Tax authorities and their powers: JTB, State Boards, FIRS Board and Tax Appeal Tribunal

A company gets a query letter from the tax authority, and the directors argue that the auditors’ report should be enough. The Managing Director replies that the law gives the authority its own powers. Who sits on the board, what may it do, and which body can the company turn to when it disagrees?

The exam asks for the members of the Federal Inland Revenue Service Board, the composition of the Joint Tax Board and State Board, the functions of each, and the Tax Appeal Tribunal. It is a memory question, and marks go to the candidate who has the lists.

This topic covers the nature of tax administration, the Joint Tax Board, the State Board of Internal Revenue and its Technical Committee, the FIRS Board, its functions and its Technical Committee, the Joint State Revenue Committee, the Local Government Revenue Committee, the Tax Appeal Tribunal, other provisions of the FIRS Establishment Act, and the link between policy, law and administration.

It also shows what the 2025 laws changed. The previous topic covered tax jurisdiction. The next covers the tax identification number and registration.

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:

• the organs of tax administration and their composition and functions;
• the Tax Appeal Tribunal and other provisions of the FIRS Act;
• the roles of tax policy, legislation and administration.

CAMA 2020 and tax authorities

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

Nature of tax administration

Administration of taxation in Nigeria is vested in various tax authorities depending on the tax. There are three: the Federal Inland Revenue Service, the State Board of Internal Revenue and the Local Government Revenue Committee. Each enabling law names the body that administers it:

• the Companies Income Tax Act taxes the income of companies, other than corporation soles and companies in upstream petroleum operations;
• the Petroleum Industry Act 2021 taxes the profits of companies in petroleum operations;
• the Tertiary Education Trust Fund Act taxes the assessable profits of companies;
• the Personal Income Tax Act taxes individuals and unincorporated soles;
• the Value Added Tax Act taxes supplies of goods and services;
• the Stamp Duties Act charges duty on listed instruments;
• the Capital Gains Tax Act taxes gains on disposal of chargeable assets.

The Joint Tax Board

The JTB is established by section 86 of the Personal Income Tax Act. It comprises the Chairman of the FIRS Board as chairman; one member from each State, nominated by the Governor in writing to the Secretary; a Secretary experienced in income tax matters appointed by the Board, who may appoint other staff on secondment or transfer; and the Legal Adviser of the FIRS, who attends meetings and advises. Seven members or their representatives form a quorum (s. 86(6)).

The Board shall:

1. exercise the powers and duties given to it by the Act and other Acts;
2. advise the Federal Government, on request, on double taxation arrangements with other countries;
3. advise the Federal Government, on request, on rates of capital allowances and other taxation matters that apply across Nigeria on any proposed amendment to PITA;
4. promote uniformity in the application of PITA and in the incidence of tax on individuals throughout Nigeria;
5. impose its decisions on matters of procedure and interpretation of PITA on any State, so as to conform to agreed procedures.

The State Board of Internal Revenue

Section 87 of the PITA set up the State Board of Internal Revenue (SBIR), whose operational arm is the State Internal Revenue Service. It comprises:

1. the Chairman of the State Internal Revenue Service, a person experienced in taxation and a member of a recognised professional body, appointed by the Governor and confirmed by the State House of Assembly;
2. the Directors within or outside the State Service;
3. a Director from the State Ministry of Finance;
4. the Legal Adviser to the State Internal Revenue Service;
5. three other persons appointed by the Governor on personal merit, one for each senatorial district;
6. the Secretary of the State Service, ex officio.

Quorum: any five members, of whom one is the chairman or a director (s. 87(3)). The Board is responsible for:

• ensuring the effectiveness and optimum collection of all taxes and penalties due to the government;
• doing all things needed for the assessment and collection of the tax, and accounting for the sums collected as the Commissioner prescribes;
• making recommendations to the JTB on tax policy, reform, legislation, treaties and exemptions;
• controlling the management of the State Service on policy;
• appointing, promoting, transferring and disciplining employees of the State Service.

Delegation by the State Board

The State Board may, by notice in the gazette or in writing, authorise any person to exercise a function of the Board and to receive notices and documents for it. It must not delegate the powers in these sections of the PITA:

Technical Committee of the State Board

Section 89 sets it up. It has the Chairman of the State Board as chairman, the Directors in the State Service, the Legal Adviser, and the Secretary. It may co-opt staff. It considers matters needing professional and technical expertise and makes recommendations to the Board, advises the Board on all its powers and duties, and handles other matters the Board refers to it.

The Federal Inland Revenue Service Board

Taxation of the profits of incorporated companies is vested in the FIRS, whose management board is the FIRS Board (sections 1 to 3, FIRS Establishment Act 2007). It comprises:

1. an Executive Chairman, experienced in taxation, appointed by the President and confirmed by the Senate;
2. six members with relevant qualifications and expertise, appointed by the President, one for each geo-political zone;
3. a representative of the Attorney General of the Federation;
4. the Governor of the Central Bank or his representative;
5. a representative of the Minister of Finance, not below the rank of Director;
6. the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, or a Commissioner representing one of the 36 States;
7. the Group Managing Director of the NNPC, or a representative not below Group Executive Director;
8. the Comptroller-General of the Nigeria Customs Service, or a representative not below Deputy Comptroller-General;
9. the Registrar-General of the Corporate Affairs Commission, or a Director;
10. the Chief Executive Officer of the National Planning Commission, or a Director.

Members other than the Executive Chairman are part-time. The Chairman and members other than ex officio members hold office for four years, renewable once.

The Board shall provide general policy guidelines for the Service; manage and superintend its policies on revenue assessment, collection and accounting; review and approve its strategic plans; employ staff and set their terms and discipline; set remuneration, allowances, benefits and pensions in consultation with the National Salaries, Income and Wages Commission; and do other things needed for the efficient performance of the Service.

The Secretary (section 12) issues notices of meetings, keeps records of proceedings and does other duties directed by the Chairman or Board.

Functions of the Service

The Service shall:

1. assess persons, including companies, chargeable with tax;
2. assess, collect, account for and enforce payment of taxes due to the government or its agencies;
3. collect, recover and pay to the designated account any tax under any law;
4. with relevant ministries, review tax regimes and promote the use of tax revenue to stimulate economic activity;
5. with law enforcement agencies, examine and investigate to enforce compliance;
6. determine the financial loss to government from tax fraud, evasion and revenue forgone through waivers;
7. adopt measures to identify, trace, freeze, confiscate or seize proceeds of tax fraud or evasion;
8. adopt compliance and regulatory actions and investigation and control techniques to detect and prevent non-compliance;
9. exchange information with national and international bodies on tax matters;
10. exchange personnel or experts with complementary agencies for capacity building;
11. monitor international taxation developments to identify suspicious transactions and persons;
12. keep up-to-date data on all taxable persons and revenue-collecting government agencies;
13. maintain a database, statistics, records and reports on persons, proceeds, properties and documents, including on waivers, fraud and evasion;
14. undertake research on the extent and effects of tax fraud and evasion and recommend measures;
15. collate and review all federal policies on taxation and revenue and implement them progressively;
16. liaise with the Attorney General, security and law enforcement agencies and financial supervisors to eradicate tax offences;
17. issue a taxpayer identification number to every taxable person, with State Boards and local councils;
18. run public awareness campaigns on the benefits of compliance;
19. oversee all taxes and levies due to the Federation, with power to query, subpoena, sanction and reward;
20. give assistance in revenue claims under agreements with other countries;
21. carry out any other activity necessary to discharge its functions.

Technical Committee of the FIRS Board

Section 9 provides for it. It consists of the Executive Chairman as chairman, all Directors and heads of departments, the Legal Adviser and the Secretary of the Board, and may co-opt staff. It considers tax matters needing professional and technical expertise and makes recommendations to the Board, advises the Board on any aspect of the Service’s functions and powers, and handles other matters referred to it.

The Joint State Revenue Committee

Section 92 of the PITA set up a Joint State Revenue Committee (JSRC) for each State.

It comprises the Chairman of the State Internal Revenue Service as chairman, the Chairman of each Local Government Revenue Committee, a representative of the bureau on local government affairs (not below Director), a representative of the Revenue Mobilisation Allocation and Fiscal Commission as an observer, the State Sector Commander of the Federal Road Safety Commission as an observer, the Legal Adviser of the State Service, and a Secretary from the State Service.

It implements the decisions of the JTB, advises the JTB and the State and local governments on revenue matters, harmonises tax administration in the State, informs the public on State and local revenue matters, and does other things the JTB assigns.

The Tax Appeal Tribunal

• Establishment: section 59(1) of the FIRS Establishment Act 2007, with zones, matters and places specified by the Minister in the gazette.
• Composition: five Tax Appeal Commissioners appointed by the Minister. The chairman of each zone is a legal practitioner of at least 15 years’ call with experience in tax law, and presides; if absent, the members choose one. The quorum is three.
• Qualification: knowledge of the laws, regulations and practice of taxation in Nigeria, or capacity in managing a trade or business, or a retired public servant in tax administration.
• Term: three years, renewable once for three years, or until age 70, whichever is earlier. Resignation is by written notice to the Minister, and the commissioner stays in office for up to three months. Removal by the Minister is for gross misconduct or incapacity, after inquiry and a hearing.
• Pay: the Revenue Mobilisation Allocation and Fiscal Commission fixes salary and terms, which cannot be varied to the commissioner’s disadvantage.
• Jurisdiction: disputes under the Companies Income Tax Act, Personal Income Tax Act, Petroleum Profits Tax Act, Value Added Tax Act, Capital Gains Tax Act and other laws in the First Schedule.
• Powers: to make rules; summon and examine persons on oath; require documents; receive affidavit evidence; call for witnesses; review its decisions; dismiss for default or decide ex parte and set aside such orders; and do incidental things. Its proceedings are judicial proceedings and it is a civil court for all purposes.

Other provisions of the FIRS Act

Section 50 (as amended by the Finance Act 2021): everyone with access to taxpayer information in official duty must treat it as secret and confidential. Section 65: the Service is the primary federal agency for the administration, assessment, collection, accounting and enforcement of federal taxes and levies, except as the Minister authorises by regulation approved by the National Assembly.

It is an offence to perform these functions without authority, and a federal agency that learns of something needing tax investigation must refer it to the Service. The penalty is imprisonment up to five years or a fine of ₦10,000,000, or both.

The roles of policy, legislation and administration

Tax policy, tax law and tax administration are the components of a good tax system. Administrators render quality service to taxpayers and ensure compliance. They seek the views of taxpayers when developing new laws or improving existing ones, and this raises compliance. In deciding how a law is applied, administrators in effect make tax policy.

Causes of tax disputes with the revenue

The Pathfinder lists the following as common bases for a dispute between a taxpayer and the authority:

• the taxpayer cannot produce the acceptance certificate for property, plant and equipment;
• allowable expenses are not adequately documented;
• income is understated or split;
• returns are not filed, or are filed late;
• the taxpayer cannot produce the documents on output and input VAT;
• withholding tax deducted at source is not remitted;
• refunds of excess withholding tax are delayed;
• tax officials do not recognise allowable expenses;
• the authority does not grant tax-exempt items.

A company that wants to avoid a dispute keeps full documents for every deduction, files on time, and remits what it deducts. Where a dispute starts, the route is objection to the authority, then the Tax Appeal Tribunal, then the courts, as set out in the topic on objections and appeals.

The bodies side by side

The Board and the Service: what is the difference?

The Board is the governing body. It gives policy guidelines, approves strategic plans, employs and disciplines staff and fixes pay. The Service is the operating body, and it is the Service that assesses, collects, accounts for and enforces taxes, issues TINs, runs investigations and keeps taxpayer data.

An exam question that asks for the duties of the Board needs the six items under the Board, and one that asks for the functions of the Service needs the list of twenty-one. Mixing them loses marks.

Why there are three tiers of administration

Nigeria is a federation, and the tax laws divide revenue between the Federal, State and Local Governments. The FIRS handles company taxes and VAT, because these cross State lines. The State boards handle individuals, because residence ties each person to one State. Local governments handle small local levies.

The JTB and the JSRC link the tiers, so that procedures and interpretation are the same everywhere, which prevents a taxpayer in one State being treated differently from another on the same law.

Role of the tax consultant

A tax consultant deals with all these bodies. He registers companies with the FIRS and the State authorities, files returns, obtains clearance certificates, answers queries, handles audits and investigations, and appears before the Tribunal. He therefore needs to know which body to approach for which problem, and the time limit that applies at each step.

Answer outlines for the commonest questions

• Composition of a board: list the members in the order of the Act, and add the chair, the quorum and the tenure.
• Functions of a board: use the headings in the Act, and write one line under each.
• Powers of the Tribunal: start with summoning and examining on oath, then documents, affidavits, review of decisions and ex parte orders.
• Confidentiality of taxpayer information: cite section 50 and the penalty.

Typical exam questions on this topic and what they test

Composition and duties of the FIRS Board and the State Board. This tests recall of the two lists. Write the Executive Chairman, the six zonal members and the ex officio members for the FIRS, and the Chairman, directors, Finance director, Legal Adviser, three senatorial members and Secretary for the State Board.

Then give the Board’s duties: policy guidelines, superintendence, strategic plans, staff terms, remuneration, and other things needed for efficiency.

Explain tenement rate, pools betting tax, tertiary education tax and the personal income tax of the armed forces, and name the authority. Tenement rate is a tax on the rateable value of property, collected by the local government where the property is. Pools and gaming taxes are collected by the State where the office is. Tertiary education tax is on the assessable profit of companies, collected by the FIRS.

Personal income tax of the armed forces is collected by the FIRS.

Composition, functions and quorum of the Joint Tax Board. This tests the lists and the number seven. Composition and powers of the Technical Committee of the FIRS Board, and five local government levies. The committee is the Executive Chairman, all directors and heads of departments, the Legal Adviser and the Secretary, and it considers technical matters, advises the Board and handles referred matters.

Short answers. The JTB is presided over by the Chairman of the FIRS Board. A Tax Appeal Commissioner may serve at most six years. The authority for members of the Nigeria Police Force is the FIRS. A taxpayer dissatisfied after an objection appeals to the Tax Appeal Tribunal. Recommendations to the JTB on policy, reform, legislation, treaties and exemptions are a function of the State Board of Internal Revenue.

Appointment and independence

The independence of each body comes from how its members are chosen and removed. The President appoints the FIRS Board members, with the Chairman confirmed by the Senate. A Governor appoints the State chairman, with confirmation by the House of Assembly. A Tax Appeal Commissioner can be removed only for gross misconduct or incapacity after inquiry and a hearing, and his pay cannot be reduced after appointment.

These protections let the bodies decide cases without pressure from the government of the day.

Confidentiality and the offence under section 65

Because the Service sees the affairs of every taxpayer, section 50 of the FIRS Act, as amended, makes every official with access to taxpayer information treat it as secret and confidential. Section 65 reserves the administration of federal taxes to the Service. It is an offence for anyone else to do these things without authority, and the penalty is up to five years’ imprisonment or a fine of ₦10,000,000, or both.

A ministry, department or agency that learns of an incident needing investigation must refer it to the Service. This stops several agencies from collecting the same tax.

Revision grid for the bodies

The position from 2026

The Nigeria Revenue Service (Establishment) Act 2025 replaces the FIRS Act and the Nigeria Revenue Service replaces the FIRS, with a wider mandate to collect tax and non-tax revenue. The Joint Revenue Board of Nigeria (Establishment) Act 2025 sets up the Joint Revenue Board in place of the Joint Tax Board, and provides for the Tax Appeal Tribunal and an Office of the Tax Ombud. Use the descriptions above for questions set under the old Acts.

Worked examples

1. The quorum is five, one being a chairman or director.
2. With four present there is no quorum, so the meeting cannot decide.

1. (a) The Joint Tax Board.
2. (b) The State Internal Revenue Service, under the State Board.
3. (c) The Tax Appeal Tribunal.

1. The power to serve notice of assessment (section 57) cannot be delegated.
2. An assistant may receive documents for the Board, but the Board must itself serve the notice.

How to score full marks

• Learn the composition lists in order and give at least the number of members asked for.
• Add quorum and tenure to each board for extra marks.
• Match each function to its body: JTB advises and promotes uniformity; SBIR collects; FIRS Board sets policy.
• Name the section for each body: 86, 87, 90, 92 and 59.

Common mistakes in the exam

• Giving the JTB quorum as five or the State Board quorum as seven.
• Mixing the functions of the FIRS Board with those of the Service.
• Forgetting the six zonal members of the FIRS Board.
• Placing the Tax Appeal Tribunal under the courts rather than the FIRS Act.

Quick revision

• JTB: FIRS Chairman, one member per State, quorum seven.
• SBIR: Chairman, directors, Finance director, Legal Adviser, three persons, Secretary; quorum five.
• FIRS Board: Executive Chairman, six zonal members, ex officio members; four years, once renewable.
• TAT: five commissioners, quorum three, chairman 15 years’ call.

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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