Publication: FIRS v. Agromix Nig. Ltd. (2024) 87TLRN 1; Can Tax Authorities’ Assess Nigerian Companies’ Income Tax on the Basis of the Value of Company’s Assets?

---

In FIRS v. Agromix Nig. Ltd (2024), the Court of Appeal made a landmark ruling that sets a crucial precedent for tax assessments in Nigeria. Amongst others, the Court held that tax authorities (in this case, the Federal Inland Revenue Service (“FIRS”)) must impose income tax based on a company’s profits, not assets, while providing a key exception.

This decision clarifies the limits of FIRS’ Best of Judgment assessments and underscores that tax laws must be strictly interpreted. It also raises key questions about FIRS' discretionary powers and the consequences for companies that fail to file returns.

What does this mean for Nigerian businesses and tax compliance? Please read the latest article from our Associates, Vivian Okafor and Adeyinka Adeoye.

https://lnkd.in/gbgUYWAM