Overview of Final And Conclusive Assessment Under Nigerian Law

A tax assessment is final and conclusive when the taxpayer loses the right to question or challenge the amount of tax imposed due to his failure to carry out some steps within specified periods set out under applicable laws. This may take the following forms:

  • failure of the taxpayer to present a valid objection to an assessment within the number of days prescribed by Statute;
  • failure of the taxpayer to appeal within the number of days prescribed by Statute against any decision of the tax authority refusing to revise or amend an assessment;
  • failure of the taxpayer to appeal against the decision of the Tax Appeal Tribunal or any court within the number of days prescribed by Statute;and
  • where a valid revised assessment has been agreed between the taxpayer and tax authority.

By section 76 of the Companies Income Tax Act, Cap C21, Laws of the Federation of Nigeria, 2004 (CITA), where tax payer fails to forward an objection to any assessment within 30 days of receipt of an assessment, the assessment will become final and conclusive and the amount set out in the assessment will be binding on the taxpayer. The same is true of the provision of the Personal Income Tax Act, Cap P8of the Laws of the Federation of Nigeria, 2004 (PITA). However, under Section 43 of the Petroleum Profits Tax Act, Cap P8of the Laws of the Federation of Nigeria, 2004 (PPTA), the number of days for such failure to make an assessment final and conclusive is 21 days.

By section 76 of the CITA, where taxpayer fails to appeal the decision of the tax authority within 30 days of receipt of an assessment, the assessment will become final and conclusive and the amount set out in the assessment will be binding on the taxpayer. The same is true of the provision of the PITA. However, under Section 43 of the PPTA, the number of days for such failure to make an assessment final and conclusive is 21 days.

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