TAX DISPUTE RESOLUTION IN NIGERIA
Any modern tax administration system that allows for the fair resolution of disputes in tax matters is essential. Tax dispute resolution is an essential component of a tax administration system.
TAX DISPUTE RESOLUTION IN NIGERIA
Any modern tax administration system that allows for the fair resolution of disputes in tax matters is essential. Tax dispute resolution is an essential component of a tax administration system. Another crucial aspect of such a system is its capacity to inspire trust in the taxpayers regarding the independence and objectivity of its procedures, processes, and judgments.
In order to increase the effectiveness of tax administration by adjustments to the current processes and procedures to be followed in tax appeals at the Tax Appeal Tribunal and the Federal High Court of Nigeria, two significant subsidiary laws were released in 2021. Regarding the former, the Federal High Court Chief Judge issued the FHC Practice Directions on May 31, 2021. The TAT Rules 2021 were released on June 10th, 2021 by the Honorable Minister of Finance, Budget, and National Planning.
The TAT Rules 2021 include significant and laudable reforms. It is a considerable advancement over the prior TAT Rules, which were published in 2010. The revised TAT Rules 2021 include provisions for case stated procedures, documents-only procedures, summary appeal procedures, and virtual hearings.
It is anticipated that the implementation of these novel ideas will hasten the conclusion of tax appeals. Despite these additions, the requirement for provisional tax payment in order to file a tax appeal has caused concern among taxpayers and tax professionals. A party that disagrees with a tax authority's or the Federal Inland Revenue Service's (FIRS) decision may appeal the decision under Rules 1 and 2 and 6 of the TAT Rules 2021, but only after paying 50% of the disputed sum into an account chosen by the Tribunal before the hearing.
However, rather than entering a potentially risky situation and end up paying more in fees and interest without a resolution, here are five steps you can take when faced with tax issues.
STEPS TO TAX DISPUTE RESOLUTION
STEPS TO TAX DISPUTE RESOLUTION OBJECT TO SUCH ASSESSMENT IN WRITING: A taxpayer who feels wronged by an RTA's assessment may object to it in writing within a set time frame. Following that, such RTA may decide to modify the evaluation or decline to modify it. The RTA would issue a Notice of Refusal to amend if it decided not to change the assessment (NORA).
CONTACT THE RTA: It is crucial to get in touch with the Relevant Tax Authority and take care of the situation as soon as you receive notice of any unpaid taxes or fines. A revenue officer you speak to will be willing to work with you based on your circumstances. Your ability to pay may be verified by the revenue officer by providing specific financial details.
ASK FOR PAYMENT PROGRAM OPTIONS: Consumers should find out if they qualify for the RTA offer in compromise programme if they are unable to pay taxes, penalties, and fees in full. However, they should be ready to provide the relevant documentation to support their claims of financial hardship. Taxpayers could potentially qualify for the instalment payment depending on their particular situation.
OPT FOR A LITIGATION: If the taxpayer is still unhappy with the RTA submission, he or she might choose to pursue legal action or one of the other alternative dispute resolution options to get their complaints heard louder.
WHEN IN DOUBT, HIRE A TAX CONSULTANT: The best course of action in such tax situations is to consult a reputable tax expert. The best course of action is to contact a reputable accountant, tax attorney, or specialist who will explain the process to you and not promise the moon so that you have the facts you can deal with, unless it is a very small amount and you are confident that you can pay it off over a reasonably short period of time. In order to improve their prospects of coming to an agreement with the RTA, taxpayers should be open and honest about their circumstances and offer as many documentation as they can to the person managing their case.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080