Objections and tax appeals: assessments, the Tribunal and the courts

A company files its return on time, then receives a notice saying its profit is three times what it declared and the tax is ₦3.9 million, not ₦1.1 million. The notice arrives on 27 July. What must the company do, by when, in what form, and where does the dispute go if the tax authority refuses to move?

The answers are fixed by the Nigeria Tax Administration Act (NTAA) 2025 and the Joint Revenue Board of Nigeria (Establishment) Act 2025. Every step has a time limit that the exam loves to test.

This topic covers the kinds of assessment, the elements of a valid objection, appeals to the Tax Appeal Tribunal (TAT), the Federal High Court, the Court of Appeal and the Supreme Court, the Office of the Tax Ombud, tax refunds, alternative dispute resolution (ADR) and how to present a case before the Tribunal. The previous topic covered the organs of tax administration.

The next starts the study of companies income tax. The November 2020 Pathfinder (Question 2) asked for the preparation before a Tribunal hearing and the steps after an unacceptable decision, and the March/July 2020 Pathfinder tested tax-practice documents in Question 6.

Key terms in plain English

Syllabus check

This topic is in syllabus area A (tax administration, 5% of marks). It covers:

• the time limits for objections and appeals and the contents of a notice of objection and of appeal;
• amendment of an assessment and refusal to amend;
• the appeal route through the Tax Appeal Tribunal, the Federal High Court, the Court of Appeal and the Supreme Court;
• alternative dispute resolution;
• drafting a report to a client on presenting a case before the Tribunal.

CAMA 2020 and tax disputes

The Companies and Allied Matters Act 2020 (CAMA 2020) is the company law of Nigeria. The sections below apply to this topic.

The rules in more depth

Assessments

• Self-assessment (s. 34). Every taxable person files a return by the due date. A return in the approved form is a self-assessment, even if it has pre-entered data or an electronic estimate. The authority may accept it, accept it and raise an additional assessment, or reject it and assess to the best of its judgement. Tax understated carries penalty and interest from the due date.
• Administrative assessment (s. 35). Where no return was delivered and the authority believes tax is due, it may assess to the best of its judgement. This does not remove other liabilities for failing to file. It may be made early if collection is in jeopardy.
• Additional assessment (s. 36). Where a person was not assessed, or was under-assessed, the authority may assess within six years of an assessment. An audit begun within the six years may continue. Where there is deliberate misstatement, there is no time limit.
• Deemed profit (s. 38). Where a business shows no profit or less than expected, or the profit cannot be ascertained, a resident is assessed on a fair percentage of gross income. For a non-resident, the profit is the profit margin (earnings before interest and tax as a share of revenue in published audited accounts, or that of comparable companies) applied to Nigerian turnover.

Tax is assessed and paid in the currency of the transaction. The notice of assessment is served by registered post, courier or electronic means and must state where and how to pay and the taxpayer’s rights of objection.

A mistake in the name, the description of profits or the amount, or a variance between assessment and notice, does not invalidate an assessment that follows the law in substance and is served on the right person.

A valid objection (s. 41)

The objection must be in writing, delivered in person, by courier or electronically within 30 days of service of the notice, and state the grounds:

• the specific issues or errors with their values
• the amendment required
• the justification
• the assessable and total profits or value of transactions the taxpayer admits
• the tax the taxpayer admits, or that none is admitted

The authority may extend the time for good cause. On receipt, the authority may ask for particulars and books, and summon any person to give evidence. If the parties agree, the assessment is amended and a revised notice is served. The authority must reply within 90 days or the objection is upheld. If the notice is invalid, or no agreement is reached, the taxpayer may appeal.

Appeals

A taxable person who disagrees with an assessment, demand notice, action, decision or a residence ruling may appeal to the Tax Appeal Tribunal within 30 days of the decision. The Tribunal may allow a late appeal for sufficient cause. If no appeal is made, the assessment becomes final and conclusive. The tax authority may also appeal, in the zone where the taxpayer resides, within 30 days of the non-compliance.

The notice of appeal states the tax file number, year of assessment, date of the decision, assessable profit, taxable or total profit and tax in dispute, and the grounds, which need not differ from the grounds of objection. The Chairman may give the parties up to 30 days to try to settle before trial.

The Tax Appeal Tribunal

The TAT is established under s. 23 of the Joint Revenue Board of Nigeria (Establishment) Act 2025. It hears disputes under the Nigeria Tax Act, the NTAA and other tax laws, and is the first forum before the courts. It sits in six zones (North-Central, North-East, North-West, South-East, South-South and South-West) with offices at Abuja, Bauchi, Benin, Enugu, Ibadan, Kaduna, Gombe and Jos.

Each zone has a five-member panel led by a legal practitioner of at least ten years’ standing with tax experience. The quorum is three. Hearings may be held remotely.

Tax Appeal Commissioners are appointed by the Minister of Finance, with at least ten years’ relevant experience (law, accounting, business administration, finance, economics or taxation), or a retired public servant with ten years in tax administration, or a member of the organised private sector. They serve three years, renewable once, or until age 70.

A Commissioner with an interest in a case must disclose it and not sit, and may not appear as counsel before the Tribunal during the term.

Procedure. The Secretary gives seven clear days’ notice of the hearing, and hearings are in public. The onus of proof lies on the appellant.

If the appellant failed to file returns, the appeal is frivolous, or security is expedient, the Tribunal may adjourn and order a deposit equal to the lesser of the previous year’s tax and half of the tax in the assessment; failure to deposit confirms the assessment. The Tribunal may confirm, reduce, increase or annul the assessment.

Decisions are in writing, and a certified copy is supplied on request within 7 days. The Tribunal proceeds under the Evidence Act, may summon witnesses, take evidence on affidavit, review its decisions and set aside default orders. Each party bears its own costs. An award is enforced as a judgment of the Federal High Court once registered. A party may appear in person or by a lawyer or other qualified professional.

If the Tribunal sees evidence of crime, it must pass it to the prosecuting authorities.

Further appeals

A party dissatisfied with the Tribunal may appeal on a point of law to the Federal High Court by written notice to the Secretary within 30 days, setting out all grounds of law. The Secretary sends the notice and exhibits to the Chief Registrar. A further appeal lies to the Court of Appeal, and then to the Supreme Court.

The Office of the Tax Ombud

The Tax Ombud is appointed by the President on the Minister’s recommendation, with ten years’ experience, for four years, renewable once. The Office is an independent and impartial arbiter for complaints about tax, levies, fees, customs and excise.

It resolves complaints by mediation or conciliation, investigates, enters premises, examines witnesses, recommends to the authorities, can start legal proceedings for a taxpayer, and reports arbitrary fiscal policy to the National Assembly. It does not charge a fee. A complaint must be about an issue the agency has not resolved, and anonymous complaints are not accepted. An investigation is concluded within 14 days, extendable by seven.

An agency must reply within 21 days if it does not comply with a recommendation; if it still refuses, the matter goes to the National Assembly or the State House of Assembly.

Refunds and ADR

Under s. 55 of the NTAA, overpaid tax is refunded after audit, within 90 days of the authority’s decision, with set-off against other liabilities allowed. The claim must be in writing within six years after the end of the year of assessment. Funds are paid from dedicated accounts for each tax.

At any stage, the authority and the taxpayer may settle a dispute by agreement where this serves public revenue or policy, litigation cost outweighs the benefit, a party in a tax arrangement has accepted the authority’s position, or a whistleblowing disclosure leads to substantial recovery. Settlement is not available for intentional evasion or fraud, or where the public interest needs a court ruling.

The agreement is written, signed by authorised officers, and is final; the authority collects it as a debt.

Worked examples

1. Time runs from service, not from the date on the notice.
2. 27 July plus 30 days is 26 August.
3. The objection must be in writing and reach the authority by then.

1. The authority had 90 days to reply.
2. The objection is upheld by default.

1. Half of the assessment = ₦2,500,000.
2. The lesser of ₦2,000,000 and ₦2,500,000 is ₦2,000,000.
3. Failure to pay confirms the assessment and ends the right of appeal to the Tribunal on it.

1. It appeals on a point of law to the Federal High Court within 30 days.
2. Then to the Court of Appeal, then the Supreme Court.

How to score full marks

• Count time limits from service or decision, and state the date.
• List the content of an objection under its five headings.
• Follow the ladder: objection, Tribunal, Federal High Court, Court of Appeal, Supreme Court.
• Mention that the Tribunal hears fact and the courts hear points of law.
• Add the Tax Ombud and ADR as alternatives, with their limits.
• Format letters properly: heading, reference, grounds, request, close.

Common mistakes in the exam

• Counting 30 days from the date on the notice instead of service.
• Omitting the amount of tax the taxpayer admits.
• Appealing on facts to the Federal High Court; only points of law go there.
• Forgetting that failure to appeal makes the assessment final.
• Saying the Ombud charges a fee.
• Using the Federal Inland Revenue Service where the NRS now applies.

Quick revision

• Assessments: self, administrative, additional (six years), deemed profit.
• Objection: written, 30 days, five contents; reply within 90 days or upheld.
• Appeal to TAT: 30 days; onus on appellant; quorum of three.
• Further: Federal High Court (law, 30 days), Court of Appeal, Supreme Court.
• Refund: 90 days; claim within six years.
• CAMA 2020: ss. 305, 308, 377(1), 378, 404.

Practice questions

These are original questions written in the style of the Institute of Chartered Accountants of Nigeria (ICAN) exam. Try each one before you open the answer. Full model answers follow the written questions.

Recall check: multiple choice

Recent ICAN papers are written, although older papers such as May 2014 included multiple-choice questions. These questions are for quick recall. The written questions that follow are closer to the exam.

Written questions

Model answers

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