Tax Appeal Tribunal in Nigeria: An Interrogation of Fundamental Issues and Case for Reform

Abstract

A taxable person that is aggrieved with the tax assessment levied on him may file a notice of objection to the relevant tax authority (RTA) to review the tax assessment. After consideration of his objection and he still feels dissatisfied, he may file an appeal to the Tax Appeal Tribunal (TAT). A further appeal from the TAT lies to the Federal High Court and subsequently to the Court of Appeal and the Supreme Court. Notwithstanding the efficiency of TAT in the adjudication of tax appeals in Nigeria, there are some fundamental issues which need to be improved on. This paper highlights some of the fundamental issues and canvasses for the establishment of an Upper Tax Tribunal which would be an appellate tax tribunal in which appeals from TAT would lie to and further appeals from the proposed Upper Tax Tribunal would lie to the Court of Appeal as it is the practice in the United Kingdom. Some of the fundamental issues raised include the appointment of the Commissioners and regulation of the procedural rules of TAT by the Minister of Finance, the provision regarding the composition of the TAT and consideration of the status of TAT. The paper adopts doctrinal methodology and observes that TAT is an administrative tribunal and its status as such should be maintained. It also observes that TAT is efficient in the adjudication of tax matters and argues that if appeals could lie from TAT to another higher tax tribunal instead of the Federal High Court, tax cases would be adjudicated upon speedily and efficiently. The paper therefore recommends amongst others for the regulation of TAT’s procedural rules and appointment of Commissioners by the Minister of Justice, as well as establishment of an Upper Tax Tribunal with co-ordinate jurisdiction with the Federal and State High Courts. The paper concludes that implementation of the recommendations will enhance speedy and more efficient dispensation of tax matters.