Objections and tax appeals: notice of objection, Tax Appeal Tribunal and the courts

The Managing Director of your client waves an assessment notice and says the amount is outrageous. It is higher than the figure your own computation produced. What do you tell him? Pay it, ignore it, or write to the tax office? Each wrong choice costs the client money: pay and the dispute is closed; do nothing and the assessment becomes final after 30 days.

The exam sets exactly this scenario, and it asks for the contents of the notice of objection and of the notice of appeal, almost word for word.

This topic covers the time limits for objection and appeal, the contents of a valid notice of objection, amendment and refusal to amend, the hearing before the Tax Appeal Tribunal, and the further appeals to the Federal High Court, the Court of Appeal and the Supreme Court. It also covers when an assessment becomes final. The previous topic covered tax returns, assessments and payment. The next covers the tax clearance certificate.

Key terms in plain English

Syllabus check

This topic is in syllabus area A, introduction to taxation, tax administration and ethics (20% of marks). It covers:

• time limits and contents of a notice of objection;
• amendment of an assessment and refusal to amend;
• the hearing before the Tax Appeal Tribunal and further appeals;
• when an assessment is final and conclusive.

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

Time limits

Notice of objection and refusal to amend

Under section 69 of the Companies Income Tax Act (old law), a valid notice of objection must:

• be in writing, delivered in person, by courier or by email, and addressed to the Chairman of the tax authority;
• state the grounds, namely the amount of assessable profit and total profit for the year, and the amount of tax the taxpayer says is payable;
• be made within 30 days of service of the notice of assessment.

On receiving the objection, the authority may ask for particulars and for all books and documents on the profits, and may summon any person to give evidence on oath. If the company agrees the amount, the assessment is amended and notice of the tax payable is served.

If they do not agree, the authority serves a notice of refusal to amend and may revise the assessment to the amount it determines to the best of its judgment.

Appeal to the Tax Appeal Tribunal

A notice of appeal must give:

1. the official number of the assessment and the year of assessment;
2. the amount of the tax charged;
3. the amount of the total profit shown in the notice of assessment;
4. the date on which the appellant was served with the notice of refusal to amend;
5. the precise grounds of appeal, limited to the grounds stated in the notice of objection;
6. an address for service of notices and documents.

At the hearing:

• The Tribunal gives seven days’ notice of the date and place.
• It sits with at least three members, and the Chairman presides. A member with an interest must declare it and stay away.
• The hearing is in public, and the Finance Act 2020 allows a virtual hearing.
• The appellant may be represented by a professional adviser or give evidence by written notice.
• The onus is on the appellant to prove the assessment is excessive.
• If the authority shows that the appellant did not file returns or accounts, or that the appeal is frivolous or an abuse of process, the Tribunal may order a security deposit. The deposit is the lower of the tax paid in the previous year, or half the tax in dispute plus 10% of the deposit.
• The Tribunal may confirm, reduce, increase or annul the assessment. Its decision is recorded in writing by the Chairman, and a certified copy is supplied within three months on request.
• The tax set by the Tribunal is payable within one month of notice, even if a further appeal is pending.

Further appeals

When an assessment is final and conclusive

• No valid objection or appeal is lodged within the time allowed; or
• the taxpayer agrees the amount after objection; or
• the amount is settled on appeal.

Advice to a client who disputes an assessment

1. Review the accounts and documents sent earlier, to see whether the authority has a genuine reason for the increase. If it has, advise payment without delay.
2. If it has no basis, file a valid notice of objection within 30 days.
3. If the authority refuses, a notice of refusal to amend follows.
4. File a notice of appeal at the Tribunal within 30 days of the refusal.

The position from 2026

The Nigeria Tax Administration Act 2025 took effect on 1 January 2026. Under section 41(2) a taxpayer who disputes an assessment must give a written notice of objection within 30 days of service. The Tax Appeal Tribunal, under the Joint Revenue Board of Nigeria (Establishment) Act 2025, hears disputes under the Nigeria Tax Act, the Nigeria Tax Administration Act and other tax laws.

Appeals from the Tribunal lie on points of law to the Federal High Court, then the Court of Appeal and the Supreme Court (s. 41(8) and (9)), and a security of 20% of the disputed tax is required before the court hears the case. Use these rules for periods ending on or after 1 January 2026, and the old rules above for earlier periods.

Worked examples

1. The 30 days run from the date of service, so from 3 March.
2. The last day is 2 April (March has 31 days).
3. An objection sent after that is out of time and the assessment may become final.

1. Option 1: the tax paid in the previous year = ₦1,500,000.
2. Option 2: half of the tax in dispute = ₦2,000,000, plus 10% of the deposit, which is more than ₦2,000,000.
3. The deposit is the lower of the two: ₦1,500,000.

1. Appeal to the Federal High Court lies on points of law only.
2. A dispute about facts and figures cannot be taken further.
3. The company must frame the grounds as errors of law, within 30 days.

How to score full marks

• List the six particulars of a notice of appeal. Five usually earn the full marks.
• Follow the order: review, objection, refusal, appeal, with 30 days at each step.
• Name the authority and the body: the tax authority, the Tax Appeal Tribunal and section 59 of the FIRS Act for periods before 2026.
• Distinguish an objection (to the authority) from an appeal (to the Tribunal).

Common mistakes in the exam

• Mixing up the contents of a notice of objection and a notice of appeal.
• Appealing before objecting.
• Forgetting that appeals to the courts are on points of law only.
• Omitting the deposit and the one-month payment rule.

Quick revision

• Objection: written, 30 days from service, with assessable profit, total profit and the tax claimed.
• Appeal: 30 days from the refusal; six particulars.
• Tribunal: seven days’ notice, three members, public, onus on appellant.
• Courts: points of law, 30 days.
• 2026: NTAA s. 41, objection in 30 days.

Practice questions

Questions 1 to 10 are multiple choice. Questions 11 to 13 are written. Try each before opening the answer.

Model answers

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