Nigeria LNG Limited (NLNG) has clarified that the Company Income Tax (CIT) payment of N27.5million to the Federal Inland Revenue Service (FIRS) was made in furtherance of a settlement agreement reached between the parties and not because of any order made by the Tax Appeal Tribunal.
This clarification was made in a statement issued by the NLNG General Manager, External Relations and Sustainable Development, Andy Odeh on Thursday.
The company was reacting to the media reports suggesting that a Tax Appeal Tribunal ordered NLNG to pay $27.5 million to the Federal Inland Revenue Service (FIRS) as a revised Company Income Tax (CIT) settlement for 2016.
It said, said NLNG remains a responsible corporate citizen, and consistently operates in compliance with Nigerian laws and will continue to operate in line with its vision of being “a globally competitive LNG company helping to build a better Nigeria.”
Background
The Tax Appeal Tribunal (TAT) sitting in Abuja had ordered the NLNG to pay the FIRS $27.5 million as full and final settlement of the revised company income tax (CIT) for the 2016 assessment year.
A five-member panel, chaired by Mrs Alice Iriogbe, entered the judgment on the terms of a settlement.
The News Agency of Nigeria (NAN) reports that NLNG Ltd sued the FIRS as the sole respondent on April 21, 2022.
The appellant prayed the tribunal to restrain the revenue agency from collecting $141. 75 million from it as CIT for the year under review.
It challenged the FIRS’ notice of additional assessment dated December 15, 2021, and the notice of refusal to amend (NORA) dated March 22, 2022.
The TAT, in the certified true copy of the judgment, held that in the terms of settlement signed by parties, the NLNG agreed to pay FIRS “the sum of USD$27,500,000 as full and final settlement of the Revised CIT Assessment and the subject matter of this appeal if payment is made on or before Friday, 12th July 2024.
“In furtherance of the above the appellant (NLNG) on Monday 8th July, 2024, duly remitted the said sum of USD$27,500,000 to the respondent (FIRS), being the full and final settlement amount agreed upon by the parties.
“In the circumstance, the terms contained in the terms of the settlement have been adopted and made the judgment of this Honourable Tribunal.
“This is the judgment of this Honourable Tribunal.”
The gas company had sought an order setting aside the FIRS’ Notice of Additional Assessment.
It equally sought an order of injunction restraining the FIRS, its agents, officers or privies, from further assessing the company to tax for the 2016 year of assessment as set out in the demand note reference number: PDBA/CIT/AUD/16/207 dated December 15, 2021, among other reliefs.
Earlier, the tax panel dismissed the NLNG’s interlocutory motion seeking to disqualify the tribunal from adjudicating on the case.
The company had asked the tribunal to direct the chairperson, Mrs Iriogbe, and another member, Mr Ajayi Bamidele, who were former staff of FIRS, to recuse themselves as their presence posed a likelihood of bias.
“This tribunal sees this application as being frivolous and it is hereby dismissed with no order as to cost,” the TAT ruled.
