacturing goods for export, shall be exempted from tax as prescribed in Table II of the Third Schedule to this Act on the presentation of a certificate issued by the Nigerian Export Promotion Council stating that the level of export specified has been achieved by the company. A company shall be deemed to be engaged in manufacturing for export if, the Nigerian Export Promotion Council certifies that no less than one half of its manufactured goods disposed of in its year of account is sold outside Nigeria and is not re-exported to Nigeria.
Full disclosure or agreement to be made.

12. Any company entering into any agreement (whether oral or written) in respect of any service under paragraph (f) of section 9(1) of this Act shall forthwith make a full disclosure to the Board in writing of the terms of such agreement.

Nigerian companies.

13. (1) The profits of a Nigerian company shall be deemed to a accrue in Nigeria wherever they have arisen and whether or

not they have been brought into or received in Nigeria.

(2) The profits of a company other than a Nigeria company from any trade or business shall be deemed to be derived from

Nigeria

(a)      if that company has a fixed base in Nigeria to the extent that the profit is attributable to the fixed base

(b)     if it does not have a fixed base in Nigeria but habitually operate a trade or business through a person in Nigeria  authorized to conclude contracts on its behalf or on behalf of some other companies controlled by it or which have controlling interest in it or habitually  maintains a stock of goods or merchandise in Nigeria from which deliveries are regularly made by a person on behalf of the company to the extent that the profit is attributable to business or trade or activities carried on through that person

(c)      if that trade or business or activities involve a single contract for surveys, deliveries, installations or construction; the profit from that contract

(d) where the trade or business or activities is between the company and another person controlled by it or which has a controlling interest in it and conditions are made or

imposed between that company and such persons in their commercial or financial relations which in the opinion of the board is deemed to be artificial or fictitious, so much of the profits adjusted by the board to reflect arm s length transaction

(3) for the purposes of subsection 2 of this section a fixed base shall not include facilities used solely for the

(a)      storage or display of goods or merchandise

(b)   facilities used solely for the collection of information[6]

Companies engaged in shipping or air transport.

14. (1) Where a company other than a Nigeria company carries on the business of transport by sea or air, and any ship or

aircraft owned or chartered by it calls at any port or airport in Nigeria, its profits or loss to be deemed to be derived from

Nigeria shall be the full profits or loss arising from the carriage of passenger, mails, livestock or goods shipped, or loaded

into an aircraft, in Nigeria:

Provided that this subsection shall not apply to passengers, mails livestock or goods which are brought to Nigeria solely for

transhipment or for transfer from one aircraft to another or in either direction between an aircraft and a ship.

(2) For the purposes of the preceding subsection, where the Board is satisfied that the taxation authority of any other country

computes and assesses on a basis not materially different from that prescribed by this Act the profits of a company which

operates ships or aircraft, and that authority certifies-

(a)the ratio of profits or loss, before any allowance by way of depreciation, of an accounting period to the total sums

receivable in respect of the carriage of passengers, mails, livestock or goods; and

(b)the ratio of allowances by way of depreciation for the period to that same total, then the full profits or loss of that period

shall be taken to be that proportion of the total sums receivable in respect of the carriage of passengers, mails, livestock or

goods shipped or loaded in Nigeria which is produced by applying the first-mentioned ratio to that total, and in place of any

allowances to be given under the amount produced by applying the second-mention ratio to that same total.

(3) Where at time of assessment, the provisions of subsection (2) of this section cannot for any reason be satisfactorily

applied, the profits to be deemed to be derived from Nigeria may be computed on a fair percentage on the full sum receivable

in respect of the carriage of passengers, mails, livestock and goods shipped or loaded in Nigeria:

Provided that where any company has been assessed for any year by reference to such percentage, it shall be entitled to claim

at any time within six years after the end of such year that its liability for that year be-computed on the basis provided by

subsection (2) of this section; and where such claim has been made and a certificate has been produced to the satisfaction of

the Board as provided in that subsection, such repayment of tax shall be made as may be necessary to give effect to this

proviso, save that, if the company fails to agree with the Board as to the amount of the tax to be so re-computed and re-paid,

the Board shall give notice to the company of refusal to admit the claim and the provisions of this Act with respect to

objections and appeals shall apply accordingly with any necessary medications.

(4) For the purposes of this section, the tax payable be any company for any year of assessment shall not be less than two per

cent of the full sum receivable in respect of the carriage of passengers, mails, livestock or goods shipped or loaded into an

aircraft in Nigeria.

Cable undertakings

15. Where a company other than a Nigerian Company carries on the business of transmission of messages by cable or by any

form of wireless apparatus, it shall be assessable to tax as though it operates ships or craft, and the provisions of the preceding

section shall apply mutatis mutandis to the computation of its profits deemed to be derived from Nigeria as though the

transmission of messages to places outside passengers, mails, livestock or goods in Nigeria.

Insurance companies.

16. (1) Notwithstanding anything to the contrary contained in this Act, it is hereby provided that-

(a)in the case of an insurance company, whether proprietary or mutual, other than a life insurance company or a Nigeria

company, which carries on business through a permanent establishment in Nigeria, the profits on which tax may be imposed

shall be ascertained by taking the gross premiums and interest and other income receivable in Nigeria (less any reinsurance),

and deducting from the balance so arrived at, a reserve for unexpired risks at the percentage adopted by the company in

relation to its operations as a whole for such risks at the end of the period for which the profits are being ascertained, and

adding thereto, a reserve similarly calculated for unexpired risks outstanding at the commencement of such period, and from

the net amount so arrived at deducting the actual losses in Nigeria (less the amount recovered in respect thereof under

reinsurance), the agency expenses in Nigeria and a fair proportion of the expenses of the head office of the company;

(b)in the case of a life insurance company, whether proprietary or mutual, other than a Nigerian company, which carries on

business through a permanent establishment in Nigeria, the profits on which tax may be imposed shall be the investment

income less the management expenses, including commission:Provided that where the profits of such a company accrue in

part outside Nigeria, the profits shall be that proportion of the total investment income of the company as the premiums

receivable in Nigeria bear to the total premiums receivable, less the agency expenses in Nigeria and a fair proportion of the

expenses of the head office of the company:

Provided further that, for the purposes of the foregoing proviso, in the case of such an insurance company having its head

office outside Nigeria, the Board may substitute some basis other than that therein prescribed for ascertain the required

proportion of the total investment income:

Provided that any amount distributed in any form as dividend from the actuarial revaluation of unexpired risks or from any

other revaluation shall be deemed to be a part of the total profits of the company;

(c)in the case of an insurance company which is a Nigerian company, the profits on which tax may imposed shall be

ascertained in accordance with the foregoing provisions of this section as though the whole investment and premium income

of the company were received in Nigeria, and all the expenses and other outgoings of the company were incurred in Nigeria.

(2) Not more than three months after an actuarial revaluation of the unexpired risks or any other revaluation has taken place,

the company shall provide the Board full particulars of the revaluation carried out.

(3) For the purposes of this section, the term "permanent establishment" in relation to an insurance company, means a branch,

management or other fixed place of business in Nigeria, but does not include an agency in Nigeria unless the agent has, and

habitually exercise, a general authority to negotiate and conclude contracts on behalf of such company.

Cap. I17.

(4) For the purposes of this section, references to insurance company include, references to any insurer registered under or

pursuant to the Insurance Act.

(5) For the purposes of this Act where an insurance company carries on life insurance business in conjunction with insurance business of any other class the life insurance business shall be treated as a separate business from any other class of insurance business carried on by the company
 

"Authorised unit trust Sscheme Cap. I24

17‑(1) Where under any, of the provisions of the Investments and Securities Act,  a unit trust scheme is established for the purpose of providing facilities for the participation of the public, as     beneficiaries under a trust, in profits or income arising from acquisition, holding, management or disposal of securities or any other property whatsoever, this Act shall, in respect of the income arising to the trustees of an authorised unit trust, have effect

(a) as if the trustees were a company whose business consists mainly ill the making of investments and the principal part of whose income is derived therefrom

(b) as if the rights of the unit holders were shares in the company ; and

(c) as if so much of the income accruing to the trustees as is available for payment to the unit holders were dividends on such shares,

and reference in this Act to a company shall be construed in accordance with this subsection.

(2) For the purpose of section 32 of this Act, the profits of an authorised unit scheme, on which tax may be imposed, shall be ascertained by taking the income accruing to the trustees from all sources of the investment of the unit trust and deducting therefrom sums disbursed as management expenses, including remuneration for the managers.

(3) Where the trustees of a unit trust receive a payment on which the unit trust suffers tax by deduction (not being franked investment income the tax thereon shall be set‑off against any income assessable on the trustees by an assessment made for the year of assessment in which the receipt, on which the tax deduction was made, to be taken into account in ascertaining the tax payable by the unit trust for the year of assessment.

(4) The provisions of section 53 of this Act shall apply to a dividend accruing to the trustees of a unit trust.

(5) So  much (1 tile profit accruing to the trustees of a unit trust as is available for payment to unit holders or for investment shall be deemed to be dividends paid or payable by the trustees to the unit holders in Proportion to their rights, and the provisions of section 21  of the Personal Income Tax Act shall apply to a dividend paid or payable to any member of an authorised unit trust.

(6) In this section authorised unit trust" means as respect a year of assessment,

a unit trust scheme that is authorised by the Commission under section 125 of the Investments and Securities Act to carry on the business of dealing in unit trust scheme;

     unit trust scheme means any  arrangement made for  the purpose of  providing facilities for the participation of  the public as beneficiaries under a trust in profits or income arising from the acquisition, holding  management or disposal of securities or any other property whatsoever

"unit holder" means any investor, beneficiary or person who acquired units in a unit trust scheme and who is entitled to a share of the  investment subject to the trusts of a unit trust scheme.

'trustee', under  a unit trust scheme means the person in whom the  property for the time being subject to any trust created in pursuance of  the scheme is or may be invested in accordance  with the terms of the trust.[7]

Profits of a company from certain dividends. Cap. 17.

18. The profits of a company from a dividend received from any other company shall be 
(a) if that other company is resident in a country to which section 44 of this Act applies, the amount of that dividend increased by the amount of any tax imposed in that country relative to that dividend; and
(b) if that other company is resident in a country to which section 45 of this Act applies, the amount of that dividend as computed under the provisions of subsection (5) of section 46 of this Act:
Provided that a dividend distributed 
(i) by a Nigerian company and satisfied by the issue of shares of the company paying the dividend, or
(ii) if the company is a Nigerian company, out of any profits exempted from tax by any provision of this Act, or of the Industrial Development (Income Tax Relief) Act; or
(iii) if the company is chargeable to tax under the provisions of the Petroleum Profits Tax Act, out of any profits to which section 60 of that Act applies,

shall be excluded from the profits of any other company which is a shareholder in such company.

19 where a dividend is paid out as profit on which no tax payable due to -

(a)   no total profits or

(b)   total profits which are less than the amount of dividend which is paid whether or not the recipient of the dividend is a Nigerian company

   is paid by a Nigerian company paying the dividend shall be charged to tax at the rate prescribed in subsection 1  of section 40 of this Act as if the dividend is the total profits of the company for the year of assessment to which the accounts out of which the dividend is declared relates.

20. In the case of a company which is neither a Nigerian company nor engaged in a trade or business in Nigeria at any time during a year of assessment-

(a)no tax shall be charged on it for that year in respect of any dividend received by it from a Nigerian company apart from tax withheld under section 80 of this Act;

(b)where any divided is paid out of profits on which no tax is payable due to no total profits or total profits which are less than the amount of dividend which is paid whether the recipient of the dividend is a Nigerian company or not, the company paying the dividend shall be charged to tax at the rate prescribed in subsection (1) of section 40 of this Act as if such dividend is the total profits of the company for the year of assessment which relates to accounts out of which the dividend is declared;

(c)nothing in this Act shall confer on such company or on the company paying the dividend, a right to repayment of tax paid by reason of the provisions of this section.

Certain undistributed profits may be treated as distributed.

21. (1) Where it appears to the Board that a Nigerian company controlled by not more than five persons, with a view to reducing the aggregate of the tax chargeable in Nigeria on the profits or income of the company and those persons, has not distributed to its shareholders as dividend, profits made in any period for which accounts have been made up by such company, which profits could have been distributed without detriment to the company's business as it existed at the end of that period, it may direct that any such undistributed profits of such period be treated as distributed.

(2) Any amount of profits treated as distributed under the provisions of the foregoing subsection shall, for the purposes of this Act and any enactment in Nigeria imposing tax on the incomes of persons other than companies, be deemed to be profits or income from a dividend accruing to those persons who are shareholders in the company in proportion to their shares in the ordinary capital thereof on such day, amount of such profits or income to be taken for assessment in the hands of each such person shall be his due proportion thereof increased by such amount in respect of tax deemed to be deducted at source, as the Board may determine.

(3) Any direction by the Board under section shall be made in writing and be served upon the company, and shall specify-

(a)the day to be taken for the purposes of the preceding subsection;

(b)the net amount of those profits so deemed to be distributed;

(c)the rate of tax deemed to be deducted, being the rate prescribed in subsection (2) of section 80 of this Act;

(d)the gross amount which after deduction of tax at the said rate leaves such net amount of those profits; and

(e)the net Nigerian rate of tax applicable to those profits, being such rate as would have computed or agreed by the Board under the provisions of subsection (3) of section 43 of this Act if those profits had been distributed by the company as a dividend.

(4) For the purposes of this section, the Board may give notice to any company which it has reason to believe is controlled by not more than five persons requiring it to supply within such reasonable time limited in such notice, full particulars of its shareholders on any day.

(5) Any direction by the Board under this section with respect to the profits of any accounting period of a company, shall be made not later than two years after the receipt by the Board of the duly audited accounts of the company for that period.

(6) A company in respect of which any direction is made under this section shall have a right of appeal in like manner as though for the purposes of Part X of this Act, such direction were an assessment.

Article transactions, etc.

22. (1) Where the Board is of opinion that any disposition is not in fact given effect to or that any transaction which reduces or would reduce the amount of any tax payable is artificial or fictitious, it any disregard any such disposition or direct that such adjustments shall be made as respects liability to tax as it considers appropriate so as to counteract the reduction liability to tax affected, or reduction which would otherwise be affected, by the transaction and any company concerned shall be assessable accordingly.

(2) For this purpose of this section-

(a)"disposition" includes any trust, grant covenant, agreement or arrangement;

(b)transactions between persons one of whom either has control over the other or, in the case of individuals, who are related to each other or between persons both of are related to each other or between persons , shall be whom are controlled by some other person, shall be deemed to be artificial or fictitious if in the opinion of the Board those transactions have not been made on terms which might fairly have been expected to have been made by persons engaged in the same or similar activities dealing with one another at arm's length.

(3) A company in respect of which any direction is made under this section shall have a right of appeal in like manner as though for the purpose of Part X of this Act such directions were an assessment.

Profits exempted.

23. (1) There shall exempt from the tax-

(a)the profits of any company being a statutory or registered friendly society, in so far as such profits are not derived from a trade or business carried on by such society;

(b)the profits of any company being a co-operative society registered under any enactment or law relating to co-operative societies, not being profits from any trade or business carried on by that company other than co-operative activities solely carried out with its members or from any share or other interest possessed by that company in a trade or business in Nigeria carried on by some other persons or authority;

(c)the profits of any company engaged in ecclesiastical, charitable or education activities of a public character in so far such profits are not derived from a trade or business carried on by such company;

(d)the profits of any company formed for the purpose of promoting sporting activities where such profits are wholly expendable for such purpose, subject to such conditions a the Board may prescribe;

Cap. T14.

(e)the profits of any company being a trade union registered under the Trade Unions Act in so far as such profits are not derived from a trade or business carried on by such trade union;

(f) dividend distributed by Unit Trust[8]

(g)the profits of any company being a body corporate established by or under any Local Government Law or Edict in force in any State in Nigeria;

(h) the profits of any body corporate being a purchasing authority established by an enactment and empowered to acquire any commodity for export from Nigeria from the purchase and sale (whether for the purposes of export or otherwise) of that commodity;

(i) the profits of any company or any corporation established by the law of a State for the purpose of fostering the economic development of that State, not being profits derived from any trade or business carried on by that corporation or from any share or other interest possessed by that corporation in a trade or business in Nigeria carried on by some other person or authority;

(j) any profits of a company other than a Nigerian company which, but for this paragraph, would be chargeable to tax by reason solely of their being brought into or received in Nigeria;

Cap. F34

(k) dividend, interest, rent, or royalty derived by a company from a country outside Nigeria and brought into Nigeria through Government approved channels. For the purpose of this subsection, "Government approved channels", means the Central Bank of Nigeria, any bank or other corporate body appointed by the Minister as authorised dealer under the Foreign Exchange (Monitoring and Miscellaneous) Act or any enactment replacing that Act;

(l) The interest on deposit accounts of a foreign non-resident company: provided that the deposits into the account are transfers wholly of foreign currencies to Nigeria on or after 1st January 1990 through Government approved channels;

(m) The interest on foreign currency domiciliary account in Nigeria accruing on or after 1st January 1990.

(n)    nothing in this section shall be construed to exempt from deduction at source, the tax which a company making payments is to deduct under sections 78,79 or 80 of this Act, such that the provisions of sections 78,79 or 80 of this Act, shall apply to a dividend, interest, rent or royalty which is a part of the profits or income referred to in subsections (1) (a) to (f) and (1) (h) to (l) of this section.

(o) dividend received from small companies in the manufacturing sector in the first five years of their operation;

(p) dividend received from investments in wholly export  oriented businesses;

(q) the profits of any Nigerian company in respect of goods exported from Nigeria provided that the proceeds from such export are repatriated to Nigeria and are used exclusively for the purchase of raw materials, plant, equipment and spare parts;

(r) the profits of a company whose supplies are exclusively inputs to the manufacturing of products for export provided that the exporter shall give a certificate of purchase of the inputs of the exportable goods to the seller of the supplies

Power to exempt.

(2) The President may exempt or order-

(a)any company or class of companies from all or any of the provisions of this Act; or

(b)from tax all or any profits of any company or class of companies from any source, on any ground which appears to it sufficient.

(3) The President may by order amend, add to or repeal any exemption made by notice or order under the provisions of subsection (2) or (4) of section 9 of the Personal Income Tax Act in so far as it affects a company, and, subject to the foregoing the following notices and order, shall continue in force for all purposes of this Act-

L.N. 220 of 1943.

(a)the Income Tax Exemption (Interest on Nigerian Public Loans) Notice;

L.N. 85 of 1957.

(b)the Income Tax (Exemption) (Nigerian Broadcasting Corporation) Order;

L.N. 111 of 1958.

(c)the Railway Loan (International Bank) (Exemption of Interest) Notice.

PART III-ASCERTAINMENT OF PROFITS

Deductions allowed.

24. Save where the provisions of subsection (2) or (3) of section 14 or 16 of this Act apply, for the purpose of ascertaining the profits or loss of any company of any period from any source chargeable with tax under this Act, there shall be deduction all expenses for that period by that company wholly, exclusive, necessarily and reasonable incurred in the production of those production of those profits including, but without otherwise expanding or limiting the generality of the foregoing-

(a)any sum payable by way of interest on any money borrowed and employed as capital in acquiring the profits;

(b)rent for that period, and premiums the liability for which was incurred during that period, in respect of land or building occupied for the purposes of acquiring accommodation occupied by employees of the company, to a maximum of 100 % of the basic salary of employees[9]6

(c) in the case of any property-holding company-

(i) expenses attributable to the maintenance of the property,

[1999 No. 98.]

(ii) directors' remuneration, which shall not exceed N1O,OOO per annum in respect of each director, and the number of directors to be so remunerated shall in no case exceed three;

[1996 No. 30.]

(d) any outlay or expenses incurred during the year in respect of

(i)                  salary, wages, or other remuneration paid to the senior staff and executives

(ii)                 cost to the company of any benefit or allowance provided for the senior staff and executives

which shall not exceed the limit of the amount prescribed by the collective agreement between the company and the employees and approved by the Federal Ministry of Employment Labour and Productivity and the productivity prices, and income board as the case may be

Provided that in respect of residential accommodation the amount of deduction allowed shall be the lesser of the amount of the annual basic salary of the employee to whom the building or flat, as the case may be, is allocated as residential accommodation and the amount specified under paragraph (b) (i) or (b) (ii) of this subsection[10]

(e)any expenses incurred for repair of premises, plant, machinery or fixtures employed in acquiring the profits, or for the renewals, repair or alteration of any implement, utensil or article so employed;

(f)bad debts incurred in the curse of a trade or business proved to have become bad during the period for which the profits are

being ascertained, and doubtful debts to the extent that they are respectively estimated to the satisfaction of the Board to have

become bad during the said period notwithstanding that such bad or doubtful debts were due and payable before the

commencement of the said period.

Provided that-

1961 No. 22.

(i)where in any period a deduction under this paragraph is to be made as respects any particular debt, and a deduction has in

any period been allowed either under the Companies Income Tax Act 1961 or this Act in respect of the same debt, the

appropriate reduction shall be made in the deduction to be made for the period question,

(ii)all sums recovered during the said period on account of amounts previously written off or allowed either under the

Companies Tax Act 1961 or this Act in respect of bad or doubtful debts shall for the purposes of this Act be deemed to be

profits of the trade or business of that period,

(iii)it is proved to the satisfaction of the Board that the debts in respect of which a deduction is claimed either were included

as a receipt of the trade or business in the profits of the year within which they were incurred, or were advances not falling

within the provisions of the trade or business in the profits of the year within which they were incurred, provision or were

advances, not falling within the Provisions of paragraph (a) of section 23 of this Act made in the course of normal trading or

business operations;

Cap. P8

(g)any contribution to a pension, provident or other retirement benefits fund, society or scheme approved by the Joint Tax

Board under the powers conferred upon it by paragraph (g) of section 85 of the Personal Income Tax Act , subject to the

provisions of the fourth schedule to this Act and to any conditions imposed by the Board; and any contribution other than a penalty made under the provisions of any

enactment establishing a national provident fund or other retirement benefits scheme for employees throughout Nigeria;

(h)in the case of the Nigeria Railway Corporation such deductions as are allowed under the provisions of the Authorised

Deductions Nigerian Railway Corporation) Rules, which Rules shall continue in force for all purposes of this Act;

(g)in the case of profits from a trade or business, any expense or part thereof-

(i)the liability for which was incurred during that period wholly, exclusively, necessarily and reasonably for the purposes of

such trade or business and which is not specifically referable to any other period or periods, or

(ii)the liability for which was incurred during any previous period wholly, exclusively, necessarily and reasonably for the

purpose of such trade or business and which is specifically referable to the period of which the profits are being ascertained;

(iii) the expenses proved to the satisfaction of the board to have been incurred by the company on research and development for the period including the amount of the levy paid by it to the National Science Technology Fund[11]

(j)such other deduction as may be prescribed by the Minister by any rule.

Deductible donations.

25. (1) Subject to the provisions of this section and notwithstanding anything contained in section 24 of this Act, for the

purpose of ascertaining the profits or loss of any company for any period from any source chargeable with tax under this Act,

there shall be deducted the amount of any donation made for that period by that company to any fund, body or institution in

Nigeria to which this section applies.

(2) Without prejudice to section 27 of this Act, it is hereby declared for the avoidance of doubt that the provisions of

subsection (1) of this section shall have effect if, but only if, the donations are made out of the profits of the company, and are

not expenditure of a capital nature.

(3) Except to such extent (if any) as the National Council of Minister may by order in the Federal Gazette otherwise direct, any deduction to be allowed to any company, under subsection (1) of this section, for any year of assessment shall not exceed an amount which is equal to ten per cent of the total deduction is made under this section.

(4) There shall be excluded from the sum allowable as a deduction under this section, any outgoings and expenses which are allowable as deductions under section 24 of this Act.

(5) This section shall apply to-

(a)the public funds;

(b)the statutory bodies and institutions;

(c)the ecclesiastical, charitable, benevolent, educational and scientific institutions, established in Nigeria, which are specified in the Fifth Schedule to this Act.

(6) The Minister may by order in the Federal Gazette amend the said Schedule in any manner whatever:

Provided that no fund, body or institution shall be added to that Schedule, in exercise of the powers conferred under the foregoing provisions of this subsection, unless the fund is a public fund established in Nigeria, or the body or institution is a statutory body or institution of a public character, established in Nigeria.

(7) In this section references to donations made by a company do not include references to any payments made by the company for valuable consideration.

Deduction for Research and Development.

26. (1) Notwithstanding anything contained in section 24 of this Act, for the purpose of ascertaining the profit or loss of any company for any period from any source chargeable with tax under this Act, there shall be deducted the amount of reserve made out of the profits of that period by that company for research and development.

(2) The deduction to be allowed to any company under subsection (1) of this section for any year of assessment shall not exceed an amount which is equal to ten per cent of the total profits of that company for that year as ascertained before any deduction is made under this section and section 25  of this Act.

(3) Companies and other organisations engaged in research and development activities for commercialisation shall be allowed 20% investment tax credit on their qualifying expenditure for that purpose.

Deductions not allowed.

27. Notwithstanding any other provision of this Act, no deduction shall be allowed for the purpose of ascertaining the profits of any company in respect of-

(a)capital repaid or withdrawn and an expenditure of a capital nature;

(b)any sum recoverable under an insurance or contract of indemnity;

(c)taxes on income or profits levied in Nigeria or elsewhere , other than tax levied outside Nigeria on profits which are also chargeable to tax in Nigeria where relief for the double taxation of those profits may not be given under any other provision of this Act;

(d)any payment to a savings, widows and orphans, pension, provident or other retirement benefit fund, society or scheme except as permitted by paragraph (e) of section 24 of this Act;

(e)the depreciation of any asset;

(f)any sum reserved out of profits, except as permitted by paragraph (d) of section 24 or 25 of this Act or as may be estimated to the satisfaction of the Board, pending the determination of the amount, to represent the amount of any expense deductible under the provisions of that section the liability for which the income is being ascertained;

(g)any expense of any description incurred within or outside Nigeria for the purpose of earning management fee unless poor approval of a agreement giving rise to such management fee has been obtained from the Minister;

(h)any expense whatever incurred within or outside Nigeria as management fee under any agreement entered into after the commencement of this section except to the extent as the Minister may allow;

(i)any expense of description incurred outside Nigeria for and on behalf of any company except of a nature and to the extent as the Board may consider allowable.

Waiver of refund of liability or expenses.

28. When a deduction has been allowed to a company under the provisions of section 24 or 25 of this Act in respect of any liability of, or any expense incurred by that company and such liability is waived or released or such expense is refunded to the company, in whole or in part, then the amount of that liability or expense which is waived, released or refund as the case may be shall be deemed to be profits of the company on the day on which such waiver, release or refund was made or given.

PART IV - ASCERTAINMENT OF ASSESSABLE PROFITS

Basis for computing assessable profits.

29. (1) Save as provided in this section, the profits of any company for each year of assessment from such source of its profits (hereinafter referred to as "the assessable profits") shall be the profits of the year immediately preceding the year of assessment from each such source:

Provided that in respect of any company which makes up its accounts to any date between 1st January and 31st March, 1980, the profits to be assessed to tax-

(a)in 1980 year of assessment, shall be the profits of the period from the beginning of the accounting year to 31st December, 1979; and

(b)in 1981 year of assessment, shall be the profits for 1st January to the end of the company's accounting year in 1980.

(2) When the Board is satisfied that a company has made or intends to make up account of its trade or business to some day other than the 31st day of December, it may direct that the assembled profits of that company shall be computed on the amount of the profits of the ending on that day in the year preceding the year of assessment: Provided that where the assessable profits of a company have been computed by reference to accounts made up to a certain day, and such company fails to make up an account to the of the corresponding day in the year following the assessable profits that company for the year of assessment in which such failure occurs and for two years of assessment next following shall be computed on such basis as the Board in its discretion may decide.

New trade or business.

(3) The assessable profits of any company from any trade or business for the year of assessment in which it commenced to carry on such trade or business (or in the case of a company other than a Nigerian company, for the year of assessment in which it commenced to carry on such trade or business in Nigeria) and for the two following years of assessment (which year are in this subsection respectively referred to as "the first year", and "the third year") shall be ascertained in accordance with the following provisions-

(a)for the first year the assessable profits shall be the profits of that year;

(b)for the second year the assessable profits shall, unless such notice as hereinafter mentioned is given, be the amount of the profits of one year from the date of the commencement of the trade or business as determined for the purposes of paragraph (a) of this subsection;

(c)for the third year the assessable profits shall, unless such notice as hereinafter mentioned is given, be computed in accordance with subsection (1) of this section;

(d)a company shall be entitled, on giving notice in writing to the Board within two years after the end of the second year, to require that the assessable profits both for the second year and the third year (but not for one or other only of those years) shall be profits of the respective years of assessment: Provided that the company may, by notice in writing given to the Board within twelve months after the end of third year revoke the notice, and in such case, the assessable profits both for the second year and the third year shall be computed as if the first notice had never been given Provided that if the base period for the second or third year is the period of nine months from 1st April to 31st December, 1980, the profits of that basis period shall be grossed up as if they were the profits of twelve months;

(e)where such notice as aforesaid has been given or revoked, such additional assessments or such reductions of assessments or repayments of as shall be made as may necessary to give effect to paragraph (d) of this subsection: Provided that if the company fails to agree with the Board as to the amount of any reduction of an assessment or repayment of tax, the Board shall give notice to the company of refusal to admit such reduction or repayment and the provisions of Part X of this Act shall apply accordingly with any necessary modifications as though such notice were an assessment.

Cessation of trade business.

(4) Where a company permanently cease to carry on a trade or business (or in the case of a company other than a Nigerian company, permanently ceases to carry on a trade or business in Nigeria) its assessable profits therefrom shall be-

(a)as regard the year of assessment in which the cessation occurs, the amount of the profits of that year;

(b)as regards the year of assessment preceding that in which the cessation occurs, the amount of the profits as computed in accordance with the foregoing subsections, or the amount of the profits such year, which ever is the greater:

(c) Provided that where the profits of such year is for a period of nine months from 1st April to 31st December, 1980, the profits shall be grossed up as if they were the profits of twelve months; and

(c)the company shall not be deemed to derive assessable profits from such trade or business for the year of assessment following that in which the cessation occurs.

(5) Where the provisions of subsection (1) of this section apply, such additional assessment or, on a claim being made but the company for this purpose in writing, such reductions of assessments or repayments of tax shall be made as may be necessary to give effect to these provisions: Provided that, if the company fails to agree with the Board as to the amount of any reduction of an assessment or repayment of tax, the Board shall give notice to the company of refusal to admit the claim to such reduction or repayment and the provisions of Part XI of the Act shall apply accordingly with any necessary modifications as though such notice were an assessment.

Apportionment of profits.

(6) Where in the case of any trade or business it is necessary in order to arrive at the profits of any year of assessment or other period to allocate or apportion to specific periods or loss of any period for which accounts have been made up, or to aggregate any such profits or loss or apportioned parts thereof, it shall be lawful to make such allocation, apportionment or aggregation, and any apportionment under this section shall be made in proportion to the number of days in the respective periods unless the Board, having regard to any special circumstances, otherwise directs.

Receipts and payments after cessation of a trade or business.

(7) Where after the date on which a company has permanently ceased to carry on a trade or business (as determined for the purpose of subsection (4) of this section) the company, its receivers or liquidators, receive or pay any sum which would have been included in or deducted from the profits of that trade or business if it had been deemed for all purposes of this Act to have been received or paid prior to that date, such sum shall be deemed for all purposes of this Act to have been received or paid by the company on the last day before such cessation occurred.

Certain partnership. Cap P8.

(8) Where a company is engaged in a trade or business in partnership with any other person in Nigeria, that trade or business shall be deemed to constitute a separate source of profits, and the assessable profits of the company from that source shall be determine the provisions of the Personal Income Tax Act  in like manner as would be the assessable income of any individual partner in that partnership: Provided that, with respect to any assets of such partnership, where any annual, initial or balancing allowance or charge would fall to be given to or made upon the company for any year under the provisions of the Fifth Schedule to that Act, if the company were an individual partner in that partnership, such allowance or charge shall be given or made as though due under the provisions of the Second Schedule and in place of any other allowance or charge arising thereunder with respect to the same asset.

Trade or business sold or transferred.

(9) Where a trade or business carried on by a company is sold or transferred to a Nigerian company for the purposes of better organisation of that trade or business or the transfer of its management to Nigeria and any asset employed in such trade or business is sold or transferred, if the Board is satisfied that one company has control over the other or that both are controlled by some other person or are members of a recognised group of companies, the Board may in its discretion direct that-

(a)the provisions of subsection (3) and (4) of the section shall not apply to such trade or business; and

(b)for the purposes of the Second Schedule to this Act, each such asset shall be deemed to have been sold for an amount equal to the residue of the qualifying expenditure thereon on the day following such sale or transfer; and

(c)the company acquiring each such asset shall not be entitled to any initial allowance with respect to that asset under the said Schedule and any allowances deemed to have been received by the vendor company under the provisions of this paragraph- Provided that the Board in its discretion-

(i) may require either company directly affected by any such direction which is under consideration by the Board to guarantee or give security, to the satisfaction of the board, for payment in full of all tax due or to become due by the company selling or transferring such trade or business, and

(ii) may impose such conditions as it sees fit on either or both the companies directly affected, and in the event of failure by either company to carry out or fulfil such guarantee or conditions, the Board may revoke the direction and make all such additional assessments or repayments of tax as may be necessary so as to give effect to such revocation; and for the purposes of this subsection, reference to a trade of business shall include references to any part thereof.

Trade or business transferred under Part II of the Companies and Allied Matters Act.

Cap. C20

(10) Where, in pursuance of Chapter 3 of Part II of the Companies and Allied Matters Act, a company (hereinafter in this subsection referred to as "the re-constituted company") is incorporated under that Act to carry on any trade or business previously carried on in Nigeria by a foreign company and the assets employed in Nigeria by the foreign company in that trade or business vest in the re-constituted company, then, if the Board is satisfied that the trade or business carried on by the reconstituted company immediately after the incorporation of that company under the Act is not substantially different in nature from the trade or business previously carried on in Nigeria by the foreign company, the following provisions of this subsection shall have effect, that is-

(a)the provisions of subsections (3) and (4) of this section shall not apply to the trade or business carried on by the reconstituted company;

(b)for the purposes of the Second Schedule to this Act, the assets so vested in the re-constituted company shall be deemed to have been sold to it, on the day of the incorporation of that company, for an amount equal to the residue of the qualifying expenditure thereon on the day following the day on which the trade or business previously carried on in Nigeria by the foreign company ceased; and

(c)the re-constituted company shall not be entitled to any initial allowances as respects those assets and shall be deemed to have received all allowances given to the foreign company in respect of those assets under the Second Schedule to this Act and any allowances deemed to have been received by the foreign company under the provisions of this paragraph or subsection (9) of this section; and

1961 No. 22. Cap. 85 of 1958 Edition

(d)subject to subsection (11) of this section, the amount of any loss incurred during any year of assessment by the foreign company in the said trade or business previously carried on by it in Nigeria, being a loss which has not been allowed against any assessable profits or income of that company for any such year, under the provisions of this Act or the corresponding provisions of the Companies Income Tax Act 1961 or the Income Tax Act, shall be deemed to be a loss incurred by the reconstituted company in its trade or business during the year of assessment in which its trade or business commenced; and the amount of that loss shall, in accordance with section 31  of this Act, be deducted from the assessable profits of the reconstituted company;

(e)no deduction shall be made under paragraph (d) of this subsection in respect of any loss to which that paragraph relates- (i)except to the extent, (if any) to which it is proved by the re-constituted company to the satisfaction of the most senior officer in the Industrial Inspectorate Division of the Federal Ministry of Industries (hereinafter after in this subsection referred to as "the director") that the loss was not the result of any damage or destruction caused by any military or other operations connected with the civil war in which Nigeria was engaged and which ended on 15th January 1970:

Provided that the President
may by order direct that, to the extent specified in the order, a deduction under paragraph (d) of this subsection shall be made in respect of a loss which was the result of any damage or destruction caused by any military or other operations connected with the said civil war;

(ii)unless within three years after the incorporation of the re-constituted company a claim for the deduction is lodged by that company with the Director and a copy of the claim is forwarded by that company to the Board; and

(f)any deduction to which paragraph (d) of this subsection applies shall be made as afar as possible from the amount, if any, of the assessable profits of the re-constituted company for the year of assessment in which its trade or business commenced and, so far as it cannot be so made, then from the amount of the assessable profits of the next year of assessment, and so on but such deductions shall not be made against the profits of the company after the fourth year from the commencement of such business, and in this subsection "foreign company" means a company incorporated outside Nigeria before 18th November, 1968, and having on that date an established place of business in Nigeria.

Board may call for returns and information relating to certain assets, etc, Cap. 59.

(11) For the purposes of subsection (9) and (10) of this section, the Board may be notice require any person (including a company to which any assets have vested in pursuance of Chapter 3 of Part II of the Companies and Allied Matters Act) to prepare and deliver to the Board any returns specified in the notice or any such information as the Board may require about the assets; and it shall be the duty of that person to comply with the requirements of any such notice within the period specified in the notice, not being a period of less than twenty-one days from the service thereof.

Cap. C1.

(12) No merger, take-over, transfer or restructuring of the trade or business carried on by a company shall take place without having obtained the Board's direction under sub-section (9) of this section and clearance with respect to any tax that may be due and payable under the Capital Gains Tax Act.

Board's power to assess and charge on turn-over of trade or business

30. (1) Notwithstanding section 40  of this Act, where in respect of any trade or business carried on in Nigeria by any company (whether or not part of the operations of the business are carried on outside Nigeria) it appears to the Board that for any year or assessment, the trade or business produces either no assessable profits or assessable profits which in the opinion of the Board are less than might be expected to arise from that ride or business or, as the case may be, the true amount of the assessable profits of the company cannot be readily ascertained, the Board may, in respect of that ride or business, and notwithstanding any other provisions of this Act if the company is a-

(a)Nigerian company, assess and charge that company for that year of assessment on such fair and reasonable percentage of the turn-over of the trade or business as the Board may determine;

(b) if that company is a company other than a Nigerian company and

                                 I.      that company has a fixed base of business in Nigeria assess and charge that company for that year of assessment on such a fair and reasonable percentage of that part of the turnover attributable to that fixed base,

                               II.      that company operates a trade or business through a person authorised to conclude contracts on its behalf or on behalf of some companies controlled by it or which have controlling interests in it or habitually maintains a stock of goods or merchandise in Nigeria from which deliveries are regularly made by a person on behalf of the company assess to extent that the profit is attributable to the business or trade carried on through that person

                             III.      that company executes one single contract involving  surveys, deliveries, installation or construction assess and charge that company on a fair and reasonable for that year of assessment on such a fair and reasonable percentage of that of the turnover of the contract and.

                            IV.      the trade or business is between the company and another person controlled by it or which has controlling interests in it and conditions are imposed between the company and such person in their commercial or financial relations which in the opinion of the board is deemed to be artificial and fictitious, assess and charge on a fair and reasonable percentage of that part of the turnover as may be determined by the board[12]

(2) The provisions of this Act as to notice of assessment, additional assessment, appeal and other proceedings shall apply to an assessment or additional assessment made under this section as they apply to an assessment or additional assessment made under any other section of this Act.

PART V-ASCERTAINMENT OF TOTAL PROFITS

Total profits from all sources.

31. (1) The total profits of any company for any year of assessment shall be the amount of its total assessable profits from all sources for that year together with any additions thereto to be made in accordance with the provisions of the Second Schedule to this Act, less any deductions to be made or allowed in accordance with the provisions of this section, section 32 and of the said Schedule (2) Subject to the provisions of subsection (4) of this section, there shall be deducted-

(a)the amount of a loss which the Board is satisfied has been incurred by the company in any trade or business during any preceding year of assessment:

Provided that-

(i)in no circumstances shall the aggregate deduction from assessable profits or income in respect of any such loss exceed the amount of such loss, and

(ii)a deduction under this section for any particular year of assessment shall not exceed the amount, if any, of the assessable profits, included in the total profits for that year of assessment, from the trade or business in which the loss was incurred and shall be made as far as possible from the amount of such assessable profits of the first year of assessment after that in which the loss was incurred and, so far as it cannot be so made, then from such amount of such assessable profits of the next year of assessment, and so on; but such deductions shall not be made against the profit of the company after the fourth year from the year of commencement of such business,

(iii)the period for carrying forward any loss in subparagraph (ii) of this paragraph shall be limited to four years after which period any such loss shall lapse;

(b)the amount of any loss which, under paragraph (d) of subsection (10) of section 29 is deemed to be a loss incurred by the company during the year of assessment in which its trade or business commenced, so however that any deduction in respect of that loss shall be made as provided under paragraph (f) of that subsection.

(3) The amount of any loss incurred by a company engaged in an agricultural trade or business for the year assessment in which it commenced to carry on such trade or business shall be deduction as far as possible from the assessable profits of the first year of assessment after that in which the loss was incurred and so far as it cannot be so made, then from such amount of such assessable profits of the next year of assessment, and so on (without limit as to time) until the loss has been completely set off against the company's subsequent assessable profits.

(4) For the purposes of subsection (2) of this section, the loss incurred during any year of assessment shall be computed, where the Board so decides, by reference to the year ending on a day in such year of assessment which would have been adopted under subsection (2) of section 29 of this Act for the computation of assessable profits for the following year of assessment if such profits had arisen.

(5) Where under the provisions of subsection (6) of section 29 of this Act for the purpose of computing the profits of a period the profits of which are assessable profits from that source for any year, it has been necessary to allocate or apportion to specific periods which fall within that whole period both profits and losses, then no deduction shall be made under the provisions of subsection (2) of this section in respect of the loss or apportioned part thereof referable to any such specific period except to the extent such loss or part thereof exceeds the aggregate profits apportioned to the remaining specific period or periods within that whole period.

Reconstruction investment allowance.

32. (1), where-

a company has incurred an expenditure on plant and equipment there shall be allowed to that company an investment allowance as provided in subsection (2) of this section and shall be in addition to an initial allowance under the second schedule to this Act

(2) The rate at which investment allowance is to be allowed for the purpose of subsection (1) above shall be 10 per cent of the actual expenditure incurred on such plant and equipment[13]

(3) Any provisions of the Second Schedule applicable to an initial allowance shall also apply to an investment allowance under this section, except that an investment allowance shall not be taken into account in ascertaining the residue of qualifying expenditure, in respect of an asset, for the purpose of the said Schedule.

(4) If in the case of any qualifying expenditure incurred on the new asset, any such event as is mentioned in the next following subsection occurs within a period of five years beginning with the date on which the expenditure was incurred, no investment allowance shall be made in respect of the expenditure or if such allowance has been made before the occurrence of the event it shall be withdrawn.
(5) The events referred to in subsection (4) of this section are 
any sale or transfer of the asset representing the expenditure made by the company incurring the expenditure otherwise than to a person acquiring the asset for a chargeable purpose or for scrap;
any appropriation of the asset representing the expenditure made by the company incurring the expenditure to a purpose other than a chargeable purpose;
any sale, or transfer or other dealing with the asset representing the expenditure by the company incurring the expenditure, being a case where it appears that the expenditure was incurred in contemplation of the asset being so dealt with, and being a case where it is shown either 

(i)  that the purpose of obtaining tax allowances was the sole
or main purpose of the company for incurring the expenditure or for so dealing with the asset, or

(ii) that the incurring of the expenditure and the asset being so dealt with were not bona fide business transactions or were artificial or fictitious transactions, and were designed for the purpose of obtaining tax allowances.
(6)A
company incurring any expenditure in respect of which an investment allowance has been made and has not been withdrawn shall give notice to the Board if, to the knowledge of the company, any of the events as is mentioned in subsection (5) of this section occurs at any time before the expiration of five years beginning with the date when the expenditure was incurred.

(7) Any notice of a sale or transfer given under subsection (6) of this section shall state the name and address of the person to whom the sale or transfer is made.

(8) Where an asset in respect of which an investment allowance has been made is sold or transferred it shall be the duty of the purchaser or transferee, and of the personal representatives of any such person on being required to do so by any officer duly authorised by the board to give that officer all such information as he may require, and as they have or can reasonably obtain, about any sale or transfer of the asset representing the expenditure or about any other dealing with the asset.

(9) Any person who, without reasonable excuse, fails to comply with this section shall be guilty of an offence and liable on conviction to a penalty not exceeding N100 plus the amount of tax lost by the granting of the investment allowance made in respect of the expenditure in question.

(10) All such additional assessments and adjustments of assessments shall be made as may be necessary in consequence of the withdrawal of any investment allowance, and may be so made at any time.

(11) For the purposes of this section-

"artificial or fictitious transactions" has the same meaning as in section 22 of this Act;

" chargeable purpose" means the purpose of putting the assets to use such that profits accrue or are intended to accrue therefrom and will be chargeable tax; "initial allowance" has the same meaning as in the Second Schedule to this Act; "qualifying expenditure" has the same meaning as in the Second Schedule of this Act.

"chargeable purpose" means the purpose of putting the assets to use such that profits accrue or are intended to accrue therefrom and
will be chargeable to tax;
"Initial allowance" has the same meaning as in the Second Schedule to this Act;
"qualifying expenditure" has the same meaning as in the Second Schedule of this Act.
Payment of Minimum tax.
33. (I) Notwithstanding any other provisions in this Act, where in any year of assessment the ascertainment of total assessable profits from all sources of a company results in a loss or where a company's ascertained total profits results in no tax payable or tax payable which is less than the minimum tax there shall be levied and paid by the company the minimum tax as prescribed in subsection (2) of this section.
(2) For the purposes of subsection (1) of the section, the
minimum tax to be levied and paid shall -
(a) if the turnover of the company is N500,000 or below and the company has been in business for at least 4 calendar years, be-
(i) 0.5 per cent of gross profits; or
(ii) 0.5 per cent of net assets; or
(iii) 0.25 per cent of paid up capital or
(iv) 0.25 per cent of turnover of the company for the year,
whichever is higher.
(c) if the turn-over is higher than N500,000, be whatever is payable in paragraph (a) of this subsection plus such additional tax on the amount by which the turn-over is in excess of N500,000 at a rate which shall be 50 per cent of the rate used in paragraph (a) (iv) of this subsection.
(3) The provisions of this section shall not apply to-
(a) a company carrying on agricultural trade or business as defined in subsection (9) of section 11 of this Act:
(b) a company with at least 25 per cent imported equity capital; and
(c) any company for the first four calendar year of its commencement of business  4 (a) Nothing in this section shall be construed as preventing the Board from levying tax on a company by an assessment based on the profits of the company in any year of assessment at the rate specified in section 40  of this Act and the tax so levied shall be paid or
payable by the company, so however, that the tax payable under subsection (1) of this section shall be the amount by which the amount computed
under subsection (2) of this section exceeds the amount that is levied and payable under section 40  of this Act.
(b) For the purposes of this section and the Second Schedule to this Act, the capital allowance for any assessment year in which a minimum tax is payable shall be computed and the amount so computed, together with any unabsorbed allowance brought forward from the previous year, shall be deducted as far as possible from the assessable profits of the assessment year and, so far as it cannot be completely deducted, the amount by which the total amount of the capital allowance exceeds the amount of assessable profit of the assessment year shall be carried forward to the next assessment year.

Rural investment allowance
34 where a company incurs capital expenditure on the provisions of facilities such as electricity, water, tarred road or telephone, for the purposes of a trade or business which is located at least 20 kilometres away from such facilities, provided by the Government there shall be allowed to such company in addition to an initial allowance under Second Schedule to this Act an allowance (hereafter called  rural investment allowance ). At the appropriate per cent as set forth in subsection (2) of this section of the amount of the of such expenditure

Provided that where an allowance has been given in pursuance of this section, no investment allowance under section 32 of this Act shall be due or be given in respect of the same asset or in addition to the allowance given under this section

(2) The rate of the rural investment allowance for the purposes of this section shall be as follows:

(a) 

No facilities

100%

(b) 

No electricity

50%

(c) 

No water

30% 

(d)  

No tarred road

15% 

(e)  

No telephone

5%

(3) For the purposes of this section, the rural investment allowance shall be made against the profits of the year in which the date of completion of the said investment falls and the  allowance or any fraction thereof shall not be available for carry forward to any subsequent year whenever full effect cannot be given to the allowance owing to there being no assessable profits or assessable profits less than the total allowance for the year the investment was made [14]

Export Processing Zone allowance.

35. (1) A company which has incurred an expenditure in its qualifying building and plant equipment in an approved manufacturing
activity in an Export Processing Zone shall be granted 100 per cent capital allowance in any year of assessment.

(2)  A company granted capital allowance under subsection (1) of this section shall not be entitled to an investment allowance under this Act

(3). The, profit or gains of a 100% export oriented undertaking established within and outside an Export Free Zone shall be exempt from tax for the first three consecutive assessment years provided that -

(i) the undertaking is 100% export oriented,

(ii) the undertaking is not formed by splitting or breaking up or reconstructing a business already in existence;

(iii) it manufactures, produces and exports articles during the relevant year and the export proceeds form 75% of its turnover;

(iv) the undertaking is not formed by transfer of machinery or plants, previously used for any purpose to the new undertaking or where machinery or plant previously used for any purpose is transferred does not exceed 25% of the total value of the machinery or the undertaking;

(v) the undertaking repatriates at least 75% of the export earnings to Nigeria and places it in a domiciliary account in any registered and licenced bank in Nigeria.

(4) For the purpose of subsection (3) of this section, only the tax written down value of the assets shall be carried forward at the end of the tax holidays.

Cap. N107 1996 No. 31

(5) In this section  Export Processing Zone and ] have the meanings assigned to them in the Nigerian Export Processing Zone Act

 Mining of solid mineral

36.  A new company going into the mining of solid minerals shall be exempt from tax for the first three years of its operation.

37. 25 per cent of incomes in convertible currencies derived from tourists by a hotel shall be exempt from tax provided that such income is put in a reserved fund to be utilised within five years for the building expansion of new hotels, conference centres and new facilities for the purpose of tourism development.

38 (i) A company which engages wholly in the fabrication of spare parts, tools and equipment for local consumption and export shall be allowed 25% investment tax credit on its qualifying capital expenditure;

(ii) A company which purchases a locally manufactured plant, machinery or equipment for use in its business shall be allowed 15% investment tax credit on such fixed asset bought for use.

Gas utilisation (downstream operations)

39 (i) A company engaged in gas utilisation (downstream operations) shall be granted the following incentives, that is-
(a) an initial tax free period of three years which may, subject to the satisfactory performance of the business, be renewed for an
additional period of two years;
"(b) as an alternative to the initial tax free period granted under paragraph (a) of this subsection, an additional investment allowance of per 35 per cent - which shall not reduce the value of the asset, so however that a company which claims the incentive provided under this paragraph shall not also claim the incentive provided under paragraph (b)(ii)) of this subsection;"[15];

(c) accelerated capital allowances after the tax free period, as follows, this is-
(i) an annual allowance of 90 percent with 10 percent retention, for investment in plant and machinery,
(ii) an additional investment allowance of 15 percent which shall not reduce the value of the asset;
(c) tax free dividend during the tax free period, where-
(i) the investment for the business was in foreign currency, or
(ii) the introduction of imported plant and machinery during the period was not less than 30 percent of the equity share capital of the company;
(d) interest payable on any loan obtained with the prior approval of Minister for a gas project, shall be deductible.
(2) The tax free period of a company shall start on the day the company commences production as certified by the Ministry of petroleum Resources
(3) In this section-
'gas utilization" means the marketing and distribution of natural gas for commercial purpose and includes power plant, liquefied
natural gas, gas to liquid plant, fertilizer plant, gas transmission and distribution pipelines;
'tax free period" means the tax free period referred to in subsection (1) (a) of this section.


PART VII

Rates of tax , deduction of tax from dividends and relief for double taxation

40.(1) There shall be levied and paid for each year of assessment in respect of the total profits of every company tax at the rate of thirty kobo for every naira[16]

(2) In addition to any levy made pursuant to subsection (1) of this section, there shall, as from the assessment year commencing on 1st  January, 1989 be levied and paid a special levy of fifteen per cent on excess profits of every company including banks and for the purpose of this subsection,  excess profits means the difference between total profits as computed in accordance with section 27 of this Act and standard profits as calculated in accordance with the provisions of subsection (3) of this section.
(3) For the purposes of subsection (2) of this section, "standard profits" means 
(a) in the case of every Nigerian company 
the addition of the amounts arrived at after applying the percentages specified in this sub-paragraph to the amount of capital employed at the end of the accounting period, that is to say 
Paid-up Capital    ..    ..    ..    40 per cent
Capital or Statutory Reserve    ..    ..    20 per cent
General Reserve    ..    ..    ..    20 per cent
Long Term Loan    ..    ..    ..    20 per cent, or
the amount of six million naira, whichever is greater;
(b) in the case of every company other than a Nigerian company and as respects any year of assessment commencing on 1st January, 1989 
the amount of fifteen per cent of the turnover of the company for that year being turnover attributable to any part of the operations of the company carried out in Nigeria, or
the amount of six million naira, whichever is greater.
(4) A company which is yet to commence business after at least 6 months of incorporation shall for each year it obtains a tax clearance certificate pay a levy of 
(a)    N500 for the first year; and
(b)    N400 for every subsequent year
before a tax clearance certificate is issued.
(5) The provisions of Parts VII and XIV of this Act shall apply to subsection (3) of this section.
(6) For the purposes of paragraph (a) of subsection (4) of this section, any unabsorbed capital allowance brought forward shall be suspended until normal assessment is made; but a notional allowance shall be deemed to have been granted for the assessment year in which a turnover tax is payable.
(7) Where in any of the basis period for the year of assessment in which a company commenced business and the next following four years of assessment as determined under the provisions of section 29 of this Act, a Nigerian company engaged in manufacturing or agricultural production, mining of solid mineral or wholly export trade earns total gross sales (turn-over) of below one million naira, there shall be levied and paid by such company tax at the rate of twenty kobo on every naira of the total profits.
(8) Notwithstanding the provisions of subsection (7) of this section, where a Nigerian company engaged in the trade and business specified in that subsection commenced business before 1st January, 1988 and makes a gross sales (turn-over) of below five hundred thousand naira there shall be levied and paid by such company for each of the assessment years 1988, 1989 and 1990 tax at the rate of twenty kobo on every naira of the total profits.
(9) The provisions of subsections (7) and (8) of this section shall not apply to a company formed to acquire the whole or any part of the trade or business previously carried on by another company.
(11) Where a company has incurred an expenditure on electricity, water tarred road or telephone for the purpose of trade or -
business carried on by the company which is located at least 20 kilometres away from electricity, water, tarred road or telephone
facilities which are provided by the Government, the company shall  be allowed a relief here in this Act called investment tax relief for each year expenditure is incurred on each such facility at the following rate of the expenditure
 

(a) 

No facilities

100%

(b) 

No electricity

50%

(c) 

No water

30% 

(d)  

No tarred road

15% 

(e)  

No telephone

5%

(12) For the purposes of subsection 11 of this section a company shall not be allowed to claim the investment tax relief for more than three years and the relief shall not be available to a company already granted the pioneer status
30 Replacement of obsolete plant and machinery
41. Where a company has incurred an expenditure for the replacement of an obsolete plant and machinery, there shall be allowed to that company, 15% investment tax credit11.

42.    Relief from the tax.
(1) Every Nigerian company shall be entitled to relief from the tax in the manner and to the extent hereinafter provided.
(2) Relief from the tax shall be given at a rate equal to the full rate of tax upon the first N6,000 of the total profits of such a company:
Provided that where the Board is of opinion that any remuneration charged in the accounts of a company in respect of any director's services to the company is excessive in relation to those services or the nature or extent of the trade or business carried on, it may direct that the whole or any part of that remuneration be treated as forming part of the total profits of the company for the purpose of determining the amount by which the profits to be relieved of tax shall be reduced under the foregoing provisions of this subsection.
(3) No relief shall be granted under this section to any company formed to acquire the whole or any part of trade or business previously carried on by another company.
(4) Where a company has applied any profits in respect to which relief has been given under the provisions of this section either 
(a) in payment of any dividend, other than a dividend in the form of shares arising from the capitalisation of profits; or
(b) in reduction of paid-up share capital; or
(c) in making any loan to any director of the company;
the Board in its discretion may make such assessments to tax upon the company as will counteract the benefit of such relief attributable to the profits so applied.
(5) Where a company to which relief has been given under the provisions of this section is wound up or liquidated for purposes which include, in the opinion of the Board, the transfer of the benefit of such relief to the shareholders, such assessments to tax shall be made upon the receiver or liquidator in the name of the company as will counteract the benefit of all such relief which is not counteracted by assessment under the provisions of the preceding subsection.
43.    Dividends and tax on interim dividends paid by Nigerian companies.

(1) In respect of every dividend paid by a Nigerian company, being a dividend to which the proviso to section 18 applies, the company shall issue to each of its shareholders a certificate setting out the amount thereof which such shareholder is entitled and describing the profits out of which the dividend is paid, and the company shall not be entitled to deduct tax from any such dividend on payment thereof.

(2) For the purposes of this section, the net Nigerian rate of tax applicable to a dividend shall be the rate computed or agreed by the Board in the following manner 

where the accounting period of a company out of the profits of which a dividend is declared to be wholly payable coincides with any single basis period of that company for a year of assessment (as determined under the provisions of Part IV of this Act) the net Nigerian rate of tax applicable to that dividend shall be computed by dividing the tax payable by the company for that year of assessment after deduction of any relief given under the provisions of section 44 or 46 by the distributable profits, as shown by the accounts of the company, arising during that period, before deduction of any tax but after deduction of any profits specified in subsection (1) of this section;

in any other case, the net Nigerian rate of tax applicable to the dividend shall be determined by the Board as may appear to it to be just and equitable:

Provided that in no case shall the net Nigerian rate of tax applicable to a dividend exceed the rate specified by section 40 of this Act for the year of assessment in which payment of the dividend becomes due.

(3) Within fourteen days thereof every Nigerian company shall supply full particulars to the Board of each dividend declared, and on request of the Board shall supply a list of the shareholders to whom the dividend is payable showing their respective shares therein.

(4) In the event that the net Nigerian rate of tax applicable to a dividend has not agreed or computed by the

Board before the date on which payment of that dividend becomes due, the certificate to be given for the purposes of

subsection (2) of this section shall so specify, and no repayment out of tax deducted from that dividend shall be made to any

shareholder until that rate has been finally determined.

(5) Nothing in this section shall be construed as requiring a company to deduct tax from a dividend that is

not paid in money.

(6) Notwithstanding the foregoing provisions of this section, every company paying dividend to its

shareholders shall pay tax at the prescribed rate in subsection (1) of section 40  of this Act to the Board prior to the payment of

the dividend. The tax so paid shall be a deposit against the tax due from the company on the profits out of which the dividend

is paid:

Provided that the provisional tax paid under section 59(1) of this Act shall be taken into account in

determining the amount of tax due under this subsection.

Relief in respect of Common wealth income tax.

44. (1) If any Nigerian company which has paid, by deduction or otherwise, or is liable to pay, tax under

this Act for any year of assessment on any part of its profits proves to the satisfaction of the Board that it has paid, by

deduction or otherwise, or is liable to pay, Commonwealth income tax for that year in respect of the same part of its profits, it

shall be entitled to relief from tax paid or payable by it under this Act on that part of its profits at a rate thereon to be

determined as follows-

(a)if the Commonwealth rate does not exceed one-half of the rate of tax under this Act, the rate at which relief is to be given shall be the Commonwealth rate of tax;

(b)in any other case the rate at which relief is to be given shall be half the rate for tax under this Act.

(2) If any company, other than Nigerian company which had paid, by deduction or otherwise, or is liable to pay, tax under this Act for any year of assessment on any part of its profits proves tot he satisfaction of the Board that it has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for that year of assessment in respect of the same part of its profits, it shall be entitled to relief from tax paid or payable by it under this Act on that part of its profits at a rate thereon to be determined as follows-

(a)if the Commonwealth rate of tax does not exceed the rate of tax under this Act, the rate at which relief is to be given shall be one-half of the Commonwealth rate of tax;

(b)if the Commonwealth rate of tax exceeds the rate of tax under this Act, the rate at which relief is to be given shall be equal to the

amount by which the rate of tax under this Act exceeds one-half of the Commonwealth rate of tax.

(3) For the purposes of this section-

"Commonwealth income tax" means any tax on income or profits of companies charged under a law in force in any country within the Commonwealth or in the Republic of Ireland which provides for relief from tax charged both in that country and Nigeria in a manner corresponding to the relief granted by this section; "the rate of tax" under this Act of a company for any year assessment means the rate determined by dividing the amount of tax imposed for that year (before the deduction of any double taxation relief granted by this Part) by the amount of the total profits of the company for that year, and the Commonwealth rate of tax shall be determined in a similar manner.

(4) Any claim for relief from tax for any year of

assessment under this section shall be made not later than six years after the end of that year, and if the claim is admitted, the

amount of the tax to be relieved shall be re-paid out of the tax paid for that year of assessment or set-off against the tax which

the company is liable to pay for that year of assessment:

Provided that if the company fails to satisfy the Board as to the

amount of the tax to be relieved, the Board shall give notice of refusal to admit the claim and the provisions of Part XI shall

apply accordingly with any necessary modifications as though such notice were an assessment.

Double taxation arrangements.

45. (1) If the Minister by order declares, that arrangements specified in the order have been made with the

Government of any country outside Nigerian with a view to affording relief from double taxation in relation to tax imposed on

profits charged but this Act and any tax of a similar character imposed by the laws of that country, and that it is expedient that

those arrangements should have effect, the arrangements shall have effect notwithstanding anything in this Act.

(2) On the making of an order under this section with respect to arrangements made with the Government of any Commonwealth country

or the Republic of Ireland, section 44 of this Act shall cease to have ceased to have had effect as from the beginning of the

first year of assessment for which the arrangements are expressed to apply except in so far as the arrangements otherwise

provide.

(3) Where any arrangement have effect by virtue of this section, any obligation as to secrecy in this Act shall not

prevent the disclosure to any authorised officer of the Government with which the arrangements are made of such information

as is required to be disclosed under the arrangements.

(4) The Minister may make rules for carrying out the provisions of any arrangements having effect under this section.

(5) An order made under the provisions of subsection (1) of this section may

include provisions for relief from tax for periods commencing or terminating before the making of the order and provisions as

to profits which are not themselves liable to double taxation.

Method of calculating relief to be allowed for double taxation.

46. (1) The provisions of this section shall have effect where, under arrangements having effect under

section 45 of this Act, foreign tax payable in respect of any profits in the country with the Government of which the

arrangements are made is to be allowed as a credit against tax payable in respect of those profits under this Act, and in this

section, "foreign tax" means any tax payable in that country which under the arrangements is to be so allowed.

(2) The amount of the tax chargeable in respect of the profits which are liable to both tax and foreign tax

shall be reduced by the amount of the credit admissible under the terms of the arrangement:

Provided that no credit shall be allowed to a company for a year of assessment unless during some part of

that year it was a Nigerian company.

(3) The credit shall not exceed the amount which would be produced by computing, in accordance with the

provisions of this Act, the amount of the profits which are liable to both tax and foreign tax, and then charging that amount to

tax at a rate ascertained by dividing the tax chargeable (before the deduction of any double taxation relief granted by this Part

of the Act) on the total profits of the company entitled to the profits by the amount of the total profits.

(4) With prejudice to the provisions of subsection (3) of this section, the total credit to be allowed to a

company for a year of assessment for foreign tax under all arrangements having effect under section 45 of this Act shall not

exceed the total tax payable by it for that year of assessment.

(5) In computing the amount of the profits-

(a)no deduction shall be allowed in respect of foreign tax (whether in respect of the same or any other

profits);

(b)where tax chargeable depends on the amount received in Nigeria, the said amount shall be increased by

the appropriate amount of the foreign tax in respect of the profits; and

(c)where the profits include a dividend and under the arrangements foreign tax not chargeable directly or

but deduction in respect of the dividend is to be taken into account in considering whether any, and if so what, credit is to be

given against tax in respect of the dividend, the amount of the profits shall be increased by the amount of the foreign tax not

so chargeable which falls to be taken into account in computing the amount of the credit, but notwithstanding anything in the

preceding provisions of this subsection a deduction shall be allowed of any amount by which the foreign tax in respect of the

profits exceeds the credit thereof.

(6) Paragraphs (a) and (b) of subsection (5) of this section, but not the remainder thereof shall, apply to the

computation of total profits for the purpose of determining the rate mentioned in subsection (3) of this section, and shall apply

thereto in relation to all profits in respect of which credit falls to be given for foreign tax under arrangements for the time

being in force under section 45 of this Act.

(7) Where-

(a)the arrangements provide, in relation to dividends of some classes but not in relation to dividends of

other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in

considering whether any, and if so what, credit is to be given against tax in respect of the dividends; and

(b)a dividend is paid which is not of a class in relation to which the arrangement so provide, then, if the

dividend is paid to a company which controls, directly or indirectly, not less than one-half of the voting power in the company

paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements

so provide.

(8) Credit shall not be allowed under the arrangements against tax chargeable in respect of the profits of a

company for any year of assessment if the company elects that credit shall not be allowed in the case of those profits for that

year.

(9) Any claim for an allowance by way of credit shall be made not later then two years after the end of

assessment, and in the event of any dispute as to the amount allowable the claim shall be subject to objection and appeal in

like manner as an assessment.

(10) Where the amount of any credit given under the arrangements is rendered excessive or insufficient by

reason of or elsewhere, nothing in this Act limiting the time for the making of assessments or claims for relief shall apply to

any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than two years from

the time when all such assessments, adjustments and other determinations have been made, whether in Nigeria or elsewhere,

as are material in determining whether any, and if so what, credit falls to be given.

PART VIII-PERSONS CHARGEABLE, AGENTS LIQUIDATORS. ETC.

Chargeability of tax.

47. A company shall be chargeable to tax-

(a)in it own name; or

(b)in the name of any principal officer, attorney, factor, agent or representative of the company in Nigeria in like manner and to like amount as such company would be chargeable; or

(c)in the name of a receiver or liquidator, or of any attorney, agent or representative thereof in Nigeria, in like manner and to like amount as such company would have been chargeable if no receiver or liquidator had been appointed.

Manager, etc., to be answerable.

48. The principal officer or manager in Nigeria of every company shall be answerable for doing all such

acts, matters and things as are required to be done by virtue of this Act for the assessment of the company and payment of the

tax.

Power to appoint agent.

49. (1) The Board may by notice in writing appoint any person to be the agent of any company and the

person so declared the agent shall be agent of such company for the purposes of this Act, and may be required to pay any tax

which is or will be payable by the company from any moneys which may be held by him for, or due by or to become due by

him to, the company whose agent he has been declared to be, and in default of such payment the tax shall be recoverable from

him.

(2) For the purposes of this section, the Board may require any person to give information as to any moneys, funds or

other assets which may be held by him for, or of any moneys due by him to, any company.

(3) The provisions of this Act with respect to objections and appeals shall apply to any notice given under this section as though such notice were an assessment.

Indemnification of manager, etc. or agent.

50. Every person answerable under this Act for the payment of tax on behalf of a company may retain out of any money coming into his hands on behalf of such company so much thereof as shall be sufficient to pay such tax, and shall be and is hereby indemnified against any person whatsoever for all payments made by him in pursuance and by virtue of this Act.

Company wound-up.

51. Where a company is being wound-up, the liquidator of the company to the shareholders thereof unless

he has made provisions for the payment in full of any tax which may be found payable by the company, including any tax

deductions made by the company under any laws in force in any part of Nigeria relating to the tax of individuals.

52. (1) Whether or not a company is liable to pay tax for a year of assessment and whether or not a return has been filed under section 55 of this Act a company shall upon a notice from the Board file with the Board in the prescribed form, within such reasonable time as may be stipulated in such notice a return of income for the year of assessment designated therein together with the audited accounts and information stipulated in subsection 1 (a) and (b) of section 55 of this Act.

(2). Every company whose turn over is one million naira and above shall file self-assessment return within six months of

its accounting period provided that a company whose turnover is below one million naira shall file a self-assessment return as

from 1998 year of assessment.

Self assessment by companies of tax payable

53. Every company filing a return under section 58 of this Act or requested by notice of the Board to file a return under section 59 of this Act shall-

(a) In the return compute the tax payable by the company for the year of assessment; and

(b) forward with the tax return, evidence of direct payment of the whole or part of tax due into a bank designated for the payment of tax. [17]

54. Notwithstanding anything to the contrary in any law an income tax assessment under section 52, 53 or 55 of this Act
shall be made in the currency in which the transaction giving rise to the assessment was effected.
 

PART IX-RETURNS

Returns and provisional accounts.

55. (1) Every company, including a company granted exemption from incorporation, shall, at least once a year without notice or demand therefrorn, file a return  with the Board in the prescribed form and containing prescribed information together with the following information

(a) the audited accounts, tax and capital allowances computations and a true and correct statement in writing containing the amounts of its profits from each and every source computed in accordance with tile provisions of this Act and any rules made thereunder ;

(b) such particulars as may by such form of return be required for the purpose of this Act and any rules made thereunder with respect to such profits, allowances, reliefs, deductions or  otherwise as may be material under or by virtue of this Act and such rules[18].

(2) Such form of returns shall contain a declaration which shall be signed by a director or secrecy of the

company that the return contains a true and correct statement of the amount of its profits computed in respect of all sources in

accordance with this Act and any rules made thereunder and that the particulars given in such returns are true and complete.

(3) Every company shall file with the Board its audited accounts and returns

(a) in the case of a company that has been in business for more than eighteen months, not more than six months after the close of the company's accounting year;

(b) in the case of a newly incorporated company, within eighteen months from the date of its incorporation or not later than

six months after the end of it's first accounting period as defined in section 29 (3) of this Act, whichever is earlier;

  (4) Any company which fails to comply with the provisions of this section shall be liable to pay as penalty an amount of-

(a) N2,500.00 in the first month in which the failure occurs;

and

(b) N500.00 for each subsequent month in which the failure continues.

(5) Where an offence under this section by a company is proved to have been committed with the consent or connivance of, or

to be attributed to any neglect on the part of, any director, manager, secretary or other similar officers, servant or agent of the company (or any person purporting to act in any such capacity) he as well as the company shall be

deemed to be guilty of the offence and shall on conviction be liable to a fine of N2,000 or imprisonment for six months, or

both.

(6) For the purpose of this section-

(a)every company shall designated a representative who shall answer every query relating to the company's tax matters;

(b)a person designated by a company pursuant to paragraph (a) of this subsection shall be from members of the person knowledgeable in the field of taxation as may be approved, from time to time, by the Board.

56. A company which files return under section 53 of this Act within the time specified for filing of the return shall, if there is no default in the payment arrangement, be granted a bonus one percent of the tax payable.[19]

57. -(1) Every company operating in a Nigerian stock exchange shall, not later than seven days after the end of

each calendar month, file with the Board or any other relevant tax authority, a return in the prescribed form of its transactions

during the preceding calendar month.

(2) A company filing a return shall, where its transactions involve

(a) an offer in the primary market, state in the return

(i) the type of offer

(ii) the services rendered,

(iii) the amount of tax deducted at source, and

(iv) the amount of value ,added tax payable;

(b) operations in the secondary market, state in the return

(i) the number and value of transactions carried out during the relevant calendar month,

(ii) the commission received or paid,

(iii) the amount of tax deducted at source, and

(iv) the amount of value added tax payable."[20]

 Board may call for further returns.

58. The Board may give notice in writing to any company when and as often as it thinks necessary

requiring it to deliver within a reasonable time limited by such notice fuller or further returns respecting any matter as to

which a return is required or prescribed by this Act.

"Extension of period of making returns.

59(1) A company may apply in writing to the Board for an extension of the time within which to comply with the provisions of sections 52, 55(3) and 60 of this Act, provided the company 

(a) makes the application before the expiration of the time stipulated in those; sections for making the returns; and

(b) shows good cause for its inability to comply with those provisions.

(2) If the Board is satisfied with the cause shown in an application under subsection (1) of this section it may in writing grant the extension of time for making the application to such time as it may consider appropriate. [21]

Power to call for returns, books, documents and information.

60. (1) For the purpose of obtaining full information in respect of the profits of any company, the Board

may give notice to any person requiring him, within the time limited by such notice, to-

(a)complete and deliver to the Board, any return specified in such notice;

(b)attend personally before an officer of the Federal Inland Revenue Department for examination with

respect to any matter relating to such profit;

(c)produce of cause to be produced for examination at the place and time stated in such notice, which time

may be from day-to-day for such period as the Board may consider necessary, for the purpose of such examination any books,

documents, accounts and returns which the Board may deem necessary; or

(d)give orally or in writing any other information including name and address specified in such notice:

Cap. F20

Provided that a person engaged in banking including any person appointed to carry the Federal Savings

Bank Act into effect shall not be required to disclose any information unless a disclosure is required in a letter signed by the

Chairman of the Board.

(2) For the purposes of paragraphs (a) to (d) of subsection (1) of this section, the time limited by such

notice shall not be less than seven days from the date of service of such notice, so however that an officer of the Board not

below the rank of a Chief Inspector of Taxes may act in any of the cases stipulated in paragraph (a) or (c) or (d) of this

subsection, without giving any of the required notices act out in this section.

(3) Any person engaged in banking in Nigeria who contravenes the provisions of this section shall, in

respect of each offence, be liable on conviction to a fine of N5,000 in the case of a body corporate, and in the case of an

individual to a fine of N500.

(4) Nothing in the foregoing provisions of this section or in any other provisions of this Act shall be construed as precluding the board from verifying by tax audit any matter relating to the profits of a company or any matter relating to entries in any books documents accounts or returns as the board may from time to time specify in any guidelines issued by the board 

 

 

Information to be delivered by bankers. Cap. F20.

61. (1) Without prejudice to the foregoing section, every person engaged in banking including any person

charged with the administration of the Federal Saving Bank Act shall, prepare a return at the end of each month specifying the

names and addresses of new customers of the bank and shall not later than the seventh day of the next following month

deliver the return to a tax authority of the area where the bank operates, or where such customer is a company to the Federal

Board of Inland Revenue.

Cap. F20.

 (2) Subject to the foregoing provisions of this section, for the purposes of obtaining relative to taxation,

the Board may give notice to any person including a person engaged in banking business in Nigeria and any person charged

with the administration of the Federal Savings Bank Act to provide within the time stipulated in the notice, information

including the name and address of any person specified in the notice:

Cap. F20.

Provided that a person engaged in banking business in Nigeria including any person charged with the

administration of the Federal Savings Bank Act shall not be required to disclose any further information under this section

unless such disclosure is required by a notice signed by the Chairman of the Board.

Return deemed to be furnished by the authority.

62. A return, statement or form purporting to be furnished under this Act by or on behalf of any person

shall for all purposes be deemed to have been furnished by that person or by his authority, as the case may be, unless the

contrary is proved, and any person signing any such return, statement or form shall be deemed to be cognisant of all matters

therein.

Books of account.                                    

63. (1) If a company chargeable with tax fails or refuses to keep books or accounts which, in the opinion

of the Board, are adequate for the purposes of income tax, the Board may by notice in writing require it to keep such records,

books and accounts as the Board considers to be adequate in such form and in such language as may be specified in the said

notice and, subject to the provisions of the next succeeding subsection, the company shall keep records, book sand accounts as

directed.

(2) Any direction of the Board made under this section shall be subject to objection and appeal in like manner as an

assessment save that any decision of the Appeal Commissioners thereon shall be final.

(3) On hearing such appeal the Appeal Commissioners may confirm or modify such direction.

Power to enter and search premises

64-(1) Where in respect of any trade or business carried on in Nigeria by any company (whether or not part of the operations is carried on outside Nigeria) the Board

(a)   is satisfied that there is reasonable ground for suspecting that an offence involving any form of total or partial non-disclosure of information or any irregularity or offence in connection with, or in relation to tax, has been committed and

(b)   in the opinion of the Board, evidence of it is to be found in the premises, registered office, any other office, or place of management of the company or in the residence of the principal officer, factor agent or representatives of the company,

the Board may authorise an officer of the Board to enter if necessary by force the premises, registered office or place of management or the residence of the principal officer, factor, or agent or representative of the company, if necessary, by force, at any time from the date of such authorisation by the Board and conduct a search.

(2) An authority to enter the premises, registered office, place of management or residence of principal

officer, agent or factor of a company, to conduct a search shall be in the form contained in sixth Schedule  to this Act, and such

authority shall be sufficient warrant to search, seize and remove any records and document found on such premises, office or

residence of principal officer, agent or factor of the company, whether or not belonging to the company.

(3) On entering the premises with a warrant under this section, the officer may seize and remove anything

whatsoever found therein which he has reasonable cause to believe may be required for the purpose of arriving at a fair and

correct tax chargeable on the company or as evidence for the purposes of proceedings in respect of such an offence as is

mentioned in subsection (1) of this section.

(4) For the purpose of this section, an officer authorised by the Board to execute any warrant of search

under this section may call to his assistance a police officer and it shall be the duty of the police officer when so required to

aid and assist in the execution of any warrant to obtain document for the purposes of the tax chargeable or to be charged on

the company and of the proceedings in respect of the offence referred to in section (1) of this section.

(5) Where an entry to a premises has been made with a warrant under this section and the officer making the

entry has seized anything under the authority of the warrant, he shall if so required by a person showing himself either -

(a) to the principal officer of the company; or

(b) Any other person who has had the possession or custody of those things,

provide that principal officer or person with the list of items seized or surrendered.

 (6) It shall be the responsibility of any person on whom such warrant as mentioned in subsection (2) of

this section is served to -

(a) cooperate fully with the person or persons authorised to conduct a search by allowing easy access to the premises to be searched and to the items or documents that may be required for the exercise;

(b) answer all questions and queries put to him in the cause of the search;

(c) put in accessible position and facilitate the removal of all items that may be required to assist the exercise.

(7) Any principal officer, agent, factor or representative of the company on whom a warrant of search is served and who refuses to cooperate with the person or persons authorised to search or does anything tantamount to failure to cooperate or engages in act or acts resulting in abuse, physical assault or similar misbehaviour shall be guilty of an offence and on conviction be liable to a fine of N10,000 or to imprisonment of not less than 6 months or to both such fine and imprisonment.

(8) Either prior to or during or after a warrant of search is being or has been served or executed on a

principal officer, factor or agent of the company, such principal officer, factor or agent may also be called upon to an

interview before an officer of the Board to answer any query or question in connection with the activities of the company as

would enable the Board to arrive at a fair and correct tax liability of the company.".[22]

PART X-ASSESSMENTS

Board to make assessments.

65. (1) The Board shall proceed to assess every company chargeable with tax as soon as may be after the

expiration of the time allowed to such company for the delivery of the audited accounts and return provided for in section 55

of this Act or otherwise as it appears to the Board practicable so to do.

(2) Where a company has delivered audited accounts and return, the Board may-

(a)accept the audited accounts and return and make an assessment accordingly; or

(b)refuse to accept the return and, to the best of its judgments, determine the amount of the total profits of the company and make an

assessment accordingly.

(3) Where a company has not delivered a return and the Board is of the opinion that such company is liable to pay tax, the Board may, according to the best of its judgment, determine the amount of the total profits of such company and make an assessment accordingly, but such assessment shall not affect any liability otherwise incurred by such company by reason of its failure or neglect to deliver a return.

(4) Nothing in this section shall prevent the Board from making an assessment upon a company for any year before the expiration of the time within which such company is required to deliver a return or to give notice under the provisions of section 55 of this Act, if the Board or any officer of the Federal Inland Revenue Department duly authorised by the Board considers such assessment to be necessary for any reason of urgency.

(5) In this section, the reference to a return shall be construed as a reference to the accounts and return submitted pursuant to section 55 of this Act.

Additional assessments.

66. (1) If the Board discovers or is of the opinion at any time that any company liable to tax has not been

assessed or has been assessed at a less mount than that which ought to have been charged, the Board may, within the year of

assessment or within six years after the expiration thereof and as often as may be necessary, assess such company at such

amount or additional amount, as ought to have been charged, and the provision of this Act as to notice of assessment, appeal

and other proceedings shall apply to such assessment or additional assessment and to the tax charged thereunder:

Provided that where any form for fraud, wilful default or neglect has been committed by or on behalf of

any company in connection with any tax imposed under this Act or under the companies Income Tax Act 1961 the Board may at

any time and as often as may be necessary, assess such company at such amount or additional amount as may be necessary for

the purpose of making good any loss of tax attributable to the fraud, wilful default of neglect.

(2) For the purpose of computing under subsection (1) of this section the amount or the additional amount

which ought to have been charged, all relevant facts consistent with the proviso to section 76 of this Act shall be taken into

account even though not known when any previous assessment or additional assessment on the same company for the same

company for the same year was being made or could have been made.

Lists of companies assessed.

67. (1) The Board shall, as soon as possible, prepare lists of companies assessed to tax.

(2) Such lists, herein called the assessment lists, shall contain the names and the address of the companies

assessed to tax, the name and address of any person in whose name any such company is chargeable, the amount of the total

profits of each company, the amount of tax payable by it, and such other particulars as may be determined by the Board.

(3) Where complete copies of all notices of assessment and of all notices amending assessments are filed

in the offices of the Board they shall constitute the assessment lists for the purposes of this Act.

Service of notice of assessment.

68. The Board shall cause to be served on or sent by registered post to each company, or person in whose

name a company is chargeable, whose name appears on the assessment lists, a notice stating the amount of the total profits,

the tax payable, the place at which such payment should be made, and setting out the rights of the company under the next

following section.

Revision of assessment in case of objection.

69. (1) If any company disputes the assessment it may apply to the Board, by notice of objection in

writing, to review and to revise the assessment made upon it.

(2) An application under subsection (1) shall

(a) be made within thirty days from the date of service of the notice of assessment; and

(b) contain the ground of objection to the assessment, that is -
(i) the amount of assessable and total profits of the company for the relevant year of assessment; and
(ii) the amount of tax payable for the year, which the company claims should be stated on the notice of assessment.
(3) If the Board is satisfied that, owing to the absence from Nigeria, the person in whose name and assessment is made is unable
to make an application within the thirty days specified in subsection (2) of this section, it shall extend the time for making the application to such time as may be reasonable in the circumstances.
(4) On receipt of the notice of objection referred to in subsection (1) of this section, the Board may require

the company giving the notice of objection to furnish such particulars as the Board may deem necessary and to produce all

books or other documents relating to the profits of the company, and may summon any person who may be able to give

evidence respecting the assessment to attend for examination by an officer of the Federal Inland Revenue Department on oath

or otherwise.

(5) In the event of any company assessed, which has objected to an assessment made upon it, agreeing

with the Board as to the amount at which it is liable to be assessed, the assessment shall be amended accordingly, and notice

of the tax payable shall be served upon such company:

Provided that if an applicant for revision under the provisions of subsection (1) of this section fails to

agree with the Board the amount at which the company is liable to be assessed, the Board shall give notice of refusal to

amend the assessment as desired by such company and may revise the assessment to such amount as the Board may,

according to the best of its judgment, determine and give notice of the notice of refusal to amend the revised assessment and,

wherever refusal to amend the revised assessment and, wherever requisite, any reference in this Act to an assessment or to an

additional assessment shall be treated as a reference to an assessment or to an additional assessment as revised under the

provisions of this proviso.

Errors and defects in assessment and notice.

70.(1) No assessment, warrant or other proceeding purporting to be made in accordance with the

provisions of this Act shall be quashed to deemed to be void or voidable, for want of form, or be affected by reason of a

mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and

meaning of this Act or any enactment amending the same, and if the company assessed or intended to be assessed or affected

thereby is designated therein according to common intent and understanding.

(2) An assessment shall not be impeached or affected-

(a)by reason of a mistake therein as to-

(i)the name of a company liable or of a person in whose name a company is chargeable, or

(ii)the description of any profits, or

(iii)the amount of tax charged;

(b)by reason of any variance between the assessment and the notice thereof: Provided that in cases of assessment the notice thereof shall be duly served on the company intended to be charged or the person in whose name such company is chargeable and such notice shall contain, in substance and effect, the particulars on which the assessment is made.

Establishment and constitution of body of Appeal Commissioners.

71. (1) The Minister may establish by notice in the Federal Gazette, a body of Appeal Commissioners.

(2) The body of Appeal Commissioners shall consist of not more than twelve persons, none of whom shall be a public officer and one of whom shall be designated as chairman by the Minister.

(3) Each Appeal Commissioner-

(a)shall be appointed by notice in the Gazette by the Minister 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 the profession of law or accountancy 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 address to the Minister, and on the request of the Minister he may continue to act as an Appeal Commissioner after the date of his resignation, and sit at any further hearing in any case in which he has already sat before to hear an appeal, until a final decision has been given with respect to such appeal;

(d)shall cease to be an Appeal Commissioner upon the Minister determining that his officer be vacant and upon notice of such of such determination being published in the Federal Gazette; or upon the acceptance of a political appointment[23]

(e)shall be paid such remuneration and allowances as may be determined by the Minister with the approval of the National Council of Ministers.

(4) Without prejudice to the generality of paragraph (d) of subsection (3) of this section, if the Minister is satisfied that an Appeal

Commissioner-

(a)has been absent from two consecutive meetings of the body of Appeal Commissioners (other than any

meeting at which, by virtue of subsection (2) of section 73 of this Act, he may not sit) without the written permission of the

Chairman of the Board; or

(b)in incapacitated by physical or illness; or

(c) has failed to make any declaration and give notice in accordance with subsection (2) of section 73 of this Act;

(d)has been convicted of a felony, or of an offence under any enactment in Nigeria imposing tax on income or profits,

 the Minister shall make a determination that his office as an Appeal Commissioner is vacant.

(5) Where for any reason there is an insufficient number of Appeal Commissioners to hear one or

more particular appeals, the Minister may make an ad hoc appointment in writing, from among persons of the kind mentioned

in paragraph (a) of subsection (3) of this section, of a person to be an Appeal Commissioner for the purpose of his hearing

such appeal or appeals.

(6) The Minister shall designate a public officer to be Secretary to the body of Appeal Commissioners

and the officer address of the Secretary shall be published in the Federal Gazette.

1961 No. 22

(7) Those persons duly appointed as Appeal commissioners and Secretary to the body of Appeal

Commissioners for the purposes of the Companies Income Tax Act 1961, and holding office as such immediately before the

date of commencement of this Act shall be deemed to have been appointed or designated, as the case may be, to like officers

under the provisions of this section, and the Appeal Commissioners so deemed to be appointed shall constitute the body of

Appeal Commissioners on that date.

(8) the board of Appeal Commissioners shall remain in office until a new board is sworn in [24]

Appeals to Appeal Commissioners.

72. (1) Any company which, being aggrieved by an assessment made upon it, has failed to agree with

Board in the manner provided in subsection 5 of section 69 of this Act, may appeal against the assessment to the Appeal Commissioners

upon giving notice in writing to the Board and to the Secretary to such Appeal Commissioners within thirty days after the date

of service upon such company of notice of the refusal of the Board to amend the assessment as desired.

(2) A notice of an appeal against an assessment, to be given under subsection (1) of this section shall specify the following particulars-

(a)the official number of the assessment and the year of assessment for which it was made;

(b) the amount of the tax charged by assessment;

(c)the amount of the total profits upon which such tax was charged as appearing in the notice of assessment;

(d)the ate upon which the appellant was served with notice of refusal by the Board to amend the assessment as desired;

(e)the precise grounds of appeal against the assessment, but such grounds shall be limited to the grounds stated by the appellant in

its notice of objection; and

(f)an address for service of any notices, precepts or other documents to be given to the appellant by the Secretary to the Appeal Commissioners:

Provided that at any time, the appellant may give notice to such Secretary and to Board, by delivering the same or by registered post, of a change of such address but any such notice shall not be valid until delivered or received.

(3) All notices or documents to be given to the Appeal Commissioners shall be addressed to the Secretary to the Appeal Commissioner in writing at any time before the hearing of such appeal.

(4) A company may discontinue any appeal by it under this section on giving notice to the Secretary to the Appeal Commissioners in writing at any time before the hearing of such  appeal.

(5) Notwithstanding that notice of appeal against an assessment has been given by a company under this section, the

Board may revise the assessment in agreement with the company, and upon notice of such agreement being given in writing

by the Board to the a Secretary to the Appeal Commissioner at any time before the hearing of the appeal, such appeal shall be

treated as being discontinued.

(6) Upon the discontinuance of any appeal under the provisions of this section, the amount or

revised amount of the assessment, as the case many be deemed to have been agreed between the Board and the company

under the provisions of subsection (3) of section 69 of this Act.

Procedure before Appeal Commissioners etc.

73. (1) As often as may be necessary, Appeal Commissioners shall meet to hear appeals in any town in

which is situated an office of the Federal Inland Revenue Department 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 chairman of the body of Appeal Commissioner shall preside and where the chairman is absent, the Appeal Commissioners

present shall elect one of their number to be the chairman for the meeting.

(2) An appeal Commissioner having a direct or indirect financial interest in any company including the holding of or the beneficial interest in any shares, stock or debentures issued by such company) or being a relative of any person having any appeal by such company is pending before the body of

Appeal Commissioners, declare such interest to the other Commissioners and give notice to the Board in writing of such interest relationship and interest and he shall not sit at any meeting for the hearing of that appeal. The like provisions shall apply when the Appeal Commissioner is a legal practitioner or an accountant, and the company is or has been a client of that Appeal Commissioner.

(3) The Secretary to the Appeal Commissioners shall give seven clear day's notice to the Board and to

the appellant of the date and place fixed for the hearing of each appeal except in respect of any adjourned hearing for which

the Appeal Commissioners have fixed a date at their previous hearing.

(4) All notices, precepts and documents, other than

decisions of the Appeal Commissioners, may be signified under the hand of the Secretary.

(5) All appeals before Appeal Commissioners shall be held in camera.

(6) Every company so appealing shall be entitled to be represented at the hearing of the appeal: Provided that, if the person intended by the company to be its representative in any appeal is unable for good cause

shown 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.

(7) The onus of proving that the assessment complained of is excessive shall be on the appellant.

(8) At the hearing of any appeal, if the representative of the Board 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 55 of this Act), for the year of assessment concerned failed to prepare

deliver to the Board the statement mentioned in that subsection;

(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 prosecuting 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 Board, before the day of the adjourned hearing an amount, on account of the tax

charge by the assessment under appeal, equal to the tax charged upon the appellant for the preceding year of under appeal,

whichever is the lesser plus a sum equal to ten per cent of the said deposit, and if the appellant fails to comply with the order,

the assessment against which it has appealed shall be confirmed and the appellant shall have further right of appeal

whatsoever with respect to that assessment.

(9) The Appeal commissioners may confirm, reduce, increase or annul the assessment or make such order thereon as they see fit.

(10) Every decision of the Appeal commissioners shall be recorded in writing by their chairman and a certified copy of such decision shall be supplied to the appellant or the Board, by the Secretary, upon a request made within three months of such decision.

(11)Where, upon 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)such accounts, were so produced but the Appeal Commissioner rejected the same on the ground that it had been shown to their satisfaction that they were incomplete or unsatisfactory; or

(c)the appellant or his representative, at the hearing of 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 any 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 ability to tax) has refused to answer

any question put to him by the Appeal Commissioners, without showing any reasonably cause, the chairman of the Appeal

commissioners shall record particulars of the same in his written decision.

(12) The Minister may make rules prescribing the

procedure to be followed in the conduct of Appeals Commissioners.

Procedure following decision of Appeal Commissioners.

74(1) Notice of the amount of the tax chargeable under the assessment as determined by the Appeal

Commissioners shall be served by the Board upon the company or upon the person in whose name such company is

chargeable.

(2) Where the tax chargeable upon a company for a year of assessment in accordance with a decision of the

Appeal Commissioners does not exceed N400 no further appeal by the company shall lie from that decision except with the

consent of the Board.

(3) An award or judgment of the Body of Appeal Commissioners shall be enforced as if it were a

judgment of the Federal High Court upon registration of a copy of such award of judgment with the Chief Registrar of the

Federal High Court by the Party seeking to enforce the award or judgment.

(4) Notwithstanding that an 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 in pursuance of subsection (1) of this section.

Appeals to Court.

75. (1) Subject to section 74 (2) of this Act, any company which having appealed against an assessment

made upon it to the Appeal Commissioners under section 72  of this Act is aggrieved by the decision of such body may appeal

against such decision on point of law to the Federal High Court upon giving notice in writing to the Secretary to the Appeal

Commissioners within thirty days after the date on which such decision was given. Such notice shall set out all the grounds of

law on which the decision is being challenged.

(2) If the Board is dissatisfied with the decision of the Appeal Commissioners, it may appeal against such

decision to the Federal High Court on a point of law by giving notice in the Appeal Commissioners within thirty days after the

date on which such decision was given.

(3) Upon receipt of a notice of appeal under subsection (1) or (2) of this section, the Secretary to the Appeal Commissioners shall compile the record of proceedings and judgement before the Appeal

Commissioners and staff cause the same to be transmitted to the Chief Registrar of the Federal High Court along with all the

exhibits tendered at the hearing before the Appeal Commissioners.

(4) The provisions of subsections (6), (7) and (9) of section 73 of this Act and of subsection (1) of section 74 of this Act shall apply to an appeal under this section with any necessary modifications.

(5) If upon the hearing of any appeal from a decision of the Appeal Commissioners given under the provisions

of section 73 of this Act, a certified copy of that decision is produced before the Federal High Court and such decision

contained a record by reference to-

(a)paragraph (a) of subsection (11) of that section, the Federal High Court shall dismiss

such appeal; or

(b)paragraph (b) of subsection (11) of that section, the Federal High Court may dismiss such appeal upon such

prima facie evidence, with respect to the accounts, books or records having been complete or unsatisfactory, as to the Federal

High Court may seem sufficient; or

(c)paragraph (c) or (d) of subsection (11) of that section, the Federal High Court shall

dismiss such appeal unless it considers that the cause of the neglect or refusal was reasonable.

(6) The cost of the appeal shall

be in the discretion of the judge hearing the appeal and shall be a sum fixed by the judge.

(7) An appeal against the decision of

a judge shall lie to the court of Appeal-

(a)at the instance of the company, where the decision of the judge is to the effect that the tax chargeable

upon the company for the relevant year of assessment exceeds N1,000; and

(b)at the instance of or with the consent of the Board, in any case: Provided that no costs shall be awarded

against the company in any appeal instituted by the Board under this subsection unless such decision of the judge was to the

effect mentioned in paragraph (a) of this subsection.

(8) The Chief Judge of the Federal High Court may make rules providing for the procedure in respect of appeals made under this section and until such rules are made the rules applicable in civil appeal case from Magistrates Courts to the High Court of Lagos State shall apply with such modifications as the Chief Judge of the Federal High Court may direct.

Assessments to be final and conclusive.

76. Where no valid objection or appeal has been lodged within the time limited by section 69, 72 or 75 of

this Act, as the case may be, against an assessment as regards the amount of the total profits assessed thereby, or where the

amount of total profits has been agreed to under subsection (5) of the section 69   of this Act, or where the amount of such total

profits has been determined on objection, revision under the proviso to subsection (5) of section 69   of this Act, or on appeal,

the assessment as made, agreed to, revised or determined on appeal, as the case may be, shall be final and conclusive for all

purposes of this Act as regards the amount of any such total profits; and if the full amount of the tax in respect of any such

final and conclusive assessment is not paid within the appropriate period or periods prescribed in this Act, the provisions

thereof relating to the recovery of tax, and to any penalty under section 85 of this Act, shall apply to the collection and

recovery thereof subject only to the set-off of the amount of any tax repayable under any claim, made under any provision of

this Act, which has been agreed to by the Board or determined on any appeal against a refusal to admit any such claim:

Provided that-

(a)where an assessment has become final and conclusive any tax overpaid shall be repaid;

(b)nothing in section 69   or in part XI of this Act shall prevent the Board from making any assessment or

additional assessment for any year which does not involve re-opening any issue, on the same facts, which has been

determined for that year of assessment under subsection (3) of section 69   of this Act by agreement or otherwise on appeal.

PART XII-COLLECTION, RECOVERY AND PAYMENT OF TAX

Time within which tax (including provision tax) is to be paid.

77. (1) Notwithstanding any other provision of this section, every company shall, not later than three

months from the commencement of each year of assessment, pay provisional tax of an amount equal to the tax paid by such

company in the immediately proceeding year of assessment in one lump sum

(2) Tax charged by any assessment which is not or has not been the subject of an objection or appeal by

the company shall be payable (after the deduction of any amount to be set-off for the purposes of collection under any

provision of this Act) at the place stated in the notice of assessment within two months after service of such notice upon the

company

Provided that-

(a)if such period of two months expires before the 14th day of December within the year of assessment for which the tax has been charged and the aggregate tax to be set off and of any tax paid for that year within such period then payment of any balance of such tax may be made not later than that day[25]

 (b)where the assessment notice is served on the company within the approved period of payment of provisional tax, the tax shall be paid within two months after the end of the approved period, but if such period of two months expires before the 14th day of December within the year of assessment for which the tax has been charged  then the  payment of any balance of such tax may be made not later than that day[26]

(c)the Board in its discretion may extend the time within which payment is to be made.

(3) Subject to the provisions of subsection (3) section 74  of this Act, collection of tax in any case where notice of an objection or appeal has been given by the company shall remain in abeyance until such objection or appeal is determined, saved that the company shall have paid the provisional tax as provided in subsection (1) of this section or the tax not in dispute, whichever is higher.

(4) Upon the determination of an objection or appeal, the Board shall serve upon the company a notice of the tax payable as so determined, and that tax shall be payable within one month of the date of service of such notice upon the company.[27]

Provided that if such period of one month expires after the 14th day of December within the year of assessment for which the tax has been charged and the condition specified in proviso (a) to subsection (2) of this section are satisfied with respect to the amount of tax charged as so determined, then any balance of the tax payable may be paid not later than that day.

(5) A person filing self assessment shall pay the tax due within two months from the date of filing the assessment in one lump sum or such number of monthly instalments (not being more than six) as may be approved by the board

(a) Provided further that where a request for instalments expires after the 30th day of November within the year of assessment

for each the tax have been charged, the payment of any balance of such tax may be made not later than that day.

(b) provided further that where a request for instalmental payment has been made, the request shall be accompanied with proof

of payment of the first instalment to the designated bank.

(6) The provisions of subsection (1) of this section shall not apply to a company that files a self assessment for the year of assessment[28]

(7) Where a company is required to file a return within the time allowed under section 52 or specified under section 55 of this

Act the tax as computed or shown in the return when filed shall be payable within two months from the date of filing the return, and the

provisions of section 85 of this Act shall apply to the collection of the tax.

(8) Notwithstanding anything to the contrary in any laws, income payable under section 52, 53 and 55 of this Act shall be

paid to the Board in the currency in which the income giving rise to the tax derived and paid to the company making the return

Deduction of tax from interest, etc.

Cap. P8

78. (1) Where any interest other than interest on inter-bank deposits or royalty becomes due from one company to another company or to any person to whom the provisions of the Personal Income Tax Act apply, the company making such payment shall, at the date when payment is made or credited, whichever first occurs deduct therefrom tax at the rate prescribed in subsection (2) of this section and shall forthwith pay over to the Board the amount so deduct.

(2) The rate at which tax is to be deducted in this section shall be 10 per cent.

(3) For the purposes of this section, person authorised to deduct tax includes government departments, parastatals, statutory bodies,

institutions and other establishments approved for the operation of Pay As You Earn system.

(4) The tax, when paid over to the Board, shall be final tax due from a non-resident recipient of the payment.

(5) In accounting for the tax so deducted to the Board, the company shall state in writing the following particulars, that is to say-

(a)the gross amount of the interest or royalty;

(b)the name and address of the recipient; and

(c)the amount of tax being accounted for.

Deduction of tax on rent

79. (1) Where any rent becomes due from or payable by one company to another company or to any

person to whom the provisions of Personal Income Tax Act apply, the company paying such rent shall, at the date when the rent is paid or credited, whichever first occurs, deduct therefrom tax at the rate prescribed under subsection (2) of this section and shall forthwith pay over to the Board the amount so deducted.

(2) The rate at which tax is to be deducted under this section shall be 10 per cent.

(3) For the purposes of this section, persons authorised to deduct tax include government departments, parastatals, statutory bodies, institutions and other establishments approved for the operation of Pay As You Earn system.

(4) The tax, when paid over to the Board, shall be the final tax due for a non-resident recipient of the payment.

(5) In accounting for the tax so deducted to the Board, the company shall state in writing the following particulars, that is to say-

(a)the gross amount of the rent payable per annum;

(b)the name and address of the recipient and the period in respect of which such rent has been paid or credited;

(c)the address and accurate description of the property concerned; and

(d)the amount of tax being accounted for.

(6) Any reference to rent in this section shall be construed whenever necessary as including payments for the use or hire of any equipment, payments for charter vessels, ship or aircraft and all such other payments for the use or hire of movable and immovable property.

Deduction of tax from dividend.

80. (1) Whereby dividend of such other distribution becomes due from or payable by a Nigerian company to any other company or to any person to whom the provision of the Personal Income Tax Act apply, the company paying such dividend or making such distribution shall, at the date when the amount is paid or credited whichever occurs first, deduct therefrom tax at a rate prescribed under subsection (2) of this section, and shall forthwith pay over to the Board the amount so deducted.

(2) The rate at which tax is to be deducted in this section shall be ten per cent.

 (3) Dividend received after the deduction of tax shall be regarded as franked investment income of the company receiving the dividend and shall not be charged to further tax as part of the profits of the recipient company. However, where such income is  redistributed and tax is to be accounted for on the gross amount of distribution in accordance with subsection (1) of this section,  the company may off-set the withholding tax which it has itself suffered on the same income.

(4) The tax, when paid over to the Board, shall be the final tax due from a non-resident recipient of the

Payment.

(5) In accounting for the tax so deducted to the Board, the company shall state in writing the following

particulars, that is to say-

(a)the gross amount of the dividend or such other distribution;

(b)the name and address of the recipient;

(c)the accounting period or periods of the company in respect of the profits out of which the dividend or distribution is declared to be payable and the date on which payment is due; and

(d)the amount of tax so deducted.

Deduction of tax at source

81. (1) Income tax assessable on any company whether or not an assessment has been made, shall, if the Board so directs, be recoverable from any payments made by any person to such company.

(2) Any such direction may apply

to any person or class of persons specified in such direction, either with respect to all companies or a company or class of

companies, liable to payment of income tax.

(3) Any direction under subsection (1) of this section shall be in writing

addressed to the person or be published in the Federal Gazette and shall specify the nature of payments and the rate at which

tax is to be deducted

(4) In determining the rate of tax to be applied to any payments made to a company, the Board may take

into account-

(a)any assessable profits of that company for the year arising from any other source chargeable to income tax

under this Act; and

(b)any income tax or arrears of tax payable by that company for any of the six preceding years of

assessment.

(5) Income tax recovered under the provisions of this section by deduction from payments made to a company

shall be set-off for the purposes of collection against tax charged on such company by an assessment, but only to the

extent that the total of such deductions does not exceed the amount of the assessment and provided the assessment is for the period to which such payments relate under the provisions of section 29 of this Act.[29]

(6) Every person required under any provisions of this Act to make any deduction from payments made to any company shall account to the board in such manner as the Board may prescribe for the deduction so made.

(7) The Minister of Finance  on the advice of the Board may make Regulations for the carrying out of the provisions of this section.

Penalty for failure to deduct tax.

82. Any person who being obliged to deduct any tax under section 78, 79, 80 or 81 of this Act fails to deduct or having deducted fails to pay to the Board within thirty days from the date the amount was deducted or the time to duty to deduct arose, shall be guilty of an offence and shall be liable on conviction to a fine of 200% of the tax not withheld or not remitted as the case may be

83.  where the person referred to under section 82 is a Ministry Department, parastatal, institution or an agency of the Federal or a state Government or is a local Government the board may authorize the Accountant-General of the Federation in writing to deduct from the allocation of such Federal Ministry, Department, parastatal, institution or agency of the state Government or local Government such amount of tax deductible plus interest at the prevailing commercial rate

84. Income tax deducted under sections 78, 79, 80 and 81 of this Act shall be paid to the board in the currency in which such deduction was made[30]

Addition for non-payment of tax and enforcement of payment.

85. (1) Subject to the provisions of subsection (3) of this section, if any tax is not paid within the periods

prescribed in section 77  of this Act-

 (a) a sum equal to ten percent per annum of the amount of tax payable shall be added thereto, and the provisions of this Act relating to the collection and recovery of tax shall apply to the collection and recovery of such sum;

(b) the tax due shall carry interest at bank lending rate from the date when the tax becomes payable until it is paid and the provisions of this Act relating to collection and recovery of tax shall apply to the collection and recovery of the interest.

(c) the Board shall serve a demand note upon the company or person in whose name and company is chargeable, and if the payment is not made within one month from the date of service of such demand note, the Board may proceed to enforce payment as hereinafter provided;

 (d)an addition imposed under this subsection shall not be deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this Act.

(2) Any company which without lawful justification or excuse, the proof whereof shall lie on the

company, fails to pay the tax within the period of one month prescribed in paragraph (b) of subsection (1) of this section,

shall be guilty of an offence against this Act.

(3) The Board may, for any good cause shown, remit the whole or any part of the addition due under

subsection (1) of this section.

Power to distrain for non-payment of tax.

86. (1) Without prejudice to any other power conferred on the Board for the enforcement of payment of

tax due from a company, an assessment has become final and conclusive and a demand note has, in accordance with the

provisions of this Part of this Act, been served upon the company or upon the person in whose name the company is

chargeable, then, if payment of the tax is not made within the time limited by the demand note, the Board may in the

prescribed form, for the purpose of enforcing payment of the tax due-

(a)distrain the taxpayer by his goods or other chattels, bond or other securities;

(b)distrains upon any land, premises, or place in respect of which the taxpayer is the owner and,

subject to the following provisions of this section, recover the amount of tax due by sale of anything so distrained.

(2) The authority to distrain under this section shall be in the form contained in the Fourth schedule to this Act, and such authority

shall be sufficient warrant and authority to levy by distress the amount of tax due.

(3) For the purposes of levying any distress under this section, any officer authorised in writing by the Board may execute any warrant of distress and if necessary break

open any building or place in the day time for the purpose of levying such distress, and he may call to his assistance any

police required to aid and assist in the execution of any warrant of distress and in levying the distress.

(4) Things distrained

under this section may, at the cost of the taxpayer, be kept for fourteen days and at the end of that time if the amount due in

respect of the tax and the cost and charges of and incidental to the distress are not paid, they may, subject to subsection (6) of

this section, sold at any time thereafter.

(5) Out of the proceeds of any such sale there shall, in the first place, be paid the cost

or charges of and incidental to the (sale and keeping of the) distress, and disposal thereunder and in the next place the amount

due in respect of tax; and the balance (if any) shall be payable to the taxpayer upon demand being made by him or on his

behalf within one year of the date of the sale.(6) Nothing in this section shall be construed so as to authorise the sale of any

immovable property without an order of a High Court, made on application in such form as may be prescribed by rules of

court.

Action for tax by Board and refusal of clearance where tax is in default.

87. (1) Tax may be sued for and recovered in a court of competent jurisdiction at the place stated in the

notice of assessment as being the place at which payment should be made, by the Board in its official name with full cost of

action from the company charged therewith as a debt due to the Government of the Federation.

(2) For the purposes of this section, a court of competent jurisdiction shall include a magistrate's court,

which court is hereby invested with the necessary jurisdiction, provided that the amount claimed in any action does not

exceed the amount of the jurisdiction of the magistrate concerned with respect to actions for debt.

(3) In any action brought such subsection (1) of this section, the production of a certificate signed by any

person duly authorised by Chairman of the Board giving the name and address of the defendant and the amount of tax due

shall be sufficient evidence of the amount so due and sufficient authority for the court to give judgement for the said amount.

(4) In addition to any other powers of collection and recovery provided in this Act, the Board may, where

the tax charged on the profits of any company which carries on the business of shipowner or charterer has been in default for

more than three months, whether such company is assessed directly or in the name of some other person, issue to the

Department of Customs and Excise or other authority by whom clearance may be granted, a certificate containing the name or

names of the said company and particulars of the tax in default, and on receipt of such certificate, the said Department of

Customs and Excise or other authority shall be empowered and is hereby required to refuse clearance from any port in Nigeria

to any ship owned wholly or partly or chartered by such company until the said tax has been paid.

(5) No civil or criminal proceeding shall be instituted or maintained against the said Department of

Customs and Excise or other authority in respect of a refusal of clearance under this section, nor shall the fact that a ship is

detained under this section affect the liability of the owner, charterer, or agent to pay harbour dues and charges for the period

of detention.

88. (1) The court, before which the Board has sued a company for non-payment, of tax, may issue a bench warrant on a director or other officer of the company to compel the director or officer to appear at every proceeding on the case until the final disposal of the case.

(2) Where the Board has obtained judgment against a company for non-payment of tax and the judgment debt remains unpaid six months after the judgment, the court may, on the application of the Board, issue a bench warrant on a director or other officer of the company to compel the director or officer to appear in court and show cause why the judgment debt has not been paid . [31]

 Remission of tax.

89. The President may remit, wholly or in part, the tax payable by any company if he is satisfied that it

will be just and equitable to do so.

Relief in respect of error or mistake.

90. (1) If any company which has paid tax for any year of assessment alleges that any assessment made

upon it for that year was excessive by reason of some error or mistake in the return, statement or account made by or on

behalf of the company for the purposes of the assessment, it may, at any time not later than six years after the end of the year

of assessment within which the assessment was made, make an application in writing to the Board for relief.

(2) On receiving any such application the Board shall inquire into the matter and shall, subject to the provisions of this section, give by way of repayment of tax such relief in respect of the error or mistake as appears to be reasonable and just:

Provided that no relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the applicant ought to have been computed where the return, statement or account was in fact made on the basis or in accordance with the practice of the board generally prevailing at the time when the return, statement or account was made.

(3) In determining any application under this section, the Board shall have regard to all the relevant circumstances of the case, and in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of the company, and for this purpose the Board may take into consideration the liability of the company and assessments made upon it in respect of other years.

(4) A determination by the Board under this section shall be final and conclusive.

Repayment of tax.

91. (1) Save as is otherwise in this Act expressly provided, no claim for repayment of tax shall be allowed

unless it is made in writing within six years after the end of the year of assessment to which it relates.

(2) The Board shall give a certificate of the amount of any tax to be repaid under any of the provisions of

this Act or under any order of a court of competent jurisdiction and upon the receipt of the certificate, the Accountant-General of the Federation shall cause repayment to be made in conformity therewith.

PART XIII-OFFENCES AND PENALTIES

Penalty for offences.

92. (1) Any person guilty of an offence against this Act or any person who contravenes or fails to comply with any of the provisions of this Act or of any rule made thereunder for which no other penalty is specifically provided, shall be liable on conviction to a fine of N200, and without prejudice to section 55(4) or (5), where such offence is the failure to furnish a statement or information or to keep records required, a further sum of N40 for each and every day during which such failure continues, and in default of payment to imprisonment for six months, the liability for such further sum to commence from the day following the conviction, or from such day thereafter as the court may order.

(2) Any person who 

(a) fails to comply with the requirements of a notice served on him under this Act; or

(b) without sufficient cause fails to attend in answer to a notice or summons served on him under this Act or having attended fails to answer any question lawfully put to him,

shall be guilty of an offence against this Act.

 Cap C41

(3) Notwithstanding any of the provisions of the Criminal Procedure Act  or any other applicable law, a magistrate may dispense with personal attendance of the defendant if he pleads guilty in writing or so pleads by a legal practitioner.

(4) In the case of failure by a company to comply with the requirements of any notice given by the Board under the provisions of section 55 or 58 of this Act for the purpose of the tax to be charged upon the company for any year of assessment, the Board may, in lieu of the institution of proceedings under subsection (2) of this section, impose a penalty upon the company of an amount equal to the tax chargeable upon the company for the preceding year of assessment:

Provided that 

a.      written notice of the penalty shall be served upon the company; and

b.      any amount of such penalty remaining unpaid thirty days after service of such notice may be sued for and recovered in a court of competent jurisdiction by the Board in its official name with full costs of action from the company liable thereto as a debt due to the Government of the Federation; and

c.      a certificate signed by an officer of the Federal Inland Revenue Department duly authorised by the Board setting out the name and address of such company, the date of service of the said notice, and the amount of the penalty remaining unpaid, shall be sufficient authority for the court to give judgment for that amount; and

d.      the Board may remit the whole or any part of such penalty, whether before or after judgment, for any reason which appears to it to be adequate.

93.   Penalty for making incorrect return.

(1) Every company which, and every other person who, without reasonable excuse 

a.      makes an incorrect return by omitting or understating any profits liable to tax under this Act; or

b.      gives any incorrect information in relation to any matter or thing affecting the liability of any company to tax,

shall be guilty of an offence and shall be liable on conviction to a fine on N200 and double the amount of tax which has been undercharged in consequence of such incorrect return or information, or would have been so undercharged if the return or information had been accepted as correct.

(2) No company or other person shall be liable to any penalty under this section unless the complaint concerning such offence was made in the year of assessment in respect of or during which the offence was committed or within six years after the expiration thereof.

(3) The Board may compound any offence under this section, and may before judgment stay or compound any proceedings thereunder.

(4) For the purposes of this section, a return shall be deemed to be made both by the company and any other person signing such return on behalf of the company.

94.   False statements and returns.

(1) Any person other than a company who 

a.      for the purpose of obtaining any deduction, set-off, relief or repayment in respect of tax for any company, or who in any return, account or particulars made or furnished with reference to tax, knowingly makes any false statement or false representation; or

b.      aids, abets, assists, counsels, incites or induces any other person 

(i)                  to make or deliver any false return or statement under this Act, or

(ii)                 to keep or prepare any false accounts or particulars concerning any profits on which tax is payable under this Act, or

unlawfully to refuse or neglect to pay tax.

shall be guilty of an offence and shall be liable on conviction to a fine of N1,000 or to imprisonment for five years, or to both such fine and imprisonment.

(2) The Board may compound any offence under this section and with the leave of the court may before judgment stay or compound any proceedings thereunder.

95.   Penalties for offences by authorised and unauthorised persons.

Any person who 

(a) being a person appointed for the due administration of this Act or employed in connection with the assessment and collection of the tax who 

                                                         i.      demands from any company an amount in excess of the authorised assessment of the tax, or

                                                       ii.      withholds for his own use or otherwise any portion of the amount of the tax collected, or

                                                      iii.      renders a false return, whether orally or in writing, of the amount of tax collected or received by him, or

                                                     iv.      defrauds any person, embezzles any money, or otherwise uses his position as to deal wrongfully with the Board; or

(b) not being authorised under this Act to do so, collects or attempts to collect the tax under this Act,

shall be guilty of an offence and be liable on conviction to a fine of N600 or to imprisonment for three years or to both such fine and imprisonment.

96.   Tax to be payable notwithstanding proceedings for penalties.

The institution of proceedings for, or the imposition of a penalty, fine or term of imprisonment under this Act shall not relieve any company from liability to payment of any tax for which it is or may become liable.

97.   Prosecution to be with the sanction of the Board.

No prosecution in respect of an offence under section 93 94 or 95 may be commenced except at the instance of or with the sanction of the Board.

98.   Saving for criminal proceedings.

The provisions of this Act shall not affect any criminal proceedings under any other enactment.

99. Place of an offence.

78. An offence under this Act shall be deemed to occur in the town where the registered office of the company is situated or at such other place as the Board may decide.

PART XIV-MISCELLANEOUS

Power to alter rate of tax, etc.

100. The President may, by order, revoke or vary for any year of assessment-

(a) the rate of tax specified in section 40; and

(b) any rate of any annual or initial allowance specified in the Second Schedule, save that with respect to an initial allowance any such variation may be expressed to apply to qualifying expenditure incurred after the date of such order or some later specified date.

Tax clearance certificate.

101. (1) Whenever the Board is of the opinion that tax assessed on profits or income of a person has been fully paid or that tax is due

on such profits or income, it shall issue a tax clearance certificate to the person within two weeks of the demand for such certificate by that person or if not give reasons for the denial.[32]

(2) Any Ministry, department or agency of Government or any commercial bank either whom any person has any dealing with

respect to any of the transactions mentioned in subsection (4) of this section, shall demand from such person a tax clearance certificate of three years immediately preceding the current year of assessment.

(3) A tax clearance certificate shall disclose in respect of the last three years of assessment-

(a) total profits or chargeable income;

(b) tax payable;

(c) tax paid;

(d) tax outstanding or alternatively a statement of the effect that no tax is due.

(4) The provisions of subsection (1) of this section shall apply in relation to the following that is-

(a) application for government loan for industry or business;

(b) registration for motor vehicles;

(c) application for firearms licence;

(d) application for foreign exchange or exchange control

permission to remit funds outside Nigeria;

(e) application for certificate of occupancy;

(f) application for award of contracts by Government and

its agencies and registered companies;

(g) application for trade licence;

(h) application for approval of building plans;

(i) application for transfer of real property;

(j) application for import or export licence;

(k) application for plot of land;

(l) application for buying agent licence;

(m) application for pools or gaming licence;

(n) application for registration as a contractor;

(o) application for distribution;

(p) stamping of guarantor's form for Nigerian passport;

(q) application for registration of a limited liability company

or of a business names; and

(r) application for allocation of market stalls.

(s) stamping of statement of the nominal share capital of a company to be registered and any increase in the registered share capital of any company

(t) stamping of statement of the amount of loan capital

(5) An applicant for exchange control permission to remit funds to a non-resident recipient in respect of income accruing from rent,

dividend, interest, royalty, fees, or any other similar income shall be

required to produce a tax clearance certificate to the effect that tax has

been paid on funds in respect of which the application is sought or

that no tax is payable whichever is the case.

(6) When a person who has deducted any tax under any

provisions of this Act fails to pay the tax so deducted to the

appropriate tax authority, no tax clearance certificate may be issued to

that person even if he has fully discharged his own tax liability under

this Act.

(7) where a person is able to produce evidence that he suffered tax by deductions at source and that the assessment year to which the tax relates falls within the period covered by the tax clearance certificate such a person may not be denied a tax clearance certificate. Provided that any balance of tax after credit has been given for the tax so deducted has been fully paid[33]

Conduct of proceedings

102. Any officer of the Federal Inland Revenue Department duly authorised in writing in that regard by the Chairman of the Board, may conduct any

prosecution or other proceeding arising under this Act in any court in the Federation.

Power to pay reward.

103. The Board may with approval of the Commissioner, pay rewards to any person, not being a person employed in the Federal Inland Revenue Department in respect of any information which may be of assistance to the Board in the performance of its duties under this Act.

Repeals, transitional provisions. etc. Cap. I23 1961 No. 22.

104. (1) Subject to this section and without prejudice to the

provisions of section 6 of the Interpretation Act, the Companies

Income Tax Act 1961 shall, except where other provisions are made in

that behalf in this Act, cease to have effect with respect to tax on the

income or profits of companies for all years of assessment beginning

after the 31st day of March 1977.

(2) Anything made or done, or having effect as if made or done,

before the date of commencement of this Act under or pursuant or any

provision of the Companies Income tax Act by the Board and having

any continuing or resulting effect with respect to the taxation of the

profits of a company or any matter connected therewith shall be

treated and for all purposes shall have effect as if it were made or

done by the Board under the corresponding provision of this Act.

(3) All rules, notices or other subsidiary legislation made under

the Companies Income Tax Act 1961 shall continue to have effect as

if made under the corresponding provisions of this Act.

Cap. P8 1961. No. 22.

(4) All references in the Personal Income Tax Act  and in any other enactment to provisions of the Companies Income Tax Act 1961 shall be construed as references to the corresponding provisions of this Act.

Interpretation

105. (1) In this Act, unless the context otherwise requires-

"Board" means the Federal Board of Inland Revenue referred to in section 1 of this Act;

"company" means any company or corporation (other than a corporation sole) established by or under any law in force in Nigeria or

elsewhere;

"foreign company" means any company or corporation (other than a corporation sole) established by or under any law in force in any

territory or country outside Nigeria;

"Joint Tax Board" means the Joint Tax Board established under the provisions of any enactment regulating the taxation of incomes of

person of other than companies Nigeria;

"Minister" means the Minister charged with responsibility for finance;

"Nigeria company" means any company incorporated under the Companies and Allied matters Act or any enactment replaced by that

Act;

"officers of the board" includes any officer of the Federal Inland Revenue Service[34];

"persons" includes a company or body of persons;

"tax" means the tax impose by this Act;

"year of assessment" means a period of twelve months commencing

on 1st January.

(2) Any reference in this Act to any section Part or Schedule

not otherwise identified is a reference to that section Part or Schedule

of this Act.

Short title and application.

106. (1) This Act may be cited as the Companies Income Tax  Act.

(2) This Act shall, except where other provision is made in that behalf in this Act, apply in respect of tax charged for the year of assessment commencing on 1st April 1977 and each succeeding year of assessment.

FIRST SCHEDULE

SECTION 3(4)

POWER OR DUTIES WHICH THE BOARD MAY NOT DELEGATE EXCEPT TO THE JOINT TAX BOARD WITH THE CONSENT OF THE MINSTER

1. In this Schedule, any reference to powers and duties shall include any part of any power or duty of the Board either to make enquiries or to carry out or give effect to any decision of the Board.

2. Subject to paragraph (b) of subsection (4) of section 3 of this Act, no power or duty of the Board specified or imported in the following provision, namely-

(a) sections 1 (3), 7, 14 (2), 21, 22, 23 (1) (d), 29 (6), 29 (9), 42 (3), 42 (5), 43 (2) (b), 87 (4), 90, 91 (2), 93 (3) and 94 (2) of this Act, and in paragraphs 6 (2) and 18 of Schedule 2 thereto;

(b) -section 13 of the Industrial Development (Income Tax Relief) Act;

[Cap. 17.]

(c) the powers of the Board to decide to take proceedings under subsection (3) of section 6 or to take or sanction proceedings under section 97 of this Act;

(d) the power of the Board to consider anything necessary under subsection (2) of section 3 of this Act;

(e) the power of the Board to authorise under subsections (3) and (4) of section 3 of this Act, shall be delegated to any other person.

SECOND SCHEDULE CAPITAL ALLOWANCE

ARRANGEMENT OF PARAGRAPHS

Paragraph

1. Interpretation.

2. Provisions relating to mining expenditure.

3. Owner and meaning of relevant interest".

4. Sale of buildings.

5. Qualifying industrial building expenditure.

6. Initial allowances.

7. Annual allowance.

8. Asset to be in use at end of basis period.

9. Balancing allowances.

10. Balancing charges.

11. Residue.

12. Meaning of "disposal of".

13. Value of an asset.

14. Apportionment.

15. Part of an asset.

16. Extension of meaning of "in use".

17. Exclusion of certain expenditure.

18. Application to lessors.

19. Asset used or expenditure incurred partly for the purposes of a trade or business.

20. Disposal without change of ownership.

21. Meaning of "allowances made".

22. Claims for allowances.

23. Election in double taxation cases.

24. Manner of making allowances and charges.

TABLE I-INITIAL ALLOWANCES

TABLE II-ANNUAL ALLOWANCES

Interpretation. 1. (1) For the purposes of this Schedule-

"basis period" has the meaning assigned to it by the following

provisions of this definition-

(a) in the case of company to or on which any allowance of

charge falls to be made in accordance with the

provisions of the Schedule, its basis period for any year

of assessment is the period by reference to the profits or

which any assessable profits for that year fall to be

computed under the provisions of section 29 of this Act;

(b) such profits mean profits in respect of the trade or

business in which there was used an asset in

connection with which such allowance or charge falls to

be made:

Provided that, in the case of any such trade or business-

(i) where two basis period overlap, the period common to

both shall be deemed, except for the purpose of making

an annual allowance, to fall in the basis period ending at

the earlier date and in no other basis period,

(ii) where two basis periods coincide, they shall be treated

as overlapping, and the basis period for the earlier year

of assessment shall be treated as ending before the end

of the basis period for the later year of assessment,

(iii) where there is an interval between the end of the basis

period for one year of assessment and the basis period

for the next year of assessment, then unless the

second-mentioned year of assessment is the year in

which, for the purposes of subsection (4) of section 24,

such company permanently ceases to carry on the trade

or business, the interval shall be deemed to be part of

the second basis period, and

(iv) where there is an interval between the end of the basis

period for the year of assessment preceding that in

which the trade or business permanently ceases, for the

purposes of subsection (4) of section 29, to be carried

on by such company and the basis period for the year in

which it so ceases, the interval shall be deemed to form

part of the first basis period;

"concession" includes a mining right and a mining lease;

"lease" includes an agreement for a lease where the term to be

covered by the lease has begun, any tenancy and any agreement for

the letting or hiring out of an asset, but does not include a mortgage,

and the expression "leasehold interest" shall be construed accordingly

and -

(a) where, with the consent of the lessor, a lease of any

asset remains in possession thereof after the

termination of the lease without a new lease being

granted to him, that lease shall be deemed for the

purposes of this Schedule to continue so long as he

remains in possession as aforesaid; and

(b) where, on the termination of a lease of any asset, a new

lease of that asset is granted to the lessee, the

provisions of this Schedule shall have effect as if the

second lease were a continuation of this first lease;

"qualifying expenditure" means, subject to the express provision of this

Schedule, expenditure incurred in a basis period which is -

(a) capital expenditure (hereinafter called "qualifying plant

expenditure") incurred on plant, machinery or fixtures;

(b) capital expenditure (hereinafter called "qualifying

building expenditure") incurred on the construction of

buildings, structures of works of a permanent nature,

other than expenditure which is included in subparagraph

(a) or (c) of this definition;

(c) capital expenditure (hereinafter called "qualifying mining

expenditure") incurred in connection with, or in

preparation for, the working of a mine, oil well or other

source of mineral deposits of a wasting nature (other

than expenditure which is included in sub-paragraph (a)

of this definition);

(d) capital expenditure (hereinafter called "qualifying

planting expenditure") incurred in connection with a

plantation-

(i) on the clearing of land for planting,

(ii) on planting (other than replanting),

(iii) on the construction of any works or buildings

which are likely to be of little or no value when

the source is no longer worked or, where the

source is worked under a concession, which are

likely to become valueless when the concession

comes to an end to the company working the

source immediately before the concession

comes to an end.

(iv) on the acquisition of, or of rights in or over, the

deposits or on the purchase of information

relating to the existing and extent of the deposits,

(v) on searching for or on discovering and testing

deposits, or winning access thereto;

(e) and for the purposes of this definition, where-

(i) expenditure is incurred for the purposes of a

trade or business by a company about to carry

on such trade or business, and

(ii) that expenditure is incurred in respect of an

asset owned by that company if that expenditure

would have fallen to be treated as qualifying

expenditure if it had been incurred by that

company on the first day on which it carries on

that trade or business,

that expenditure shall be deemed to be qualifying

expenditure incurred by it on that day;

(f) capital expenditure, that is, qualifying research and

development expenditure, incurred on equipment and

facilities, patent, licences, secret formula or process or

for information concerning industrial commercial or

scientific process; technical feasibility of products or

processes and purchases, searching for and

discovering and testing products or process for future

market or use; and such other similar cost which has not

brought into existence any asset;

(g) capital expenditure, that is, qualifying agricultural

expenditure, incurred on plant in use in agricultural

trades and businesses within the meaning of section 11

of this Act;

(h) capital expenditure, that is, qualifying public transportation motor vehicle expenditure, incurred on a

fleet of buses of not less than three used for public transportation;

(i) capital expenditure (hereafter called qualifying public transportation (inter-city) new mass transit coach expenditure incurred on new mass transit coach of 25 seats and above operated by a recognized corporate private establishment[35]

"trade or business" means a trade or business or that part of a trade or business the profits of which are assessable under this Act.

Application of capital allowances to assets acquired under hire purchase agreement, etc.

(2) This Schedule shall apply in relation to any asset acquired

by any hirer under a hire-purchase agreement, the terms of which

provide for the use and ultimate acquisition of the asset by the hirer,

as it applied to an asset acquired by any owner of an asset for the

purposes of his trade or business, but shall so apply subject to the

following modifications, that is to say-

(a) the qualifying expenditure within the meaning of subparagraph

(1)(i) of paragraph 1 of this Schedule shall,

in relation to any asset so acquired under that

agreement, be limited to the amount of the instalment

paid by the hirer during his basis period (within the

meaning of those provisions) excluding in the

computation of such qualifying expenditure any interest

paid under the agreement;

(b) any reference in the provisions as aforesaid to any

owner of any asset shall be construed as including a

reference to a hirer under the hire-purchase agreement

and as excluding a reference to the person letting the

goods to the hirer under the agreement.

Provisions relating to mining expenditure.

2. (1) For purposes of this Schedule, where-

(a) qualifying mining expenditure has been incurred on the

purchase of information relating to the existence and

extent of the deposits or on searching for or on

discovering and testing deposits or winning access

thereto and such expenditure has been incurred for the

purposes of a trade or business carried on by the

company incurring the expenditure, or expenditure has

been incurred for the purpose of trade or business

about to be carried on by the company incurring the

expenditure and such expenditure would have fallen to

be treated as such qualifying mining expenditure if it

had been incurred in a basis period; and

(b) such expenditure has not brought into existence any asset; and

(c) such trade or business consists of the working of mine, oil well or other source of mineral deposits of a wasting nature, then such expenditure shall be deemed to have brought into existence an asset owned by the company incurring the expenditure and in use for the purpose of such trade or business.

(2) For the purpose of this Schedule, an asset in respect of which qualifying mining expenditure has been incurred by any company for the purposes of a trade or business carried on by it and which has not been disposed of shall be deemed not to cease to be used for the purpose of that trade or business so long as such company continues to carry on that trade or business.

(3) So much of any qualifying mining expenditure incurred on the acquisition of rights in or over mineral deposits and on the purchase of information relating to the existence and extent of the deposits as exceeds the total of the original cost of acquisition of such rights and of the cost of searching for, discovering and testing such deposits prior to the purchase of such information shall be left out of account for the purposes of this Schedule:

Provided that where such costs were originally incurred by a company which carried on a trade or business consisting, as to the whole or part thereof, in the acquisition of such rights or information with a view to the assignment or sale thereof, the price paid on such assignment or sale shall be substituted for the aforementioned costs.

Owner and meaning of "relevant interest".

3. (1) For the purposes of this Schedule, where an asset

consists of a building, structure or works, the owner thereof shall be

taken to be the owner of the relevant interest in such building,

structure or works.

(2) Subject to the provisions of this paragraph, in this Schedule,

the expression "the relevant interest" means, in relation to any

expenditure incurred on the construction of a building, structure or

works, the interest in such building, structure or works to which the

person who incurred such expenditure was entitled when he incurred

it.

(3) Where, when he incurs qualifying building expenditure or

qualifying mining expenditure on the construction of a building,

structure or works, a person is entitled to two or more interests,

therein, and one of those interests is an interest which is reversionary

on all the other, that interest shall be the relevant interest for the

purposes of this Schedule.

Sale of buildings.

4. (1) Where capital expenditure has been incurred on the

construction of a building, structure or works and thereafter the

relevant interest therein is sold, any company which buys that interest

shall be deemed, for all the purposes of this Schedule except the

granting of initial allowances, to have incurred, on the date when the

purchase price became payable, capital expenditure on the

construction thereof equal to the price paid by it for such interest or to

the original cost of construction whichever is the less:

Provided that where such relevant interest is sold before the

building, structure or works has been used, the foregoing provisions of

this paragraph shall have effect with respect to such sale with the

omission of the words "except the granting of initial allowances" and

the original cost of construction shall be taken to be the amount of the

purchase price on such sale:

Provided also that where any such relevant interest is sold

more than once before the building, structure or works is used, the

provisions of the foregoing proviso shall have effect only in relation to

the last of those sales.

Qualifying

industrial building

expenditure.

5. For the purpose of this Schedule-

(a) where but for this paragraph a company is entitled to an

annual allowance in respect of qualifying building

expenditure in respect of an asset in use, for the

purposes of a trade or business carried on by it at the

end of its basis period for any year of assessment, if

that asset is an industrial building or structure in use as

such at the end of its basis period for any such year

then, in lieu of such allowance and qualifying building

expenditure, the qualifying expenditure in respect of that

asset shall be taken to mean "qualifying industrial

building expenditure" for any allowances to be made to

such company, in respect of that qualifying expenditure ,

for that year, and

(b) "industrial building or structure" means any building or

structure in regular use-

(i) as a mill, factory, mechanical workshop, or other

similar building, or as a structure used in

connection which any such buildings,

(ii) as s dock, port, wharf, pier, jetty or other similar

building, structure,

(iii) for the operation of a railway for public use or of

a water or electricity undertaking for the supply of

water or electricity for public consumption, and

(iv) for the running of a plantation or for the working

of a mine or other source of mineral deposits of a

wasting nature.

Initial

allowances.

6. (1) Subject to the provisions of this Schedule, where in its

basis period for a year of assessment a company owning any asset

has incurred in respect thereof qualifying expenditure wholly,

exclusively, necessarily and reasonably for the purposes of a trade or

business carried on by it, there shall be made to that company for the

year of assessment in its basis period for which that asset was first

used for the purposes of that trade or business an allowance (in this

Schedule called "an initial allowance") at the appropriate rate per

centum, set forth in Table I to this Schedule, or such expenditure.

(2) Where capital expenditure is incurred on the purchase of

an asset and either purchaser is a person over whom the seller has

control, or the seller is a person over whom the purchaser has control,

or some other person has control over both the purchaser and the

seller, then, the amount of any initial allowance to be made in respect

of such expenditure shall be such an amount as the Board may

determine to be just and reasonable having regard to all the

circumstances relating to such asset and control:

Provided that any such amount shall not exceed the amount of the initial allowance which would have been allowable apart from the provisions of this sub-paragraph.

(3)  Where a company has incurred qualifying expenditure for the purchase of plants and machineries for the replacement of the old ones, there shall be allowed such company a once and for all 95 per cent capital allowances in the first year, with 5% retention as the book value until the final disposal of the asset,

Provided that the aggregate capital allowances granted in respect of any asset under this Schedule and under section 42 shall not exceed 95% of the total cost of the asset

Annual allowances.

7. (1) Subject to the provisions of this Schedule, where in its

basis period for a year of assessment, a company owning any asset

has incurred in respect thereof qualifying expenditure wholly,

exclusively, necessary and reasonably for the purpose of a trade or

business carried on by it, whether or not an initial allowance was

made in respect of that qualifying expenditure, there shall be made to

that company for each year of assessment, in its basis period for

which that asset was used for the purpose of that trade or business,

an allowance (hereinafter called "an annual allowance" at the rate

specified in respect thereof in Table II of this Schedule of such

expenditure after the deduction of initial allowance where applicable:

Provided that an amount of N= 10 shall be retained in the

accounts for tax purposes until the asset is disposed of:

provided further that where the basis period for any year of

assessment is a period of less than one year and such allowance for

that year of assessment shall be proportionately reduced.

(2) In the case of an assets in respect of which an allowance

has been granted before the commencement of this sub-paragraph,

an allowance shall made in respect of the asset for the number of

years which, if added to the number of years of assessment for which

allowance has already been made, equals the number of years of

assessment for which allowance is to made under the provisions of

sub-paragraph (1) of this paragraph:

Provided that if an allowance has been made for a number of

years which is equal to or more than the number of years specified

under sub-paragraph (1) of this paragraph, a single allowance shall be

made for an amount which isN= 10 less than the residue of the

qualifying expenditure for the year of assessment in which this subparagraph

takes effect.

Asset to be in

use at the end of

basis period.

8. An initial or an annual allowance in respect of qualifying

expenditure incurred in respect of any asset shall only be made to a

company for a year of assessment if a t the end of its basis period for

that year it was the owner of that asset and that asset was in use for

the purposes of a trade or business carried on by that company.

Balancing allowances.

9. Subject to the provisions of this Schedule, where in its basis

period for a year of assessment a company owning an asset, which

has incurred in respect thereof qualifying expenditure wholly,

exclusively, necessarily and reasonably for the purposes of a trade or

business carried on by it, disposes of that asset an allowance

(hereinafter called "a balancing allowance") shall be made to that

company for that year of the excess of the residue of that expenditure,

at the date such asset in disposed of, over the value of that asset at

that date:

Provided that a balancing allowance shall only be made in

respect of such asset if immediately prior to its disposal it was in use

owner in the trade or business for the purpose of which such

qualifying expenditure was incurred.

Balancing

charges.

10. Subject tot he provisions of this Schedule, where in its

basis period for a year of assessment a company owning an asset,

which has incurred in respect thereof qualifying expenditure wholly,

exclusively, necessarily and reasonably for the purposes of a trade or

business carried on by it, disposes of that asset, a charge (hereinafter

called "a balancing charge") shall be made on that company for that

year of the excess of the value of that asset, at the date of its disposal,

over the residue of that expenditure at that date:

Cap. 85. of 1958 Edition.

Provided that a balancing charge shall only be made in respect

of such asset if immediately prior to its disposal it was in se by such

owner in the trade or business for the purposes of which such

qualifying expenditure was incurred and shall not exceed the total of

any allowances made to such owner under the provisions of this

Schedule in respect of such asset and, in cases falling under

paragraph 19 of the Fourth Schedule to the Income Tax Act, of any

deductions made under section 10 of this Act in respect of the capital

cost of such asset.

Residue

11. (1) The residue of qualifying expenditure, in respect of any

asset, at any date, shall be taken to be the total qualifying expenditure

incurred on or before that date, by the owner thereof at that date, in

respect of that asset, less the total of any initial or annual allowances

made to such owner, in respect of that asset, before that date.

(2) For the purpose of this paragraph, an initial allowance or

annual allowances shall be deemed to be made at the end of the

basis period for the year of assessment for which any such allowance is made.

Meaning of "disposed of".

12. Subject to any express provision to the contrary, for the

purposes of this Schedule-

(a) a building, structure of works of a permanent nature is

disposed of if any of the following events occur-

(i) the relevant interest therein is sold, or

(ii) that interest, being an interest depending on the

duration of a concession, comes to an end on

the coming to an end of that concession, or

(iii) that interest, being a leasehold interest, comes to

an end otherwise than on the person entitled

thereto acquiring the interest which is

reversionary thereon, or

(iv) the building, structure or works of a permanent

nature are demolished or destroyed or, without

being demolished or destroyed, cease altogether

to be used for the purpose of a trade or business

carried on by the owner thereof;

(b) plant, machinery or fixtures are disposed of if they are

sold, discarded or cease altogether to be used for the

purposes of a trade or business carried on by the owner

thereof;

(c) assets in respect of which qualifying mining expenditure

is incurred are disposed of if they are sold or if they

cease to be used for the purposes of the trade or

business of the company incurring the expenditure

either on such company ceasing to carry on such trade

or business or on such company receiving insurance or

compensation monies thereof;

Value of an

asset.

13. (1) The value of an asset at the date of its disposal shall be

the net proceeds of the sale thereof or of the relevant interest therein,

or if it was disposed of without being sold, the amount which, in the

opinion of the Board, such asset or the relevant interest therein, as the

case may be, would have fetched if sold in the open market at that

date, less the amount of any expenses which the owner might

reasonably be expected to incur if the asset were so sold.

(2) For the purposes of this paragraph, if an asset is disposed

of in such circumstances that insurance or compensation monies are

received by the owner thereof, the asset or the relevant interests

therein, as the case may be, shall be treated as having been sold and

as though the new proceeds of the insurance or compensation monies

were the net proceeds of the sale thereof.

(3) So much of sub-paragraph (1) of this paragraph as relates

to the circumstances of determining the value of an asset by reference

to the disposal of such asset, other than by way of sale, shall have

effect-

(a) in relation to any asset or the relevant interest therein

disposed of not being by way of bargain made at arm's

length; or

(b) where the sale is between persons who are related to

each other or between person both of whom are

controlled by some other person or one of whom has

control over the other.

Apportionment.

14. (1) Any reference in this Schedule to the disposal, sale or

purchase of any asset includes a reference to the disposal, sale or

purchase of that asset, as the case may be, together with any other

asset, whether or not qualifying expenditure has been incurred on

such last-mentioned asset; and where an asset is disposed of, sold, or

purchased together with another asset, so much of the value of the

assets as, on a just apportionment, is this Schedule, be deemed to be

the value of or the price paid for that asset, as the case may be.

For the purposes of this sub-paragraph, all the assets which

are purchased or disposed of in pursuance of one bargain shall be

deemed to be purchased or disposed of together, notwithstanding that

separate prices are or purport to be agreed for each of those assets or

that there are or purport to be separate purchases of disposals of

those assets.

(2) The provisions of sub-paragraph (1) of this paragraph shall

apply, with any necessary modifications, to the sale or purchase of the

relevant interest in any asset together with any other asset or relevant

interest in any other asset.

Part of an asset.

15. Any reference in this Schedule to any asset shall be

construed whenever necessary as including a reference to a part of

any asset (including an undivided part of that asset in the case of joint

interests therein) and when so construed any necessary

apportionment shall be made as may, in the opinion of the Board, be

just and reasonable.

Extension of

meaning of "in

use".

16. (1) For the purposes of this Schedule, an asset shall be

deemed to be in use during a period of temporary disuse.

(2) For the purposes of paragraphs 6, 7 and 8 of this Schedule-

(a) an asset in respect of which qualifying expenditure has

been incurred by the company owning such asset for

the purposes of a trade or business carried on by it shall

be deemed to be in use, for the purposes of that trade

or business, between the dates hereinafter mentioned,

where the Board is of the opinion that the first use to

which the asset will be put by the company incurring

such expenditure will be for the purposes of that trade or

business;

(b) the said dates shall be taken to be the date on which

such expenditure was incurred and the date on which

the asset is in fact first put to use:

Provided that where any allowances have been given in

consequence of this sub-paragraph and the first use to which such

asset is put is not for the purposes of such trade or business, all such

additional assessments shall be made as may be necessary to

counteract the benefit obtained from the giving of any such

allowances.

Exclusion of

certain

expenditure.

17. Where any company has incurred expenditure which is

allowed to be deducted, in computing the profits of its trade or

business under section 24 of this Act, such expenditure shall not be

treated as qualifying expenditure.

Application of lessors.

18. (1) Where a company owning any asset-

(a)   has incurred capital expenditure in respect thereof

(b) leases that asset to any person under an operating lease contract for use wholly, exclusively, necessarily and reasonably for the

purposes of a trade or business carried on or about to be carried on by such  person; and

the provisions of this Schedule shall apply, as though such expenditure were incurred for the purposes of a trade or business carried on by the owner or the lessor and as though the owner or the lessor were using the asset   for such last mentioned trade or business in the way in which and for the period or periods during which the asset is in fact in the first mentioned trade or business.

(2) where however an asset is acquired by any hirer or lessee under a finance lease contracts, the terms of which provide for transfer of ownership risks and rewards to the hirer or lessee the provisions of this schedule shall apply in the same way as it applies to an asset acquired by any owner or lessor of an asset for the purposes of his trade or business but shall so apply subject to the following modifications that is to say

(a)   the qualifying expenditure within the provisions of this schedule shall, in relation to any asset so acquired under that contract be limited to the amount of the total lease payments due from hirer or lessee, during the basis period excluding in the computation of such qualifying expenditure any interest charges payable under the contract

(b)   any reference in this sub-paragraph (2) of this paragraph to any owner or lessor of any asset shall be construed as including reference to a hirer or lessee under the finance lease contract and as excluding a reference to the person leasing the assert to the hirer or lessee under the contract

(3) Subject to the provisions of this schedule where a company has incurred capital expenditure on plant and machinery or acquires same by virtue of sub-paragraph (2) of this paragraph, wholly, exclusively, necessarily and reasonably for the purposes of a trade or business carried on by it there shall be due for the purposes of a trade or business carried on by it an investment allowance of ten per cent of such expenditure.

(4) For the purposes of this schedule, the terms  operating lease and  finance lease shall have the meaning ascribed to them by the statement of accounting standard on leases [36]

Asset used or expenditure incurred partly for the purposes of a trade or business.

19. (1) The following provisions of this paragraph shall apply where either or both of the following conditions apply with respect to

any asset-

(a) the owner of the asset has incurred in respect thereof qualifying expenditure partly for the purposes of a trade or business carried on by him and partly for other purposes;

(b) the asset in respect of which qualifying expenditure has been incurred by the owner thereof is used partly for the

purposes of a trade or business carried on by such owner and partly for other purposes.

(2) Any allowances and any charges which would be made if

both such expenditure were incurred wholly, exclusively, necessarily

and exclusively for the purposes of such trade or business shall be

computed in accordance with the provisions of this Schedule.

(3) So much of the allowances and charges computed in

accordance with the provisions of sub-paragraph (2) of this paragraph

shall be made as in the opinion of the Board is just and reasonable

having regard to all the circumstances and to the provisions of this

Schedule.

Disposal without

change of

ownership.

20. Where an asset in respect of which qualifying expenditure

has been incurred by the owner thereof has been disposed of in such

circumstances that such owner remains the owner thereof, then, for

the purposes of determining whether and, if so, in what amount, any

annual or balancing allowance or balancing charge shall be made to

or on such owner in respect of his use of the asset after the date of

such disposal-

(a) qualifying expenditure incurred by such owner in

respect of such asset prior to the date of such disposal

shall be let out of account; but

(b) such owner shall be deemed to have bought such asset

immediately after such disposal for a price equal to the

residue of such qualifying expenditure at the date of

such disposal, increased by the amount of any

balancing charge or decreased by the amount of any

balancing allowance made as a result of such disposal.

Meaning of

"allowance

made."

21. Any reference in this Schedule to an allowance made

includes a reference to an allowance which would be made but for an

insufficiency of assessable profits against which to make it.

Claims for

allowances.

22. No allowance shall be made to any company for any year

of assessment under the provisions of this Schedule unless claimed

by it for that year or where the Board is of the opinion that it would be reasonable and just so to do.

Election in double taxation cases.

23. (1) Where a company makes a claim to an initial or annual

allowance under this Schedule in connection with any trade or

business, if the taxes in respect of the profits of the trade or business

are the subject of an arrangement, having effect by virtue of section 45

of this Act, between Nigeria and any other territory, for relief from

double taxation, it may elect, at the time of making such claim or within

such reasonable calculated at a lesser rate than that provided for in

paragraph 6 or 7 of this Schedule and in making such election it shall

specify the amount of such lesser rate.

(2) Where an election has been made under this paragraph,

the amount of such lesser rate shall be taken to be the appropriate

rate in relation to that allowance for all the purposes of this Schedule.

Manner of

making

allowances and

charges.

24. (1) The amount of any charge to be made on a company

under the provisions of this Schedule shall be made by making an

addition to its assessable profits for the year of assessment for which

such charge falls to be made under the provisions of this Schedule:

Provided that where any such charge fails to be made on any

company for any year of assessment, whenever necessary by reason of the assessment on that company having become final and

conclusive for that year or for other sufficient reason, the Board may

make an additional assessment upon such company in respect of the

amount of such charge.

(2) Subject to the provisions of this paragraph, the amount of

any allowance to be made to a company under the provisions of this

Schedule shall be made by making a deduction from the remainder of

its assessable profits for the year of assessment for which such

allowance falls to be made under the provisions of this Schedule.

(3) For the purposed of this paragraph, any such remainder for

a year of assessment shall be ascertained by first giving full effect to

the provisions of sub-paragraph (1) of this paragraph and to the

provisions of section 31  relating to the deduction of the amount of any

loss.

(4) Where full effect cannot be given to any deduction to be

made under sub-paragraph (2) of this paragraph for any year of

assessment owing to there being no such remainder for that year, or

owing to the remainder for that year being less than such deduction,

the deduction or part of the deduction to which effect has not been

given as the case be, shall, for the purpose of ascertaining total profits

(of the company entitled to such deduction) under section 31  for the

following year, be deemed to be a deduction for that year, in

accordance with the provisions of sub-paragraph (2) of this paragraph,

and so on for succeeding years.

(5) Where a company is entitled to a deduction under the

preceding sub-paragraph, or to a deduction in respect of a balancing

allowance, in respect of an asset used in a trade or business carried

on by it, for a year of assessment in which that trade or business

permanently ceases to be carried on by it and full effect cannot be

given to any such deduction for that year owing to there being no such

remainder of assessable profits for that year or owing to the remainder

of its assessable profits for that year being less than such deduction,

that deduction or the part to which effect has not been given, as the

case may be, may, on a claim being made by such company, be given

by way of deduction from any remainder of its assessable profits for

the preceding year of assessment, and so on for other preceding year,

so, however, that no such deduction shall be given by virtue of this

sub-paragraph for year earlier than the fifth year before the first mentioned

year of assessment:

Provided that where any relief is given under this subparagraph

in respect of any such deduction, the provisions of the

preceding sub-paragraph shall cease to have effect in respect of that

deduction for any year of assessment subsequent to the year of

assessment in which such trade or business ceases.

(6) Where any deduction falls to be given under the provisions

of the preceding sub-paragraph for any preceding years of

assessment, whenever necessary, by reason of any assessments of

those years having become final and conclusive, or for other sufficient

reason, the Board with respect to each such year may make such

repayment or set-off of the tax, or of any part of such tax, paid or

charged for any such year as may be appropriate, in lieu of making

any such deduction.

(7)In giving effect to the provisions of subparagraph (2), the amount of capital allowances to be deducted from assessable profits in any year of assessment shall not exceed

662/3 per cent of such assessable profits of a company but any company in the agro-allied industry or which is engaged in the trade or business of manufacturing shall not be affected by the restriction under this subparagraph[37].

(8) In this paragraph-

"company in the agro-allied industry" is a company to which

subsection (8) of section 9 of this Act applies.

Paragraph 6. TABLE I-INITIAL ALLOWANCES[38]

 Qualifying Expenditure in respect of:

Rate per cent 

Building Expenditure

 

15

 

Industrial Building Expenditure

 

15

Mining

 

95

 

Plant Expenditure(excluding Furniture and Fittings)

 

50

 

Manufacturing Industrial plant Expenditure

 

50

 

Construction Plant Expenditure (excluding Furniture and Fittings)  ..

50

 

Public Transportation Motor Vehicle

 

95

 

Ranching and Plantation Expenditure   

30

 

Plantation Equipment Expenditure

95

Research and development Expenditure

95

 

Motor Vehicle Expenditure

50

 

Housing Estate Expenditure 

50

 

Furniture and Fittings expenditure

25

TABLE II  ANNUAL ALLOWANCES
Qualifying Expenditure in respect of:            Rate per cent
Qualifying Agricultural production Expenditure    ..    Nil

Qualifying Building Expenditure         ..    ..    .10

Qualifying Furniture and Fittings ..    ..    ..    20

Qualifying Industrial Building Expenditure    ..    ..    ..    10
Qualifying Mining Expenditure        ..    ..    ..    nil
Qualifying Plant Expenditure    ..    ..    ..    ..    25
Qualifying Plantation Equipment Expenditure    ..    ..    nil
Qualifying Ranching and Plantation Expenditure    ..    ..    50
Qualifying Housing Estate Expenditure    ..    ..    ..    25
Qualifying Public Transportation (inter-City)
new Mass Transit Coach Expenditure& & & & & & & & & & & &       nil

Qualifying Motor Vehicle Expenditure   ..    ..    ..    25
Qualifying Research and Development & & & & & & & ..        nil

Section 11(6)  THIRD SCHEDULE

TAX EXEMPTION ON CERTAIN INTERESTS

TABLE OF TAX EXEMPTION ON INTEREST ON FOREIGN LOANS

Repayment Period  including Moratorium

 

Grace Period

Exemption allowed

Above 7 years

.. .. .. .. .. .. .. .. .. ..

Not less than 2 years

100%

5-7 years

.. .. .. .. .. .. .. .. .. ..

Not less than 18 months

70%

2-4 years

.. .. .. .. .. .. .. .. .. ..

Not less than 12 months

40%

Below 2 years

.. .. .. .. .. .. .. .. .. ..

Nil

Nil

Section 86. FOURTH SCHEDULE

WARRANT AND AUTHORITY TO LEVY BY DISTRESS UNDER THE COMPANIES INCOME TAX ACT

To (a) ................................................................................

Name of Company (b) ...................................................................

Amount of tax to be levied by distress (c) .............................................

The Federal Board of Inland Revenue, in exercise of powers vested in it by section

86 of the Companies Income Tax Act (Cap. C21), hereby authorises you to collect and

recover the sum of (c) ................, being arrears of tax due for the years of assessment

hereinafter mentioned from the above named company whose place of business is at

(d).................; and for the recovery thereof the said Board further authorises that you, with

the aid (if necessary) of your assistants and calling to your assistance any police officer (if

necessary) which assistance he is by law required to give, do forthwith levy by distress the

said sum together with the costs and charges of and incidental to the taking and keeping of

such distress, on the goods, chattels, land, premises or other distrainable things of the said

company wherever the same may be found and on all goods which you may find in any

premises or on any lands in the use of possession of the said company or of any other

person on its behalf or in trust for the company.

And for the purpose of levying such distress you are hereby authorised if necessary,

with such assistance as aforesaid to break open any building or place in the daytime.

2. The particulars of the said arrears of tax are as follows-

Year of Assessment

No. of Notice of

Amount of tax due N= k

 

(e)

................

................

................

................

................

................

................

................

................

Signed for and on behalf of the Federal Board of Inland Revenue at

..................... this ........................... day of ...................... 19.....................

Signature (f) .........................................

Chairman

Federal Board of Inland Revenue

NOTES

(a) Insert the name of the name of the officer who is authorised by the Board to

execute the warrant of distress.

(b) Insert the name of the company on whose goods, chattels, land, premises or

other distrainable things the warrant of distress is to be executed.

(c) Insert the amount of tax outstanding against the company and which amount

is to be levied by distress.

(d) Insert the address of the place of business of the company.

(e) Insert the particulars of the arrears of tax to be levied by distress, stating the

years of assessment, the numbers of notices of assessment and the amount

of tax due in respect of each such year of assessment.

(f) To be signed by the Chairman, Federal Board of Inland Revenue.

section 25(5) . FIFTH SCHEDULE

FUNDS, BODIES AND INSTITUTIONS IN NIGERIA TO WHICH DONATION MAY BE MADE UNDER section 25  OF THIS ACT

1. The Boys Brigade of Nigeria.

2. The Boys Scouts of Nigeria.

3. The Christian Council of Nigeria.

4. The Cocoa Research Institute of Nigeria.

5. Any educational institution affiliated under, any law with any university in Nigeria, or

established under any law in Nigeria and any other educational institution

recognized by any Government in Nigeria.

6. The Girl Guides of Nigeria.

7. Any hospital owned by the Government of the Federation or of a State or any

University Teaching Hospital or any hospital which is carried on by a society or

association otherwise than for the purpose of profits or gains to the individual

members of that society or association.

8. The Institute of Medical Laboratory Technology.

9. The National Commission for Rehabilitation.

10. The National Library.

11. The Nigerian Council for Medical Research.

12. The National Science and Technology Development Agency.

13. The Nigerian Institute for International Affairs.

14. The Nigerian Institute for oil Palm Research.

15. The Nigerian Institute for Trypanosomiasis Research.

16. The Nigerian Museum.

17. The Nigerian Red Cross.

18. A public fund established and maintained for providing money for the construction or

maintenance of a public memorial relating to the civil war in Nigeria which ended on

15 January, 1970.

19. A public institution or public fund (including the Armed Forces Comfort Fund)

established or maintained for the comfort, recreation or welfare of members of the

Nigerian Army, Navy or Air Force.

20. A public fund established and maintained exclusively for providing money for the

acquisition, construction, maintenance or equipment of a building used or to be used

as a school or college by the Government of the Federation or a State or by a public

authority or by a society or association which is carried on otherwise than for the

purpose of profit or gain to the individual members of that society or association.

21. The National Youth Council of Nigeria.

22. National Sports Commission and its State Associations.

23. The Nigerian Society for the Deaf and Dumb.

24. The society for the Blind.

25. The Nigerian National Advisory Council for the Blind.

26. Associations or Societies for the Blind in Nigeria.

27. Training Centres and Residential Schools for the Blind in Nigeria.

28. The National Braille Library of Nigeria.

29. The Nigerian Youth Trust.

30. Van Leer Nigerian.

31. Southern Africa Relief Fund.

32. Islamic Education Trust.

33. The Institute of Chartered Accountants of Nigeria Building Fund.

34. Any public fund established or approved by the Government of the Federation or

established by any of the State Governments in aid of or for the relief of drought or

any other national disaster in any part of the Federation.

35. Nigeria conservation foundation.

36. Nigeria Accounting Standard Board.

37. Kewaram Chanrai Foundation Limited.

38. Afprint Foundation Limited.

39. Paterson Zochonis Nigeria Technical Education Trust Fund.

40. Educational Co-operative Society.

41. National Science and Technology Fund

42. Rotary International Polio Plus.[39]

Section 27

Section 64(2) 1991 No. 21

SIXTH SCHEDULE

WARRANT AND AUTHORITY TO ENTER PREMISES OFFICES ETC. UNDER THE

COMPANIES INCOME TAX ACT

To (a) ................................................................................

Name of Company (b) ...................................................................

Incorporation or Identification No. (c) .............................................

Place of business. (d) ..........................................

The Federal Board of Inland Revenue, in exercise of powers vested in it by section 64 of the Companies Income Tax Act Cap. C21 hereby authorises you to enter the premises office, place of management or residence of the principal officer, office of the agent, factor or representative of the company which company has been suspected by the board of fraud willful default, etc. in connection with the tax imposed under the aforesaid Act and whose premises  office, place of management or residence of the principal officer, office of the agent, factor or representative is at (d) .......................................... and for the carrying out of this assignment, the said Board further authorises that you, with the aid (if necessary) of your assistants and calling to your assistance any police officer which assistance the police is by law required to give, search and remove (if necessary) such records, books, and documents of the company wherever they may be found either in possession of any officer of the company or any other person on its behalf.

For the purpose of your entry into the aforementioned premises, you are hereby authorized if necessary, with such assistance as aforesaid to break open any building in the daytime.

Signed for and on behalf of the Federal Board of Inland Revenue at ..................... this ........................... day of ...................... 19.....................

Signature (e) .........................................

Chairman

Federal Board of Inland Revenue

NOTES

(a) Insert the name of the name of the officer who is authorised by the Board to

execute the warrant of entry.

(b) Insert the name of the company in whose premises the warrant of entry is to be executed

(c) Insert the identification number of the company in whose premises the warrant of entry is to be executed

 (d) Insert the place of business of the company.

(e) To be signed by the Chairman, Federal Board of Inland Revenue.[40]

INCOME TAX APPEALS (APPEAL COMMISSIONERS) RULES L.N. 169 of 1962[41]

ARRANGEMENT OF RULES

RULES

1. Short title.

2. Interpretation.

3. Appellant may be represented in proceedings.

4. Notice of appeal.

5. Notices, etc.

6. Application for late appeal.

7. Register of appeals.

8. Withdrawal of notice of appeal.

9. Notice of hearing.

10. Place of hearing.

11. Procedure at the hearing.

12. Insuring of precepts.

13. Determination of appeal.

14. Power to hear evidence on oath or affirmation.

15. Determination of appeals notwithstanding absence.

16. Decisions book.

SCHEDULE

L.N. 169 of 1962 INCOME TAX APPEALS (APPEAL

COMMISSIONERS) RULES

under section 55

Commencement: 13th December, 1962

Short title. 1. These Rules may be cited as the Income Tax Appeals

(Appeal Commissioners) Rules.

Interpretation. 2. (1) In these Rules, unless the context otherwise requires-

Cap. C21. "Act' means the Companies Income Tax Act;

"accountant" means any person practising accountancy and employed

by the appellant in that capacity;

"applicant", in relation to an intended appeal, means any company

applying to avail itself of the proviso to subsection (1) of section 57 if

this Act;

"Board" means the Federal Board of Inland Revenue established

under the Act;

"Chairman", in relation to a meeting of Commissioners means, the

person appointed to be chairman at that meeting in accordance with

paragraph (b) of subsection (1) of section 76 of the Act;

"Commissioners" means the body of Appeal Commissioners

established under subsection (1) of section 74  of the Act;

"issuing office", in relation to any appeal against an assessment or

any application under the proviso to subsection (1) of section 57 of the

Act, mean the office of the Federal Inland Revenue Department from

which the notice of refusal of the Board to amend the assessment as

desired was issued;

"secretary" means the secretary to the Commissioners designated

under subsection (6) of section 74  of the Act;

Cap. 204.

"solicitor" means any legal practitioner entitled to practice before the

Supreme Court of Nigeria and includes any law officer to whom the

provisions of the Law Officers Act apply.

(2) Any reference in these Rules to section is to a section of the

Act except where reference to a section is followed by a specific

reference to some other Act.

Cap. 179.

(3) Where, by any provision of the Act or of the Industrial

Development (Income Tax Relief) Act, the provisions of section 57 of

the Act are made applicable, whether mutatis mutandis or with any

necessary modifications, there Rules shall apply with any necessary

modification, for the purposes of such application.

Applicant may be

represented in

proceedings.

3. In all proceedings before the Commissioners the appellant

may be represented by a solicitor or an account and the Board may be

represented by a solicitor or an officer of the Federal Inland Revenue

Department.

Notices of

appeal.

4. A notice of appeal against an assessment to be given under

subsection (1) of section 57 of the Act-

(a) to the secretary, shall be given or served upon him at

his official address as notified in the Federal Gazette

and such notice shall be accompanied by a statement of

the address of the issuing office, and

(b) to the Board, shall be given or served upon the officer in

charge of the issuing office.

Notices, etc. 5. any notice or other document to be given, served or issued

under these Rules-

(a) if to or upon the secretary, shall be given to or served

upon him at his official address as notified in the

Federal Gazette;

(b) if to or upon the Board, shall be given to or served upon

the officer in charge of the issuing office or of such other

office of the Federal Inland Revenue Department as

may have been notified to the secretary and the

appellant by the Board for any particular appeal;

(c) if to or upon an appellant shall be given to or served

either by registered post at its address for service as

given in accordance with the provisions of subsection

(2) of section 57 of the Act or by personal service on the

principal officer or representative of appellant within

Nigeria;

(d) If to or upon an applicant, shall be give or served either

by registered post at this address for service as given in

accordance with paragraph (1) of rule 6 or by personal

service on the principal officer or representative of the

applicant, within Nigeria;

(e) if to or upon any person other than a person referred to

in this paragraph, shall be given or served either by

registered post-

(i) in the case of a company incorporated in Nigeria,

at the registered office of the company,

(ii) in the case of a company incorporated outside

Nigeria, to the individual authorised to accept

service of process under the Companies and

Allied Matters Act at the address filed with the

Corporate Affairs Commission, or to the

registered offices; of the company wherever it

may be situated,

(iii) in the case of an individual or body of persons, at

the last known business or private address of

such individual or body of person;

Cap. 59. or personally in accordance with section 16 of

the Act.

Application for

late appeal.

6. (1) Where an intending appellant wishes to avail itself of the

proviso of subsection (1) of section 57 of the act it shall, within the

period of sixty days mentioned in that proviso, make a written

application to the secretary at his official address as notified in the

Federal Gazette-

(a) giving the particulars required by that proviso;

(b) showing the cause which prevented it from giving notice

of appeal within the period of thirty days prescribed by

that subsection;

(c) showing that there was no unreasonable delay on its

part;

(d) giving an address for service; and

(e) giving the address of the issuing office.

(2) When making such application the applicant shall send a

copy thereof for the Board to the officer in charge of the issuing office.

(3) Upon receipt of an application made under this rule, the

secretary shall-

(a) endorse thereon the date of the receipt thereof and

enter the same in a register of income taxes

applications to be kept for that purpose by the secretary;

and

(b) as soon as possible and at least twenty-one days before

the sate fixed for the hearing of the application, give

notice in writing of the date, time and place fixed for the

hearing of the application to each of the

Commissioners, to the applicant and to the Board.

(4) On the hearing of an application made under this rule-

(a) the Commissioners shall decide whether the application

was duly made in accordance with this rule and, if they

decide that it was so made, whether they are satisfied

as to the matters required by the proviso to subsection

(1) of section 57 of the Act to be show to their

satisfaction;

(b) the chairman of the meeting shall record, in the register

of income tax applications, the decision of the

Commissioners.

Register of

appeals.

7. Upon receipt of a notice of appeal given under subsection

(1) of section 57 of the Act-

(a) the secretary shall endorse thereon the date of the

receipt thereof and enter the same in a register of

income tax appeals to be kept for that purpose by the

secretary; and

(b) if it appears to the secretary that such notice was not

given within the time prescribed by subsection (1) of

section 47 of the Act or does not specify the particulars

required by subsection (2) of section 57 of the Act the

secretary shall notify the appellant and the Board, in

writing, accordingly.

Withdrawal of

notice of appeal.

8. Where an appellant has been notified under rule 7 of these

Rules-

(a) it may elect to withdraw the notice of appeal given by it,

giving notice of the withdrawal to the secretary and to

the Board and, if within time, either give a fresh notice of

appeal or make an application under rule 6 of these

Rules; and

(b) if the notice of appeal is not withdrawn under this rule

the Commissioners shall decide, at a hearing of the

appeal, whether or not the notice was valid.

Notice of

hearing.

9. The secretary, shall, at least twenty-one days before the

date fixed for the hearing of an appeal, given notice in writing of the

date, time and place fixed for the hearing of the appeal to each of the

Commissioners, to the appellant and to the Board and, shall at least

twenty-one days before the date fixed for an adjourned hearing of an

appeal, give a similar notice in writing in respect of the adjourned

hearing, provided that no such notice shall be given in respect of any

adjourned hearing, provided that no such notice shall be given in

respect of any adjourned hearing for which the Commissioners have

fixed a date at their previous hearing.

Place of hearing. 10.(1) Subject to the provisions of paragraph (2) thereof, the

pace to be fixed by the secretary for the hearing of an appeal or an

application (including an adjourned hearing thereof) shall be a place

in the town in which the issuing office is situated.

(2) If it appears to the secretary that it will be more convenient

for the place of any such hearing to be fixed in some other town in

which there is an office of the Federal Inland Revenue Department he

may give notice in writing to the appellant or applicant and to the

Board of his intention to fix the place of hearing in that other town, and

unless the secretary receives an objection in writing to the notice

within fourteen days of the giving of the notice he may fix the place of

the hearing in accordance with the notice.

Procedure at the

hearing.

11. (1) At the hearing, including any adjourned hearing, of any

appeal against an assessment the Commissioner shall admit all lawful

evidence (whether oral or documentary) adduced by the appellant or

the Board or any person appearing on their behalf.

(2) Proceedings before the Commissioners shall be

commenced by the appellant, or any person appearing on its behalf,

producing any documents or writings whereon its appeal against the

assessment may be founded and any witness it may require to give

evidence or have examined in support of the same.

(3) The case on the part of the appellant having been heard,

the Board or person appearing on its behalf, shall in like manner

produce any documents it may desire to have read by the

Commissioners and any witness it may require to give evidence or

have examined.

(4) The Board, or the person appearing on its behalf, may in

connection with the hearing of appeals make use of or produce in

evidence any return, correspondence, accounts, plans statements, or

other documents to which it has had or may have lawful access for the

purpose of taxation and all such documents shall be admissible

whether or not they are original documents.

(5) The rules of evidence regarding the examination in chief,

cross-examination and re-examination of a witness shall apply where

a witness is produced to give oral evidence.

Issuing of

precepts.

12. (1) At any such hearing, including any adjourned hearing,

of an appeal against an assessment the Commissioners may, if they

consider that it is necessary, adjourn the hearing and instruct the

secretary to issue a precept to-

(a) any person (other than a solicitor or accountant acting

for the appellant in connection with his liability to tax)

whom they think might be able to give evidence with

respect to any matter relating to the assessment, to

appear at any adjourned hearing to be examined;

(b) any person including the appellant or its representative,

to produce or deliver to them, within the time limited by

the precept or at any adjourned hearing any accounts,

books, records or other documents relating to-

(i) the property of the appellant, or

(ii) the trade, or business, carried on or exercised by the

appellant, whether alone or with others, or

(iii) the amount of the profits or gains of the appellant,

distinguishing the particular amounts derived from each

separate source, or

(iv) any deductions made in arriving at the profits or

gains of the appellant.

(2) The Commissioners may issue further precepts whenever

they consider it necessary for the purposes aforesaid, until complete

particulars have been furnished to their satisfaction.

(3) The Board may inspect and take copies of or extracts from

any books, accounts or document made available by the appellant

under this rule.

(4) Notwithstanding that the Commissioners have admitted an

appeal to be made by any agent, clerk, servant or any other

representative of the appellant in accordance with the provisions of

subsection (6) of section 76 of this Act they may instruct the secretary

to issue a precept to the appellant under paragraph (1) or (2) hereof.

Schedule. (5) Any precept to be issued under this rule shall be in the form

set out in the Schedule hereto.

Determination of

appeal.

13. (1) At the conclusion of the evidence (including any

evidence admitted by virtue of rule 12 of these Rules) the appellant or

person appearing on its behalf and thereafter the Board, or person

appearing on its behalf shall be entitled to be heard in argument, and

thereafter the appellant or person appearing on its behalf may reply to

any new points raised in the argument presented by or on behalf of

the Board.

(2) The Commissioners shall then determine the matter in

dispute or may reserve their decision until a later date and whenever

the decision is so reserved, the decision shall be given at such time

and place as may be fixed by the Commissioners and of which

reasonable notice shall have been to the parties.

Power to hear

evidence on oath

or affirmation.

CAP. O1

14. The Commissioners may require any evidence to be given

on oath or affirmation and the provisions of the Oaths Act shall apply

to any oath or affirmation administered by the Commissioners.

Determination of

appeals

notwithstanding

absence.

15. If at the hearing of any appeal against an assessment or of

any application to appeal or at any adjournment thereof, it appears to

the Commissioners that the appellant or person appearing on its

behalf, is absent otherwise than by reason of appearing on its behalf,

is absent otherwise than by reason of absence from Nigeria, sickness

or other reasonable cause, the Commissioners may, notwithstanding

the absence of the appellant or person appearing on its behalf,

proceed in accordance with the provision of subsection (9) of section

58 of the Act.

Decisions book.

16. The secretary shall maintain a book in which every decision

of the Commissioners shall be recorded in accordance with the

provisions of subsection (10) of section 76 of the Act.

SCHEDULE

Rule 12(5). FORM OF PRECEPT

COMPANIES INCOME TAX ACT

(Cap. 60)

PERSONAL INCOME TAX (LAGOS) ACT, 1961

(1961, No. 23)

NOTICE TO WITNESS TO ATTEND BEFORE APPEAL COMMISSIONERS

(RULE 12)

......................................... v. Federal Board of Inland Revenue

INCOME TAX YEAR OF ASSESSMENT 19......../...............

To ..................................................................

(Name of witness)

of ..................................................................

(Address of witness)

On good cause shown to the Appeal Commissioners you are hereby ordered to

attend in connection with the above-mentioned appeal, before the said Commissioners at

........................... on the ............................... day of .......................... 19 ................... at

............................ o'clock in the ............................noon to-

1. be examined as a witness and your depositions taken;

2. produce any accounts, books, records or other documents and in particular

the following-

Strike out if not applicable.

Dated the ................................... day of ...................................... 19...............................

...............................................

Secretary,

Body of Income Tax Appeal

Commissioners of the Federation

L.N. 11 of COMPANIES INCOME TAX (EXEMPTION) 1964 (INTERCONSULTING LIMITED) ORDER[42]

under section 19(2)

Commencement: 1st April, 1963

Short title. 1. This Order may be cited as the Income Tax (Exemption)

(Interconsulting Limited) Order.

Exemption of

Interconsulting

Limited.

Cap. 60.

2. The company known as Interconsulting Limited, whose

registered office is at 42 Klaustrasse, Zurich, Republic of Switzerland

(hereafter referred to as "the company") is hereby exempted from the

provision of the Companies Income Tax Act in respect of all income

earned by the Company under an Agreement dated 13th day of July,

1963, and made between the Government of the Federal Republic of

Nigeria and the Company (which Agreement relates, inter alia, to the

appointment of the Company as consulting engineers to the

Government for the performance of additional and preparatory work,

for the designing and planning of an integrated iron and steel mill in

Nigeria).

Duration of

exemption.

3. The exemption shall continue in force so long as the

Company does not become a Nigerian Company as defined in section

84 of the Companies Income Tax Act.

L.N 58 of COMPANIES INCOME TAX (AUTHORISED

1964. DEDUCTIONS) (NIGERIAN INDUSTRIAL DEVELOPMENT BANK) RULES[43]

under section 20(h)

Commencement: 1st April, 1964

Short title. 1. These Rules may be cited as the Companies Income Tax

(Authorised Deductions) (Nigerian Industrial Development Bank)

Rules.

Definitions. 2. In these Rules-

"the Company" means the Nigerian Industrial Development Bank

Limited.

Deductions

allowed.

3. For the purpose of ascertaining the profits or loss of the

Nigerian Industrial Development Bank Limited under the Companies

Income Tax Act for any period (being the appropriate period for

computation of such profits or loss for a year of assessment) there

shall be deducted any amount transferred by the Company into any

reserve funds of the Company:

Provided, however, that the total deduction to be allowed under

these rules for all such periods shall not exceed the amount of four

million naira (which amount is equal to an amount granted to the

Company by the Government of the Federation under a loan

Agreement dated the twenty-second day of January, 1964).

L.N. 126 of COMPANIES INCOME TAX (EXEMPTION)

1965. (INSTITUTO DI CREDITOR PER LE IMPRESES

DI PUBBLIC UTILITA) ORDER[44]

under section 19(2)

Commencement: 13th September, 1964

Short title. 1. This Order may be cited as the Companies Income tax

(Exemption) (Instituto di Credito per le Impress di Pubblica Utilita)

Order.

Company and

interest

exempted.

2. The Company known as Instituto di Credito per le Impress di

Pubblica Utilita whose address is at Via Quintino Sella 2, Rome, Italy

(hereinafter referred to as "the Company") is hereby exempted from

the provisions of the companies Income Tax Act, in respect of all

income from interest and commission earned by the Company under a

Loan Agreement dated 13th September 1964, between the Company

and the Government of the Federal Republic of Nigeria, for financing

the Niger Dames Kainji Development project.

Duration of

exemption.

3. The exemption shall continue in force for so long as the

Company does not become a Nigerian Company as defined in section

84 of the Companies Income Tax Act.

L.N. 128 of COMPANIES INCOME TAX (EXEMPTION)

1965. (KERDITANSTALT FUR WIEDERAUFBAU

FRANKFURT AM MAIN) ORDER[45]

under section 19(2)

Commencement: 14th August, 1964

Short title. 1. This Order may be cited as the Companies Income Tax

(Exemption) (Kreditanstalt fur Wiederaufbau Frankfurt am Main)

Order.

Company and

income

exempted.

2. The Company known as Kreditanstalt fur Wiederaufbau

Frankfurt am Main whose address is at Lindentrasse 27, 6 Frankfurt

am Main, Federal Republic of Germany (hereinafter referred to as "the

Company") is hereby exempted from the provisions of the Companies

Income Tax Act, in respect of all income from interest and commission

earned by the Company under a Loan Agreement dated 4th August

1964, between the Company and the Government of the Federal

Republic of Nigeria, for financing the Lagos Second Mainland Bridge

Project.

Duration of

exemption.

3. The exemption shall continue in force for so long as the

Company does not become Nigerian Company as defined in section

84 of the Companies Income Tax Act.

L.N. 127 of COMPANIES INCOME TAX (EXEMPTION)

1965. (KREDITANSTALT FUR WIEDERAUFBAU

FRANKFURT AM MAIN) (NO.2) ORDER[46]

under section 19(2)

Commencement: 14th September, 1964

Short title. 1. This Order may be cited as the Companies Income Tax

(Exemption) (Kreditanstalf fur Wiederaufbau Frankfurt am Main)

Order.

Company and

income

exemption.

2. The Company known as Kreditanstalt fur Wiederaufbau

Frankfurt am Main whose address is at Lindentrasse 27, 6 Frankfurt

am Main, Federal Republic of Germany (hereinafter referred to as "the

Company") is hereby exempted from the provisions of the Companies

Income Tax Act, in respect of all income from interest and commission

earned by the Company under a Loan Agreement dated 14th

September 1964, between the Company and the Government of the

Federal Republic of Nigeria, for financing ten Cottage Hospitals in

Northern Nigeria.

Duration of

exemption.

3. The exemption shall continue in force for so long as the

Company does not become a Nigerian Company as defined in section

84 of the Companies Income Tax Act.

L.N. 3 of COMPANIES INCOME TAX (EXEMPTION)

1968. (COMMONWEALTH DEVELOPMENT

FINANCE COMPANY LIMITED) ORDER[47]

under section 19(2)

Commencement: 1st April, 1967

Short title. 1. This Order may be cited as the Companies Income Tax

(Exemption) (Commonwealth Development Finance Company

Limited) Order.

Exemption. 2. The Commonwealth Development Finance Company

Limited (hereafter referred to as "the Company") whose address is 1

Union Court, Old Broad Street, London, E.C.2 is hereby exempted

from the provisions of the Companies Income Tax Act in respect of

interest derived by the Company from money lent by it to any Nigerian

company.

Duration of

Order.

3. This Order shall, unless sooner revoked, continue in force

for so long as the Company does not become a Nigerian Company

within the meaning of section 84 of the Companies Income Tax Act.

L.N. 75 of COMPANIES INCOME TAX (EXEMPTION)

1972. (KREDITANSTAL FUR WIEDERAUFBAU) ORDER[48]

under section 19(2)

Commencement: 5th February, 1970

Tax exemption of

the profits of the

company.

1. There shall be exempted from tax all profits accruing in

Nigeria to the company to which this Order relates under and by virtue

of the following agreements made between the company and the

Government of the Federation, that is -

(a) the Supplementary agreement dated 20th August, 1969

for the Eko Bridge; and

(b) the loan agreement dated 20th August, 1969 in respect

of the extension of the said Bridge.

Duration of

exemption.

2. The exemption from tax granted under section 1 of this

Order shall operate from 5th February, 1970 and shall continue in

force for so long as the company does not become a Nigerian

company within the meaning of section 84 of the Companies Income

Tax Act.

Miscellaneous. 3. This Order relates to a company by the name Kreditanstal

Fur Wiederaufbau whose address is at No. 6 Frankfurt/Main, Federal

Republic of Germany; and the reference in this Order to "tax" is a

reference to the tax imposed b the Companies Income Tax Act.

Short title. 4. This Order may be cited as the Companies Income Tax

(Exemption) (Kreditanstal Fur Wiederaufbau) Order.

L.N. 55 of COMPANIES INCOME TAX (EXEMPTION)

1973. (NIGERIAN AGRICULTURAL AND CO-OPERATIVE

BANK LIMITED) ORDER