THE EXPANSION OF THE JURISDICTION OF THE TAX APPEAL TRIBUNAL (TAT), UNDER THE JOINT REVENUE BOARD OF NIGERIA (ESTABLISHMENT) ACT, 2025

INTRODUCTION

The ongoing reforms of Nigeria’s fiscal legislation has introduced significant changes to Nigeria’s tax administration and enforcement processes. One of such key introductions is the expansion of the jurisdiction of the Tax Appeal Tribunal (TAT), a quasi-judicial body established pursuant to Section 59 of the Federal Inland Revenue Service (Establishment) Act, 2007.

This article examines the Tax Appeal Tribunal, its jurisdictional powers over disputes and the position of the current legislation regulating the tribunal before the enactment of the Joint Revenue Board (Establishment) Act (JRBA) 2025.

A.    PRE-JRBA JURISDICTION OF THE TAT

TAT currently entertains tax disputes that relate to federal legislation, which includes: Companies Income Tax Act, Personal Income Tax Act, Petroleum Profits Tax Act, Value Added Tax Act, Capital Gains Tax Act, and other tax-related legislation (See Paragraph 11 of the Fifth Schedule to the FIRS (Establishment) Act, 2007). In essence, the TAT is vested with the authority to resolve disputes between the taxpayers and the relevant tax authorities such as the  Federal Inland Revenue Service (FIRS) and State Internal Revenue Service. However, its jurisdiction over state and local government tax disputes in relation to laws made by states remain ambiguous and, in practice, non-existent, and such disputes are typically resolved in state high courts.

B.  ESTABLISHMENT OF THE TAT UNDER THE NEW TAX REFORM, JOINT REVENUE BOARD OF NIGERIA (ESTABLISHMENT) ACT, 2025.

The Act retained the duty of TAT as the appropriate channel for the resolution of tax dispute/appeals. The establishment of the Tribunal and its jurisdiction are covered by the provisions of Sections 23(1) and 29 of the Joint Revenue Board of Nigeria (Establishment) Act, 2025 (JRBA), respectively.

Section 29 of the JRBA extends the jurisdiction of the TAT beyond federal taxes to cover disputes arising from the Nigeria Tax Act, 2025, and Nigeria Tax Administration Act, 2025, or any other tax law made by the National Assembly or the House of Assembly of a State. Notably, the jurisdiction of the Tax Appeal Tribunal (TAT) has been expanded to encompass tax disputes related to laws enacted by State Houses of Assembly, thereby streamlining and unifying tax appeal processes. However, it is worth noting that the Act does not extend to tax disputes arising from bye-laws of Local Government Authorities.

The unification of the Tax Appeals, is further captured by the provision of Paragraphs 2(1) & (2) of the Second Schedule to the JRBA, where any taxable person aggrieved by an assessment, demand notice, action, decision of a tax authority, or a dispute as to residency may appeal directly to the Tax Appeal Tribunal within a period of 30 days from the date on which it was made, or deemed to have been made by the relevant tax authority. This has created certainty in the procedure and channel of dispute resolution across the country.

C.    QUALIFICATION FOR APPOINTMENT OF A TAX APPEAL TRIBUNAL – CHAIRMAN & MEMBERS

Under the FIRS Act, 2007, a person shall not be qualified for appointment as a Tax Appeal Tribunal (TAT) unless he or she is:

a.    For the TAT Chairman of each zone, a legal practitioner who has been so qualified to practice for a period of not less than 15 years with cognate experience in tax legislation and tax matters.

b.    knowledgeable about the laws, regulations, norms, practices, and operations of taxation in Nigeria; or

c.     a person who has demonstrated capacity in the management of trade or business; or

d.    a retired public servant in tax administration.

Kindly note that the FIRS Act, 2007, did not specify any years of experience for a member of the TAT; it only specifies so for a Chairman of the TAT.

Under the JRBA 2025, however, it expands the TAT qualification requirements for appointment as a Tax Appeal Commissioner (member of the panel); the requirements are listed hereunder as follows:

a.    possesses the requisite qualification from a recognised institution with at least 10 years cognate experience in law, accounting, business administration, finance, economics, or taxation;

b.    is a retired public servant with at least 10 years’ experience in tax administration; or

c.     is a member of the organised private sector with requisite tax experience.

D.     ENFORCEMENT OF JUDGMENTS

Sequel to paragraph 9(2) of the Second Schedule to the JRBA, any award or judgment of the Tribunal shall be enforceable as if it were a judgment of the Federal High Court, upon registration with the Chief Registrar of that Court. This provision significantly strengthens the enforcement powers of the Tribunal by giving it a national outlook.

E.     IMPLICATIONS OF THE EXPANDED JURISDICTION

The expansion of the TAT’s jurisdiction under the JRBA carries various legal implications:

·        For Taxpayers: The expansion of the TAT’s jurisdiction gives them a centralized, specialized, and, yet, relative clarity in resolving tax disputes at the federal and state levels.

·        For Tax Authorities: Ensures consistency in the interpretation of tax laws across federal, state, and local government authorities, promoting the harmonisation of Nigeria’s fragmented tax system.

·        For the Courts: This reduces the judicial burden and decongests regular courts’ dockets by filtering tax disputes through the TAT, thus allowing the regular courts to deal mainly with appeals on points of law.

·        For Fiscal Federalism: Raises questions about the autonomy of states in tax administration, since the TAT now has supervisory authority over disputes involving state and local taxes. This may trigger constitutional debates under Sections 4 and 162 of the 1999 Constitution (as amended).

CONCLUSION

In summary, the expansion of the TAT’s jurisdiction by the JRBA is a strategic move towards unifying Nigeria’s tax administration system. By extending its jurisdiction to include disputes arising from state laws, the amendment promotes consistency in tax appeals.

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