Tax tribunal orders institute to pay N2bn tax bill

The Tax Appeal Tribunal has Abuja ordered the Cement Technology Institute of Nigeria to pay the Nigeria Revenue Service an assessment tax of N2bn.

The five-member panel gave the order in its judgment on an appeal marked TAT/ABJ/332/2023 filed by the Institute.

The CTIN filled the suit on Sept 7, 2023 on notice of additional assessment and demand notes for companies income tax.

Others are Education Tax and withholding tax from 2018 to 2020 years of assessment, 2017 to 2019 years of account and notice of refusal to amend, dated September 2023.

The Institute also contended that the purported charge on Companies Income Tax and Education Tax on interest income earned on its Treasury Bills, Bonds and Fixed Deposit placements are unlawful, null and void and inconsistent with the provisions of the law.

The appellant also argued that withholding tax charged on the management fees paid to the Bank of Industry were unlawful.

In resolution of the issues, the panel formulated four issues as trade or business, income is not the same as taxable profit; secondly, companies income tax(exemption of bonds and short-term government securities) order, 2011.

The tribunal held that for the reasons presented, this appeal is dismissed.

“Consequently, the Tribunal finds that the Companies Income Tax payable by the Appellant is N1,835,484,959.69 while the Tertiary Education Tax payable is N190,158,410.44,” the tribunal said.

It held that the respondent should within 30 days, recompute the assessment to give effect to the exemption of interest income specifically traceable to Federal Government Treasury Bills and Bonds under the Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011.