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CROSS RIVER – FINANCE LAW

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LAWS OF CROSS RIVER STATE

CHAPTER F3

FINANCE LAW

ARRANGEMENT OF SECTIONS

PART 1

Preliminary

SECTION

  1. Administrative authority and responsibility.
  2. Official secrecy.
  3. Rules and forms.
  4. Service and signature of notice.
  5. Legal proceedings.

PART 2

Income Tax

CHAPTER 1 – PRELIMINARY

  1. Interpretation.

CHAPTER 2 – INCOME TAX AUTHORITIES

  1. Appointment of Assessment Authority and Assessment Committee and duties.
  2. Appointment of Tax Collector and Tax Collecting Agent and duties.

CHAPTER 3 – IMPOSITION OF TAX AND ASCERTAINMENT OF INCOME

  1. Charge of income tax.
  2. Exemption.
  3. Deductions allowed.

CHAPTER 4 – DEDUCTION AND ASSESSMENT

  1. Deduction of tax at source.
  2. Return of income.
  3. Power to call for information from taxpayers.
  4. Power to direct taxpayer to keep accounts.
  5. General power to call for information.
  6. Assessment of income and determination of tax payable.
  7. Notice of assessments.
  8. Additional assessment.
  9. Specification of amount of tax payable.

 

CHAPTER 5 – OBJECTION, APPEAL AND REVISION

SECTION

  1. Objection to assessment.
  2. Appeal to Board of Commissioners against assessment.
  3. Appeal to High Court on a matter of law.
  4. Appeal to the High Court against assessment.
  5. Repayment in case of error or mistake.
  6. Assessment to be final and conclusive.
  7. Power of revision by Commission and Assessment Authority.

CHAPTER 6 – LIABILITY IN SPECIAL CASES

  1. Incapacitated taxpayer.
  2. Deceased taxpayer.
  3. Persons outside Nigeria.

CHAPTER 7 – RECOVERY, OFFENCES AND PENALTIES

  1. Recovery of tax by deduction.
  2. Recovery powers of tax collector.
  3. Offences and penalties.
  4. False return, statement or record.
  5. Failure to pay tax.
  6. Offences by Tax Collecting Agent.
  7. Offences by employer.
  8. Offences by unauthorised persons.
  9. Arrest of offender without warrant.
  10. Errors and defects in records.
  11. Remission and repayment.
  12. Immunity.

PART 3

Purchase Tax

  1. Interpretation.
  2. Charge of purchase tax.
  3. Person by whom tax is payable.
  4. absent tax-payer.
  5. Registration of wholesale merchants.
  6. Registration procedure.
  7. Return and information from seller.
  8. General power to call for information.
  9. Exemption.
  10. Repayment of tax.
  11. Failure to pay tax.
  12. Offences and penalties.

SECTION

  1. False return, statement or record.
  2. Rules.

PART 4

Variation, Repeal and Saving

  1. Variation of Schedule.
  2. Repeal and Saving.
  3. Interpretation.
  4. Short Title.

FIRST SCHEDULE

Rates of Tax on Incomes – Omitted

SECOND SCHEDULE

Exemption from Tax on Incomes – Omitted

THIRD SCHEDULE

Rates of Purchase Tax

FOURTH SCHEDULE

Omitted

 

CHAPTER F3

FINANCE LAW

A Law to regulate the Imposition of an Income Tax upon persons other than Companies; to impose a Tax on the purchase of certain items and for purposes connected therewith.

(1st April, 1961)

[Commencement]

PART 1

Preliminary

  1. Administrative authority and responsibility

(1)     For the due administration of this Law, a Commissioner of Internal Revenue, a Deputy Commissioner of Internal Revenue, an Assistant Commissioner of Internal Revenue, and such other officials may be as necessary, may be appointed.

(2)     The Commissioner is responsible for the assessment and collection of, and accounting for the taxes imposed under this Law.

(3)     All money and securities for money collected or received for or on account of the taxes imposed under this Law shall be paid into the Consolidated Revenue Fund of the Cross River State.

  1. Official secrecy

(1)     A person employed in, or having an official duty connected with the administration of this Law, shall regard and deal with as secret and confidential all information, documents, returns, records or copies of those records relating to any person by whom the taxes imposed under this Law are payable.

(2)     A person having possession of, or control over any information, documents, returns, records or copies of records relating to a person by whom the taxes imposed under this Law are payable, who at any time communicates or attempts to communicate that information or anything contained in those documents, returns, records or copies to any person—

(a)     other than a person to whom he is authorised by the Commissioner to communicate it, or

(b)     otherwise than for the purpose of this Law, is guilty of an offence: Penalty, imprisonment for two years and a fine of four hundred naira.

(3)     A person employed in or having an official duty connected with the administration of this Law shall not be required to—

(a)     produce in a court of law a document, return or record, or

(b)     divulge or communicate to a court of law a matter or thing coming under his notice in the performance of his duties under this Law, except as may be necessary—

(c)     for the purposes of carrying this Law into effect, or

(d)     in order to institute a prosecution for an offence committed in relation to the taxes imposed under this Law, or

(e)     in the course of a prosecution for such an offence.

(4)     Notwithstanding anything contained in this section, the Commissioner shall—

(a)     permit the Auditor-General or an official duly authorised in that behalf by the Auditor-General to have such access to any documents or records as may be necessary for the performance of his official duties and, for the purpose of this section, the Auditor-General or any such official is deemed to be a person whose functions are necessary for the purpose of carrying this Law into effect;

(b)     for the purpose of informing persons by whom income tax is payable under this Law whose income is not more than two hundred naira per annum of the amounts of tax payable by them, permit an Assessment Authority to publish copies of assessment records relating to those taxpayers.

  1. Rules and forms

(1)     The State Commissioner may, from time to time, make rules generally for carrying out this Law, and also for the purposes of such matters as are authorised by this Law to be prescribed or provided for by him.

(2)     Subject to section 34, the Commissioner may, from time to time specify the form of notices, returns, applications, statements or records under this Law.

  1. Service and signature of notice

(1)     Subject to this section, section 50 of the Interpretation Law applies to the service of a notice under this Law.

(2)     Where a notice is sent by registered post it is deemed to have been served on the day succeeding the day on which the addressee of the registered letter containing the notice would have been informed in the ordinary course of events that the registered letter is awaiting him at the post office, if that notice is addressed in accordance with subsection (4).

(3)     A notice is not deemed to have been served under subsection (2) if the addressee proves that a notification, informing him of the fact that the registered letter was awaiting him at a post office, was not left at the address given on the registered letter.

(4)     A notice shall be addressed—

(a)     in the case of a company, to the registered office of the company or the head office of the company in the State; and

(b)     in the case of a person or body of persons, to the last known business or private address of that individual or body of persons.

(5)     A notice may be served by being left at the appropriate office or address as specified under subsection (4) except where that address is a post office box number.

(6)     A notice given by the Commissioner or an Assessment Authority under the Law shall be signed by the Commissioner or Assessment Authority, as the case may be, and is valid if the signature of the Commissioner or Assessment Authority is printed, embossed, stamped or written thereon.

  1. Legal proceedings

(1)     Proceedings for the enforcement of payment or recovery of the taxes or pecuniary penalties imposed under this Law, and proceedings for the imposition of penalties for offences under this Law may be taken in the name of the Commissioner.

(2)     A tax or pecuniary penalty imposed under this Law, or a pecuniary penalty payable for an offence under this Law is recoverable by the Commissioner as a civil debt.

(3)     For the purposes of this section, the Commissioner may be represented in a magistrate’s court by a Tax Collector or by any other suitable official authorised in writing by a Tax Collector, generally or specifically in relation to any particular proceedings or class of proceedings.

PART 2

Income Tax

CHAPTER 1

PRELIMINARY

  1. Interpretation

In this Part—

“Assessment Authority” means an official appointed under subsection (1) of section 9 or the Commissioner; “Assessment Committee” means a body of persons appointed under subsection (1) or subsection (2) of section 9; “communal income” means an income accruing to an indigenous community as a single entity; “employer” includes in respect of individuals taxable under this Part—

(a)     a person who employs those individuals, a body of persons corporate or unincorporated, a person who gives out articles or materials to out-workers, and the legal personal representative of a deceased employer; but in the case of a body of persons corporate or unincorporated, the manager or other principal officer of the main office or of a local office or branch of a subsidiary concern is deemed to be the employer, and a director of a company or individual engaged the management of a company is deemed to be an employed individual; and where that person is located outside the Cross River State the Commissioner may, after giving him an opportunity of being heard, by notice in writing, declare any other person located in the Cross River State who is employed by or on behalf of that person, or has any business connection with him, or through whom he is in receipt of any income, to be the agent of that person, and that agent shall be deemed to be the employer;

(b)     an official who performs the functions of Head of Department in respect of those individuals employed in an organisation established in Nigeria by the Government of the Cross River State, and an official charged with any responsibility attaching to a duty imposed under this Part in respect of the tax payable on income from employment;

(c)     the Accountant-General or such other official as may be charged with the responsibility for payment of any Government pension receivable by those individuals;

(d)     the Chief Secretary to the Premier in respect of those individuals employed in an organisation established outside Nigeria by the Government of the Cross River State, and an official charged with any responsibility attaching to a duty imposed under this Part in respect of the tax payable on income from employment;

(e)     the Clerk to the Cross River State Legislature in respect of those individuals who are members of that Legislature;

(f)      subject to the consent of the President under the proviso to subsection (2) of section 100 of the Constitution of the Federation, an official of the Federation who performs the functions of Head of Department in respect of those individuals employed in any organisation established by the Federation, and an official charged with any responsibility attaching to any duty imposed under this Part in respect of the tax payable on income from employment; “family income” means an income recognised by a local law or custom as such; “incapacitated individual” means an infant, lunatic, idiot or insane individual; “indigenous community” means a body of indigenous Nigerian citizens residing in a town, village or settlement in the Cross River State; “married” means married under the Marriage Act or married by local customary law; “Tax Collecting Agent” means a person or body of persons or local government appointed under subsection (2) or subsection (3) of section 10; “Tax Collector” means an official appointed under subsection (1) of section 10 or the Commissioner; “taxpayer” means a person by whom any income tax is payable under this Part, and a person in respect of whom a proceeding has been taken for the assessment of his income or determination of a loss sustained by him or of the amount of a repayment of tax due to him; but in the case of a body of individuals or of an indigenous community or family, a member of that body or community engaged the management of its activities, or the member of the family who customarily receives the family income from its source, is deemed to be the taxpayer; and any expression not hereinbefore defined, to which a meaning is assigned by the Act, shall have the meaning so assigned.

CHAPTER 2

INCOME TAX AUTHORITIES

  1. Appointment of Assessment Authority and Assessment Committee and duties

(1)     For the purpose of—

(a)     assessing the total income of taxpayers, and

(b)     determining the amounts of tax payable by them, the Commissioner may appoint a suitable official or body of persons to be an Assessment Authority or an Assessment Committee, respectively.

(2)     For the purpose of—

(a)     assessing the total income of taxpayers who fall within any category of income specified by the Commissioner, and

(b)     determining the amount of tax payable by them, an Assessment Authority may appoint a suitable number of persons to be an Assessment       Committee for a specified area.

(3)     An Assessment Authority or Assessment Committee shall—

(a)     assess the total income of taxpayers within its specified area; and

(b)     determine the amounts of tax payable by them; and

(c)     maintain such assessment records, and supply such information with respect to the identity, income and other particulars of those taxpayers as may be specified by the Commissioner.

  1. Appointment of Tax Collector and Tax Collecting Agent and duties

(1)     For the purpose of collecting the tax payable by taxpayers, the Commissioner may appoint a suitable official to be a Tax Collector for a specified area.

(2)     A Tax Collector may appoint a suitable person, or body of persons, or local government, to be a Tax Collecting Agent within a part of his specified area, and in the case of a body of persons or a local government the appointment shall be made in the name of any member of that body or of the Secretary or Treasurer of the local government, as the case may be.

(3)     For the purpose of collecting the tax by the method of deduction at  source, from taxpayers who derive income from employment, the State Commissioner may appoint an employer to be a Tax Collecting Agent in respect of taxpayers at any time employed by that Employer.

(4)     A local government which has been appointed a Tax Collecting Agent under subsection (2) may, with the approval of the Tax Collector, employ a suitable person or body of persons for the purpose of assisting it in the collection of the tax.

(5)     A Tax Collector or Tax Collecting Agent shall—

(a)     collect the tax from taxpayers within his or its specified area and from those employed by him or it as the case may be;

(b)     maintain such collection records, and pay all collected tax to such person, in such manner and within such time; and supply such information concerning the identify income and other particulars of those taxpayers, as may be prescribed by the State Commissioner or specified by the Commissioner, as the case may be.

CHAPTER 3

IMPOSITION OF TAX AND ASCERTAINMENT OF INCOME

  1. Charge of income tax

Income tax is, subject to this Law, chargeable and payable for a year of assessment in accordance with the amounts in this Law specified in respect of—

(a)     the total income of an individual who is resident in the Cross River State during that year: But the tax is not payable by—

(i)      an individual who is not above the age of sixteen years at the date of commencement of that year of assessment, in respect of that part of such income as is earned by personal effort; or

(ii)     a female individual who is above the age of sixteen years at the date of commencement of that year and whose total income does not exceed two hundred naira; or

(iii)    a female individual, not being an employee, who is above the age of sixteen years at the date of commencement of that year and whose total income exceeds two hundred naira, and—

(A)     whose ordinary place of abode is not situated within the area of the authority of a local government listed in the Second Schedule, and

(B)     who does not carry on a business or derive an income from an asset situated within that area;

(b)     the total income of an itinerant worker who is found in the Cross River State during that year;

(c)     the total income of a body of individuals which is resident in the Cross River State during that year;

(d)     the total communal income of an indigenous community which is found in the Cross River State during that year;

(e)     the total family income of an indigenous family of which the member who customarily receives that income from its source usually resides in the Cross River State: But a part of the total income of such a body of individuals, or the total communal or total family income which is subject to ascertainment as the separate income of an individual who is a member of such a body or community or family, as the case may be, shall be excluded from that total income or total communal or total family income included in the total income of that individual;

(f)      the total fiduciary income of a trustee of a trust or settlement, or of an executor of          the estate of a deceased person in respect of which the Commissioner is the relevant tax authority.

  1. Exemption

(1)     There shall be exempt from tax—

(a)     any interest receivable by a taxpayer on a security issued or declared by any Government in Nigeria to be free of income tax;

(b)     any income of a corporation solely established by the Government of the Cross          River State.

(2)     That part of the total income of a body of individuals or of the total communal income of an indigenous community or of the total family income of an indigenous family which is receivable by a taxpayer as a member of such a body or community or family, but is not subject to ascertainment as his separate income shall be excluded from his total income.

(3)     The Executive Council may exempt from tax—

(a)     any person or class of persons; or

(b)     the whole or any part of the income of any person or class of persons; or

(c)     any class of income.

  1. Deductions allowed

(1)     For the purposes of ascertaining the income or loss of taxpayer during any period from any source chargeable with tax, there shall be deducted the amount of any premium paid by him during that period in respect of any insurance on his life or the life of his wife, or of any contract for deferred annuity on his life or the life of his wife; but no deduction shall be made in respect of such an insurance except in respect of premiums payable on policies securing a capital sum of death, whether or not in conjunction with any other benefit, and the amount of the deduction made shall not exceed one-tenth of that capital sum, exclusive of any additional benefit by way of bonus, profit or otherwise.

(2)     The total amount of the deductions made under this section shall not exceed one-fifth of the total income (including such deductions) of the taxpayers for the relevant year of assessment.

(3)     The aggregate amount of the deductions made under—

(a)     this section,

(b)     paragraph (e) of subsection (1) of section 17 of the Act, and

(c)     in the case of an employee, paragraph (f) of subsection (1) of section 17 of the Act, shall not exceed two thousand naira in respect of any year of assessment.

CHAPTER 4

DEDUCTION AND ASSESSMENT

  1. Deduction of tax at source

(1)     The Commissioner may by notice in writing served upon any employer direct that upon any occasion when that employer makes to or on behalf of any employee any payment of or on account of any income from employment, he shall deduct there-from the tax payable by that employee in respect of that income, notwithstanding that that income has not been assessed.

(2)     A direction given under subsection (1) shall specify the income to which it refers and the amount or amounts of tax to be deducted, either specifically or by reference, in the case of employee, to tax tables supplied by the Commissioner in accordance with the First Schedule.

(3)     In determining the amount of tax to be deducted under subsection (1) from any payment to an employee the Commissioner shall ensure, as far as possible, that the amount is such that the cumulative amount of deductions (including such amount) made since the commencement of any financial year from income for that year, shall bear to the amount of tax computed upon the total income for that year in accordance with the First Schedule in force for that year, the like proportion that the part of that year which ends with that occasion bears to the whole of that year.

(4)     Notwithstanding anything contained in subsection (1) or subsection (3), where such an employee is a taxpayer who derives income from more than one employer or from other sources, the Commissioner may direct and ensure that the amount of tax to be deducted on any occasion by any one employer, and the total amount of tax to be deducted for any financial year by that employer, shall be determined by reference to the total income of the taxpayer from all sources.

(5)     Where an employer during any financial year fails to deduct any tax in accordance with this section, the Commissioner may direct that the tax shall be—

(a)     a civil debt due from and payable by the employer, unless he satisfies the Commissioner that he had sufficient cause for that failure; or

(b)     deducted by any employer with whom the employee in respect of whose income tax was not deducted is employed during that year; or

(c)     deducted by any employer with whom the employee is employed during any financial year within six years after the financial year during which that tax should have been deducted.

(6)     An appeal lies against any direction of the Commissioner under subsection (5) to the High Court.

(7)     The High Court may confirm or annul the direction, and the decision of the High Court shall be final.

(8)     The State Commissioner may make rules generally for carrying out this section and may provide for the use of any method whereby tax shall be deducted and paid to the Government of the Cross River State.

(9)     (i) Where the breach of any rule made in pursuance of subsection (8) is a continuing offence, then, irrespective of whether or not proceedings are taken under any other provisions of this Law against the employer who commits the breach, the Commissioner may impose on him a penalty of two naira for each day on which the breach continues up to and including the day immediately preceding that on which the breach is remedied, if at all, and the provisions of this Part relating to the notification, collection and recovery of tax shall apply to the notification, collection and recovery of such a penalty.

(ii)     The Commissioner may remit the whole or part of such a penalty if it would be just and reasonable so to do having regard to all the circumstances.

  1. Return of income

(1)     The Commissioner shall, not later than the first day of May of each year of assessment, publish a notice requiring every taxpayer for that year whose total income exceeds two hundred naira, to prepare and deliver not later than thirty days after the date of publication, to the person and at the place specified in that notice, a statement in writing or in the form of return supplied by the Commissioner.

(2)     An Assessment Authority may, at any time and at such additional times as may be necessary, by notice in writing require any taxpayer for any year of assessment, to prepare and deliver not later than thirty days after the date of service of the notice, to the Assessment Authority at the place specified in that notice, a return in the form incorporating that notice; but the Assessment Authority may—

(a)     extend the period specified for delivery of the return as may be reasonable in the circumstances; or

(b)     by notice in writing reduce the period if he has reason to anticipate any undue delay in completing the assessment.

(3)     A taxpayer who has not been required to deliver a statement or return under subsection (1) or subsection (2) may do so if he wishes.

(4)     A person who has incurred a loss of income during any period specified in any notice published or served under subsection (1) or subsection (2) shall prepare and deliver to the person and within the time specified in that notice or extended by the Assessment Authority, a statement in writing or a return in like manner as he would have prepared and delivered under subsection (1) or subsection (2) had he not incurred such a loss, and that Part shall apply as if that statement or return were a statement or return under subsection (1) or subsection (2).

(5)     The notice referred to in subsection (1) shall be published in the Cross River State Gazette and the Cross River State public press, and by affixture to public buildings and in places of popular resort.

(6)     The statement or return referred to in this section shall be signed by the taxpayer to whom it relates and shall contain—

(a)     the full amount of his income from each and every source during such period or periods as are specified in the notice, computed in accordance with this Part;

(b)     such other particulars as may be required by the notice for the purposes of this Part; and

(c)     a declaration that it represents a true and complete statement of his total income computed in accordance with the provisions of this Part, and of those particulars.

(7)     A taxpayer who arrives in the Cross River State during any year of assessment shall give notice to the Commissioner of his date of arrival not later than thirty days after that date.

  1. Power to call for information from taxpayers

For the purpose of obtaining full information in respect of any income or personal circumstances of a taxpayer, an Assessment Authority may by notice in writing require him, at the place and within the time specified in that notice, to—

(a)     prepare and deliver any statement specified in that notice; or

(b)     attend personally before that Assessment Authority for examination as regards any matter relating to that income or those personal circumstances; or

(c)     produce or cause to be produced for examination any document, book, account or record relating to that income or those personal circumstances which the Assessment Authority may deem necessary.

  1. Power to direct taxpayer to keep accounts

(1)     Where a taxpayer fails or refuses to keep accounts or records which, in the opinion of the Commissioner, are adequate for the purposes of this Part, the Commissioner may by notice in writing direct him to keep those accounts or records in such form and in such language as the Commissioner may deem necessary for those purposes and may specify in that notice.

(2)     An appeal lies from any direction of the Commissioner made under subsection (1) to the High Court.

(3)     The High Court may confirm, modify or annul such a direction and the decision of the High court shall be final.

  1. General power to call for information

(1)     An Assessment Authority may require any person in the employment of the Government of the Cross River State, or any local government, public body or Statutory Corporation to supply any information which the Assessment Authority may deem necessary for the purpose of this Part, and which is in the possession of that person; but such a person shall not, by virtue of this section, be obliged to disclose any particulars as to which he is under a statutory obligation to observe secrecy.

(2)     Subject to the consent of the President under the proviso to subsection (2) of section 100 of the Constitution of the Federation, an Assessment Authority may require any officer of the public service of the Federation to supply any information which the Assessment Authority may deem necessary for the purposes of this Part and which is in the possession of that official; but that official shall not, by virtue of this section, be obliged to disclose any particulars as to which he is under a statutory obligation to observe secrecy.

(3)     An Assessment Authority may require any person to produce any record over which he has control which relates to any property, asset, income or personal circumstances of a taxpayer, or to supply any information in the possession of that person which the Assessment Authority may deem necessary for the purpose of this Part; but this subsection does not apply to a company engaged in the business of banking or any person who is under a statutory obligation to observe secrecy, in so far as that business or obligation is concerned.

(4)     An Assessment Authority may, for the purpose of this Part, require an employer to supply any information which is in his possession in respect of the income or personal circumstances of all taxpayers employed by him.

  1. Assessment of income and determination of tax payable

(1)     Where an Assessment Authority or Assessment Committee is satisfied that a statement or return delivered under section 15 is true and complete, it shall accept the statement or return and assess the total income of the taxpayer and determine the amount of tax payable by him, or in case of a person who has incurred a loss of income, determine the amount of that loss; but such a taxpayer or person may deliver a revised statement or return at any time before assessment is made.

(2)     Where an Assessment Authority or Assessment Committee is not satisfied that the statement or return delivered under section 15 is true and complete, it shall reject the statement or return and, to the best of its judgment, assess the total income of the taxpayer and determine the amount of tax payable by him accordingly, or determine the amount of loss incurred.

(3)     Where a taxpayer who has been required to deliver a statement or return under subsection (1) or subsection (2) of section 15 fails to do so within the time specified or extended, the Assessment Authority or Assessment Committee shall assess the total income of that taxpayer to the best of this judgment and determine the amount of tax payable by him accordingly.

(4)     Where a taxpayer whose total income does not exceed two hundred naira does not file a statement or return under subsection (3) of section 15, the Assessment Authority or Assessment Committee shall assess the total income of that taxpayer to the best of its judgment and determine the amount of tax payable by him accordingly.

(5)     Where a taxpayer whose total income does not exceed two hundred naira files a statement or return under subsection (3) of section 15, the Assessment Authority or Assessment Committee shall proceed with the matter in accordance with subsection (1) or subsection (2), as may be appropriate.

  1. Notice of assessments

(1)     An Assessment Authority shall serve upon every taxpayer a notice in writing specifying the amount of assessed income, the amount of tax payable by him, and the time within which the payment should be made, but—

(a)     a tax ticket in the form specified by the Commissioner is deemed to be such a notice, and

(b)     where in the case of a taxpayer who has been assessed under  subsection (4) of section 19, it appears to the Assessment Authority or any official authorised by him in that behalf that payment of the tax determined as payable by the taxpayer may be delayed, then notwithstanding anything contained in section 23 or section 24 or section 25 or section 26, that tax is payable by the taxpayer on demand.

(2)     Where the Commissioner or an Assessment Authority publishes a notice stating—

(a)     that assessments of the incomes of taxpayers residing in any area or falling within any class or income category specified in that notice have been made;

(b)     the place at which, and time within which those assessments may be inspected; and

(c)     the time within which the tax payable by those taxpayers should be paid, a taxpayer to whom such a notice relates shall take such steps as are necessary to ascertain the amount of tax payable by him and make due payment within the time specified.

(3)     Notwithstanding anything contained in subsection (1), a taxpayer shall for any year of assessment take such steps as are necessary to ascertain the amount of tax payable by him and the place at which, and the time within which payment should be made.

(4)     The notice referred to in subsection (2) shall be published in the Cross River State Gazette and the Cross River State public press, and by affixture to public buildings and in places of popular resort.

(5)     The Assessment Authority may—

(a)     extend the period specified for payment of the tax as may be reasonable in the circumstances; or

(b)     by notice in writing, where he has reasons to anticipate—

(i)      any undue delay in the collection of the tax, reduce that period; or

(ii)     that the tax may not be paid, specify that, notwithstanding anything contained in section 31 of the Act or section 42, or section 43 of this Law, payment of the tax shall be made on demand; but in lieu of such security the Assessment Authority may accept such security for payment as he may think fit; and nothing in this subparagraph shall affect section 31 of the Act, or sections 23 to 26 inclusive of this Law, after the payment has been made or the security for payment has been accepted.

  1. Additional assessment

If an Assessment Authority or Assessment Committee has reason to believe, by reference to the omission or failure of any taxpayer to deliver a statement or return under section 1, or by reference to any information available, that any taxpayer has not been charged tax or has been charged at a lesser amount than he ought to have been charged for any year of assessment, the Assessment Authority or Assessment Committee shall, at any time and at such additional times as may be necessary, within that year or within six years after the expiration of that year, assess or additionally assess the total income of that person and determine the amount or additional amount of tax which ought to have been payable by him, of assessment, appeal, collection of tax and other proceedings apply to such an assessment or additional assessment and to the amount of tax determined as payable.

  1. Specification of amount of tax payable

(1)     Where the total income of a taxpayer for any year of assessment is less than two hundred naira, the amount of tax payable by him shall be the amount set out in—

(a)     Part I, Part II or Part III of the Fifth Schedule, as the case may be, where he is a daily-rated employee, or

(b)     Part I or Part II of the First Schedule, as the case may be, where he is not, opposite to the amount of that income as set out in the first column of the appropriate Part of the appropriate Schedule.

(2)     Where a male individual taxpayer whose total income for the year of assessment is two hundred naira or more is a person who—

(a)     throughout the relevant period had no wife or children maintained by him; or

(b)     proves to the satisfaction of the Assessment Authority that within the relevant period he had a wife living with or maintained by him but no children, the amount of tax payable by him shall be the amount set out in—

(c)     the second column of Part III or Part IV of the First Schedule; or

(d)     the third column of Part III or Part IV of the First Schedule, as the case may be, opposite to the amount of that income as set out in the first column of the appropriate Part of that Schedule, or determined in accordance therewith.

(3)     Where a male individual taxpayer whose total income for the year of assessment is two hundred naira or more proves to the satisfaction of the Assessment Authority that he is or has been married and in addition that he had within the relevant period—

(a)     one or two children maintained by him who were either under the age of sixteen years or, if over that age were receiving fulltime instruction at any university, college, school or other educational institution; or

(b)     three or more children maintained by him who were either under the age of sixteen years or, if over that age were receiving full-time instruction at any university, college, school or other educational institution, the amount of tax payable by him shall be the amount set out in—

(c)     the fourth column of Part III or Part IV of the First Schedule; or

(d)     the fifth column of Part III or Par IV of the First Schedule, as the case may be, opposite to the amount of that income as set out in the first column of that Part of that Schedule, or determined in accordance therewith.

(4)     Where a female individual taxpayer proves to the satisfaction of the Assessment Authority that—

(a)     throughout the relevant period she had no husband or children maintained by her; or

(b)     that within the relevant period she had a husband living with or maintained by her but no children, the amount of tax payable by her shall be the amount set out in—

(c)     the second column of Part III or Part IV of the First Schedule; or

(d)     the third column of Part III or Part IV of the First Schedule, as the case may be, opposite to the amount of that income as set out in the first column of that Part of that Schedule, or determined in accordance therewith; but where the husband of such a female taxpayer is an individual taxpayer who proves to the satisfaction of the Assessment Authority that within the relevant period he maintained her, the amount of tax payable by her shall be determined in accordance with paragraph (c).

(5)     Where a female individual taxpayer proves to the satisfaction of the Assessment Authority that she is or has been married and in addition that she had within the relevant period—

(a)     one or two children maintained by her who were either under the age of sixteen years or, if over that age were receiving full-time instruction at any university, college, school or other educational institution; or

(b)     three or more children maintained by her who were either under the age of sixteen years or, if over that age were receiving full-time instruction at any university, college, school or other educational institution, the amount of tax payable by her shall be the amount set out in—

(c)     the fourth column of Part III or Part IV of the First Schedule; or

(d)     the fifth column of Part III or Part IV of the First Schedule, as the case may be, opposite to the amount of that income as set out in the first column of that Part of that Schedule; or determined in accordance therewith: But where the husband of such a female tax payer is an individual taxpayer who proves to the satisfaction of the Assessment Authority that within the relevant period he maintained those children, the amount of tax payable by her shall be determined in accordance with paragraph (c) of subsection (4).

(6)     In the case of the total income of a body of individuals, or of total communal income, or family income, or total fiduciary income of a trustee or executor, for the year of assessment, the amount of tax payable shall be the amount set out in or determined in accordance with Part I or Part II or the second column of Part III or Part IV of the First Schedule, as the case may be, opposite to the amount of that income as set out in the first column of that Part of that Schedule.

(7)     “The relevant period” for the purpose of this section is—

(a)     for an individual taxpayer who receives any income from employment from an employer to whom a direction has been given under section 14 the calendar year ending within the year of assessment if that taxpayer is a daily-rated employee, and the year of assessment if he is not; and

(b)     for any other individual taxpayer the financial immediately preceding the year of assessment.

 

CHAPTER 5

OBJECTION, APPEAL AND REVISION

  1. Objection to assessment

(1)     Subject to this Part, where a taxpayer is aggrieved by an assessment of his income he may make objection and apply in person or in writing to the Assessment Authority of the specified area in which the assessment was made, to review and revise the assessment.

(2)     Such an application shall state precisely the grounds of objection and shall be made not later than twenty-one days after the date of service of the notice of assessment; but the Assessment Authority may extend the period specified for making application as may be reasonable in the circumstances.

(3)     Upon receipt of such an application the Assessment Authority shall make inquiry as he deems necessary, and determine the objection to the best of his judgment and give notice to the taxpayer of his decision; but where the Assessment Authority revises the assessment and reduces or enhances the amount of tax payable, he shall serve a notice in writing upon the taxpayer in accordance with subsection (1) of section 20.

(4)     (a) The provisions of this Part relating to assessment apply to an assessment or additional assessment as revised under subsection (3) in like manner that those provisions apply to an assessment or additional assessment.

(b)     The making of objection does not affect any right of the taxpayer to appeal against an assessment against which he made objection and applied for revision.

(5)     Nothing contained in this section renders competent any objection to an assessment made in pursuance of a direction by the Federal Board of Inland Revenue in respect of the undistributed profits of a Nigerian Company or of a determination of the Joint Tax Board under the Act.

  1. Appeal to Board of Commissioners against assessment

(1)     For the purpose of the appeals provided for by this section, the Executive Council may appoint a suitable person to be a member of a Board of Commissioners of Appeal for a specified area.

(2)     Subject to this Part, where a taxpayer is aggrieved by an assessment of his income he may, where the amount of tax in dispute does not exceed one hundred naira, appeal against the assessment to the Board of Commissioners appointed for the specified area in which the assessment was made; but except on a matter of law, no appeal shall lie against an assessment where the taxpayer without sufficient cause has failed to comply with any of the terms of a notice under subsection (2) of section 15 or under section 16.

(3)     Where a taxpayer is aggrieved by any deduction from his income made by an employer who has received a direction under section 14, he may, where the amount of deduction in dispute does not exceed one hundred naira, appeal against the deduction to the Board of Commissioners appointed for the specified area in which his place of employment is situated.

(4)     Notice of appeal shall be given in writing to the Board of Commissioners not later than twenty-one days after the date on which the tax is payable in respect of which the assessment was made or after the date of service upon the taxpayer of the notice of assessment, whichever is later, or with respect to an appeal under subsection (3), no later than twenty-one days after the last day of the financial year during which the deduction was made.

(5)     A taxpayer appealing other than under subsection (3) or under subsection (2) of section 26 shall pay to the Tax Collector of the specified area in which the assessment was made half of the amount of the tax which is in dispute. Payment of the remaining amount shall remain in abeyance until the appeal is determined, whereupon, subject to the determination, it shall be payable not later than twenty-one days after the date of service upon the taxpayer of notice of the amount payable.

(6)     An employer who has received a direction under section 14 shall, notwithstanding that the employee from whose income deduction is to be made is appealing against any deduction, continue to make deduction in accordance with that direction until the appeal is determined.

(7)     A taxpayer appealing shall—

(a)     attend before the Board of Commissioners in person, or

(b)     be legally represented.

(8)     The onus of proving that the amount of tax payable or that the amount of deduction is excessive is on the appellant.

(9)     The Board of Commissioners may confirm, reduce, increase or annul the assessment or the amount of deduction.

(10)   The costs of the appeal shall be in the discretion of the Board of Commissioners and shall be a sum fixed by the Board of Commissioners.

(11)   All appeals shall be heard in camera unless the Board of Commissioners shall, upon application by the appellant, direct otherwise.

(12)   Nothing in this section affects the liability of taxpayer appealing to pay the amount of tax, if any, which is not in dispute, within the period specified or extended by the Assessment Authority.

(13)   The decision of the Board of Commissioners in an appeal shall be final on a matter of fact and no appeal shall lie therefrom to any court.

(14)   Subject to this section, the State Commissioner may make rules providing for the conduct of appeals before a Board of Commissioners and for the procedure to be followed and the method of tendering evidence in that appeal.

(15)   Nothing contained in this section renders competent an appeal against an assessment made in pursuance of any direction by the Federal Board of Inland Revenue in respect of the undistributed profits of a Nigerian Company or of any determination of the Joint Tax Board under the Act.

  1. Appeal to High Court on a matter of law

(1)     Where a taxpayer, having appealed to the Board of Commissioners is aggrieved by their decision, he may appeal against the decision to the High Court on a matter of law.

(2)     Notice of the appeal shall be given in writing to the High Court not later than twenty-on days after the date of service upon the taxpayer or the Commissioner of the decision of the Board of Commissioners.

(3)     Subsections (5), (6), (7), (8), (9), (10), (11) and (12) of section 24 apply to an appeal to the High Court under this section in like manner that they apply to an appeal under that section, but as if references to the Board of Commissioners therein were references to the High Court.

(4)     Subject to this section, the Chief Judge may make rules of court providing for the conduct of appeals before the High Court and for the procedure to be followed and the method of tendering evidence in those appeals.

  1. Appeal to the High Court against assessment

(1)     Subject to this Part, where a taxpayer is aggrieved by an assessment of his income he may, where the amount of tax in dispute exceeds one hundred naira, appeal against the assessment to the High Court; but except on a matter of law, no appeal shall lie against any failure to comply with any of the terms of a notice under subsection (2) of section 15 or under section 16.

(2)     Where a taxpayer is aggrieved by any deduction from his income made by an employer who has received a direction under section 14, he may, where the amount of deduction in dispute exceeds one hundred naira, appeal against the deduction to the High Court.

(3)     Notice of appeal shall be given in writing to the High Court not later than twenty-one days after the date on which the tax is payable in respect of which the assessment was made or after the date of service upon the taxpayer of the notice of assessment, whichever is later, or with respect to an appeal under subsection (2), not later than twenty-one days after the last day of the financial year during which the deduction was made.

(4)     Subsections (5), (6), (7), (8), (9), (10), (11) and (12) of section 24 apply to an appeal to the High Court under this section in like manner that they apply to an appeal under that section, but as if references to the Board of Commissioners therein were references to the High Court.

(5)     Subject to this section, the Chief Judge may make rules of court providing for the conduct of appeals before the High Court and for the procedure to be followed and the method of tendering evidence in those appeals.

(6)     An appeal against the decision of the High Court lies to the Federal Court of Appeal.

(7)     Nothing contained in this section shall render competent an appeal against any assessment made in pursuance of a direction by the Federal Board of Inland Revenue in respect of the undistributed profits of a Nigerian Company or of a determination of the Joint Tax Board under the Act.

  1. Repayment in case of error or mistake

(1)     Where a taxpayer alleges that by reason of some error or mistake which is apparent from the records of the assessment and does not involve the re-opening of any issue agreed by him or otherwise determined, he has paid tax in excess of the amount which was properly payable by him, he may make application in writing to the Commissioner for repayment of the tax paid in excess.

(2)     Such an application may be made at any time not later than six years after the end of the year of assessment in respect of which the tax was paid.

(3)     Upon receipt of the application the Commissioner shall make such inquiry or cause such inquiry to be made as he deems necessary and order such repayment of tax as the circumstances of the matter may justify.

  1. Assessment to be final and conclusive

(1)     Where no valid objection or appeal has been made within the time specified under subsection (2) of section 23, or subsection (4) of section 24, or subsection (2) of section 25, or subsection (3) of section (26) against any assessment or deduction, or where the assessment or the amount of deduction has been determined under subsection (3) of section 23, or subsection (9) of section 24, or subsection (3) of section 25 or subsection (4) of section 26, the assessment or amount deductible so determined is final and conclusive for all the purposes of this Law.

(2)     Nothing contained in this section shall affect—

(a)     the provisions of section 21 with respect to the making of an assessment or additional assessment for any year of assessment which does not involve the reopening upon the same facts of any issue which has once been agreed or determined; or

(b)     the provisions of section 27 with respect to the making of an application for repayment of any tax paid in excess by reason of apparent error or mistake.

  1. Power of revision by Commission and Assessment Authority

(1)     The Commissioner may of his own motion call for the record of any proceedings under this Part and make such inquiry or cause such inquiry to be made as he deems necessary and, subject to this Law, may accept, reject, alter or amend any order in the proceedings, or make such order or orders as the circumstances of the matter may justify.

(2)     An Assessment Authority may of his own motion call for the record of any assessment under this Part made by any Assessment Committee appointed by him, and make such inquiry or cause such inquiry to be made as he deems necessary and, subject to this Law, may accept, reject, alter or amend the assessment, or make such order or orders as the circumstances of the matter may justify.

CHAPTER 6

LIABILITY IN SPECIAL CASES

  1. Incapacitated taxpayer

Where a taxpayer is an incapacitated individual, the assessment of any income derived by him may be made in the name of a receiver appointed by the court, or his agent, curator, guardian, manager or trustee in like manner and to the like amount as would have been made if he were not incapacitated; and the amount of tax determined as payable in the assessment is payable by the receiver, agent, curator, guardian, manager or trustee as a debt due from and payable out of any asset of the taxpayer.

  1. Deceased taxpayer

Where a taxpayer dies, then as respects his income arising before his death, all rights and duties which would have attached to him shall pass to his executor, and the amount of tax payable in respect of that income shall be determined as if he had not died but had permanently ceased to carry on a trade, business, profession or vocation or to derive income from any other source, and shall be a debt due from and payable out of his estate.

  1. Persons outside Nigeria

In the case of an individual, trustee or executor outside Nigeria, the assessment of any income derived by him may be made in the name of his agent, attorney, guardian, manager, receiver or trustee in like manner and to the like amount as would have been made if he were deemed to be resident in Nigeria, and the amount of tax determined as payable in the assessment shall be payable by the agent, attorney, guardian, manager, receiver or trustee as though he were the taxpayer, and all this Law applies to the assessment and to the amount of tax payable.

 

CHAPTER 7

RECOVERY, OFFENCES AND PENALTIES

  1. Recovery of tax by deduction

The Commissioner may, in the case of a taxpayer who derives income from employment and also income from other sources, where any tax payable in respect of any income from other sources is not paid by the last day of the financial year during which it was payable, direct the employer of that taxpayer to deduct that tax from any payment of or on account of any income from employment made by him to or on behalf of that taxpayer.

  1. Recovery powers of tax collector.

(1)     A Tax Collector may, where any tax is not paid within the time specified in any notice published or served under this Part, and where the assessment in respect of that tax is final and conclusive under section 28, publish a notice—

(a)     giving a warning to all persons of a class or income category specified in that notice, that collection of that tax by personal demand will be undertaken at the place of residence of any person by whom that tax is payable, or in any other place; and

(b)     stating the period during which that method of collection will be operated.

(2)     For the purposes of collecting the tax by personal demand, a Tax Collector may authorise a suitable person to act on his behalf. The authorisation shall be in writing and shall be produced by that person upon request.

(3)     Where a Tax Collector publishes a notice under subsection (1) of this section, it shall be the duty of a taxpayer to whom that notice relates and to whom a demand is made by a person authorised under subsection (2), to take such steps as are necessary to prove at the time when and to the person by whom the demand is made by production of a receipt granted by a Tax Collector, that he has not refused or neglected to pay any tax payable by him.

(4)     Notwithstanding anything contained in section 23, or section 24, or section 25 or section 26, a taxpayer who fails to discharge the duty imposed upon him under subsection (3) is deemed to have failed to pay the tax payable by him, and that tax is payable by him on demand.

(5)     For the purposes of this section—

(a)     any tax which is payable and has not been paid is deemed to be a sum of money payable under a judgment of court within the meaning of subsection (1) of section 19 of the Sheriffs and Civil Process Law;

(b)     a person by whom such a sum is payable is deemed to be a judgment debtor within the meaning of that section;

(c)     a Tax Collector is deemed to be a judgment creditor within the meaning of that section;

(d)     a Tax Collector has all the powers of a magistrate in respect of the signing of a writ of attachment and sale issued under that Law, and of a registrar and sheriff under that Law in respect of the issue and execution of the writ;

(e)     subject to paragraph (f) all the provisions of that Law relating to the seizure of goods and securities and custody thereof and to the sale of goods apply to a Tax Collector or any officer executing such a writ of attachment and sale; and

(f)      notwithstanding anything contained in Part 6 of that Law, the State Commissioner may make rules and prescribe forms generally for carrying out this section.

(6)     Where a Tax Collecting Agent—

(a)     misappropriate; or

(b)     withholds for his own use or for any other purpose; or

(c)     fails to pay to the person or in the manner or within the time specified by the Tax Collector or other person appointing him, the whole or any part of the tax collected by him, then, without prejudice to the operation of section 38 of this Law, the provisions of subsection (5) of this section shall be available to the Tax Collector or other person for the purpose of recovery from the Tax Collecting Agent the sum so misappropriated withheld or not paid by him in the same way as they avail the Tax Collector against a taxpayer in respect of unpaid tax.

  1. Offences and penalties

(1)     A taxpayer who, having been served by an Assessment Authority with a notice under subsection (2) of section 15 or under section 16, without sufficient cause fails to comply therewith, delivers any incorrect return or statement, or gives any incorrect information, or produces any incorrect record to the Assessment Authority, is guilty of an offence.

(2)     A person who, without sufficient cause, fails to keep accounts in compliance with any of the terms of a notice under section 17, is guilty of an offence.

(3)     A person not being an officer of the public service of the Cross River State who, having been required under subsection (1) or subsection (3) of section 18 to supply any information to an Assessment Authority, neglects or refuses to supply that information, or wilfully misleads or attempts to mislead the Assessment Authority in supplying the information, is guilty of an offence.

(4)     An employer who, having been required under subsection (4) of section 18 to supply any information in respect of taxpayers employed by him, neglects or refuses to supply that information, or supplying that information, is guilty of an offence.

(5)     A person guilty of an offence under this section is liable on conviction to a penalty of imprisonment for two years and a fine of four hundred naira.

  1. False return, statement or record

(1)     A taxpayer who, for the purpose of obtaining a reduction in the amount of tax payable by him, or a repayment of tax paid by him, in any return, or written or oral statement, or any document, book, account or record, delivered, made or produced by him to the Assessment Authority, wilfully makes a false representation, is guilty of an offence.

(2)     The Commissioner may compound an offence under this section and, with the leave of the court, may at any time before judgment stay or compound any proceedings there under.

(3)      An offence under this section shall be deemed to have occurred at the place where the office of the Assessment Authority is situated.

  1. Failure to pay tax

(1)     Subject to subsection (5) of section 24 and subsection (3) of section 25 and subsection (4) of section 26 and subsections (1), (2) and (3) of section 34 a taxpayer who, without sufficient cause, fails to pay any tax payable by him within the time specified or extended or reduced by the Assessment Authority in any notice served or published under this Part is guilty of an offence and—

(a)     is liable to a penalty of imprisonment for two years and a fine of four hundred naira; and

(b)     irrespective of whether or not proceedings are taken against him, a penalty of a sum not exceeding one-fifth of the tax may be added to the tax by the Assessment Authority, and all the provisions of this Part relating to the notification, collection and recovery of this penalty; but the Assessment Authority may remit the whole or any part of the penalty if it would be just and reasonable to do so by reference to all the circumstances.

(2)     The court in any proceedings taken under subsection (1) may, where the taxpayer is convicted, make an order for the payment of the tax in respect of which the proceedings were taken.

  1. Offences by Tax Collecting Agent

(1)     A Tax Collecting Agent who—

(a)     without sufficient cause, fails to pay any tax collected by him to the person or in the manner or within the time specified under paragraph (b) of subsection (5) of section 10; or

(b)     withholds for his own use or for any other purpose any part of the amount of tax collected by him; or

(c)     wilfully fails to collect from any taxpayer the full amount of tax payable by that taxpayer; or

(d)     demands from any person any amount of money in excess of the amount of tax payable by the person; or

(e)     wilfully sustains the loss of any tax ticket entrusted to him; or

(f)      wilfully misrepresents the identity, income or other particulars of any taxpayer within his specified area; or

(g)     defrauds or attempts to defraud, or in any way uses his position to  deal wrongfully with any person or the Government of the Cross River State; or

(h)     without sufficient cause, fails to carry out any duty imposed upon him by subsection (5) of section 10 other than a duty in respect of a breach of which a penalty is specifically provided, is guilty of an offence Penalty: imprisonment for two years and a fine of four hundred naira.

(2)     In the case of a body of persons or local government appointed under subsection (2) of section 10, proceedings may be taken against the person in whose name the appointment was made, or against all or any of the members of the body, or any councillor, collectively or separately, and all or any of the members or any councillor is liable upon conviction to the penalties specified, unless he satisfies the court that he was in no way personally responsible for or a party to the commission of the offence.

(3)     The court in any proceedings taken under subsection (1) may, where such Tax Collecting Agent is convicted, make an order for the payment of any tax in respect of which the proceedings were taken.

  1. Offence by employer

(1)     An employer who, having been appointed as a Tax Collecting Agent under subsection (3) of section 10, without sufficient cause, fails to pay any tax collected by him by the method of deduction at source, to the person or in the manner or within the time prescribed by the State Commissioner, is guilty of an offence: Penalty: imprisonment for three years and a fine of six hundred naira. (2) The court in any proceedings taken under subsection (1) may, where the employer is convicted, make an order for the payment of the tax in respect of which the proceedings were taken.

  1. Offences by unauthorised persons

(1)     A person who—

(a)     counsels, induces, assists or incites a taxpayer—

(i)      not to pay any tax payable by the taxpayer; or

(ii)     to deliver, make or produce any false return, statement or record to an Assessment Authority; or

(iii)    to conceal any property of which the taxpayer is the owner; or

(b)     not being a duly appointed Tax Collecting Agent, collects or attempts to collect the tax imposed under this Part; or

(c)     forges, or fraudulently alters or uses, or fraudulently lends to or allows the use by any other person of any ticket, receipt document or token relating to the assessment of income and payment of tax; or

(d)     wilfully obstructs, intimidates or assaults a Tax Collector or any person duly authorised by him under subsection (2) of section 34 in the performance of his duties under this Part; is guilty of an offence: Penalty: imprisonment for three years and a fine of six hundred naira.

(2)     The court in any proceedings taken under paragraph (d) of subsection (1) may, where the accused person is convicted, make an order for the payment of compensation for personal injury or damage to property suffered, through the assault, by the tax collector or person duly authorised by him.

  1. Arrest of offender without warrant Subject to the consent of the President under the proviso to subsection (2) of section 100 of the Constitution of the Federation, a person who appears to have contravened this Part may be arrested by a police officer without a warrant.
  2. Errors and defects in records

(1)     An assessment, warrant or other proceeding purporting to be made in accordance with this Part shall not be quashed or deemed to be void or voidable for want of form, or be affected by reason of any mistake, defect or omission therein if the assessment, warrant or other proceeding is in substance and effect in accordance with the intent and meaning of this Part, and if the person whose income is assessed or intended to be assessed or affected by the assessment, warrant or other proceeding is designated therein in accordance with common intent and understanding.

(2)     An assessment shall not be impeached or affected by reason of—

(a)     any mistake therein as to—

(i)      the name or surname of any person liable; or

(ii)     the description of any income; or

(iii)    the amount of tax determined as payable; or

(b)     any variance between the assessment record and the notice of assessment.

  1. Remission and repayment

The State Commissioner may, after considering the recommendation of the Commissioner, remit any amount of tax which has not been paid or order the repayment of any amount of tax which has been paid, on the ground of poverty if he is satisfied that it would be just and reasonable to do so by reference to all the circumstances.

  1. Immunity

A Tax Collector or any person duly authorised by him under subsection (2) of section 34 shall not be liable in any action or proceeding whether civil or criminal, for anything said or done by him in the lawful exercise of the powers conferred upon him by section 34.

PART 3

Purchase Tax

  1. Interpretation

(1)     In this Part—

“item” means any item listed in the Third Schedule; “chargeable item” means any item bought under a chargeable purchase; “chargeable purchase” means the first purchase made from a wholesale merchant (other than one who is not required to be registered by this Part) selling by wholesale or by retail any item after that item has been brought into Cross River State, or in the case of a purchase of unascertained items, any item appropriated to the purchase which is in Cross River State at the time of the appropriation; “purchase” means a contract which is a contract of sale within the meaning of the Sale of Goods Act, 1893, and also a contract similar to such a contract in other respects but made for a consideration wholly or partly in money’s worth and not, or not only, in money, and also any transaction, in whatsoever form expressed, in so far as its effect is in substance the same as the effect of such contract; and reference to goods being bought includes, in relation to a purchase made for a consideration, not, or not only, in money, and in relation to such a transaction, reference to goods being acquired in any manner; “retail trader” means a person who sells by retail and not otherwise; “selling by retail” means selling goods of any class to a person who carries on a business of selling goods of that class; “tax” means purchase tax chargeable and payable under this Part; “wholesale merchant” means a person who carries on in Cross River State an agency or a business of selling by wholesale or in any way dealing by wholesale either on his own account or as an agent or factor for another, and also manufacturer and a person who carries on in Cross River State an agency or a business of selling materials to manufacturers.

(2)     For the purpose of this Part, where, at the time a purchase is made the goods bought there under, or any part thereof, has already been delivered and the buyer is in possession thereof, or of any part thereof, delivery of the goods, or of any part thereof, as the case may be, under the purchase shall be deemed to have taken place o the making of the purchase.

  1. Charge of purchase tax

(1)     Tax is, subject to this Part, chargeable and payable in accordance with the rates set out in the Fourth Schedule on any item bought under a chargeable purchase.

(2)     The tax is chargeable in respect of any item bought under a chargeable purchase, notwithstanding that the purchase was made before the first day of April, 1961, but no tax is chargeable in respect of any item bought under any purchase if the item had been delivered there under before that date.

  1. Person by whom tax is payable

(1)     The person by whom the tax is payable is the seller under a chargeable purchase.

(2)     The seller of any chargeable item shall, unless the chargeable purchase in respect thereof is exempted under subsection (2) of section 53, add to any invoice, or similar document delivered by him to the purchaser of that item, a statement specifying the amount due to him from the purchaser in respect of the tax payable by the seller under the purchase.

(3)     The tax payable under a chargeable purchase is due upon delivery of the item under the purchase, and is payable not later than twenty-one days after the end of the month during which it became due.

  1. Absent taxpayer

Where a person by whom the tax is payable is located outside Cross River State, the Commissioner may, by notice in writing served upon any agent, factor, manager or representative of that person who is located in Cross River State, direct that the agent, factor, manager or representative shall be substituted for that person, and all the provisions of this Law apply to such an agent, factor, manager or representative as they apply to that person.

  1. Registration of wholesale merchants

(1)     A wholesale merchant whose business includes the selling of any chargeable item shall be registered for the purposes of this Part by the Commissioner.

(2)     Where the Commissioner is satisfied that any retail trader or other person, for the purposes of a business of selling by retail carried on by him or for any other purpose, makes purchases of any chargeable item of which the value and character are such as are made in the ordinary course of business by a wholesale merchant, the retail trader or person shall be registered for the purposes of this Part, and all this Part applies to him as it applies to a wholesale merchant.

  1. Registration procedure

(1)     A person carrying on business in such circumstances that he is required by section 4 to be registered, shall, if he is not already registered under the Finance Law, 1956, apply in writing for registration to the Commissioner.

 

(2)     Upon receipt of the application under subsection (1) the Commissioner shall register the applicant and issue to him a certificate of registration.

(3)     Where a person who has been registered under this section ceases to be required to be registered, he shall return his certificate of registration to the Commissioner for cancellation.

(4)     The Commissioner shall, not less than thirty days before registering a person (other than one who has applied for registration), or before cancelling a registration, serve notice upon him of his intention to register him or to cancel his registration, as the case may be.

  1. Return and information from seller

(1)     A seller of any item under a chargeable purchase shall prepare and deliver to the Commissioner not later than twenty-one days after the last day of any month during which any tax was payable under subsection (3) of section 47, a return stating the total quantity of each item sold during that month, the amount of tax payable thereon and such other particulars as may be specified by the Commissioner; but the Commissioner may extend the period for delivery of the return as may be reasonable in the circumstances.

(2)     For the purpose of obtaining full information in respect of any chargeable purchase, the Commissioner may by notice in writing require the seller under that purchase to—

(a)     produce or cause to be produced for examination, or

(b)     afford access to the Commissioner or any official authorised in that behalf by him, to any document, book, account or other record relating to that purchase which the Commissioner may deem necessary and which is in the possession of the seller.

  1. General power to call for information

Where it appears to the Commissioner that any retail trader or other person is carrying on the business of a wholesale merchant or is making purchases which are made in the ordinary course of business by a wholesale merchant, the Commissioner may require that trader or person or any wholesale merchant with whom those purchases are determining whether that trader or person is required by section 49 to be registered for the purposes of this Part.

  1. Exemption

(1)     The Executive Council may exempt any person or class of persons from the operation of this Part.

(2)     The State Commissioner may, after considering the recommendation of the Commissioner, exempt any chargeable purchase where it is shown to his satisfaction that the goods which are the subject-matter of that purpose will be or have been sold by the seller under that purchase for consumption outside the Cross River State, and have been or will be consumed outside the Cross River State.

  1. Repayment of tax

Where a seller or purchaser under a chargeable purchase, whether or not entitled to the benefit of exemption under section 53, satisfied the Commissioner that the amount of tax paid by him or suffered by him under section 47 exceeds the amount properly levied upon him, the Commissioner shall repay the amount of tax paid or suffered in excess.

  1. Failure to pay tax

(1)     A seller under chargeable purchase who, without sufficient cause, fails to pay any tax payable by him within the period specified in subsection (3) of section 47, is guilty of an offence: Penalty: a fine of two thousand naira.

(2)     Irrespective of whether or not proceedings are taken against a seller under subsection (1), a penalty of one-twentieth of that tax may be imposed by the Commissioner; but the Commissioner may remit the whole or any part of the penalty if it would be just and reasonable to do so by reference to all the circumstances.

(3)     The court in any proceedings taken under subsection (1) may, where the seller is convicted, make an order for the payment of the tax in respect of which the proceedings were taken.

  1. Offences and penalties

(1)     A person who, without sufficient cause—

(a)     fails to apply for registration in compliance with subsection (1) of section 50; or

(b)     fails to deliver a return in compliance with subsection (1) of section 51; or

(c)     in complying therewith, delivers an incorrect return; or

(d)     fails to comply with all the terms of a notice served under subsection (2) of section 51; or

(e)     in complying therewith, produces an incorrect record; or

(f)      refuses access to any record in his possession to the Commissioner or a duly authorised official is guilty of an offence.

(2)     A person who, having been required to supply any information under section 52, neglects or refuses to supply that information, or wilfully misleads or attempts to mislead the Commissioner in supplying that information, is guilty of an offence.

(3)     A person guilty of an offence under this section is liable on conviction to a penalty of imprisonment for two years and a fine of one thousand naira.

  1. False return, statement or record

A seller or purchaser under a chargeable purchase who, for the purpose of obtaining any reduction or repayment of the amount of any tax payable or paid by him or any repayment of tax suffered by him, as the case may be, in any written or oral statement, or any document, book, account or other record delivered, made or produced by him to the Commissioner, makes any false representation, is guilty of an offence: Penalty: imprisonment for two years and a fine of two thousand naira.

  1. Rules

The State Commissioner may make rules generally to implement this Part and, for example, provide for the repayment of tax paid or suffered in excess.

PART 4

Variation, Repeal and Saving

  1. Variation of Schedule

(1)     Subject to this section where a resolution moved by the State Commissioner is passed with or without modification by a Committee of the Whole House of Assembly providing for the revocation, replacement or variation of any Schedule to this Law, that resolution shall have effect as it is contained in a Law.

 

(2)     The resolution shall cease to have that effect if a Bill revoking, replacing or varying the Schedule concerned in the terms of the resolution is not read a second time by the House of Assembly within the next ten days on which the House of Assembly sits after the resolution is passed.

(3)     The resolution shall cease to have that effect if the House of Assembly is dissolved or prorogued, or a law comes into force revoking, replacing or carrying the Schedule in question, or the provisions giving effect to the resolution are rejected during the passage of a Bill containing those provisions through the House of Assembly.

(4)     Where the resolution ceases to have that effect any money paid in pursuance of the resolution shall be repaid by the Commissioner.

(5)     Notwithstanding anything contained in subsection (1) the Executive Council may by order make an amendment to the Second Schedule to give effect to a change in name or status of a local government listed in it.

  1. Repeal and Saving

(1)     The Finance Law, 1956, is hereby repealed.

(2)     Notwithstanding the repeal, any proceedings under the Law which had been commenced on or before the thirty-first day of March, 1961, shall be continued as if that Law had not been repealed, and any Income Tax or penalty which would have been chargeable, assessable, leviable or recoverable for any year of assessment ending on or before the thirty-first day of March 1961, but which has not been assessed, levied, paid or recovered at the date of commencement of this Law, shall be assessed, levied, paid or recovered in accordance with the Finance Law, 1956, as if that Law had not been repealed, and any repayment of tax due under that Law shall be made ass if this Law had not been passed.

  1. Interpretation

In this Law—

“The Act” means the Income Tax Management Act, 1990; “the Commissioner” means, as the occasion requires, the Commissioner of Internal Revenue appointed for the due administration of this Law, or a Deputy Commissioner of Internal Revenue or an Assistant Commissioner of Internal Revenue or any other official appointed under section 3, for the purposes of the exercise by any of these officials of such powers conferred upon the Commissioner as he may delegate to that official; “the Commissioner” means the Commissioner for the time being charged with responsibility for finance.

  1. Short title

This Law may be cited as the Finance Law.

FIRST SCHEDULE

Rates of Tax on Incomes

[Omitted as superseded by Income Tax Management (Uniform Taxation Provisions Etc.) Decree, 1975.]

SECOND SCHEDULE

Exemption from Tax on Incomes

[Omitted on the same ground]

THIRD SCHEDULE

Rates of Purchase Tax

Item Unit Rate of Tax

₦    K
Petrol Gallon 2.50
Diesel Gallon 3.34

 

(for road vehicles and non-industrial purposes)

FOURTH SCHEDULE

[Omitted as superseded by the Income Tax Management (Uniform Taxation Provisions Etc) Decree, 1975.]

CHAPTER F3

FINANCE LAW

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

  1. Income Tax (Direct Assessment and Collection) Rules.
  2. Income Tax (Exemptions) Order.
  3. Income Tax (Deduction at Source) Rules.
  4. Income Tax (Boards of Commissioners of Appeal) Rules.
  5. Finance Law (Appeals) (High Court) Rules.
  6. Income Tax (Recovery of Arrears) Rules.
  7. Finance Law (Purchase Tax) Rules.

INCOME TAX (DIRECT ASSESSMENT AND COLLECTION) RULES

ARRANGEMENT OF RULES

  1. Citation.

RULE

  1. Interpretation.
  2. Exemption Certificate.
  3. Householder’s Return.
  4. Annual return.
  5. General tax receipt and Flat Rate Tax Ticket.
  6. Tax Collecting Agent’s Receipt.
  7. Certified true copies.
  8. Payment by instalment.
  9. Carrying of Receipt or Exemption Certificate.
  10. Production of Receipt or Exemption Certificate.
  11. Power of entry.
  12. Offences and penalties.
  13. Citation

These rules may be cited as the Income Tax (Direct Assessment and Collection) Rules.

  1. Interpretation

In these rules—

“householder” means the owner or other person who for the time being is taking care of a residential property; “small-income taxpayer” means a taxpayer whose total income is less than one hundred and twenty naira.

  1. Exemption Certificate

The Commissioner or an Assessment Authority may, in pursuance of subsection (3) of section 12 of the Law, prepare and give to a person who is entitled to the benefit of exemption from income tax, a certificate in a form specified and supplied by the Commissioner.

  1. Householder’s Return

(1)     Upon receipt of a requisition under subsection (3) 10 of the Law, a householder shall—

(a)     prepare a return (called a Householder’s Return) in a form specified and applied by the Commissioner, and

(b)     not later than twenty-eight clear days immediately after receipt of the form, deliver the return to the Assessment Authority of the area in which is situated the property in respect of which he is a householder.

(2)     The Householder’s Return shall state and certify with regard to every person above the age of sixteen years on the first day of the financial year specified in the requisition who resides in the property or who resided therein on that day but subsequently left it—

(a)     his name in full and place of birth;

(b)     his spouse’s name in full, if any;

(c)     the number of his children not over the age of sixteen years on that day;

(d)     the number of his children over that age on that day who attend an educational institution;

(e)     the nature of his employment or occupation;

(f)      the name and address of his employer, if any;

(g)     the amount of his salary or wages or total income, if known;

(h)     whether he pays tax in accordance with the income tax deduction system under the Law, if known; and

(i)      such other particulars as the Commissioner may specify.

  1. Annual Return

(1)     Upon receipt of a requisition under subsection (4) of section 18 of the Law, an employer who has an employee in respect of whom he has not operated the income tax deduction system under the Law shall—

(a)     prepare a return (called a Annual Return) in a form specified and supplied by the Commissioner, and

(b)     not later than twenty-eight clear days immediately after the last day of financial year specified in the requisition, deliver the return to the Assessment Authority of the area in which that employee resides.

(2)     The Annual Return shall state and certify—

(a)     the personal particulars of the employee during that year;

(b)     the total amount of emoluments payable in money to the employee during that year; and

(c)     such other particulars as the Commissioner may specify.

  1. General Tax Receipt and Flat Rate Tax Ticket

(1)     A Tax Collector or Tax Collecting Agent who collects directly-assessed income tax           from a taxpayer shall prepare and give to him a receipt (called a General Tax Receipt, or in the case of a small-income taxpayer, a Flat Rate Tax Ticket) in a form specified and supplied by the Commissioner.

(2)     No other form of acknowledgement of payment purporting to be a receipt in respect of directly-assessed income tax shall be given to a taxpayer.

  1. Tax Collecting Agent’s Receipt

(1)     An Assessment Authority who receives from a Tax Collecting Agent an amount representing a collection of directly-assessed income tax shall prepare and give to him a receipt (called a Tax Collecting Agent’s Receipt) in a form specified and supplied by the Commissioner.

(2)     No other form of acknowledgement of payment purporting to be a receipt in respect of a collection of directly-assessed income tax shall be given to a Tax Collecting Agent.

  1. Certified true copies

(1)     A taxpayer or Tax Collecting Agent who has lost a General Tax Receipt or Flat Rate Tax Ticket or a Tax Collecting Agent’s Receipt, as the case may be, may apply in writing to the Commissioner to be given a certified true copy of the relevant lost receipt or ticket.

(2)     The applicant shall produce such evidence of his identity as the Commissioner may require, and shall also set out the full circumstances of the loss and the Commissioner shall, after due verification, give him such a copy.

  1. Payment by instalment

(1)     For the purpose of facilitating the payment by taxpayers of directly-assessed income tax the Commissioner may make suitable arrangements for the operation of a system of payment by instalment.

(2)     Where such arrangements are made with a bank and involve payment under a regular banker’s order scheme, the ordinary bank charges shall be borne by the Cross River State Government.

  1. Carrying of Receipt or Exemption Certificate

A person who is—

(a)     included in a class or income category specified in a notice published by a Tax Collector under subsection (1) of section 34 of the law; or

(b)     exempted from income tax shall, during the period of tax collection by personal demand specified in that notice, carry upon his person—

(c)     the receipt obtained by him from a Tax Collector or Tax Collecting Agent for the payment of income tax; or

(d)     the exemption certificate given to him by the Commissioner or Assessment Authority; as the case may be.

  1. Production of Receipt or Exemption Certificate

In pursuance of a notice published by a Tax Collector under subsection (1) of section 34 of the Law, he or a person authorised to act on his behalf may during the period of tax collection by personal demand specified in that notice require, any person who is—

(a)     included in a class or income category specified in that notice; or

(b)     exempted from income tax, to produce any evidence upon which that person may rely for the purposes of identifying himself as—

(c)     A tax payer; or

(d)     a person by whom income tax is not payable, as the case may be.

  1. Power of entry

For the purposes of collecting income tax from a taxpayer by personal demand in pursuance of section 34 of the Law, a Tax Collector or person authorised to act on his behalf may enter the place of residence of that taxpayer or any other place where he may be found.

  1. Offences and penalties

(a)     A Householder who without sufficient cause—

(i)      fails to deliver, in accordance with rule 4, a Householder’s Return, or

(ii)     delivers an incorrect Return; or

(b)     an employer who without sufficient cause fails to deliver, in accordance with rule 5, an Annual Return to the Assessment Authority; or

(c)     a Tax Collecting Agent who, having collected directly assessed income tax from a small-income taxpayer, without sufficient cause, fails to give him a Flat Rate Tax Ticket in accordance with rule 6; or

(d)     a taxpayer or Tax Collecting Agent who makes a false statement in an application for a certified true copy of a General Tax Receipt or Flat Rate Tax Ticket or a Tax Collecting Agent’s Receipt, as the case may be; or

(e)     a person who is in possession of a General Tax Receipt, Flat Rate Tax Ticket or Tax Collecting Agent’s Receipt—

(i)      which he did not obtain in accordance with rule 6 or rule 7, as the case may be, as a receipt for the payment of income tax, and

(ii)     of which he is not otherwise lawfully in possession; or

(f)      a person who without sufficient cause obstructs a Tax Collector or a duly authorised person during the course of an entry in accordance with rule 12, is guilty of an offence: Penalty: imprisonment for six months and a fine of one hundred naira.

INCOME TAX (EXEMPTIONS) ORDER

  1. This order may be cited as the Income Tax (Exemptions) Order, and shall be deemed to have come into operation on the 1st day of April, 1961.
  2. The following classes of persons are hereby exempted from income tax—

(a)     persons who prior to the 1st of April, 1956, were awarded the Victoria Cross, the Medal of the Order of the British Empire, the Distinguished Conduct Medal, the Military Medal, the Distinguished Service Medal, the Meritorious Service Medal, the George Cross, the George Medal or the King’s Police Medal for Gallantry;

(b)     persons who have been—

(i)      permanently disabled in the service of any Nigeria Government; or

(ii)     wholly disabled, or partly and permanently disabled by wounds or injury received on active service or disease due to active service with the result that they are incapacitated from earning an adequate livelihood;

(c)     non-commissioned officers and constables of the Nigeria Police Force who enlisted prior to the 10th of June, 1937;

(d)     indigent persons who by reason of old age, bodily infirmity or disease are unable to earn more than the bare means of subsistence;

(e)     afflicted persons resident in a leprosy settlement or a recognised segregation village and who do not have an income of two hundred naira or more for any year of assessment.

  1. (1) Income arising from a scholarship held by a person receiving full-time instruction at a university, college, school, training centre or other approved educational establishment or training institution is hereby exempted from income tax and no account shall be taken of such an income in computing the total income for income tax purposes.

(2)     Income derived by personal effort of a person such as is mentioned in subparagraph (1) is similarly exempted from income tax and no account shall be taken of such an income in computing the total income for income tax purposes.

(3)     Nothing in this paragraph shall be construed as conferring any exemption whatsoever in respect of the income of a person who prior to undergoing such instruction as is mentioned in subparagraph (1) was an employed person and who continues to receive from his employer any remuneration or monetary benefit either in the form of a scholarship or grant or otherwise.

  1. Revocation

E.R.L.N No. 49 of 1956 and R.R.L.N. No. 91 of 1956 shall cease to have effect save in respect of a year of assessment ending prior to the 1st of April, 1961.

INCOME TAX (DEDUCTION AT SOURCE) RULES

ARRANGEMENT OF RULES

PART 1

Preliminary

  1. Short title and commencement.
  2. Interpretation.

PART 2

Permanent Employees

  1. Deduction of tax.
  2. Tax Deduction Card.
  3. Payment of deductions to Government.
  4. Monthly Returns.
  5. Annual Return.
  6. P.A.Y.E Tax Receipt.
  7. Engagement Note.
  8. Termination Note.
  9. Power of inspection.
  10. Offences and penalties.
  11. Continuing offence in respect of Monthly Return.
  12. Continuing offence in respect of Tax Deduction Card, etc.

PART 3

Daily-rated Employees

  1. Deduction of Tax.
  2. Revenue Franking Machine Card.
  3. Payment of deductions to Government.
  4. Monthly Return.
  5. General Tax Receipt.
  6. Termination Note.
  7. Power of inspection.
  8. Offences and penalties.
  9. Continuing offence in respect of Revenue Franking Machine Cards, etc.

PART 4

General

  1. Domestic Circumstances Declaration.
  2. Failure to make Domestic Circumstances Declaration.
  3. Offences and penalty.
  4. Certified true copy of receipt.

RULES

PART 1

Preliminary

  1. Short title and commencement

These rules may be cited as the Income Tax (Deduction at Source) Rules, and shall come into operation on the 1st January, 1963.

  1. Interpretation

In these rules—

“allowances” include a sum of money paid or payable in respect of expenses and a sum of money placed by an employer at the disposal of an employee and paid out by the employer; “government employer” includes employers as defined by paragraphs (b), (c), (d) and (e) of the definition contained in section 8 of the Law; “permanent employee” means an employee other than a daily-rated employee; “daily-rated employee” means a person employed on a temporary basis and at a low rate of remuneration; “the Law” means the Finance Law.

PART 2

Permanent Employees

  1. Deduction of tax

(1)     Upon receipt of a notice under section 14 of the Law an employer shall, in accordance with the directions contained in that notice, deduct amounts of income tax from the emoluments of his permanent employees during a financial year.

(2)     Deduction shall be made on each occasion of payment of regular monthly emoluments and also on every occasion of payment of any emoluments.

(3)     The emoluments to be subjected to deduction are the gross salaries, wages, fees, allowances or other gains or profits from the employment, which are payable in money by the employer to the employee, but shall not include an amount or a part of an amount of emoluments or an amount of expenditure out of emoluments which may be specified by the Commissioner.

  1. Tax Deduction Card

(1)     An employer shall maintain in respect of every deduction during a financial year an accounting record (called a Tax Deduction Card) in a form specified and supplied by the Commissioner.

(2)     A separate Tax Deduction Card shall be maintained for each permanent employee.

(3)     An employer shall ensure that a Tax Deduction Card shall include in respect of every deduction a true and complete record entered at the time the deduction is made.

(4)     Notwithstanding anything contained in paragraph (1), (2) or (3), an employer may maintain an accounting record of deduction in some other form specified by the Commissioner.

(5)     Not later than twenty-eight clear days immediately after the last day of the financial year, an employer, other than a government employer, shall deliver to the Commissioner all Tax Deduction Cards or other form of accounting record of deductions, complete in all particulars, relating to that year.

(6)     All Tax Deduction Cards and other forms of accounting record of deductions shall be the exclusive property of the Cross River State Government.

  1. Payment of deductions to Government

(1)     Subject to paragraph (2), an employer, other than a government employer, shall pay the total amount of income tax deducted by him during a month into a Government Treasury not later than seven clear days immediately after the last day of that month.

(2)     Where—

(a)     the amount to be deducted is small and the location of the employer is remote, or

(b)     the employer maintains several establishments which are scattered, the Commissioner may, in his discretion, extend the period.

  1. Monthly Returns

(1)     An employer, other than a government employer, shall—

(a)     prepare a return (called a Monthly Return) in a form specified and supplied by the Commissioner, and, subject to paragraph (2); and

(b)     deliver it to the respective Assessment Authorities of the areas in which his employees reside, not later than twenty-eight clear days immediately after the last day of the month during which a deduction was due to be made.

(2)     Where—

(a)     the amount to be deducted is small and the location of the employer is remote, or

(b)     the employer maintains several establishments which are scattered, the Commissioner may, in his discretion, extend the period.

(3)     The Monthly Return shall state and certify—

(a)     the total number of employees during the month;

(b)     the total amount of income tax deducted during the month;

(c)     the total amount of deductions paid into a Government Treasury;

(d)     the date of the payment;

(e)     the reference number of the relevant Treasury receipt; and

(f)      such other particulars as the Commissioner may specify.

  1. Annual Return

(1)     An employer shall—

(a)     prepare a return (called an Annual Return) in a form specified and supplied by the Commissioner; and

(b)     not later than twenty-eight clear days immediately after the last day of the financial year during which a deduction was due to be made, deliver—

(i)      the original to the Commissioner, and

(ii)     the duplicate to the respective Assessment Authority specified by the Commissioner.

(2)     The Annual Return shall state and certify—

(a)     the personal particulars of all permanent employees during the financial year;

(b)     the total amount of emoluments payable in money to each such employee during the financial year;

(c)     the total amount of income tax deducted from the emoluments of each employee during the financial year;

(d)     such other particulars as the Commissioner may specify; and also,

(e)     in the case of an employer other than a government employer—

(i)      the total amount of deductions paid into a government Treasury;

(ii)     the dates of the payment; and

(iii)    the reference numbers of the relevant Treasury receipts.

  1. P.A.Y.E. Tax Receipt

(1)     After the last day of a financial year during which a deduction was due to be made, an employer shall—

(a)     prepare in triplicate, a receipt (called P.A.Y.E. Receipt) in a receipt book (with detachable leaves) in a form specified and supplied by the Commissioner, in respect of the total amount of deductions made by him from the emoluments of each employee during the financial year; and

(b)     give to each employee the original of the receipt relevant to his deductions.

(2)     The employer shall ensure that true and complete particulars are duly entered in every P.A.Y.E. Receipt prepared and given by him under paragraph (1).

(3)     Not later than twenty-eight clear days immediately after the last day of the financial year, an employer shall delivered to the Commissioner the duplicate copies of all P.A.Y.E. Receipts due to be prepared and given to employees in respect of that year.

(4)     The duplicate copies in all P.A.Y.E. Receipt books shall be the exclusive property of the Cross River State Government.

  1. Engagement Note

(1)     Where an employer engages a permanent employee he shall make, in quadruplicate, an entry to that effect (called an Engagement Note) in a record book (with detachable leaves) in a form specified and supplied by the Commissioner; and give to the employee the original of the Engagement Note.

(2)     The employer shall ensure that true and complete particulars are duly entered in every Engagement Note given by him under paragraph (1).

(3)     Not later than ten clear days immediately after the day on which an employee was engaged, the employer shall deliver to—

(a)     the Assessment Authority of the Area in which the employee resides, or the particular Assessment Authority specified by the Commissioner, and

(b)     the Commissioner, respectively, the duplicate and triplicate copies of the Engagement Note given to the employee.

(4)     The duplicate and triplicate copies in all Engagement Note books shall be the exclusive property of the Cross River State Government.

  1. Termination Note

(1)     Where the services of a permanent employee are terminated, the employer shall—

(a)     make, in quadruplicate, an entry to that effect (called a Termination Note) in a record book (with detachable leaves) in a form specified and supplied by the Commissioner; and

(b)     give to the employee the original of the Termination Note.

(2)     The employer shall ensure that true and complete particulars are duly entered in every Termination Note given by him under paragraph (1).

(3)     Not later than ten clear days immediately after the date of termination of the services of an employee, an employer shall deliver to—

(a)     the Assessment Authority of the area in which the employee resided, or to the particular Assessment Authority specified by the Commissioner; and

(b)     the Commissioner, respectively, the duplicate and triplicate copies of the Termination Note given to the employee.

(4)     The duplicate and triplicate copies in all Termination Note books shall be the exclusive property of the Cross River State Government.

  1. Power of inspection

For the purpose of facilitating the deduction of income tax, the Commissioner or an Assessment Authority or a person authorised in writing by him in that behalf shall, during ordinary business hours, have—

(a)     admittance to the premises of an employer, and

(b)     access to all accounting records relating to the deduction of income tax.

  1. Offences and penalties

An employer, other than a government employer, who without sufficient cause—

(a)     fails to deduct income tax in accordance with rule 3; or

(b)     fails to maintain in accordance with paragraphs (1), (2), (3) and (4) of rule 4, a Tax Deduction Card or other forms of accounting record of deductions; or

(c)     fails to deliver to the Commissioner in accordance with paragraph (5) of rule 4 a Tax Deduction Card or other form of accounting record of deductions maintained by him; or

(d)     fails to pay into a Government Treasury in accordance with rule 5 any income tax deducted by him; or

(e)     fails to deliver to the Assessment Authority in accordance with rule 6 a Monthly Return; or

(f)      fails to deliver to the Commissioner or the Assessment Authority in accordance with rule 7 the original or duplicate, as the case may be, of an Annual Return; or

(g)     fails to give an employee—

(i)      a P.A.Y.E. Receipt in accordance with paragraphs (1) and (2) of rule 8; or

(ii)     Engagement Note in accordance with paragraphs (1) and (2) of rule 9; or

(iii)    a Termination Note in accordance with paragraphs (1) and (2) of rule 10; or

(h)     fails to deliver to the Commissioner in accordance with paragraphs (3) of rule 8, the duplicate copy of a P.A.Y.E. Receipt given to an employee; or

(i)      fails to deliver to the Assessment Authority and the Commissioner, respectively, in accordance with paragraph (3) of rule 9 or paragraph (3) of rule 10, as the case may be, the duplicate and triplicate copies of an Engagement Note or of a Termination Note; or

(j)      denies the Commissioner or an Assessment Authority or other person authorised under rule 11 access to accounting records; is guilty of an offence: Penalty: imprisonment for six months and a fine of one hundred naira.

  1. Continuing offence in respect of Monthly Return

An employer, other than a government employer, who having failed to pay to the government in accordance with rule 5 any income tax deducted by him, also fails without sufficient cause to deliver to the Assessment Authority in accordance with rule 6 the Monthly Return relevant to that deduction, is guilty of a continuing offence which is deemed to commence on the day immediately following the last day on which the return should have been delivered and is liable to the penalty imposed by subsection (9) of section 14 of the Law.

  1. Continuing offence in respect of Tax Deduction Card, etc.

An employer, other than a government employer, who—

(a)     having failed to deliver to the Commissioner in accordance with paragraph (5) of rule 4 a Tax Deduction Card or other form of accounting record of deductions; or

(b)     having failed to deliver to the Commissioner in accordance with rule 7 the original of an Annual Return; or

(c)     having failed to deliver to the Commissioner in accordance with paragraph (3) of rule 8 the duplicate of a P.A.Y.E. Receipt due to be given to an employee, continues without sufficient cause in such failure, is guilty of a continuing offence which is deemed to commence on the day immediately following the last day on which the Tax Deduction Card or Annual Return or duplicate P.A.Y.E. Receipt, as the case may be, should have been delivered, and is liable to the penalty imposed by subsection (9) of section 14 of the Law.

PART 3

Daily-rated Employees

  1. Deduction of Tax

(1)     Upon receipt of a notice under section 14 of the Law an employer shall, in accordance with the directions contained in that notice, deduct amounts of income tax from the weekly or monthly emoluments of his daily-rated employees during a calendar year.

(2)     Deductions shall be made on every occasion of payment of any emoluments.

(3)     The emoluments to be subjected to deduction are the like emoluments as those specified in paragraph (3) of rule 3.

  1. Revenue Franking Machine Card

(1)     An employer shall maintain in respect of every deduction during a calendar year an accounting record (called a Revenue Franking Machine Card) in a form specified and supplied by the Commissioner.

(2)     A separate Revenue Franking Machine Card shall be maintained for each daily-rated employee.

(3)     The accounting record of deductions maintained in a Revenue Franking Machine Card shall include frankings which shall be impressed upon the card by the Assessment Authority of the area in which the daily-rated employee resides, to whom the employer shall present the card for franking.

(4)     Subject to paragraph (5), an employer shall ensure that each Revenue Franking Machine Card is complete in all particular and duly presented for franking to the Assessment Authority of the area in which the daily-rated employee resides, not later than seven clear days immediately after the last day of the month during which the relevant deduction was due to be made.

(5)     Where—

(a)     the amount to be deducted is small and the location of the employer is remote, or

(b)     the employer maintains several establishments which are scattered, the Commissioner may, in his discretion, extend the period.

(6)     Subject to paragraph (5) of rule 21, an Assessment Authority shall  return all Revenue Franking Machine Cards to the employer immediately after franking, except that he shall retain them when they are presented for franking in respect of the last month of the calendar year.

(7)     All Revenue Franking Machine Cards shall be the exclusive property of the Cross River State Government.

  1. Payment of deduction to Government

(1)     An employer who maintains Revenue Franking Machine Cards shall pay the total amount of income tax deducted by him during any months to the respective Assessment Authorities of the areas in which his daily-rated employees reside at the time the deduction is due to be made—

(a)     not later than seven clear days immediately after the last day of that month, or

(b)     at the same time as the cards are presented for franking in accordance with paragraph (5) of rule 16.

(2)     An Assessment Authority shall prepare and give to an employer a receipt (called an Employer’s Receipt) in a form specified and supplied by the Commissioner in respect of the amount of tax deductions received from him.

  1. Monthly Return

(1)     An employer who maintains Revenue Franking Machine Cards shall—

(a)     prepare a return (called a Monthly Return) in a form specified and supplied by the Commissioner; and

(b)     deliver it to the respective Assessment Authorities of the areas in which his daily rated employees reside—

(i)      not later than seven clear days immediately after the last day of a month during which a deduction was due to be made, or

(ii)     at the same time as the cards are presented for franking in accordance with paragraph (5) of rule 16.

(2)     The Monthly Returns shall state and certify—

(a)     the total number of daily-rated employees during the month;

(b)     the total amount of tax deducted during the month; and

(c)     such other particulars as the Commissioner may specify.

  1. General Tax Receipt

(1)     After the last day of a calendar year, a daily-rated employee may apply to the Assessment Authority to whom his Revenue Franking Machine Card has been presented in accordance with paragraph (3) of rule 16, for a receipt called a General Tax Receipt in a form specified and supplied by the Commissioner to be prepared and issued to him in respect of the total value of Franking upon his card.

(2)     The Assessment Authority shall, after due verification, give the employee such a receipt.

  1. Termination Note

(1)     Where the services of a daily-rated employee are terminated, an employer shall—

(a)     make, in quadruplicate, an entry to that effect (called a Termination Note) in a record book (with detachable leaves) in a form specified and supplied by the Commissioner, and

(b)     give to the employee the original of the Termination Note.

(2)     The employer shall ensure that true and complete particulars are duly entered in every Termination Note given by him under paragraph (1).

(3)     The duplicate copy of a Termination Note shall be delivered by the employer to the Assessment Authority at the same time as the Revenue Franking Machine Card maintained for the employee is due to be presented for franking in accordance with paragraph (4) or paragraph (5) of rule 16.

(4)     The duplicate copies in all Termination Note books shall be the exclusive property of the Cross River State Government.

(5)     The Assessment Authority shall retain the Revenue Franking Machine Card maintained for the employee.

  1. Power of inspection

The powers conferred by rule 11 shall also apply for the purposes of facilitating the deduction of income tax from the emoluments of daily-rated employees.

  1. Offences and penalties

An employer, other than a government employer, who without sufficient cause—

(a)     fails to deduct income tax in accordance with rule 15; or

(b)     fails to maintain a Revue Franking Machine Card in accordance with paragraphs (1), (2), (3) and (4) of rule 16; or

(c)     fails to present a Revenue Franking Machine Card maintained by him to the Assessment Authority for franking in accordance with paragraph (4) or paragraph (5) of rule 16; or

(d)     fails to pay to the Assessment Authority in accordance with paragraph (1) of rule 17 an amount of income tax deducted by him; or

(e)     fails to deliver to the Assessment Authority in accordance with rule 18 a Monthly Return; or

(f)      fails to deliver to the Assessment Authority in accordance with paragraph (3) of rule 20 the duplicate copy of a Termination Note; or

(g)     denies the Commissioner or Assessment Authority or other person authorised under rule 11 as read with rule 21 access to accounting records, is guilty of an offence: Penalty: imprisonment for six months and a fine of one hundred naira.

  1. Continuing offence in respect of Revenue Franking Machine Cards, etc.

An employer, other than a government employer, who having failed to—

(a)     present to the Assessment Authority in accordance with paragraph (4) or paragraph (5) of rule 16 a Revenue Franking Machine Card due to be maintained by him; and to

(b)     pay to the Assessment Authority in accordance with paragraph (1) of rule 17 any income tax deducted by him; and to

(c)     deliver to the Assessment Authority in accordance with rule 18 the Monthly Return relevant to that deduction, continues without sufficient cause in all such failures after the last day of the month during which they occurred, is guilty of a continuing offence which is deemed to commence on the day immediately following that day, and is liable to the penalty imposed by subsection (98) of section 14 of the Law.

PART 4

General

  1. Domestic Circumstances Declaration

(1)     Where any employee is engaged by an employer, he shall make and certify and give to the employer a written statement called a Domestic Circumstances Declaration in a form specified and supplied by the Commissioner to the employer.

(2)     The employer shall make the form available to the employee for completion and shall retain all completed forms as part of his accounting records relating to the deduction of income tax; but the Commissioner may, for the purposes of the Law, require an employer to surrender to him a Domestic Circumstances Declaration.

  1. Failure to make Domestic Circumstances Declaration

Any employee who, without sufficient cause, fails to make a Domestic Circumstances Declaration in accordance with regulation 24, shall be deemed to be a Single Person for the purposes of the deduction of income tax from his emoluments.

  1. Offences and penalty

Any employee who makes a false statement in a Domestic Circumstances Declaration required by regulation 24, is guilty of an offence: Penalty: imprisonment for six months and a fine of one hundred naira.

  1. Certified true copy of receipt

(1)     An employer or employee who has lost an employer’s Receipt or a P.A.Y.E. Receipt or General Tax Receipt, as the case may be, may apply in writing to the Commissioner for a certified true copy of the lost receipt.

(2)     The applicant shall produce such evidence of his identity as the Commissioner may          require and the application shall set out the full circumstances of the loss, and the Commissioner shall after due verification, give him a copy.

(3)     An employee who makes a false statement in an application under this rule is guilty of an offence: Penalty: imprisonment for six months and a fine of one hundred naira.

INCOME TAX (BOARDS OF COMMISSIONERS OF APPEAL) RULES

ARRANGEMENT OF RULES

RULE

  1. Citation.
  2. Interpretation.
  3. Meetings of a Board.
  4. Notice of meetings.
  5. Quorum.
  6. Respondent.
  7. Representation.
  8. Filing of grounds of appeal.
  9. Registration of appeal.
  10. Service on respondent.
  11. Reply.
  12. Service on appellant.
  13. Notice of hearing.
  14. Appearance.
  15. Power to hear evidence on oath or affirmation.
  16. Record of proceedings.
  17. Mode of service on appellant.
  18. Mode of service on respondent.

RULES

  1. Citation

These rules may be cited as the Income Tax (Boards of Commissioners of Appeal) Rules.

  1. Interpretation

In these rules—

“Board” means the body of persons appointed as members of a Board of Commissioners of Appeal under subsection (1) of section 24 of the Law; “Chairman” means a member of a Board of Commissioners who has been appointed as Chairman of the Board by the Executive Council; “the Law” means the Finance Law.

  1. Meetings of a Board

A Board of Commissioners shall meet in such place and at such time as the Chairman may from time to time decided.

  1. Notice of meetings

The Chairman shall give to the members at least ten days’ notice of a meeting of the Board, and the notice shall state the place, time and duration of the meeting.

  1. Quorum

A meeting of a Board shall not proceed unless the Chairman (who shall form a quorum) is present.

  1. Respondent

In all appeals before a Board, the Commissioner shall be the respondent.

  1. Representation

(1)     The appellant may be represented in accordance with paragraph (b) of subsection (7) of section 24 of the Law.

(2)     The respondent may be represented by the Assessment Authority (hereinafter called the “relevant Assessment Authority”) who raised the assessment or who appointed the Assessment Committee which raised the assessment, against which the appeal has been made.

  1. Filing of grounds of appeal

(1)     The appellant shall file with the Board his grounds of appeal either in the form specified and supplied by the Commissioner or otherwise in writing, together with two copies thereof, not later than fifteen days after the date of giving to the Board the notice of appeal as required by subsection (4) of section 24 of the Law.

(2)     The grounds of appeal shall—

(a)     set forth in paragraphs consecutively numbered a concise statement of the facts and of any point of law upon which the appellant intends to rely in support of his appeal;

(b)     include a statement of the amounts of—

(i)      total income chargeable, and

(ii)     total tax payable, which are admitted by the appellant and which the Board is asked to adjudge as being the proper amounts.

(3)     In respect of the assessment appealed against, the appellant shall attach to the grounds of appeal—

(a)     a written statement of the assessment or a copy of the notice of assessment served on him under section 20 of the Law, signed or duly certified, as the case may be, by the relevant Assessment Authority; and

(b)     the actual tax receipt given to him by the relevant Assessment Authority in respect of half of the amount of the tax which is in dispute, together with a copy thereof.

(4)     For the purposes of paragraph (1) of these Rules and of subsection (4) of section 24 of the Law, it shall be sufficient if the appellant files his grounds of appeal with or gives notice of appeal to the relevant Assessment Authority.

  1. Registration of appeal

(1)     Where the grounds of appeal are filed in accordance with the requirements of rule 8 the Board shall cause the date of filing to be indorsed thereon, and the appeal shall be entered in a register of appeals maintained in the form specified and supplied by the Commissioner.

(2)     Where any of the requirements of rule 8 is not fulfilled the Board may refuse to accept for filing any grounds of appeal, but may, for sufficient cause, extent the period of time specified in that rule in order that all those requirements may be fulfilled.

  1. Service on respondent

The Board shall cause a copy of the grounds of appeal duly indorsed with the date of filing to be served upon the respondent, but service upon the relevant Assessment Authority shall be deemed to be service upon the respondent.

  1. Reply

(1)     Not later than fifteen days after the date of service upon the respondent of the grounds of appeal, the respondent shall file with the Board his reply thereto together with two copies of thereof.

(2)     The reply shall—

(a)     set forth in paragraphs consecutively numbered a concise statement of the facts and of any point of law upon which he intends to rely in rebuttal of the grounds of appeal; and

(b)     be signed by him or his counsel.

(3)     For the purposes of this rule the relevant Assessment Authority shall be deemed to be the respondent.

  1. Service on appellant

The Board shall cause a copy of the reply of the respondent to be served upon the appellant not later than fifteen days before the date fixed for the hearing of the appeal.

  1. Notice of hearing

(1)     The Board shall give to the parties at least fifteen days’ notice of the date, place and time fixed for the hearing of the appeal.

(2)     For the purposes of this rule the relevant Assessment Authority shall be deemed to be the respondent.

  1. Appearance

(1)     Appearance of the appellant before the Board on the day of hearing or any day of adjournment shall be in accordance with paragraph (a) or paragraph (b) of subsection (7) of section 24 of the Law, and in default of such an appearance the appeal shall be struck out, but the Board may, for sufficient cause, rule otherwise.

(2)     Where the appellant appears and the respondent or his counsel does not appear, the appeal shall be heard ex parte, but the Board may, for sufficient cause, rule otherwise.

  1. Power to hear evidence on oath or affirmation

The Board may require any evidence to be given on oath or affirmation and the provisions of the Oaths and Affirmation Law, shall apply to the proceedings of the Board.

  1. Record of proceedings

(1)     At the hearing of any proceedings the Board shall cause to be taken down in writing in a book to be kept for that purpose a record of the proceedings, which shall include—

(a)     a concise note of any question of law raised at the hearing; and

(b)     a concise notice of the purport of all oral or documentary evidence given before the Board; and the decision of the Board and the record shall be signed by the members of the Board who heard the proceedings.

  1. Mode of service on appellant

(1)     It shall be sufficient if, instead of serving the appellant personally with a document under these rules, the document is served—

(a)     upon a person found at the address for service supplied by the appellant under rule 8, who resides thereat and appears to be not less than twenty-one years of age, or, if the address is a place of business, upon a person found apparently in charge thereof; or

(b)     in accordance with section 6 of the Law; or

(c)     upon the appellant’s counsel wherever he may be found, or, if the counsel is not found at his office, on the clerk apparently in charge thereof.

(2)     An appellant may change his address for the service of documents by giving notice in writing to the Board.

  1. Mode of service on respondent

All documents intended for the respondent shall be sufficiently served upon him if posted in a prepaid registered envelope addressed to him or to his counsel.

 

FINANCE LAW (APPEALS) (HIGH COURT) RULES

ARRANGEMENT OF RULES

RULE

  1. Citation.
  2. Interpretation.
  3. Representation of parties.
  4. Respondent.
  5. Notice of appeal.
  6. Grounds of appeal.
  7. Entering of appeal.
  8. Requirements for filing.
  9. Reply.
  10. Notice of hearing.
  11. Proceedings in default.
  12. Enlargement or abridgement of time.
  13. Service on appellant.
  14. Service on Commissioner.
  15. Conduct of further appeals.
  16. Order of court.
  17. Costs.
  18. Conduct of appeals direct to court.

RULE

  1. Record of proceedings before Board.
  2. Setting aside judgment.
  3. Fees of court.

SCHEDULE

FORMS

RULES

[Commencement]

  1. Citation

These rules may be cited as the Finance Law (Appeals) (High Court) Rules.

  1. Interpretation

In these rules—

“advocate” means a law officer, or a legal practitioner entitled to practice before the High Court;

“the court” means the judge of the High Court in the division within which the appellant resides or the income arises;

“the Law” means the Finance Law; “registrar” means the registrar of the court.

  1. Representation of parties

In all proceedings before the court the parties may be represented by an advocate.

  1. Respondent

In all appeals the Commissioner shall be the respondent.

  1. Notice of appeal

(1)     The notice of appeal required by section 25 (2) of the Law shall be in Form A of the Schedule hereto, and the notice of appeal required by section 26 (3) of the Law shall be in Form B of the said Schedule.

(2)     Every notice of appeal shall be signed by the appellant or by his advocate and shall be lodged with the registrar together with two copies thereof.

(3)     Upon receiving a notice of appeal the registrar shall indorse both the original and the copies with the date of receipt and shall forthwith forward one copy by registered post to the Commissioner.

(4)     No fee shall be charged upon lodging a notice of appeal.

(5)     If the notice of appeal is lodged by the advocate of the appellant the notice of appeal shall state the address of the appellant and his occupation and also the name of the advocate and his office address, which shall be an address for service at which documents intended for the appellant may be left under rule 13.

(6)     If the appellant has no advocate the notice of appeal shall state the residence of the appellant and his occupation, and, if his place of residence is within the jurisdiction it shall be an address for service, and if his place of residence is not within the jurisdiction, the notice of appeal shall state an address for service within the jurisdiction at which documents intended for the appellant may be left.

  1. Grounds of appeal

(1)     Within thirty days of the date of lodgement of the notice of appeal the appellant shall file a written statement of his grounds of appeal in the registry of the court, together with one copy of such statement.

(2)     The statement shall be signed by the appellant or by his advocate.

(3)     In the case of an appeal under section 26 of the Law the statement shall set forth in paragraphs consecutively numbered a concise statement of the facts and of any point of law upon which the appellant intends to rely, and shall state the amounts of—

(a)     the chargeable income, and

(b)     the tax payable, which the court is asked to find and adjudge to be the proper amounts.

(4)     In the case of an appeal under section 25 of the Law the statement shall set forth in paragraphs consecutively numbered the questions of law upon which the appellant intends to rely, and shall state the amounts of—

(a)     the chargeable income, and

(b)     the tax payable, which the court is asked to find and adjudge to be the proper amounts.

(5)     There shall be attached to all statements—

(a)     two copies of the document by which the assessment from which appeal was made to the Board of Commissioners, or from which appeal is made directly to the court, as the case may be, was made known to the appellant under section 20 of the Law, duly certified by the authority issuing the same, or if there is no such document, a written statement signed by the assessing authority of the assessment made upon the appellant, together with one copy thereof;

(b)     a receipt signed by the appropriate tax collector proving payment of the deposit required by section 24 (5) of the Law, together with one copy of such receipt.

  1. Entering of appeal

(1)     Upon the filing of the statement of grounds of appeal the registrar shall indorse thereon the date of filing, and shall enter the appeal in a register of Finance Law appeals to be kept for that purpose.

(2)     The registrar shall cause a copy of the statement, indorsed with the  date of filing, and copies of all documents attached thereto, to be served upon the Commissioner and the same shall be sufficiently served if posted in a prepaid registered envelope addressed to the Commissioner, and the time at which the memorandum so posed would be delivered in the ordinary course of post shall be considered as the time of service thereof.

 

  1. Requirements for filing

No statement of grounds of appeal shall be filed by the registrar unless—

(a)     the court fee chargeable thereon is first paid, and

(b)     the documents specified in paragraph (5) of rule 6 of these rules are presented with          the grounds of appeal.

  1. Reply

(1)     Within twenty-one days of the service of the statement of grounds of appeal the Commissioner shall file in the registry of the court a written reply and one copy thereof, which shall be signed by the commissioner or by his advocate, and shall set forth in paragraphs consecutively numbered a concise statement of the facts and any points of law upon which the Commissioner intends to rely.

(2)     The registrar shall cause a copy of the reply to be served on the appellant fifteen days at least before the date fixed for the hearing of the appeal.

  1. Notice of hearing

The registrar shall give fifteen days’ notice in writing to the parties of the date fixed for the hearing of the appeal, unless the court directs shorter notice.

  1. Proceedings in default

(1)     Where a notice of appeal has been lodged with the registrar beyond the time limited by section 25 or by section 26 of the Law, as the case may be, the Commissioner may apply to the court by motion upon notice to the appellant for an order dismissing the appeal, and if the court is satisfied that the notice of appeal has been lodged beyond the time so limited the court shall make an order dismissing the appeal.

(2)     If a party omits to do an act or to take a proceeding within the time prescribed by these rules or fixed by an order enlarging the time so prescribed, the other party may move the court upon notice to the party in default, to give judgment against the party in default, and the court may thereupon give judgment against the party in default, or may entertain an application for enlargement of time, as to the court may seem fit.

(3)     If upon the day fixed for the hearing of an appeal it shall appear to he court that the deposit required by section 24 (5) of the Law has not been made by the appellant, the court shall dismiss the appeal, but the receipt referred to in paragraph (5) of rule 6 of these rules shall be prima facie evidence of such deposit.

  1. Enlargement or abridgement of time

(1)     The court shall have power to enlarge or abridge the time appointed by these rules or by the High Court Rules, or fixed by an order enlarging time, for doing any act or taking any proceeding required by these rules or by the High Court Rules.

(2)     Every application for enlargement or abridgement of time shall be supported by affidavit.

(3)     An application for abridgement of time may be made ex parte, but the court may require notice thereof to be given to the other party.

(4)     An application for enlargement of time shall be made by motion upon notice to the other party.

  1. Service on appellant

(1)     It shall be sufficient if, in lieu of serving the appellant personally with any document          intended for him, such document is served—

(a)     on the appellant’s advocate wherever such advocate may be found, or, if such advocate is not found at his office, on the clerk there found apparently in charge; or

(b)     by posting it in a prepaid registered envelope addressed to such advocate at his office address; or

(c)     on any person found at the residence of the appellant who is a resident thereof and appears to be twenty-one years of age or more; or

(d)     on any person found at the address for service given by an appellant whose residence is not within the jurisdiction, who is a resident thereof, and appears to be twenty-one years of age or more, or if the address for service is a place of business, on any person there found apparently in charge.

(2)     An appellant may change his address for service by giving notice in writing to the registrar.

(3)     Where service in one of the foregoing modes is impracticable, or where the appellant has failed to give a sufficient or any address for service, an application supported by affidavit may be made by the Commissioner to the court for an order dispensing with service, or directing service in some other member, and the court may thereupon make such order as to the court shall seem just.

  1. Service on Commissioner

All documents intended for the Commissioner shall be sufficiently served on the Commissioner if posted in a prepaid registered envelope addressed to the Commissioner.

  1. Conduct of further appeal

(1)     Subject to the express provisions of the Law and of these rules, in the case of an appeal under section 25 of the Law from a decision of the Board of Commissioners the court shall proceed, and the appeal shall be heard and conducted by the court, as nearly as may be, as if the appeal was an appeal to the High Court from magistrate’s court in a civil case.

(2)     The appellant shall appear before the court on the day of hearing, or any adjournment thereof, in person or by an advocate, and in default of such appearance the appeal shall be struck out and the decision of the Board of Commissioners confirmed, unless the court, for sufficient cause, thinks fit to order otherwise.

(3)     The Commissioner shall appear in person or by advocate.

(4)     Where the appellant appears, and the Commissioner does not appear, the appeal shall be heard ex parte, unless the court, for sufficient cause, thinks fit to order otherwise.

  1. Order of court

The court may confirm, reduce, or cancel the assessment fixed or confirmed by the decision of the Board of Commissioners, or may make such order thereon as to the court may seem just.

  1. Costs

The court may make such order as to the costs of the appeal, and as to the costs incurred before the Board of Commissioners, as the court may think just.

  1. Conduct of appeals direct to court

(1)     Subject to the express provisions of the Law and of these rules, the practice and procedure of the court in relation to an appeal made under section 26 of the Law shall be assimilated as nearly as may be to the practice and procedure of the High Court in the exercise of its civil jurisdiction, and the High Court Rules and any rules amending or substituted for the same shall apply with such modifications as may be necessary to render them conveniently applicable, as if the appellant and the Commissioner were respectively the plaintiff and the defendant in an action; and evidence in relation to any such appeal may be adduced in any manner in which it may be adduced in an action.

(2)     The court may confirm, reduce, or cancel the assessment, or make such order thereon as to the court may seem just.

  1. Record of proceedings before the Board

(1)     An appellant who appeals against the decision of the Board of Commissioners under section 25 of the Law, shall, upon lodging his notice of appeal, apply to the Board of Commissioners for three copies, certified by a member of the Board, of the record of the proceedings before the Board.

(2)     Upon such application, and subject to any rules which may be made in that behalf, the Board shall supply the appellant with three copies of the record of their proceedings, certified as aforesaid.

(3)     The certified copy of the record of proceedings shall include—

(a)     a copy of any notes of evidence and of any notes of argument recorded by the board;

(b)     a copy of all documents admitted in evidence by the Board, or relied upon by the Board when reaching their decision, and retained by them;

(c)     a copy of the decision of the Board.

(4)     The appellant shall lodge two copies of the record with the registrar, and upon receipt of the said copies the registrar shall forward one copy by registered post to the Commissioner.

(5)     No appeal from a decision of the Board of Commissioners shall be set down for hearing until the required copies are lodged with the registrar.

(6)     No delay by the Board in supplying copies of their record of proceedings shall excuse the appellant from filing his grounds of appeal within the time limited by these rules, but the appellant may, by leave of the court, add to or amend his grounds of appeal after receiving the said record.

(7)     Application for leave to add to or amend the grounds of appeal under this rule may be made by motion upon notice to the Commissioner.

(8)     Notwithstanding the provisions of the preceding paragraph the court may give leave to add to or amend the grounds of appeal on the day of hearing, upon the oral application of the appellant, but such leave shall not be granted unless the court is satisfied that the application could not, with reasonable diligence upon the part of the appellant or his advocate, have been made earlier.

  1. Setting aside judgment

(1)     Where judgment is given against a party in his absence, the other party shall give him notice of the judgment.

(2)     The court may in a proper case, upon motion supported by affidavit, after notice to the party who obtained judgment, set aside the judgment and direct such further proceedings to be heard as may be appropriate, on such terms as may be just: but no motion to set aside judgment shall be entertained unless notice of the motion has been given within fifteen days of the day on which notice of judgment was given; nor shall the time hereby prescribed be extended in any circumstances whatsoever, any rule to the contrary notwithstanding.

  1. Fees of court

The fee payable upon the filing of a statement of grounds of appeal shall be reckoned on the difference between the amount of the tax payable under the assessment appealed against, or under the decision of the Board of commissioners, as the case may be, and the amount of tax which the court is asked to adjudge as being the proper amount, at the same rate as is chargeable for the time being on a summons in the High Court claiming a sum of money; and the scale of fees for the time being in force in civil matters in the High Court shall apply to all subsequent acts, applications, or proceedings, but no fees shall be paid by the Commissioner.

SCHEDULE

FORM A

In the High Court of Justice of the Cross River State……………………………………………………………….. Judicial Division In the matter of an appeal under section 25 of the Finance Law. To the Registrar Take Notice that …………………………………………………………… (full name of appellant and occupation) of…………………………………………………………………………. (resident of appellant) Appeals to this Honourable Court against the decision given in his case by the Board of Commissioners appointed for the………………………….. ………………………………………………… area upon the ……… day of………. …………………………………………………… , 20 ……………(date of decision). The name and office address of the appellant’s advocate is…………………………. ……………………………………..or the address for service within the jurisdiction is ………………………………………………………………………………………………………………………………………………Signature of the appellant or his Advocate

FORM B

In the High Court of Justice of the Cross River State …………………………………………….. Judicial Division In the matter of an appeal under section 26 of the Finance Law. To the Registrar Take Notice that …………………………………………………………… (full name of appellant and occupation) of………………………………………………………………. …………………………………………………………………………. (resident of appellant) Appeals to this Honourable Court against the assessment made upon him by the Commissioner (or by the Assessing Authority) for the ………………………………… area.

PARTICULARS

The statement made upon the appellant is ………………………………. (state amount). The tax in respect of the said assessment is……………………………….. …………………………………….. (state amount) and is payable upon……………… ………………………………… (state date). The name and office address of the appellant’s advocate is …………………………………………………………………….. …………………………………………………………………………………………………………………………………………………..or the address for service within the jurisdiction is ………………………………………………………………………………………………………………………………………………Signature of the appellant or his Advocate

INCOME TAX (RECOVERY OF ARREARS) RULES

ARRANGEMENT OF RULES

PART 1

Preliminary

RULE

  1. Citation.
  2. Interpretation.

PART 2

Functions of Income Tax Officials

  1. Application for issuance of writ.
  2. Issue of writ.
  3. Appointment of bailiffs.
  4. Declaration by bailiff.
  5. Duty and liability of bailiff.
  6. Appointment of supervisor and valuer.
  7. Preparation of writ.
  8. Despatch of writ for execution.
  9. Filing.
  10. Extended time for execution.
  11. Life of writ.

PART 3

Attachment and Sale

  1. Property which may be seized.
  2. Notice of attachment.

RULE

  1. Custody of attached property.
  2. Inventory of attached property.
  3. Notice of sale.
  4. Method of delivery of inventory and notice of sale.
  5. Attachment binding on property attached.
  6. Conduct of sale.
  7. Method of sale.
  8. Place of sale.
  9. Appropriation of sale proceeds.
  10. Record of execution proceedings.
  11. Settlement before sale.
  12. Amount of unpaid tax disputed.
  13. Claim to attached property.
  14. Tax Collector’s discretion to stay execution.
  15. Death of income tax defaulter.

SCHEDULE

FORMS

PART 1

Preliminary

  1. Citation

These rules may be cited as the Income Tax (Recovery of Arrears) Rules.

  1. Interpretation

In these rules—

“attachment” includes distress and seizure, and its grammatical variations have a corresponding meaning;

“execution” includes service, and its grammatical variations have a corresponding meaning;

“foreign Assessment Authority” means an Assessment Authority who has applied to a Tax Collector outside the jurisdiction of that Authority for the issuance of a writ;

“income tax defaulter” means a person who has not paid income tax payable by him in accordance with subsection (1) of section 34 of the Law;

“Schedule” means the Schedule to these Rules.

PART 2

Functions of Income Tax Officials

  1. Application for issuance of writ

(1)     An Assessment Authority may, for the purpose of the recovery of income tax due by an income tax defaulter in respect of an income tax assessment, certify the particulars of the matter and apply in the form, duly completed, of Form A in the Schedule, to the—

[Form A. Schedule]

(a)     tax collector having authority in the jurisdiction of the assessment Authority; or

(b)     tax collector having authority in the area in which any movable property of the income tax defaulter may be found, for the issue of a writ of attachment and sale.

(2)     The duplicate of the application form shall be filed in the recovery case file relating to the income tax defaulter, which the Assessment Authority shall be maintained.

  1. Issue of writ

(1)     Subject to this rule, a Tax Collector may issue a writ of attachment and sale in the form, duly completed, of Form B in the Schedule, by which he may levy, or cause to be levied, by distress and sale of goods and chattels wherever they may be found within his jurisdiction, the money payable under an income tax assessment which has not been paid.

[Form B. Schedule.]

(2)     A writ shall not be issued until after either—

(a)     three clear days from the—

(i)      expiration of the period for giving notice of appeal where an appeal has not been filed; or

(ii)     determination of an appeal before the High Court or the Board of Commissioners; or

(b)     where an Assessment Authority has made an order of payment by instalments of the amount of income tax assessed, after the default in payment of an instalment according to that order, upon which event a writ may be issued for the whole of that amount.

  1. Appointment of bailiffs

(1)     All income tax bailiffs in the Revenue Division of the Ministry of Finance are hereby appointed bailiffs for the purpose of executing writs issued by Tax Collectors.

(2)     A Tax Collector may appoint, in writing, officers to be unpaid bailiffs for the purpose of executing writs issues by him.

  1. Declaration by bailiff

A bailiff, whether paid or unpaid, upon appointment as bailiff shall make before a judge or magistrate for the area in which the bailiff exercises authority as bailiff, a declaration (which shall be exempt from stamp duty) in the form, duly completed, of Form C in the Schedule.

[Form C. Schedule.]

  1. Duty and liability of bailiff

(1)     A bailiff shall not demand or accept any part of the money levied under a writ executed by him.

(2)     A bailiff who fails to comply with the provisions of this rule is guilty of an offence. Penalty: imprisonment for three months or a fine of one hundred naira or both.

  1. Appointment of supervisor and valuer

The Assessment Authority in the jurisdiction of a Tax Collector shall supervise the execution of writs issued by the Tax Collector and value and keep possession of any property attached under a writ.

  1. Preparation of writ

A writ shall be prepared in triplicate, every copy being signed in full by the Tax Collector, and the original shall be filed in the appropriate writs file which he shall maintain.

  1. Despatch of writ for execution

(1)     The Tax Collector shall send the duplicate and triplicate copies of a writ through the local Assessment Authority to the income tax bailiffs in the jurisdiction of the Tax Collector for execution by them.

(2)     Where application for the writ was made by a foreign Assessment Authority, the Tax          Collector shall intimate to him the issuance of the writ.

  1. Filing

The Assessment Authority shall file the duplicate of the writ in the recovery case file of the income tax defaulter and the triplicate shall be served upon the income tax defaulter.

  1. Extended time for execution

Execution may, in the discretion of the Tax Collector, be effected on a Sunday or other public holiday, or before 6 a.m. or after 6 p.m. on any day, provided that he indorses on the writ an order to that effect.

  1. Life of writ

An unexecuted writ shall remain in force until the last day of the financial year immediately following that in which it was issued.

PART 3

Attachment and Sale

  1. Property which may be seized

The property which may be attached and sold—

(a)     includes any movable property to which the income tax defaulter is entitled and          which is subject to a lien or right of some other person to immediate possession thereof; but

(b)     does not include—

(i)      movable property apparently over forty naira in value; or

(ii)     movable property which is not in the possession of the income tax defaulter;        or

(iii)    shares in any public company or corporation to which the income tax defaulter      is entitled.

  1. Notice of attachment

(1)     The bailiff proceeding to attach any property shall—

(a)     deliver to the income tax defaulter; or

(b)     leave at the place where the attachment is effected, a notice of attachment in the form, duly completed, of Form D in the Schedule.

(2)     The notice shall be prepared in duplicate and the duplicate shall be filed in the recovery case file of the income tax defaulter.

  1. Custody of attached property

The attached property shall be removed and deposited in the office of the Assessment Authority or in some other fit place that he may determine.

  1. Inventory of attached property.

(1)     Where attached property is removed, the income tax defaulter shall, immediately after the removal, be given a sufficient inventory thereof in the form, duly completed, of Form E in the Schedule.

[Form E. Schedule]

(2)     The inventory shall be prepared in duplicate and the duplicate shall be filed in the recovery case file of the income tax defaulter.

  1. Notice of sale

(1)     Where property is attached, a notice in the Form, duly completed, of Form F in the Schedule shall be given, at least twenty-four hours before the time of sale, to the income tax defaulter stating the time and place where the property will be sold.

[Form F. Schedule]

(2)    The notice shall be prepared in duplicate and the duplicate shall be filed in the recovery case file of the income tax defaulter.

  1. Method of delivery of inventory and notice of sale

The original inventory of attached property prepared under rule 17 and the original notice of sale prepared under rule 18 shall be—

(a)     given to the income tax defaulter personally; or

(b)     sent to him by registered post to his place of residence; or

(c)     if his place of residence is not known, may be left at or sent to him by registered post at the place where the property was attached.

  1. Attachment binding on property attached

(1)     After an attachment has been so made and after it has been notified as required, an income tax defaulter who alienates the property attached, whether by sale, gift or otherwise, is guilty of an offence: Penalty: imprisonment for six months or a fine of one hundred naira or both.

(2)     The alienation is null and void.

  1. Conduct of sale

A sale of property under a writ of attachment shall be conducted by a bailiff under the supervision of the Assessment Authority or his duly authorised representative.

  1. Method sale

The Tax Collector may order a sale of property to be made by public auction.

  1. Place of sale

A sale of property shall be made at such place as the Tax Collector may direct.

  1. Appropriation of sale proceeds

(1)     Where property is sold under a writ of attachment and sale, the proceeds of sale be appropriated by the Assessment Authority towards full satisfaction of the unpaid assessment, and any balance of the proceeds shall be paid to the income tax defaulter.

(2)     The amount appropriated by the Assessment Authority shall be recorded in an Income Tax Revenue Cash Book and the income tax defaulter shall be given a General Income Tax Receipt.

(3)     A receipt shall be furnished by the income tax defaulter in respect of any balance of the proceeds paid to him.

  1. Record of execution proceedings

(1)     A record of the proceedings in execution of a writ of attachment and sale shall be maintained in duplicate in the form, duly completed, of Form G in the Schedule.

[Form G. Schedule]

(2)     The Assessment Authority shall file the original in the recovery cash file of the income tax defaulter and send the duplicate to the Tax Collector for filing in the appropriate writs file.

  1. Settlement before sale

(1)     Where property is attached and the income tax defaulter pays, or cause to be tendered, to the Assessment Authority to whom the writ was issued, or to his duly authorised representative, the full amount of money shown in it, the attached property shall not be removed and the Tax Collector shall by order in writing—

(a)     supersede the execution,

(b)     release the property from attachment, and

(c)     recall the writ.

(2)     Where the income tax defaulter, before the actual sale of the property, pays or causes to be tendered, to the Assessment Authority to whom the writ was issued, or to his duly authorised representative, the full amount of money shown in it, the sale shall not proceed and the Tax Collector shall by order in writing—

(a)     supersede the execution,

(b)     release the property from attachment, and

(c)     recall the writ.

(3)     All moneys received by an Assessment Authority or his duly authorised representative before the actual sale of attached property shall be—

(a)     treated as a payment of income tax by the income tax defaulter, and

(b)     recorded in an Income Tax Revenue Cash Book and the income tax defaulter shall be given a General Income Tax Receipt.

  1. Amount of unpaid tax disputed

(1)     Where, upon the attachment of any property, the income tax defaulter disputes the amount alleged to be remaining due under the assessment, he may apply to the Assessment Authority to whom the writ was issued for a stay of execution.

(2)     The sale shall not proceed until the Assessment authority who applied for the writ has summarily decided as to what amount, if any, remains due under the assessment.

  1. Claim to attached property

(1)     Where a person claims an interest in any attached property, its sale shall not proceed until the claim has been summarily decided by the Tax Collector in whose jurisdiction the property is located.

(2)     That claim shall be made in writing stating full particulars of—

(a)     the claimant;

(b)     the property claimed; and

(c)     the grounds of claim, and may be delivered to the bailiff holding the  writ or to the Assessment Authority to whom the writ was issued or his duly authorised representative.

(3)     The claimant shall deposit with the Assessment Authority the full amount of money shown in the writ.

(4)     The amount deposited shall be recorded in a deposit book of a form approved by the Commissioner and the claimant shall be given a receipt in a form approved by the Commissioner.

(5)     Where the Tax Collector admits the claim he shall order that—

(a)     the execution be superseded,

(b)     the property be released from attachment,

(c)     the writ be recalled, and

(d)     the amount deposited be repaid to the claimant.

(6)     Where the Tax Collector does not admit the claim he shall order that—

(a)     the amount deposited be appropriated by the Assessment Authority in satisfaction of the unpaid assessment,

(b)     the property be released from attachment,

(c)     the writ be recalled, and

(d)     the amount deposited be repaid to the claimant.

(7)     The amount appropriated by the Assessment Authority shall be recorded in an Income Tax Revenue Cash Book and the income tax defaulter shall be given a General Income Tax Receipt.

  1. Tax Collector’s discretion to stay execution

If at any time upon the written application of the income tax defaulter it appears to the satisfaction of the Tax Collector who issued the writ that—

(a)     the income tax defaulter is unable because of unavoidable misfortune to satisfy the assessment; and

(b)     his property ought to be released, the Tax Collector may, in his discretion, stay the execution of the writ for such time and upon         such terms as he thinks fit, and so on from time to time until it appears that the cause of inability has ceased.

  1. Death of income tax defaulter

Where the income tax defaulter dies before the execution has been fully had, the Tax Collector shall by order—

(a)     supersede the execution;

(b)     release the property from attachment, and

(c)     recall the writ.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM A

[Rule 3]

INCOME TAX (RECOVERY OF ARREARS) RULES

Application for Issuance of Writ of Attachment and Sale of Movable Property of Income Tax Defaulter

Recovery Case No ………………………………….., 20 …………

From ……………………………………………………………. To

The Assessment Authority                                     The Tax Collector,

Internal Revenue Office,                                        Internal Revenue Office,  …………………..Division                                                   ……………… Division.

  1. I hereby certify that the under mentioned person is a defaulter in respect of an amount of income tax as per details stated below.
  2. I also certify that no appeal in respect of it is pending before the High Court or Board of Commissioner and that the period for giving notice of any appeal has expired.
  3. I apply for the issuance of a writ of attachment and sale against his movable property in respect of that amount.

(a) Name of Defaulter (in full)……………………………………………………………..

(b) Address …………………………………………………………………………………..

(c) Official No…………………………………………………………………………………

(d) Assessment Year, 20 ………………….

(e) Assessment Notice No…………………………………………………………………..

(f) Assessment Ledger Reference ………………………………………………………..

(g) Amount of Tax……………………………………………………………………….₦ k

(h) Date by which the tax/instalment of tax was payable ………… 20 …………….

Date ………………………………………….., 20………….

………………………………………….

Signature of Assessment Authority

 

 

FORM B

[Rule 4.]

INCOME TAX (RECOVERY OF ARREARS) RULES

Writ of Attachment and Sale against Movable Property of Income Tax Defaulter (Section 34, Finance Law)

In the Office of the Tax Collector ……………………………………………… Division

Recovery Case No. …………………………………………………………, 20 ………….

Between ……………………………………….itor (Tax Collector for ………. Division)

and …………………………………………………………………………………… Debtor (Income Tax Defaulter)

WHEREAS an income tax assessment was made by the Assessment Authority for …………………..Division where under the above-named Debtor was required to pay tax ₦ k for the Assessment Year, 20 ……………..

AND WHEREAS default in payment of the said amount of income tax has been made by him:

AND WHEREAS a notice under section 34 (1) (a) of the Finance Law, has been published by me: These are therefore to require and order you forthwith to make and levy the amount due to the Creditor under that assessment by distress and sale of goods and chattels of the Debtor wherever they may be found within the ……………………………………………………………………………..division (except the wearing apparel and bedding of him or his family and the tools and implements of his trade, to the value of ten naira) and also by seizing and taking any money, bank-notes, cheques, bills of exchange, promissory notes, bonds or securities for money belonging to the Debtor which may there be found or such part or so much thereof as may be sufficient to satisfy this execution.

DATED this ……………… day of ………………………………………. 20 …………

To

The Tax Collector and Bailiffs                                          Amount remaining due

…………………………… Division.                                                 ₦       k

Notice— The goods and chattels are not to be sold until after the end of five days immediately following the day on which they were seized unless they are of a perishable nature or at the request of the Debtor.

………………………………. Division                 …………………………………….. Signature of Tax Collector

 

FORM C

[Rule 6]

INCOME TAX (RECOVERY OF ARREARS) RULES

Declaration of Bailiff

I, …………………………………………………….. do hereby solemnly and sincerely declare that I will not use or exercise the office of bailiff corruptly during the time that I shall remain therein, neither shall nor will I accept, receive, or take by any colour, means or device whatsoever or consent to the taking of any manner of fee or reward of any person or persons or betwixt party and party, but will according to my power truly perform my duty during the time that I shall remain in that office.

………………………………….        Signature of Bailiff

TAKEN before me this ………….. day of …………………………. , 20 …………

………………………………………….         Signature of Judge or Magistrate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM D

[Rule 15]

INCOME TAX (RECOVERY OF ARREARS) RULES

Notice of Attachment of Movable Property of Income Tax Defaulter

In the Office of the Tax Collector ……………………………………………… Division

Recovery Case No. …………………………………………………., 20 …………….

Between……………………………………………………… Creditor (Tax Collector for ………………………………… Division)

and …………………………………………………………………………………… Debtor (Income Tax Defaulter) To the Debtor, Take notice that a writ has been issued for the attachment and sale of your movable property in execution of the income tax assessment which has been certified in this matter and the amount for which it has been issued is stated below. And take notice that your movable property is hereby attached and you are prohibited from selling the property or any right, title or interest in it. If you pay to me the full amount to be levied as stated below at any time before the sale of the property this execution will be superseded and your property will be released. If you do not pay the amount to be levied the property will be sold and the amount to be levied will be deducted from the sale proceeds and the balance, if any, will be paid to you. Your property will not be sold until after the end of five days immediately following the day on which it was attached unless it is of a perishable nature or you request it.

Amount for which the writ has been issued                               ₦       k

Dated this ……………………day of ……………………………, 20……..

……………………….. Division                ……………………………………………                                                                    Signature of Assessment Authority

 

FORM E

[Rule 17.]

INCOME TAX (RECOVERY OF ARREARS) RULES

Inventory of Attached Property of Income Tax Defaulter

In the Office of the Tax Collector …………………………………………….. Division

Recovery Case No. …………………………………………………….., 20 …………….

Between ………………………………………….. Creditor (Tax Collector for ………..

Division) and ……………………………………………………………………….. Debtor (Income Tax Defaulter)

Date…………………………, 20 …………..

 

To the Debtor  

Approximate

 

 
Serial No. Of Article of property

 

 

 Description in full value

 
    ₦        K
Total Value ……………………………………………………..

………………………………                               …………………………………. Signature of Tax Office Clerk                                        Signature of Bailiff

 

 

 

 

 

FORM F

[Rule 18]

INCOME TAX (RECOVERY OF ARREARS) RULES

Notice of Sale

In the Office of the Tax Collector ……………………………………………………… Division

Recovery Case No. ………………………………………………., 20 …………….

Between ………………………………………….. Creditor (Tax Collector for ………. Division)

and ………………………………………………………………………………. Debtor (Income Tax Defaulter)

To the Debtor,

Take notice that your movable property which has been attached in execution of the income tax assessment of which has been certified in this matter and the amount of which is stated below will be sold on 20 …………………………………. during the hours of …………………………… and ………………….. at the Internal Revenue Office ………………………….. Division ……………………………… Amount for which the attachment was made ₦        k

………………………… Division               …………………………………………. Signature of Assessment Authority

*Delete as necessary

 

 

 

FORM G

[Rule 25.]

INCOME TAX (RECOVERY OF ARREARS) RULES

Record of Proceedings

Recovery Case No ……………………………………….. , 20 …………

FORM G—continued

Details Initial of Clerk or Bailiff
1.   Amount of Tax in default ₦ K………………………..

2.   Date of Application for Writ………………………….

3.   Date of Signature of Writ…………………………….

4.   Date of Service of Writ……………………………….

5.   Time of Service of Writ……………………………….

6.   Date of Service of Notice of Attachment………….

7.   Time of Service of Notice of Attachment…………..

8.   Brief statement of events during Attachment……. (Note: It should also be stated whether the defaulter paid up the amount due or whether he disputed the amount due)

9.   Date of Issue of Inventory of Attached Property… …………………………………………………………..

10.                Did the Defaulter pay up the Amount due before Sale?…………………………………………………….

11.                Did  any person claim  any interest in the attached property?

12.                Amount  deposited by claimant, if any, ₦ K……….

13.                Tax Collector’s decision upon claim, if any………..

14.                Tax Collector’s action under Rule 29, if any……….

15.                Was the defaulter alive at the time if sale?………..

16.                Date of Sale…………………………………………….

17.                Time of Sale……………………………………………

18.                Place of Sale……………………………………………

19.                 Method of Sale…………………………………………

20.                Proceeds of Sale………………………………………..

21.                Balance of Proceeds, if any satisfaction of tax…….

22.                Acknowledgement by defaulter of Receipt of balance of proceeds Received the sum of ₦ K(in words)…………………………………………………..

 ………..

 

Details Initial of Clerk or Bailiff
……………………………………………………………….. Signature of Defaulter

Date ………………………………………… , 20 ………….

23.                Brief Statement of events during Sale …………

CERTIFICATE

I hereby certify that the entries in this form constitute a true and complete record of the proceedings inthis recovery case.

Date ……………………………….. , 20 …………           …………………………..             Signature of Bailiff

Submitted to the Tax Collector ……………………………………………….. Division.

Date ………………………… , 20 …………                ……………………………  Signature of Assessment Authority

 

 

 

 

 

 

 

 

 

 

FINANCE LAW(PURCHASE TAX) RULES

ARRANGEMENT OF RULES

RULE

  1. Citation and commencement.
  2. Interpretation.
  3. Registration particulars.
  4. Accounting records.
  5. Rebate.
  6. Rebate application.
  7. Accounting records.
  8. Rebate investigation.
  9. Rebate payment.
  10. Exemption.
  11. Accounting records.
  12. Exemption verification.
  13. Offences and penalty.

 

RULES

  1. Citation and commencement

These rules may be cited as the Finance Law (Purchase Tax) Rules. They shall come into operation on the 1st March, 1963 and shall also have effect in respect of applications for rebate of amounts paid in accordance with subsection (2) of section 47 in relation to transactions on or after the 1st October, 1960.

  1. Interpretation

In these rules—

“industrial purposes” includes purposes connected with—

(a)     any manufacturing process carried on in a mill or factory or similar premises for or incidental to—

(i)      the making of any goods, materials, article or other thing whatsoever, or of any part of the same; or

(ii)     the altering, repairing, ornamenting, finishing, cleaning, washing, packing, canning, adapting for sale, breaking up or demolishing of any goods, materials, article or other thing whatsoever; or

(b)     the operation of a transport (other than road vehicles) dock, inland, coastal or maritime navigation, water supply or hydraulic power undertaking; or

(c)     the generation of electricity or of any other form of energy, or railway operation; or

(d)     the working of any mine, oil-well or other source of mineral deposits, or of a plantation.

  1. Registration particulars

An application for registration for the purposes of Part 4 of the Law shall contain—

(a)     the name and address of the applicant;

(b)     the description of each chargeable item sold by the applicant; and

(c)     the address of each place of business in the Cross River State at which he transacts business connected with the sale of a chargeable item.

  1. Accounting records

(1)     A person who has been or is required to be registered for the purposes of Part 4 of the Law shall maintain standard double entry accounting records in respect of all transactions connected with the sale of chargeable items, fully supported by appropriate invoices and vouchers relating to those transactions.

(2)     Those records shall include—

(a)     stock records in respect of the quantities of each chargeable item—

(i)      held in stock on the first day of April in each year;

(ii)     taken into stock during the year commencing on the first day of April;

(iii)    sold during that year whether for consumption in the Cross River State or elsewhere;

(iv)    otherwise dealt with during that year; and

(v)     held in stock on the thirty-first day of March in each year;

(b)     sale records showing the quantities of each chargeable item—

(i)      sold during the year commencing on the first day of April for consumption in the Cross River State; and

(ii)     sold during that year for consumption outside the Cross River State; and

(c)     such other particulars as the Commissioner may specify.

  1. Rebate

Subject to these rules, a person who has purchased and consumed a quantity of diesel oil for industrial purposes and has paid to the seller thereof, in accordance with the provisions of subsection (2) of section 47 of the Law, an amount, additional to the purchase price, representing the purchase tax payable by the seller in respect of that quantity of diesel oil, shall be entitled to a rebate of that amount.

  1. Rebate application

For the purpose of obtaining a rebate under rule 5, application shall be made to the commissioner through the seller in such form and in respect of such period as the Commissioner may specify.

  1. Accounting records

(1)     A person who applies for rebate under rule 5 shall maintain standard stock accounting records in respect of all quantities of diesel oil purchased, whether consumed for industrial purposes or otherwise dealt with, supported by appropriate invoices and vouchers relative to those quantities.

(2)     Those records shall show the quantities of diesel oil—

(a)     held in stock on the first day of April in each year;

(b)     taken into stock during the year commencing on the first day of April;

(c)     actually consumed for industrial purposes during that year;

(d)     otherwise dealt with during that year; and

(e)     held in stock on the thirty-first day of March in each year; and

(f)      such other particulars as the Commissioner may specify.

  1. Rebate investigation

For the purpose of ascertaining whether a person is entitled to a rebate under rule 5 the Commissioner or any official authorised in that behalf by him may—

(a)     require that person to produce or cause to be produced any record relating to any stock of diesel oil held by him; or

(b)     enter any business premises of that person and examine or copy any such record.

  1. Rebate payment

Where the Commissioner is satisfied that a person who applies for rebate has duly fulfilled the requirements of rules 6 and 7 he shall pay the applicant the amount of rebate to which he is entitled.

  1. Exemption

A person who is a purchaser of diesel oil bought under a chargeable purchase and who has been exempted under subsection (1) of section 53 of the Law from the operation of Part 4 of the Law shall not, without the express approval of the Commissioner, voluntarily dispose of any quantity of diesel oil in respect of which he has been exempted except where such a disposal is in pursuance of a purpose in respect of which exemption was accorded.

  1. Accounting records

(1)     A person who has been exempted under subsection (1) of section 53 of the Law from the operation of Part 4 of the Law shall maintain standard stock accounting records in respect of all quantities of diesel oil purchased, whether consumed in pursuance of a purpose in respect of which exemption was accorded or otherwise dealt with, supported by appropriate invoices and vouchers relating to those quantities.

(2)     Those records shall show the quantities of diesel oil—

(a)     held in stock on the first day of April in each year;

(b)     taken into stock during the year commencing on the first day of April;

(c)     actually consumed for industrial purposes during that year;

(d)     otherwise dealt with during that year; and

(e)     held in stock on the thirty-first day of March in each year; and

(f)      such other particulars as the Commissioner may specify.

  1. Exemption verification

For the purpose of verifying that a person who has been exempted under subsection (1) of section 53 of the Law from the operation of Part 4 of the Law is duly fulfilling the requirements of rules 10 and 11 the Commissioner or any official authorised in that behalf by him may—

(a)     require that person to—

(i)      prepare and deliver to the Commissioner such returns in such form and for such periods as are specified in rule 11; or

(ii)     produce or cause to be produced any record in respect of any stock of diesel oil held by that person; or

(b)     enter any business premises of that person and examine or copy any such record.

  1. Offences and penalty

A person who, without sufficient cause—

(a)     fails to maintain accounting records in compliance with rule 4;

(b)     makes an incorrect application for the purpose of obtaining a rebate under rule 5;

(c)     fails to maintain accounting records in compliance with rule 7;

(d)     fails to comply with a requirement under paragraph (a) of rule 8; or

(e)     in complying therewith, produces an incorrect record;

(f)      refuses the Commissioner or a duly authorised official access to any record in accordance with paragraph (b) of rule 8; or

(g)     in contravention of rule 10, voluntarily disposes of any quantity of diesel oil in respect of which he has been exempted; or

(h)     fails to maintain accounting records in compliance with rule 11; or

(i)      fails to deliver a return in compliance with sub-paragraph (i) of paragraph (a) of rule 12; or

(j)      fails to comply with a requirement under sub-paragraph (ii) of paragraph (a) of rule 12; or

(k)     in complying with paragraph (a) of rule 12, delivers an incorrect return or produces an incorrect record; or

(l)      refuses the Commissioner or a duly authorised official access to any record in accordance with paragraph (b) of rule 12, is guilty of an offence: Penalty: a fine of one thousand naira.

 

CHAPTER F4

FIRE SERVICE LAW

ARRANGEMENT OF SECTIONS

PART I

Organisation and Administration

SECTION

  1. Establishment of the Fire Service.
  2. General duties of the Fire Service.
  3. Constitution of the Fire Service.
  4. Responsibility of the Chief Fire Officer.
  5. Legal representation and service of process.
  6. Provision of equipment, training, inspection of buildings, etc.
  7. The Commissioner’s powers.
  8. Enlistment.
  9. Expiration of term of service during State of Emergency and resignation or withdrawal from service.

PART II

Gratuity, Annual Allowance, Pensions

  1. Pensions, gratuity and annual allowance.
  2. Pension and subsistence allowance in case of incapacity.
  3. Pension, gratuities on death.

PART III

Fire Fighting, Fire Prevention and Other Services

  1. Provision of water supply and regulations thereon.
  2. Regulations.
  3. Standing orders.
  4. Affixing of fire alarm, etc.
  5. Arrangement with persons within the State.
  6. Arrangements with Federal or other State fire authorities and persons outside the State.
  7. Disaster relief or distress in other States.

PART IV

Powers of Members of Fire Service

  1. Powers of firemen and regulation of traffic.
  2. Right of member of Fire Service to enter upon lands.
  3. Limitation of suits against Fire Service.

 

PART V

Miscellaneous Provisions

SECTION

  1. Establishment of Fire Service Reward Fund.
  2. No charges to be made save in certain cases.
  3. Fire Service not to be used for civil disturbance.
  4. Hours of duty.
  5. Clothing and equipment.
  6. Fire Service training facilities available to non-members.
  7. Award of honours (Fire Service) medals.

PART VI

Offences

  1. Contravention of this Law or of regulations.
  2. Resignation or abscondment before the completion of five years.
  3. Personation of member of the Fire Service.
  4. Obtaining admission into the Fire Service by fraud.
  5. Communication of confidential or secret information.
  6. Taking part in strike action, work-to-rule, group disturbance or mutiny.
  7. Fire Service Certificate for petrol/kerosene stations.
  8. Obstruction of and assault on members of the Fire Service.
  9. Failure to yield right of way to fire engine.
  10. False alarm.
  11. Interference with fire fighting equipment.
  12. Storage, sale and transportation of flammable liquid or gas.
  13. Contravention of building regulations made under this Law.
  14. Power to prosecute.
  15. Interpretation.

 

  1. Citation.
Law Nigeria Admin
Law Nigeria Admin

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