Nigeria’s Federal High Court (FHC) delivered a key judgment on 30 October 2013 in a suit between TSKJ Contruces Internationals Sociadade Unipessoal LDA (TSKJ) and the Federal Inland Revenue Service (FIRS). The FHC upheld TSKJ’s appeal against the decision of the Tax Appeal Tribunal (TAT) which , ordered TSKJ to pay $12,924,947 as outstanding tax liabilities from 1997 to 2002 computed on recharges paid by TSKJ to its Nigerian subsidiary. Apart from affirming the deductibility of certain expenses, the key point of the decision was that the FHC held that the TAT lacked the jurisdiction to adjudicate over tax disputes relating to federal revenue and taxation of companies in Nigeria. This was considered contrary to the Constitution of the Federal Republic of Nigeria and the FHC ordered the Minister of Finance to disband the TAT.
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