LAGOS STATE – PERSONAL INCOME TAX LAW

PERSONAL INCOME TAX LAW

CHAPTER P4 LAWS OF LAGOS STATE

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ARRANGEMENT OF SECTIONS

1. Citation and application.
2. Interpretation.

PART 2 – Administration and Scrutiny of Assessments

3. Establishment and constitution of the Board.
4. Powers and duties of the Board.
5. Signification of powers and duties, etc.
6. Certain double taxation arrangements.
7. Official secrecy.
8. Forms.
9. Service and signature of notice.

PART 3 – Imposition of Tax, Income Exempted and Relief from Tax Payable

10. Charge of income rate.
11. Charge of income tax.
12. Power to alter rate of tax, etc.
13. Exemption from tax.
14. Relief from tax payable.

PART 4 – Chargeable Income

15. Ascertainment of chargeable income.
16. Personal relief.
17. Relief for spouse, children, dependent relatives and life assurance.
18. Deductions to be claimed.
19. Proof of claims.
20. Husband and wife.

PART 5 – Persons Chargeable and Returns

21. Persons chargeable.
22. Returns.
23. Board may call for further returns.
24. Power to call for returns, books, documents and information.
25. Returns to be deemed to be furnished with due authority.
26. Books of account.

PART 6 – Assessments

27. Assessment of income tax.
28. Additional assessments.
29. Lists of persons assessed, etc.
30. Service of notice of assessment.
31. Revision in case of objection.
32. Errors and defects in assessment and notice.

PART 7 – Appeals

33. Establishment and constitution of body of Appeal Commissioners.
34. Time limit for appeal.
35. Notice to be given to Board.
36. Appeals.
37. Board to deliver copy of notice to appropriate court, etc.
38. Services of notices of appeals, etc.
39. Procedure before Appeal Commissioner, etc.
40. Procedure following decision of Appeal Commissioners.
41. Appeals to court.
42. Assessments to be final and conclusive.
43. Objection in case of income rate.

PART 8 – Collection, Recovery and Repayment of Tax

44. Payment of income rate.
45. Payment of income tax.
46. Collection of tax for which a deceased person was answerable.
47. Penalty for non-payment of income tax.
48. Power to distrain for non-payment of tax.
49. Action for income tax by Board.
50. Recovery of income rate and penalty for non-payment.
51. Remission of penalty.
52. Remission of tax.
53. P.A.Y.E.
54. Employer to be answerable for tax deducted.
55. Relief in respect of error or mistake.
56. Repayment of tax.

PART 9 – Offences and Penalties

57. Penalty for offences.
58. Penalty for making incorrect return.
59. False statements and returns.
60. Penalties for offences by authorised and unauthorised persons.
61. Local Government Council and offences in relation to income rate.
62. Tax to be payable notwithstanding proceedings.
63. Prosecution to be with sanction of Board or a Local Government Council.
64. Saving for criminal proceedings.
65. Place of an offence.

PART 10 – Powers of Tax Collectors

66. Definition of Tax Collector.
67. Power of Tax Collector to enter and require information.
68. Obstruction to be an offence.
69. Immunity from action, etc.

SUBSIDIARY LEGISLATIONS: 

PERSONAL INCOME TAX (BODY OF APPEAL COMMISSIONERS) NOTICE [L.S.L.N. 12 OF 1974.]

INCOME TAX APPEALS (APPEAL COMMISSIONERS) (INCLUDED) RULES

PERSONAL INCOME TAX (EMPLOYMENTS) REGULATIONS       

HIGH COURT OF LAGOS STATE (INCOME TAX APPEALS) RULES

PERSONAL INCOME TAX (EXEMPTION) (SPECIAL PERSONNEL) ORDER

 

 

CHAPTER P4

PERSONAL INCOME TAX LAW

A Law to impose tax on the income of persons other than Companies.

[1961 No. 23. 1962 No. 35. 1966 No. 65. 1967 No. 47. 1968 No. 7. 1970 No. 3. 1970. No. 6. 1973. No. 17. L.N. 139 of 1965. 1974 No. 10. 1975 No. 9. 1982 No. 11. L.S.L.N. 16 of 1972.]

 

[Commencement.]

[City of Lagos, 1st April, 1961 Remainder of Lagos State, 1st April, 1969]

 

PART 1 – Preliminary

1. Citation and application

(1)     This Law may be cited as the Personal Income Tax Law, (hereinafter referred to as the principal Law) with respect to tax for the year of assessment beginning on the first day of April, 1961, and for subsequent years.

(2)  This Law shall be of application throughout Lagos State of Nigeria.

 

2. Interpretation

(1)     In this Law unless the context otherwise requires—

“the Board” means the Lagos State Internal Revenue Board established under section 3 of this Law;

[1968 No. 7.]

“the Joint Tax Board” means the Joint Tax Board established under the principal Act;

“Lagos” means the Lagos State;

“State Commissioner” means the State Commissioner charged with responsibility for finance and economic development;

“tax” or “the tax” means tax imposed on income under this Law;

“taxable person” means any individual or body of individuals (including a family) and any corporation sole, trustee or executor, having any income which is chargeable with tax under the provisions of this Law.

(2)     Save as provided in the preceding subsection words defined in section 2 of the principal Act shall, unless the context otherwise requires, have the meaning therein assigned to them.

 

3. Establishment and Constitution of the Board

(1)     There is hereby established a Board which shall be known as the Lagos State Internal Revenue Board.

(2)     The members of the Board shall be—

(a)     a Chairman and a Deputy Chairman being those officers of the Civil Service of the State respectively appointed as Controller of Internal Revenue and Deputy Controller of Internal Revenue by the Lagos State Civil Service Commission;

(b)     a representative of the Deputy Governors Office not below the grade of Senior Assistant Secretary;

(c)     a representative of the Ministry of Justice, not below the grade of Senior State Counsel; and

(d)     up to two further members, being Chief Inspectors of Taxes or equivalent grade or acting grade in the Lagos State Internal Revenue Division nominated from time to time by the Chairman.

(3)     Any five members of the Board of whom one shall be a Chairman or a Director, shall form a quorum.

(4)     All the members of the Board shall be appointed by the Governor of Lagos State who shall also designate an officer of the Lagos State Internal Revenue Division to be the Secretary to the Board.

(5)     Whenever a Legal Adviser is assigned to the Board such officer shall replace the representative nominated under subsection (2) (c) of this section.

(6)     Notwithstanding that the Legal Adviser is at any time a member of the Board, he may appear for and represent the Board in his professional capacity in any proceedings in which the Board is a party; and the Legal Adviser shall not in such circumstances give evidence on behalf of the Board.

(7)     The Secretary shall summon a meeting of the Board whenever the business requiring its attention so warrants, or upon any request by one member; and a majority decision of the members on any matter obtained by him in written correspondence shall be treated in all respects as though it were a decision of the Board in actual meeting unless any member has requested the submission of that matter to such meeting. [2A]

PART 2

Administration and Scrutiny of Assessments

4. Powers and duties of the Board

(1)     Save with respect to any duties which fall to be exercised by the Joint Tax Board under any express provision of the principal Act, the due administration of this Law and the tax shall be under the care and management of the Board which may do all such things as may be deemed necessary and expedient for the assessment and collection of the tax, and shall account for all amounts so collected in a manner to be prescribed by the State Commissioner.

(2)     Whenever the Board shall consider it necessary with respect to any tax due, the Board may acquire, hold and dispose of any property taken as security for or in satisfaction of any tax or of any judgement debt due in respect of any tax and shall account for any property and the proceeds of sale thereof in a manner to be prescribed by the State Commissioner.

(3)     The Board may sue and be sued in its official name.

(4)     The Governor may by notice in the Gazette or in writing authorise any person within or without Nigeria to perform or exercise on behalf of the Board any power or duty conferred on the Board by this Law.

(4a)   The person so appointed under subsection 4 of this section shall have the power to enforce compliance with the provisions of this Law by the use of a Task Force set up for the purpose of this Law.

(5)     In the exercise of the powers and duties conferred upon it the Board shall be subject to the authority, direction and control of the State Commissioner and any direction, order or instruction given by him after consultation with the Chairman of the Board shall be carried out by the Board:

Provided that the State Commissioner shall not give any direction, order or instruction in respect of any particular taxable person which would have the effect of requiring the Board to raise an additional assessment upon such person or to increase or decrease any assessment made or to be made or any penalty imposed or to be imposed upon or any relief given or to be given to or to defer the collection of any tax, penalty or judgement debt due by such person, or which would have the effect of altering the normal course of any proceedings, whether civil or criminal, relating either to the recovery of any tax or penalty or to any offence relating to tax.

(6)     Every claim, objection, appeal, representation or the like made by any person under any provision of this Law or of any subsidiary legislation made thereunder shall be made in accordance with such Law and legislation.

(7)     In any claim or matter or upon any objection or appeal under this Law or under any subsidiary legislation made thereunder, any act, matter or thing done by or with the authority of the Board, in pursuance of any provisions of this Law or subsidiary legislation made thereunder, shall not be subject to challenge on the ground that such act, matter or thing was not or was not proved to be in accordance with any direction, order or instruction given by the State Commissioner. [3]

 

5. Signification of powers and duties etc.

(1)     Any authorisation given by the Board under or by virtue of this Law shall be signified under the hand of the Chairman of the Board unless such authority  notified in the Gazette.

(2)     Any notice or other document to be given under this Law or under any subsidiary legislation made thereunder, shall be valid if—

(a)     it is signed by the Chairman of the Board or any person authorised by him; or

(b)     such notice or document is printed and the official name of the Board is printed or stamped thereon.

(3)     Every notice, authorisation or other document purporting to be a notice, authorisation or other document duly given and signified, notified or bearing the official name of the Board, in accordance with the provisions of this section shall be deemed to be so given and signified, notified or otherwise without further proof, until the contrary is shown. [4]

6. Certain double taxation arrangements

For the purpose of any order made under section 35 of the Income Tax Act which contains a provision as part of the arrangements specified in such order for the exchange of information with either the Commissioner of Income Tax or the Commissioner as defined in section 2 of that Act, then the Chairman of the Board shall be taken to be the Commissioner of Income Tax or the Commissioner as so defined for so long as such order remains in force. [6]

7. Official secrecy

(1)     Subject to the provisions of section 28 of the principal Act, every person having any official duty or being employed in the administration of this Law shall regard and deal with all documents, information, returns, assessment lists and copies of such lists relating to the income or personal circumstances of any taxable person as secret and confidential.

(2)     Every person having possession of or control over any documents, information, returns or assessment lists or copies of such lists relating to the income or personal circumstances of any taxable person and who at any time communicates or attempts to communicate such information or anything therein contained to any person—

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

(b)     otherwise than for the purposes of this Law, or the principal Act or any enactment in Nigeria imposing tax on income or profits;

shall be guilty of an offence against this Law.

(3)     Any proceedings for an offence against this section may be taken by or in the name of the Board but not by any other person except with the consent of the Attorney-General of Lagos State.

(4)     No person appointed or employed in carrying out the provisions of this Law shall be required to produce in any court any return, document or assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties under this Law except as may be necessary for the purposes of carrying into effect the provisions of this Law and the principal Act, or in order to institute a prosecution, or in the course of a prosecution for any offence committed in relation to any tax on income or profits in Nigeria.

(5)     When under any law in force in a Commonwealth country provision is made for the allowance of relief from income tax in respect of tax imposed under this Law, the obligation as to secrecy imposed by this section shall not prevent the disclosure to authorised officers of the Government in that country of such facts as may be necessary to enable the proper relief to be given in cases where relief is claimed from the tax or from income tax in that country.

(6)     For the purposes of this section each member of a body of Appeal Commissioners, established under the provisions of section 35 of this Law, shall, with respect to any matter arising under this Law and coming to his notice in the course of his duties as such member, be deemed to be employed in the administration of this Law and to have possession of any return, statement, account or other document so coming to his notice.

(7)     Notwithstanding anything contained in this section the Board may permit the Auditor-General of Lagos State or any officer duly authorised in that behalf by him to have such access to any records or documents as may be necessary for the performance of his official duties, and for the purposes of this section he shall be deemed to be a person employed in carrying out the provisions of this Law. [9]

[1968 No. 7. 1970 Decree No. 37.]

8. Forms

The Board may from time to time specify the form of returns, claims, statements and notices under this Law. [9]

9. Service and signature of notices

(1)     Except where it is provided by this Law that service shall be effected either personally or by registered post the provisions of section 25 of the Interpretation Law shall apply to the service of a notice, if such notice is addressed in accordance with the provisions of subsection (3) of this section.

(2)     Where a notice has been sent by registered post it shall be 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 such registered letter is awaiting him at a post office, if such letter and notice are addressed in accordance with the provisions of subsection (3) of this section:

Provided that a notice shall not be deemed to have been served under this  if the addressee proves that no notification, informing him of the fact that a registered letter was awaiting him at a post office, was left at the address given in such registered letter.

(3)     A notice to be served in accordance with subsection (1) or (2) shall be addressed—

(a)     in the case of a company or corporation sole, incorporated in Nigeria, to the registered office of the company or corporation;

(b)     in the case of a company or corporation sole, incorporated outside Nigeria, either to the person authorised to accept service of process under the Companies and Allied Matters Act or to the registered office of the company or corporation wherever it may be situated; and

(c)     in the case of any other person to the last known business or private address of such person.

(4)     Any notice to be given, sent or posted under this Law or the principal Act may be served by being left at the appropriate office or address determined under subsection (3) unless such address is a registered post office box number.

PART 3

Imposition of Tax

10. Charge of income rate

(1)     Tax of an amount to be determined from Table 1 of the Second Schedule (hereinafter referred to as “the income rate”) shall be payable for each year of assessment on total income of—

(a)     every individual (other than corporation sole or body of individuals) deemed to be resident for that year in Lagos State under the provisions of the principal Law and in Lagos State at anytime during that year; and

(b)     every itinerant worker found in Lagos State at any time during that year:

Provided that where the amount of the total income of a person exceeds the minimum amount specified in Table 1 in respect of a particular range of income by such an amount that a deduction of the applicable income rate would render the resulting income to be less than the minimum amount of a particular range of income, then and in such a case, such a person shall only be liable to pay the income rate prescribed in respect of the next lower range of income plus not more than one half of the amount by which his income exceeds the minimum income of that range of income, subject to the maximum amount of the applicable income rate.

(2)     In the case of an itinerant worker who has paid any tax upon his income for a year of assessment to any tax authority other than the Board, and upon production by him of an official receipt evidencing each such payment, the amount of the income rate payable for that year shall be the excess, if any, of the amount determined from Table 1 of the Second Schedule over the aggregate of all amounts so paid to such other tax authorities.

(3)     Subject to the provisions of the preceding subsection, the income rate payable by an individual for a year of assessment shall be payable in full on the due date and—

(a)     where on that date the basis period by reference to which his assessable income from any source is to be ascertained has not expired, his assessable income from that source shall be taken to be the income of that basis period up to the said date increased in due proportion by an amount on account of the remainder of that basis period; and

(b)     nothing in the preceding paragraph shall prevent the Board from collecting the income rate or any balance thereof properly due from an individual, or that individual from claiming a repayment of the income rate in whole or in part, where, after the expiration of the year of assessment, it can be shown that the assessable income of the individual from any source varies from the amount taken as his assessable income from that source under the provisions of the said paragraph; and

(c)     no relief from tax or set-off of tax due to an individual for any year of assessment under any provision of this Law or the principal Act shall be allowed against any income rate payable by him, but if such relief and set-off cannot be wholly allowed against any income tax payable by or chargeable upon him under the provisions of section 12 of this Law then the Board shall give effect to such relief or set-off, or any remainder thereof, by way of repayment out of the income rate paid by the individual for the same year.

(4)     Without prejudice to the generality of subsection (4) of section 4 of this Law, upon a direction in that regard given by the State Commissioner with the approval of the Executive Council, the Board shall authorise a Local Government Council to do all things necessary for the collection of the income rate and to account therefor in such manner as may be prescribed by the State Commissioner, and while such authorisation remains in force all responsibility of the Board under this Law for the collection of and accounting for the income rate shall cease.

(5)     The State Commissioner, with the approval of the Executive Council, may make regulations governing the collection of the income rate, and such regulations may, among other matters—

(a)     require the deduction of the income rate by all or any employers from wages, salaries or other emoluments payable to their employees and prescribe the manner in which employers shall account for all such deductions including, if the regulations so provide, the purchase of official receipts by such employers in anticipation of their receiving the cost thereof by such deductions, and the issue of those receipts to their employees;

(b)     require the production of a receipt evidencing payment of the income rate for any year, or a certificate of exemption therefrom issued under the provisions of subsection (1) of section 45 of this Law, as a condition of the issue to any applicant of any licence for which he may apply to any licensing authority in Lagos; and

(c)     prescribe penalties and means of their recovery in the case of failure by any person to comply therewith.

11. Charge of income tax

In addition to any tax payable under the provisions of section 11, tax (hereinafter referred to as “income tax”) shall, subject to the provisions of this Law, be payable for each year of assessment—

(a)     at the rate or rates specified in Table 2 of the Second Schedule upon—

(i)      the assessable income ascertained under the provisions of the principal Act of any trustee or executor in relation to whom the Board is the relevant tax authority for the purposes of that Act;

(ii)     the total income ascertained under the provisions of the principal Act of—

(I)      any corporation sole or body of individuals which is deemed under that Act to be resident in Lagos State for that year; and

(II)    any family of which the member who customarily receives the income in the first place in Nigeria usually resides in Lagos State; or

(b)     regard being paid to whichever produces the higher tax at—

(i)      the rate or rates specified in Table 2 of the Second Schedule on the chargeable income ascertained in accordance with Part 4 of this Law (provided that this paragraph only shall apply to individuals not resident in Nigeria); or

(ii)     the rate of two and a half kobo on every naira of the residue of total income after giving effect to section 17 of this Law of any other individual who is deemed to be resident in Lagos State under the provisions of the principal Act. [13]

12. Power to alter rate of tax etc.

The Executive Council may by order revoke or vary for any year of assessment any amount of the income rate, specified in Table 1, and any rate or rates of income tax or amount of income chargeable at any rate specified in Table 2, of the Second Schedule.

13. Exemption from tax

There shall be exempt from the tax—

(a)     all income exempted under any provision of the principal Act;

(b)     the income of any body of individuals formed for the purpose of promoting sporting or social amenities not involving the acquisition of gain, or the possibility of future gain, by its individual members, subject to such conditions as the Board may prescribe either generally or in any particular case;

(c)     allowances paid to any member of the Executive Council of Lagos State for attendance at meetings of such body, or of any committee thereof;

(d)     any otherwise taxable person, or class of taxable persons, and all or any income of such person or class of persons as the Executive Council of Lagos State may by Order prescribe.

14. Relief from tax payable

(1)     Where under the provisions of Part 6 of the principal Act relief is to be given to a taxable person in respect of Commonwealth income tax, or credit is to be allowed for any foreign tax, for any year of assessment, such relief or credit shall be given or allowed by deduction from the income tax payable by him for that year, and any references in this Law to income tax charged or chargeable upon a taxable person for any year shall be taken as referring to the remainder of the income tax payable by him for that year after all such relief or credit has been given or allowed.

(2)     Where, under the provisions of section 26 of the principal Act, tax deducted or deemed to have been deducted from a Nigerian dividend fails to be set-off for the purposes of collection against any tax payable by a taxable person for any year, the amount of the income tax charged or chargeable upon such person for that year, or the amount so to be set-off for that year, whichever is the less, shall be treated in all respects as having been paid by that person.

PART 4

Chargeable income

15. Ascertainment of chargeable income

Where under the provisions of section 12 income tax is payable for any year of assessment upon chargeable income of an individual, other than a corporation sole or body of individuals, the amount of that chargeable income for that year shall be the amount of the total income of that individual for that year, ascertained under the provisions of the principal Act, after any income exempted under the provisions of section 14 of this Law has been excluded therefrom and the deduction allowed by this Part have been made.

16. Personal relief

In the case of every such individual there shall be allowed a deduction of six hundred naira.

17. Relief for spouse, children, dependant relatives and life-assurance

In the case of an individual who resides in Nigeria or who at anytime during the year of assessment—

(i)      becomes ordinarily resident in Nigeria in connection with any trade, business, profession, or vocation carried on by him; or

(ii)     exercises any employment, the whole gains or profits of which are deemed under the provisions of section 8 of the principal Act to be derived from Nigeria;

(iii)    is in receipt of any pensions derived from Nigeria” there shall be allowed—

(a)     a deduction of three hundred naira in the case of a married man who at any time during the year preceding the year of assessment had a wife living with or maintained by him, or a deduction of the amount of any alimony not exceeding three hundred naira paid to a former spouse under an order of a court of competent jurisdiction in the case of individual whose marriage has been dissolved;

(b)     a deduction of two hundred and fifty naira in respect of each unmarried child who was maintained by the individual during the year preceding the year of assessment and who, on the first day of that preceding year, had either nor attained sixteen years of age, or was receiving full time instruction in a recognised educational establishment, or was under articles or indentures in a trade of profession:

Provided that—

(i)      no deduction under this paragraph shall be allowed to any individual in respect of more than four children and, for the purposes of applying this restriction, a husband and his wife or wives not separated from him by deed or an order of any court shall be treated as one and the same individual;

(ii)     no additional deduction shall be allowed in respect of the costs incurred in connection with the education of any child in respect of whom he is entitled to a deduction under this paragraph;

(iii)    where the cost of maintaining any child is shared between two or more persons the Board may apportion the sum of two hundred and fifty naira as may seem to it to be equitable between such persons, and the deduction to be allowed under this paragraph to any individual in respect of such child shall be his apportioned share of such sum;

(c)     a deduction of the costs incurred by the individual during the year preceding or assisting to maintain a close relative of the individual or of the individual’s spouse who was either incapacitated by old age or infirmity from maintaining himself or is the widowed mother (whether so incapacitated or not) of the individual or of the individual’s spouse—

Provided that—

(i)      no deduction shall be allowed in respect of any relative whose income of the year preceding this year of assessment exceeded six hundred naira;

(ii)     the aggregate of all deductions to be allowed to two or more individuals for any year in respect of any one relative shall not exceed four hundred naira and, if the total of the costs incurred by them in respect of the same relative exceed that sum, then the amount of the deduction to be allowed to any such individual shall be the same proportion of that sum as the costs so incurred by him bear to the total of the costs so incurred;

(iii)    the aggregate of all deductions to be made under this paragraph in ascertaining the chargeable income of any one individual for any year shall not exceed four hundred naira;

(d)     a deduction of the annual amount of any premium paid by the individual during the year preceding the year of assessment to any insurance company in respect of insurance on his life or the life of his spouse, or of any contract for a deferred annuity on his own life or the life of his spouse;

Provided that—

(i)      no such deduction shall be allowed for such insurance except in respect of premium payable on policies securing a capital sum on death, whether in conjunction with any other benefit or not, and the amount of deduction allowed shall not exceed ten per centum of that capital sum, exclusive of any additional benefit by way of bonus, profit or otherwise;

(ii)     the aggregate amount of deduction allowed under the provisions of—

(a)     this paragraph;

(b)     paragraph (e) of subsection (1) of section 17 of the principal Act;

(c)     in the case of any employee, paragraph ( f ) of subsection (1) of section 17 of the principal Act; shall not exceed two thousand naira in the case of any individual for any year of assessment;

(iii)    the aggregate amount of the deductions allowed to an individual for a year of assessment under the provisions of this paragraph shall not exceed an amount equal to one-fifth part of the total income of that individual for that year; and

(iv)    the restrictions specified in this sub-paragraphs (ii) and (iii) of this proviso shall apply in the case of a husband and his wife or wives not separated from him by deed or an order of any court as though all such individuals were one and the same individual whose total income for any year of assessment was equal to the aggregate total income for that year of such husband and his wife or wives”.

18. Deductions to be claimed

Unless the Board otherwise directs, no deduction under section 18 shall be allowed to any individual for a year of assessment unless claimed by him in writing in such form as the Board may prescribe.

19. Proof of claims

(1)     The Board may require any claimant to a deduction under section 18 to produce such documentary evidence as may be available in support of any claim and in the absence of any such evidence, or if such evidence is, in the opinion of the Board, inadequate the Board may refuse to allow such deduction or allow such part only of the amount claimed as the Board may decide.

(2)     Notwithstanding any provision of this Law—

(a)     where an individual has failed to produce documentary evidence in support of any claim to a deduction under section 18, no objection to an assessment or, if the individual is an employee, to any rate at which tax is required to be deducted from his remuneration under the provisions of section 55 shall be valid on the grounds that such deduction, or the full amount thereof, has not been allowed or taken into account by the Board; and

(b)     where an individual claims any deduction under section 18 for a year of assessment, or produces evidence in support of any such claim previously made and not admitted or not admitted in full by the Board, within two years after the end of such year, such repayment or set-off of tax, or reduction in any assessment shall be made so as to give effect to any amount or additional amount of such deduction which the Board is satisfied should properly be allowed.

20. Husband and wife

(1)     Any deduction to be allowed to an individual for a year of assessment under the provisions of section 18, other than paragraph (a) thereof, may be claimed by and allowed to that individual or any spouse of that individual not separated from him by deed or an order of any court on the first day of such year, or may be partly claimed by and allowed to each such spouse, but in no case shall the aggregate of such deductions allowed to any husband and his wife or wives exceed the amount which would be allowed if such individuals were treated as one and the same individual.

(2)     Where a deduction is claimed in respect of any one child under paragraph (b) of section 18, or any one dependant under paragraph (c), or any one annual premium under paragraph (d), for the same year of assessment, by both a husband and wife and the aggregate amount of the deductions so claimed exceeds the amount to be allowed, then the Board shall apportion the amount to be allowed as it sees fit for deduction in ascertaining the separate chargeable income of each such husband or wife.

(3)     Where pursuant to any direction of the Board a deduction is allowed under section 18 to any husband or wife and such deduction has not been claimed, it shall be allowed to either such husband or wife, or be apportioned between them, as the Board in its absolute discretion may decide.

PART 5

Persons Chargeable and Returns

21. Persons chargeable

(1)     A taxable person shall be chargeable to the tax—

(a)     in his own name; or

(b)     in the name of any receiver, trustee, guardian, curator or committee having the direction, control or management of any property or concern on his behalf, or in the name of any person treated as his agent under the provisions of section 5 of the principal Act or declared to be his agent under the provisions of subsection (1) of section 29 of that Act, in like manner and to like amount as such taxable person would be chargeable.

(2)     Any person in whose name a taxable person is chargeable to tax shall be answerable for all matters within his competence which are required to be done by virtue of this Law for the assessment of the income of such taxable person and payment of any tax charged thereon.

(3)     Where two or more persons act in the capacity of trustees they may be charged jointly or severally with the tax with which they are chargeable in that capacity and shall be jointly and severally liable for payment of the same.

22. Returns

(1)     For each year of assessment every taxable person, when required to do so by notice published, in April of each year of assessment or so soon thereafter as the Board may decide, in the Gazette and in three issues of each of two or more daily newspapers or by any notice in writing given by the Board in pursuance of this Law, shall, within the period limited by such notice, and in the form of return containing such notice, prepare and deliver to the Board a true and correct statement in writing, containing—

(a)     the amount of his income from each and every source, of such period or periods as are indicated in such form, computed in accordance with the provisions of this Law and the principal Act and any rules or regulations made thereunder; and

(b)     such particulars as by such form of return may be required for the purposes of this Law and the principal Act or any rules or regulations made thereunder with respect any such income, allowances, reliefs, deductions or otherwise as may be material for those purposes.

(2)     Such form of return shall contain a declaration, which shall be signed by or on behalf of any taxable person to whom a notice has been given under subsection (1) of this section, that the return contains a true and correct statement of his income computed in accordance with the provisions of this Law and the principal Act, and any rules or regulations made thereunder, or that any particulars given in the return, in accordance with all other requirements of such notice, are true and complete.

(3)     Every taxable person who has been required to prepare and deliver a statement under the foregoing provisions of this section for any year shall do so whether or not any tax is chargeable upon him for that year.

(4)     For every year of assessment, every trustee, executor, body of individuals and corporation sole, and every other taxable person whose total income for such year exceeds five thousand naira, unless required to make any return for such year under the provisions of subsection (1) of this section, shall give notice in writing to the Board within one month after the end of such year of each source of his income liable to tax under this Law. [23]

 

23. Board may call for further returns

The Board may give notice in writing to any person when and so often as it thinks necessary requiring him to, deliver within a reasonable time limited by such notice fuller or further returns respecting any matter as to which a return is required or prescribed by this Law.

24. Power to call for returns, books, documents and information

(1)     For the purpose of obtaining full information in respect of the income of any taxable person or of any reliefs, allowances or deductions to which such person may be entitled the Board may, subject to the provisions of subsection (3) of section 27 of the principal Law, give notice to any person requiring him within the time limited by such notice, to—

(a)     complete and deliver to the Board any return specified in such notice;

(b)     attend personally before an officer of the Internal Revenue Division for examination with respect to any such matter;

(c)     produce or cause to be produced for examination at the place and time stated in such notice, which time may be from day to day for such period as the Board may consider necessary, for the purpose of such examination any books, documents, accounts and returns which the Board may deem necessary; or

(d)        give orally or in writing any other information specified in such notice.

(2)     For the purpose of paragraphs (a) or (d) of subsection (1) of this section, the time limited by notice shall not be less than seven days from the date of such notice.

25. Returns to be deemed to be furnished with due authority

A return, statement or form purporting to be furnished under this Law by or on behalf of any person shall for all purposes be deemed to have been furnished by that person or by his authority, as the case may be, unless the contrary is proved, and any person signing any such return, statement or form shall be deemed to be cognisant of all matter therein.

26. Books of account

(1)     If a taxable person fails or refuses to keep books or accounts which, in the opinion of the Board, are adequate for the purposes of the tax, the Board may by notice in writing require such person to keep such records, books and accounts as the Board considers to be adequate in such form and in such language as may be specified in the said notice and, subject to the provisions of the next succeeding subsection, such person shall keep records, books and accounts as so directed.

(2)     Any direction of the Board made under this section shall be subject to objection and appeal in like manner as an assessment save that any decision of the Appeal Commissioners thereon shall be final.

(3)     On hearing such appeal the Appeal Commissioners may confirm or modify such direction.

PART 6

Assessments

27. Assessment of income tax

(1)     The Board shall proceed to assess every taxable person chargeable with income tax as soon as may be after the expiration of the time allowed to such person for the delivery of the return provided for in section 23 or otherwise as it appears to the Board practicable so to do.

(2)     Where a taxable person has delivered a return the Board may—

(a)     accept the return and make an assessment accordingly; or

(b)     refuse to accept the return and, to the best of its judgement, determine the amount of the assessable, total or chargeable income of such person and make an assessment accordingly.

(3)     Where a taxable person has not delivered a return within the time allowed and the Board is of opinion that tax is chargeable upon such person, the Board may, according to the best of its judgement, determine the amount of the assessable, total or chargeable income and make an assessment accordingly, but such assessment shall not affect any liability otherwise incurred by Tax Law by such person by reason of his failure to deliver a return.

(4)     Nothing in this section shall prevent the Board from an assessment upon a taxable person before the expiration of the time within which such person is required to a return or give notice of his income under the provisions of section 23 of this Law, if any officer of the Internal Revenue Division considers such assessment to be necessary for any reason of urgency

(5)     Notwithstanding the foregoing provisions of this section, no assessment to income tax for a year of assessment shall be made by the Board upon an employee with respect to his emoluments or other income if that tax is recoverable by deduction under the provisions of section 55 of this Law unless, within six years after the end of such year, he applies to the Board so to be assessed whether in connection with any claim to repayment of tax or otherwise, or the Board considers such assessment to be necessary or expedient so as to arrive at the correct amount of the income tax to be charged upon or to be payable by such employee for that year.

28. Additional assessments

(1)     If the Board discovers or is of opinion at any time that any taxable person liable to income tax has not been assessed or has been assessed at a less amount than that which ought to have been charged, the Board may, within the year of assessment or within six years after the expiration thereof and as often as may be necessary, assess such taxable person at such amount or additional amount as ought to have been charged, and the provisions of this Law as to notice of assessment, appeal and other proceedings shall apply to such assessment or additional assessment and to the tax charged thereunder:

Provided that where any form of fraud, wilful default or neglect has been committed by or on behalf of any taxable person in connection with any tax imposed under this Law or under the Personal Income Tax Law, the Board may at any time and as often as may be necessary assess such taxable person at such amount of additional amount as may be necessary for the purpose of making good any loss of tax attributable to the fraud, wilful default or neglect.

(2)     For the purpose of computing under subsection (1) of this section the amount or the additional amount which ought to have been charged, all relevant facts consistent with proviso (b) to subsection (2) of section 44 of this Law shall be taken into account even though not known when any previous assessment or additional assessment on the same taxable person for the same year was being made or could have been made.

29. Lists of persons assessed, etc.

(1)     The Board shall as soon as possible prepare lists of taxable persons assessed to income tax.

(2)     Such lists, herein called the assessment lists, shall contain the names and addresses of the taxable persons assessed to income tax, the name and address of any person in whose name any such taxable person is chargeable, the amount of the assessable, total or chargeable income on which, as the case may be, the tax is computed, the amount of the income tax charged, and such other particulars as may be prescribed by the Board.

(3)     Where complete copies of all notices of assessment and of all notices amending the assessments are filed in the offices of the Board they shall constitute the assessment lists for the purposes of this Law.

(4)     In the case of any employee from whom tax is recoverable by deduction from his emoluments under the provisions of section 55 of this Law, the Board may prescribe from time to time—

(a)     the form in which a record of his assessable and chargeable income, and of the tax so recovered from him, shall be maintained in the offices of the Board;

(b)     the form in which his employer shall maintain a like record; and

(c)     the form in which his employer shall account to the Board for the tax so deducted;

and the employer shall produce any such record maintained by him for examination by the Board within twenty-one days of notice being given to that end by the Board, and allow any duly authorised officer of the Board access to such records and to any accounts or vouchers relating thereto in the premises of the employer at all reasonable times:

For the purposes of this subsection, a notice may be addressed in writing to the employer and served upon him, or be given in respect of any employer or class of employers by publication in the Gazette.

30. Service of notice of assessment

The Board shall cause to be served on or sent by registered post to each taxable person, or person in whose name a taxable person is chargeable, whose name appears in the assessment lists a notice stating the amount of any assessable, total or chargeable income, the tax charged, the place at which payment should be made, and setting out the rights of that person under the next following section.

31. Revision in case of objection

(1)     If any person disputes an assessment he may apply to the Board, by notice of objection in writing, to review and to revise the assessment, and such application shall state precisely the grounds of objection to the assessment and shall be made within thirty days from the date of service of the notice of the assessment.

(2)     On receipt of a notice of objection, the Board may require the person giving that notice to furnish such particulars and to produce such books or other documents as the Board may deem necessary, and may summon any person who may be able to give information which is material to the determination of the objection to attend for examination by an officer of the Internal Revenue Division on oath or otherwise—

(3)     In the event of any person who has objected to an assessment agreeing with the Board as to the correct amount of the tax chargeable, the assessment shall be amended accordingly and notice of the tax chargeable shall be serviced upon such person:

Provided that, if an application for revision under the provisions of this section fails to agree with the Board the amount of the tax chargeable, the Board shall give notice of refusal to amend the assessment as desired by such person and may revise the assessment to such amount as the Board may, according to the best of its judgement, determine and give notice of the revised assessment and of the tax payable together with notice of refusal to amend the revised assessment and, wherever requisite, any reference in this Law to an assessment or to an additional assessment shall be treated as a reference to an assessment or to an additional assessment as revised under the provisions of this proviso.

(4)     If any employee from whom tax is recoverable by deduction from his emoluments under the provisions of section 55 of this Law claims that inadequate relief under Part 4 of this Law has been taken into account in determining the rate or rates at which such deductions have been or are to be made—

(a)     any determination of the Board on such claim shall be conclusive with respect to such rate or rates for the year of assessment concerned; and

(b)     if the employee is aggrieved by that determination he may apply to the Board to be assessed to income tax as soon as may be after his assessable income for that year can be finally ascertained, and any such assessment shall be subject to the provisions of this Law with respect to objections and appeals.

32. Errors and defects in assessment and notice

(1)     No assessment, warrant or other proceeding purporting to be made in accordance with the provisions of this Law or the principal Act shall be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Law or the principal Act or any Act or Law amending the same, and if the person assessed or intended to be assessed or affected thereby is designated therein according to common intent and understanding.

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

(a)     by reason of a mistake therein as to—

(i)      the name of a taxable person or of a person in whose name a taxable person is chargeable; or

(ii)     the description of any income; or

(iii)    the amount of any income tax charged or shown to be payable;

(b)     by reason of any variance between the assessment and the notice thereof:

Provided that in cases of assessment the notice thereof shall be duly served upon the taxable person intended to be charged or the person in whose name such taxable person is chargeable and such notice shall contain, in substance and effect, the particulars on which the assessment is made.

PART 7

Appeals

33. Establishment and constitution of body of Appeal Commissioners

(1)     The State Commissioner may establish, by notice in the State Gazette, a body of Appeal Commissioners.

(2)     The body of Appeal Commissioners shall consist of a Chairman and not more than five other persons, none of whom shall be a public officer.

(3)     Each Appeal Commissioner—

(a)     shall be appointed by notice in the State Gazette by the State Commissioner from among persons appearing to him to have had experience and shown capacity in the management of a substantial trade or business or the exercise of a profession in Nigeria and, so far as possible, the State Commissioner shall endeavour to secure that one Appeal Commissioner is a member of the Institute of Chartered Accountants of Nigeria;

(b)     shall, subject to the provisions of this subsection, hold office for a period of three years from the date of his appointment;

(c)     may at any time resign as an Appeal Commissioner by notice in writing addressed to the State Commissioner, save that on the request of the State Commissioner he may continue to act as an Appeal Commissioner after the date of his resignation, and sit at any further hearing in any case in which he has already sat before that date to hear an appeal, until a final decision has been given with respect to such appeal;

(d)     shall cease to be an Appeal Commissioner upon the State Commissioner determining that his office be vacant and upon notice of such determination being published in the State Gazette;

(e)     shall be paid such remuneration and allowances as may be determined by the State Commissioner with the approval of the Executive Council of the State.

(4)     Without prejudice to the generality of paragraph (d) of the preceding subsection, if the State Commissioner is satisfied that an Appeal Commissioner—

(a)     has been absent from two consecutive meetings of the body of Appeal Commissioners (other than any meeting at which, by virtue of subsection (2) of section 41 of this Law, he may not sit) without the written permission of the Chairman of the Board; or

(b)     is incapacitated by physical or mental illness; or

(c)     has failed to make any declaration and give any notice in accordance with subsection (2) of section 41 of this Law; or

(d)     has been convicted or a felony or of an offence under any enactment in Nigeria imposing tax on income or profits;

the State Commissioner shall make a determination that his office as an Appeal Commissioner is vacant.

(5)     Where for any reason there is an insufficient number of Appeal Commissioners to hear one or more particular appeals the State Commissioner may make an ad hoc appointment in writing, from among persons of the kind mentioned in paragraph (a) of subsection (3) of this section, of a person to be an Appeal Commissioner for the purpose of his hearing such appeal or appeals.

(6)     The State Commissioner shall designate a public officer to be Secretary to the body of Appeal Commissioners and the official address of the Secretary shall be published in the State Gazette.

34. Time limit for appeal

Any taxable person being aggrieved by an assessment to income tax made upon him, and having failed to agree with the Board in the manner provided in subsection (3) of section 33 of this Law, may appeal against the assessment upon giving notice as hereinafter provided within thirty days after the date of service of notice of the refusal of the Board to amend the assessment as desired:

Provided that, notwithstanding the expiration of such period of thirty days, within a further period of sixty days a taxable person may apply for an extension of time within which to give notice of a appeal against an assessment upon delivering to the Secretary to the Appeal Commissioners:

(i)      the particulars of such assessment; and

(ii)     the reasons why notice of appeal against that assessment was not given within the proper time,

and the Secretary shall put such application before the next meeting of the Appeal Commissioners who may grant or reject the application as to them seems reasonable and their decision shall be communicated in writing to the applicant and to the Board by the Secretary, whereupon, if the application has been granted, the applicant shall have twenty-one days after the receipt of such communication within which to give notice of appeal as hereinafter provided.

35. Notice to be given to Board

A notice of appeal to be given under the provisions of the preceding section shall be given in writing to the Board and shall set out—

(a)     the name and address of the appellant;

(b)     any official number and the date of the relevant notice of assessment;

(c)     the amount of the assessable, total or chargeable income and of the tax charged as shown by that notice and the year of assessment concerned;

(d)     the precise grounds of appeal against the assessment;

(e)     the address for service of any notices of other documents to be given to the applicant;

(f)      the day upon which the appellant was served with notice of refusal by the Board to amend the assessment as desired.

36. Appeals

Except with respect to any ground of appeal which is reserved by any express provision of the principal Act for decision by a court or the Joint Tax Board, or any appeal depending wholly upon such grounds, all appeals under this Law which relate to a year of assessment beginning on or after 1st April, 1968 shall be heard in the first instance by the Appeal Commission established under section 35 of this Law:

Provided that during any time when—

(a)     no body of Appeal Commissioners is so established; or

(b)     the State Commissioner by notice in the Gazette so directs,

appeals and applications otherwise to be heard in the first instance by Appeal Commissioners shall be heard in the High Court. [36]

37. Board to deliver copy of notice to appropriate court, etc.

As soon as may be after receipt of a notice of appeal the Board, having regard to the grounds of appeal therein disclosed and to any relevant provision of the principal Act, shall deliver a copy thereof to the Secretary to the Appeal Commissioners or to the Registrar of the appropriate court or to the Secretary to the Joint Tax Board as, in the opinion of the Board, the circumstances require, and the appeal shall thereupon be listed by such Secretary or Registrar for hearing accordingly.

38. Services of notices of appeals, etc.

(1)     All notices and documents to be given to the Appeal Commissioners shall be addressed to the Secretary and be delivered at or sent by registered post to his official address.

(2)     A taxpayer may discontinue any appeal by him under this section on giving notice to the Secretary to the Appeal Commissioners in writing at any time before the hearing of such appeal.

(3)     Notwithstanding that notice of appeal against an assessment has been given by a taxpayer under this section the Board may revise the assessment in agreement with the taxpayer, and upon notice of such agreement being given in writing by the Board to the Secretary to the Appeal Commissioners at any time before the hearing of the appeal, such appeal shall be treated as being discontinued.

(4)     Upon the discontinuance of any appeal under the provisions of this section the amount or revised amount of the assessment, as the case may be, shall be deemed to have been agreed between the Board and the taxpayer under the provisions of subsection (3) of section 33.

 

39. Procedure before Appeal Commissioner etc.

(1)     As often as may be necessary Appeal Commissioners shall meet to hear appeals in any town in which is situated an office of the Lagos State Internal Revenue Division and subject to the provisions of the next following subsection, at any such meeting—

(a)     where the chairman is present, he and two or more Appeal Commissioners may hear and decide an appeal; or

(b)     where the chairman is absent, any three or more Appeal Commissioners may hear and decide an appeal, and the Appeal Commissioners present shall elect one of them to act as the chairman for the meeting.

(2)     An Appeal Commissioner having a direct or indirect financial interest in any taxpayer or being a relative of any person having such an interest, and having knowledge thereof, shall, when any appeal by such taxpayer is pending before the body of Appeal Commissioners, declare such interest to the other Appeal Commissioners and give notice to the Board in writing of such interest or relationship and interest, and he shall not sit at any meeting for the hearing of that appeal. The like provisions shall apply when any Appeal Commissioner is a legal practitioner or an accountant, and the taxpayer is or has been a client of that Appeal Commissioner.

(3)     The Secretary to the Appeal Commissioners shall give twenty-one clear days’ notice to the Board and to the appellant of the date and place fixed for the hearing of each appeal except in respect of any adjourned hearing for which the Appeal Commissioners have fixed a date at their previous hearing.

(4)     All notices, precepts and documents, other than decisions of the Appeal Commissioners, may be signified under the hand of the Secretary.

(5)     All appeals before Appeal Commissioners shall be held in camera.

(6)     Every taxpayer so appealing shall be entitled to be represented at the hearing of the appeal:

Provided that, if the person intended by the taxpayer to be his representative in any appeal is unable for good cause shown to attend the hearing thereof, the Appeal Commissioners may adjourn the hearing for such reasonable time as they think fit, or admit the appeal to be made by some other person or by way of written statement.

(7)     The onus of proving that the assessment complained of is excessive shall be on the appellant.

(8)     At the hearing of any appeal, if the representative of the Board proves to the satisfaction of the Appeal Commissioners or the court hearing the appeal in the first instance that—

(a)     the appellant has (contrary to subsection (1) of section 23 of this Law) for the year of assessment concerned, failed to prepare and deliver to the Board the statement mentioned in that subsection;

(b)     the appeal is frivolous or vexatious or is an abuse of the appeal process; or

(c)     it is expedient to require the appellant to pay an amount as security for prosecuting the appeal,

Commissioners or, as the case may be, the court may adjourn the hearing of the appeal to any subsequent day and order the appellant to deposit with the Board, before the day of the adjourned hearing an amount, on account of the tax charged by the assessment under appeal, equal to the tax charged upon the appellant for the preceding year of assessment, or one half of the tax charged by the assessment under appeal, whichever is the lesser, and if the appellant fails to comply with the order, the assessment against which he has appealed shall be confirmed and the appellant shall have no further right of appeal whatsoever with respect to that assessment.

(9)     The Appeal Commissioner may confirm, reduce, increase or annul the assessment or make such order therein as they see fit.

(10)   Every decision of the Appeal Commissioners shall be recorded in writing by their chairman and a certified copy of such decision shall be supplied to the appellant or the Board, by the Secretary, upon a request made within three months of such decision.

(11)   Where, upon the hearing of an appeal—

(a)     no accounts, books or records relating to profits were produced by or on behalf of the appellant; or

(b)     such accounts, books or records were so produced but the Appeal Commissioners rejected the same on the ground that it had been shown to their satisfaction that they were incomplete or unsatisfactory; or

(c)     the appellant or his representative, at the hearing of the appeal, has neglected or refused to comply with a precept delivered or sent to him by the Secretary to the Appeal Commissioners without showing any reasonable excuse; or

(d)     the appellant or any person employed, whether confidentially or otherwise, by the appellant or his agent (other than his legal practitioner or accountant acting for him in connection with his liability to tax) has refused to answer any question put to him by the Appeal Commissioners, without showing any reasonable cause, the chairman of the Appeal Commissioners shall record particulars of the same in his written decision.

(12)   The State Commissioner may make rules prescribing the procedure to be followed in the conduct of appeals before Appeal Commissioners.

40. Procedure following decision of Appeal Commissioners

(1)     Notice of the amount of tax chargeable under the assessment as determined by the Appeal Commissioners shall be served by the Board upon the taxpayer or upon the person in whose name such taxpayer is chargeable.

(2)     Where the tax chargeable upon a taxpayer for a year of assessment in accordance with a decision of the Appeal Commissioners does not exceed two hundred naira no further appeal by the taxpayer shall lie from that decision except with the consent of the Board.

(3)     Notwithstanding that a further appeal is pending, tax shall be paid, in accordance with the decision of the Appeal Commissioners, within one month of notification of the amount of the tax payable pursuant to subsection (1) of this section, and if it is not so paid, with or without applying the provisions of section 49 as the Board thinks fit, proceedings may be taken for its recovery in accordance with section 51.

41. Appeals to Court

(1)     Subject to the provisions of subsection (2) of section 42 any taxpayer who, having appealed against an assessment made upon him to the Appeal Commissioners under the provisions of section 36, is aggrieved by the decision of such Commissioners may appeal against the assessment and such decision to the High Court of Lagos State upon giving notice in writing to the Board within thirty days after the date upon which such decision was given.

(2)     Where no body of Appeal Commissioners has been appointed with jurisdiction to hear an appeal against an assessment made upon any taxpayer, such taxpayer, being aggrieved by the assessment and having failed to agree with the Board in the manner provided in subsection (3) of section 33 of this Law, may appeal against the assessment to the High Court of Lagos State upon giving notice in writing to the Board within thirty days after the date of service of notice of the refusal by the Board to amend the assessment as desired.

(3)     If the Board is dissatisfied with a decision of the Appeal Commissioners, it may appeal against that decision to the High Court of Lagos State upon giving notice in writing to the other party to the appeal within thirty days after the date upon which such decision was given.

(4)     Seven clear days’ notice of the date fixed for the hearing of the appeal shall, unless rules made hereunder otherwise provide, be given to all the parties thereto.

(5)     The provisions of subsections (6), (7) and (9) of section 41 and of subsection (1) of section 42 of this Law shall apply to an appeal under this section with any necessary modifications.

(6)     All appeals shall be heard in camera unless the judge shall, on the application of the taxpayer, otherwise direct.

(7)     If upon the hearing of any appeal from a decision of the Appeal Commissioners given under the provisions of section 41 of this Law a certified copy of that decision is produced before the court and such decision contains a record of reference to—

(i)      paragraph (a) of subsection (11) of the said section 41, the court shall dismiss such appeal; or

(ii)     paragraph (b) of subsection (11) of the said section 41, the court may dismiss such appeal upon such prima facie evidence, with respect to the accounts, books or records having been incomplete or unsatisfactory, as to the court may seem sufficient; or

(iii)    paragraph (c) or (d) of subsection (11) of the said section 41, the court shall dismiss such appeal unless it considers that the cause of the neglect or refusal was reasonable.

(8)     Notwithstanding anything contained in section 47, if in any particular case the judge, from information given at the hearing of the appeal, is of the opinion that the tax may not be recovered he may on application being made by or on behalf of the Board require the appellant to furnish within such time as may be specified security for payment of the tax and if such security is not given within the time specified the tax assessed shall become payable and recoverable forthwith.

(9)     The costs of the appeal shall be in the discretion of the judge hearing the appeal and shall be a sum fixed by the judge.

(10)   The Chief Judge of Lagos State may make rules providing for the method of tendering evidence before a judge on appeal, the conduct of such appeals and the procedure to be followed by a judge upon stating a case for the opinion of the Court of Appeal, and in making, amending or replacing any such rules there may be made such retrospective provisions as may be considered necessary; and until so replaced the Income Tax Appeals (Lagos) Rules, 1957, shall remain in force as though made under the provisions of this subsection.

(11)   An appeal against the decision of a judge shall lie to the Court of Appeal

(a)     at the instance of the taxpayer, where the decision of the judge is to the effect that the tax chargeable upon the taxpayer for the relevant year of assessment exceeds four hundred naira; and

(b)     at the instance of or with the consent of the Board, in any case:

Provided that no costs shall be awarded against the taxpayer in any appeal instituted by the Board under this subsection unless such decision of the judge was to the effect mentioned in paragraph (a) hereof. [40C]

42. Assessments to be final and conclusive

(1)     Where no valid objection or appeal has been lodged within the time limited by section 33 or 36 of this Law, or where due notice has not been given of any further appeal against a decision of the Appeal Commissioners or a judge, as the case may be, an assessment as made, or agreed to under the provisions of subsection (3) of section 33, or determined under the proviso to that subsection or on appeal, as the case may be, shall be final and conclusive for all purposes of this Law as regards the amounts of the assessable, total or chargeable income and the tax charged thereby.

(2)     If the full amount of the tax charged by any such final and conclusive assessment is not paid within the appropriate period or periods prescribed by this Law, the provisions thereof relating to the recovery of tax, and to any penalty under section 49, shall apply to the collection and recovery of such tax or penalty subject only to the set-off of the amount of any tax repayable under any claim, made under a provision of this Law or of the principal Act, which has been agreed to by the Board or determined on any appeal against a refusal to admit such claim:

Provided that—

(a)     where an assessment has become final and conclusive any tax overpaid, including any amount deposited with the Board on account of the tax charged by such assessment, shall be repaid;

(b)     nothing in section 33 or in this Part of this Law shall prevent the Board from making any assessment or additional assessment for any year which does not involve reopening any issue, on the same facts, which has been determined for that year of assessment under subsection (3) of section 33 or otherwise or on appeal.

43. Objection in case of income rate

(1)     Any individual from whom the income rate is collected, or sought to be collected, whether by deduction from his wages, salary or otherwise, or who is required to produce a receipt evidencing payment of such rate for any purpose whatsoever, and who claims either to be exempt from payment of such rate for any year, or to have paid more than the proper amount of such rate due from him for any year, may apply in writing to the Board at any time, or orally to an officer of the Internal Revenue Division, designated by the Board for these purposes, at such time and place as may be publicly notified, for the issue to him of a certificate confirming that he is so exempt for that year, or stating the correct amount of the rate which he should have paid.

(2)     An applicant under the provisions of subsection (1) shall give in writing or orally, as the case may be, all such information as may be required of him by any such designated officer for the purpose of determining whether he is liable to payment of the income rate for the year of assessment, or the amount thereof which he is liable to pay, and

(a)     if such officer is satisfied that the applicant is not so liable, he shall issue a certificate to the applicant to that effect in such form as the Board may prescribe; or

(b)     if such officer is satisfied that the applicant is liable to payment of the income rate, he shall determine the amount thereof to be paid and issue a notice thereof to the applicant in such form as the Board may prescribe, and any such determination shall be final and conclusive for all purposes of this Law; or

(c)     if it appears to such officer that the applicant has paid income rate in excess of the amount payable, he shall cause the amount of such excess to be refunded to the applicant.

(3)     If, under the provisions of subsection (4) of section 11 of this Law, the Board authorises a Local Government Council to do all things necessary for the collection of the income rate, such authorisation shall be deemed to include the delegation to the Council, and to any duly authorised officer thereof, of all the powers and duties of the Board, and of any officer of the Internal Revenue Division under this section.

PART 8

Collection, Recovery and Repayment of Tax

44. Payment of income rate

The income rate shall be payable at such time or times as may be specified in any regulations made under subsection (5) of section 11 of this Law.

45. Payment of income tax

(1)     Income tax charged by any assessment which is not or has not been the subject of an objection or appeal shall be payable, after the deduction of any amount to be set-off for the purposes of collection, or any amount deposited against such tax, at the place stated in the notice of assessment within two months after service of such notice:

Provided that—

(a)     if such period of two months expires before the fourteenth day of December within the year of assessment for which the income tax has been charged, and the aggregate of the tax to be deducted as aforesaid and of any income tax paid for that year within such period amounts to not less than one-half of the tax so charged, then payment of any balance of such tax may be made not later than that day;

(b)     the Board in its discretion may extend the time within which payment is to be made.

(2)     Collection of income tax in any case where notice of an objection or an appeal has been given by or on behalf of the taxable person shall remain in abeyance until such objection or appeal is determined, save that the Board may enforce payment of that portion, if any, of the tax which is not in dispute.

(3)     Upon the determination of an objection or appeal the Board shall serve notice upon the taxable person of the tax chargeable as so determined and that tax shall be payable within one month of the date of service of such notice:

Provided that, if such period ends before the fourteenth day of December within the year of assessment and the conditions specified in proviso (a) to subsection (1) of this section are otherwise satisfied with respect to the amount of the tax chargeable as so determined, then any balance of that tax to be paid may be paid not later than that day.

(4)     Notwithstanding any of the foregoing provisions of this section, if in any particular case the Board has reason to believe that any income tax charged by an assessment may not be recovered, by reason of the person charged leaving Nigeria or otherwise, the Board may give notice to that person requiring him, within the time limited by such notice, to pay the amount of such tax, or to give security to the satisfaction of the Board for payment thereof, and if such payment is not made, or security so given, within that time, the full amount of such tax shall be recoverable forthwith; and for these purposes the Board may, if necessary, assess any taxable person for any year of assessment at any time during the preceding year of assessment.

46. Collection of tax for which a deceased person was answerable

(1)     Where an individual dies, the amount of—

(a)     any tax in respect of income of his arising before the death; and

(b)     any tax for which, but for his death, he would have been answerable in respect of other incomes so arising,

shall be payable by the person administering the deceased’s estate out of the assets of the estate.

(2)     For the purpose of determining and securing payment of the amount aforesaid, this Law and the principal Act shall apply in relation to the person administering the estate as they would have applied in relation to the deceased but for his death, and in particular (but without prejudice to the generality of the foregoing provisions of this subsection) it shall be the duty of that person to make such returns and to do such other things as would but for the death have fallen to be made or done for that purpose by the deceased.

(3)     The foregoing provisions of this section shall have effect as respects the year of assessment beginning on the first date of April, 1961 and subsequent years of assessment; but nothing in this section shall be construed as purporting to prejudice the provisions of subsection (7) of section 35 of the Constitution of the Federation (which prevents the conviction of any person on account of any act or omission which was not an offence when the act or omission took place).

In this subsection “year of assessment” has the same meaning as in the principal Act.

(4)     Subject to the foregoing provisions of this section, where in respect of the estate of any deceased individual, probate has not been granted or letters of administration have not been taken out within six months of his death and tax has not been assessed or paid on the whole of the income derived by that individual up to the date of his death, the following provisions shall apply—

(a)     The Board may make an assessment of the amount of tax payable in respect of that income and cause notice of the assessment to be published in two issues of a daily newspaper circulating in Lagos.

(b)     Any person claiming an interest in the estate of the deceased individual may within sixty days of the first publication of the notice of assessment lodge with the Board an objection in writing against the assessment stating fully and in detail the grounds on which he relies, and the provisions of this Law relating to objections and appeals shall thereupon apply in relation to the objections as if the person so claiming an interest were the taxpayer.

(c)     Subject to paragraph (b) above the notice of assessment so published shall be conclusive evidence of the indebtedness of the deceased to the Government of the Lagos State.

(d)     The Board may, subject to the foregoing provisions of this section and notwithstanding paragraph (e) below, secure payment of the tax assessed by distress and sale of any property of the deceased in accordance with section 50 of this Law.

(e)     If at any time probate of the will of the deceased is granted to or letters of administration of the estate are taken out by any person, that person may, within sixty days after the date on which probate was granted or letter of administration were taken out, lodge an objection against the assessment stating fully and in detail the grounds on which he relies, and the provisions of this Law, relating to objections and appeals shall thereupon apply in relation to the objection as if that person were the taxpayer.

(5)     Where an assessment has been made in accordance with the provisions of this Law before the death of any person and probate has not been granted and letters of administration have not been taken out, then paragraphs (a) to (e) of subsection (4) above shall accordingly apply.

(6)     There shall be paid in priority over all other debts in the distribution of the property of a person dying insolvent, apart from all testamentary expenses, any sum due at the date of death on account of Pay-As-You-Earn tax deductions, not exceeding in the whole tax deductions made in respect of one year of assessment.

 

47. Penalty for non-payment of income tax

(1)     If any income tax charged by any assessment is not paid within the periods prescribed in section 47 of this Law, a sum equal to ten per centum of such tax shall be added thereto, and the provisions of this Law relating to the recovery and collection of tax shall apply to the recovery and collection of such sum.

(2)     The Board shall serve a demand note upon the taxable person or the person in whose name such taxable person is chargeable and, if payment is not made within one month from the date of the service of such demand note, the Board may proceed to enforce payment as hereinafter provided.

(3)     A penalty imposed under this subsection shall not be deemed to be part of the tax paid for the purpose of claiming relief under any provision of this Law.

(4)     Any person who without lawful justification or excuse, the proof whereof shall lie on such person, fails to pay the income tax within the period of one month prescribed in subsection (2), shall be guilty of an offence against this Law.

 

48. Power to distrain for non-payment of tax

(1)     For the purposes of enforcing payment of tax due from any person charged with the payment of such tax and in addition to any other power conferred under this Part where any person fails, neglects or refuses to pay any tax charged upon demand made by the Board in the manner provided in the last foregoing section of this Part, the Board may—

(a)     for the non-payment of such tax distrain—

(i)      the person charged by his goods or other chattels including money, bills of exchange, bonds or other securities;

(ii)     upon any land, premises or place in respect of which the person charged is the owner; and

(b)     subject to subsection (4) below, recover the amount of tax due by sale of anything so distrained.

(2)     Subject to subsection (3) (c) below, the powers conferred upon the Board under subsection (1) above may be exercised by any officer so authorised in writing by the Board.

(3)     The Sheriffs and Civil Process Act shall apply for the purposes of this section as it applies for the purpose of levying execution against the movable or immovable property of a judgement debtor, subject to the following—

(a)     for references to “judgement creditor” and “judgement debtor” there shall be substituted references to “Lagos State Internal Revenue Board” and “taxpayer” respectively;

(b)     for references to “sheriff”, “deputy sheriff” and “bailiff’ there shall be substituted respectively references to “officer of the Lagos State Internal Revenue Board so authorised;

(c)     any powers exercisable by the registrar of a court or by a magistrate by virtue of that Law shall be exercisable by an officer of the Board not below the rank of a Principal Inspector of Taxes; and

(d)     all or any of the forms prescribed in the Sheriffs and Civil Process Act may be applied or varied in such manner as the Board may deem necessary.

(4)     The foregoing provisions of this section shall not be construed so as to authorise the sale of any immovable property without an order of the High Court.

49. Action for income tax by Board

(1)     Income tax may be sued for and recovered in a court of competent jurisdiction in Lagos by the Board in its official name with full costs of action from the person charged therewith as a debt due to the Government of the Lagos State.

(2)     For the purposes of this section a court of competent jurisdiction shall include a magistrate’s court, which court is hereby invested with the necessary jurisdiction, provided that the amount claimed in any action does not exceed the amount of the jurisdiction of the magistrate concerned with respect to actions for debt.

(3)     In any action brought under subsection (1) of this section the production of a certificate signed by any person duly authorised by the Chairman of the Board giving the name and address of the defendant and the amount of the income tax due shall be sufficient evidence of the amount so due and sufficient authority for the court to give judgement for the said amount. [46]

50. Recovery of income rate and penalty for non-payment

(1)     Every individual liable to payment of the income rate for any year shall, at any time after payment of such rate for that year is due, produce on demand by any person duly authorised in that regard by the Board or, if responsibility for collection of the income rate has been delegated to a Local Government Council, by such Council an official receipt or receipts evidencing such payment.

(2)     Every individual liable to payment of the income rate for any year who is unable so to provide evidence of such payment shall be instructed orally or in writing by the person making the demand to produce an official receipt or receipts evidencing such payment at such office of the Board or of a Local Government Council, and within such time not being less than fourteen days, as that person may decide.

(3)     If any individual fails to comply with an instruction under subsection (2) the full amount of the income rate due from him together with a penalty of two naira may be sued for and recovered, with full costs of action, in any magistrate’s court in Lagos, and in any such action a certificate signed by any officer duly authorised in that regard by the Board or a Local Government Council, as the case may be, giving the name and address of the defendant, the amount of the income rate and penalty due, and stating that the defendant has failed to comply with an instruction given to him under subsection (2) shall be sufficient authority for the court to give judgement for the said amount.

51. Remission of penalty

The Board may, for any good cause shown, remit either before or after judgement the whole or any part of the penalty due under subsection (1) of section 49, and the Board or a Local Government Council, as the case may be, may similarly remit the whole or any part of any penalty due under subsection (3) of section 52.

52. Remission of tax

The Governor may remit, wholly or in part, any tax payable under this Law if he is satisfied that it is just and equitable so to do. [49]

53. P.A.Y.E.

(1)     Income tax chargeable upon any employee by any assessment, whether or not such assessment has been made, shall, if the Board so directs, be recoverable from any emoluments paid, or any payments made on account of such emoluments, by the employer to such employee.

(2)     Any such direction may apply to all employers in Nigeria, or to any employer or class of employers specified in such direction, either with respect to all their employees, or any employee or class of employees, liable to payment of the income tax; and for the purposes of this section any reference to an employer shall be taken whenever necessary as including a reference to the principal agent, manager or other representative in Nigeria of any employer who is outside Nigeria and any such representative in Lagos of an employer in any State.

(3)     Any direction under subsection (1) shall be in writing addressed to an employer or be published in the Gazette, and shall specify the emoluments of any employer or class of employers to which it refers and the amount or amounts of income tax to be deducted whether by reference to tax tables issued by the Board or otherwise.

(4)     In arriving at the amount of income tax to be deducted from any payment of or on account of emoluments to an employee the Board shall secure so far as is possible that the aggregate amount of all such deductions made during any year of assessment shall equal the income tax chargeable upon him in respect of those emoluments for that year.

(5)     Notwithstanding the provisions of subsection (4), in determining the amount of any deduction or deductions to be made in the case of any particular employee the Board may taken into account—

(a)     any assessable income of that employee for the same year arising from any other source chargeable with income tax under this Law; and

(b)     any income tax, or arrears of tax under the Income Tax Act, payable by that employee for any of the six preceding years of assessment.

(6)     Income tax recovered under the provisions of this section by deduction from the emoluments of an employee shall be set-off for the purposes of collection against tax charged upon him by any assessment, but only to the extent that such deductions have been made on account of or by reference to any income charged by such assessment.

(7)     The State Commissioner may make regulations generally for the carrying out of the provisions of this section.

 

54. Employer to be answerable for tax deducted

Every employer required under any provision of this Law or the principal Act to make any deduction from emoluments or amounts on account of emoluments paid by him to any employee shall account to the Board in such manner as the Board may prescribe for the deductions so made, and in the event of failure by such employer to make any such deduction, or properly to account therefor, the amount thereof together with a penalty of ten per centum of such amount shall be recoverable as a debt due by such employer either to the Government of the Lagos State or, in the case of any income rate collectible by a Local Government Council, to that Council.

55. Relief in respect of error or mistake

(1)     If any taxable person who has paid income tax for any year of assessment alleges that any assessment made upon him for that year was excessive by reason of some error or mistake in any return, statement or account made by him or on his behalf for the purposes of such assessment, he may, at any time not later than six years after the end of the year of assessment within which the assessment was made, make an application in writing to the Board for relief.

(2)     On receiving any such application the Board shall inquire into the matter and shall, subject to the provisions of this section, give by way of repayment of tax such relief in respect of the error or mistake as appears to be reasonable and just:

Provided that no relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the applicant ought to have been computed where the return, statement or account was in fact made on the basis or in accordance with the practice of the Board generally prevailing at the time when the return, statement or account was made.

(3)     In determining any application under this section the Board shall have regard to all the relevant circumstances of the case, and in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the income of the applicant, and for this purpose the Board may take into consideration the liability to tax of the applicant and assessments made upon him for other years.

(4)     A determination of the Board under this section shall be final and conclusive.

56. Repayment of tax

(1)     Save as is otherwise in this Law and the principal Act expressly provided, no claim for repayment of tax shall be allowed unless it is made in writing within six years after the end of the year of assessment to which it relates.

(2)     The Board shall give a certificate of the amount of any tax to be repaid under any of the provisions of this Law or the principal Act, or under any order of a court of competent jurisdiction, and upon the receipt of the certificate the Accountant-General of the Lagos State shall cause repayment to be made in conformity therewith.

PART 9

Offences and Penalties

57. Penalty for offences

(1)     Any person guilty of an offence against this Law or any person who contravenes or fails to comply with any of the provisions of this Law or of any rule or regulation made thereunder for which no other penalty is specifically provided shall be liable on conviction to a fine of two hundred naira and where such offence is the failure to furnish a return, statement or information or to keep records required, a further sum of forty naira for each and every day during which such failure continues, and in default of payment to imprisonment for six months, the liability to such further sum to commence from the day following the conviction, or from such day thereafter as the court may order.

(2)     Any person who—

(a)     fails to comply with the requirements of a notice served on him under this Law; or

(b)     without sufficient cause fails to attend in answer to a notice or summons served on him under this Law or having attended fails to answer any question lawfully put to him, shall be guilty of an offence against this Law.

(3)     Notwithstanding any of the provisions of the Criminal Procedure Law a magistrate may dispense with the personal attendance of the defendant if he pleads guilty in writing or so pleads by a legal practitioner.

(4)     In the case of failure by any person to comply with the requirements of any notice given by the Board under the provisions of section 23 or 24 of this Law for the purpose of the income tax for any year of assessment to be charged upon such person, with respect to income from any source other than from an employment, the Board may, in lieu of the institution of proceedings against such person under the provisions of subsection (2) of this section, impose a penalty upon him of an amount equal to the income tax chargeable upon him for the preceding year of assessment:

Provided that—

(a)     written notice of the penalty shall be served upon such person; and

(b)     any amount of such penalty remaining unpaid thirty days after service of such notice may be sued for and recovered in a court of competent jurisdiction by the Board in its official name with full costs of action from the person liable thereto as a debt due to the Government of the Lagos State; and

(c)     a certificate signed by an officer of the Internal Revenue Division duly authorised by the Board setting out the name and address of such person, the date of service of the said notice and the amount of the penalty remaining unpaid, shall be sufficient authority for the court to give judgement for that amount; and

(d)     the Board may remit the whole or any part of such penalty, whether before or after judgement, for any reason which appears to it to be adequate.

58. Penalty for making incorrect return

(1)     Every person who, without reasonable excuse—

(a)     makes an incorrect return by omitting or understating any income liable to tax under this Law; or

(b)     gives any incorrect information in relation to any matter or thing affecting the liability to tax of any taxable person,

shall be guilty of an offence and shall be liable on conviction to a fine of two hundred naira and double the amount of tax which has been undercharged in consequence of such incorrect return or information, or would have been so undercharged if the return or information had been accepted as correct.

(2)     No person shall be liable to any penalty under this section unless the complaint concerning such offence was made in the year of assessment in respect of or during which the offence was committed or within six years after the expiration thereof.

(3)     The Board may compound any offence under this section and may before judgement stay or compound any proceedings thereunder. [55]

 

59. False statements and returns

(1)     Any person who—

(a)     for the purpose of obtaining any deduction, set-off, relief or repayment in respect of tax for himself or any other person, or who in any return, account or particulars made or furnished with reference to tax, knowingly makes any false statement or false representation; or

(b)     aids, abets, assists, counsels, incites or induces any other person—

(i)      to make or deliver any false return or statement under this Law;

(ii)     to keep or prepare any false accounts or particulars concerning any income on which tax is payable under this Law; or

(iii)     unlawfully to refuse or neglect to pay tax,

shall be guilty of an offence and shall be liable on conviction to a fine of one thousand naira or to imprisonment for five years, or to both such fine and imprisonment:

Provided that where an offence under this section is committed by a person in relation to tax payable by, or repayable to, him for any year of assessment, for the amount of the fine as aforesaid there shall be substituted the amount of one thousand naira or treble the tax chargeable upon such person for that year, whichever is the greater.

(2)     The Board may compound any offence under this section and with the leave of the court may before judgement stay or compound any proceedings thereunder.

60. Penalties for offences by authorised and unauthorised persons

Any person who—

(a)     being a person appointed for the due administration of this Law or employed in connection with the assessment or collection of the tax who—

(i)      demands from any person an amount in excess of the authorised assessment of the tax; or

(ii)     withholds for his own use or otherwise any portion of the amount of tax collected; or

(iii)    renders a false return, whether orally or in writing, of the amounts of tax collected or received by him; or

(iv)    defrauds any person, embezzles any money, or otherwise uses his position to deal wrongly with the Board; or

(b)     not being authorised under this Law to do so, shall collect or attempt to collect the tax under this Law; or

(c)     being an employer required by any provision of this Law or of any regulations made thereunder to deduct tax from any emoluments payable to his employees, or being an agent of any taxable person empowered under section 29 of the principal Act to retain out of moneys coming into his hands on behalf of such taxable person any amount for the purpose of paying tax due by such taxable person, and who—

(i)      fraudulently converts to his own use any such tax deducted or amount retained; or

(ii)     knowingly makes any incorrect return, account or statement with respect to such tax deducted or amount retained,

shall be guilty of an offence and be liable on conviction to a fine of six hundred naira or to imprisonment for three years or both. [57]

61. Local Government Council and offences in relation to income rate

At any time during which collection of the income rate has been delegated to a Local Government Council, the officer for the time being holding, or acting in, the office of Municipal Treasurer thereof shall be deemed to have been appointed for the due administration of this Law with respect to such income rate, and his assistants to be employed in connection with its collection, and the provisions of this Part shall apply accordingly as though, wherever necessary with respect to any offence committed in relation to the income rate, any reference therein to the Board were a reference to that Council or to any committee or sub-committee thereof duly authorised in this regard by that Council.

 

62. Tax to be payable notwithstanding proceedings

The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under this Law shall not relieve any person from liability to payment of any tax for which he is or may become liable. [59]

 

63. Prosecution to be with sanction of Board or a Local Government Council

No prosecution in respect of an offence under this Part may be commenced except at the instance of the Board or, if such offence is alleged to have been committed in relation to the income rate at any time during which the collection thereof is delegated to a Local Government Council, of such Council.

64. Saving for criminal proceedings

The provisions of this Law shall not affect any criminal proceedings under any other enactment.

65. Place of an offence

Any offence under this Law shall be deemed to occur in the City of Lagos or at the place where the person charged with the offence resides or at such other place as the Board may decide.

PART 10

Powers of Tax Collectors

66. Definition of Tax Collector

(1)     For the purposes of this Part a Tax Collector means a duly authorised official of the Internal Revenue Division or, at any time during which the collection of the of income rate is delegated to a Local Government Council, a duly authorised official of such Council, and in either case wearing an official uniform or badge by which he may be identified as such.

(2)     The production by any Tax Collector of a certificate or warrant—

(a)     issued by, and having printed thereon the official name of the said Board or Council;

(b)     setting out his full name or names; and

(c)     stating that he is, or is authorised to exercise the functions of a Tax Collector,

shall be sufficient evidence that such Tax Collector is duly authorised for the purposes of this Law. [63]

 

67. Power of Tax Collector to enter and require information

Whenever necessary for the purposes of obtaining information in relation to any person who is or may be liable to the tax imposed by this Law, or the income, occupation or domestic circumstances of such person, or for the purpose of collecting any such tax, a Tax Collector may, during daylight hours, enter into and upon any house or premises, providing he may do so without damage to such house or premises, and require any person found therein to give all such information orally to him.

68. Obstruction to be an offence

Any person who—

(a)     having been required to give information under the provision of the preceding section wilfully obstructs a Tax Collector in the performance of his duties by neglecting or refusing to give such information, or

(b)     otherwise obstructs or wilfully misleads or attempts to mislead a Tax Collector in the performance of his duties under this Part, shall be guilty of an offence under this Law.

69. Immunity from action, etc.

A Tax Collector shall not be liable in any action or proceeding, whether civil or criminal, for anything done or said by him in the lawful exercise of the powers conferred upon him by section 69. [66]

Second Schedule

TABLE 1—INCOME RATE

[1975 No. 9.]

 

Amount of Income Rate

N

Not exceeding N1,000                         4

Exceeding N1,000 but not exceeding N2,000              8

Exceeding N2,000                    20

 

TABLE 2—INCOME RATE

Income to be taxed    Rate of Tax

For every naira of the first N2,000        10k per N         10 per cent

For every naira of the next N2,000       15k per N         15 per cent

For every naira of the next N2,000       20k per N         20 per cent

For every naira of the next N2,000       25k per N         25 per cent

For every naira of the next N3,000       30k per N         30 per cent

For every naira of the next N5,000       35k per N         35 per cent

For every naira of the next N5,000       40k per N         40 per cent

For every naira of the next N10,000     45k per N         45 per cent

For every naira of the next N30,000     50k per N         50 per cent

 

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

5. Personal Income Tax (Body of Appeal Commissioners) Notice
6. Income Tax Appeals (Appeal Commissioners) (included) Rules under section 41 (12)

[6th March, 1970]

[Commencement.]

ARRANGEMENT OF REGULATIONS

 

1. Representation
2. Notice of appeal
3. Notices, etc.
4. Application for late appeal
5. Register of appeals
6. Withdrawal of notice of appeal
7. Notice of hearing
8. Place of hearing
9. Procedure at the hearing
10. Issuing of a precept
11. Determination of appeal
12. Power to hear evidence on oath, or affirmation
13. Determination of appeals notwithstanding absence
14. Decisions to be recorded
15. Interpretation
16. Citation and commencement

 

Schedule

1. Representation

In all proceedings before the Commissioners the appellant may be represented by a solicitor or an accountant and the Board may be represented by a solicitor or an officer of the Lagos State Internal Revenue Division of the Ministry of Finance and Economic Development.

2. Notice of appeal

A notice of appeal against an assessment to be given under section 36 of the Personal Income Tax (Lagos) Act, 1961 (hereafter referred to as “the principal Act”)—

(a)     to the secretary, shall be given or served upon him at his official address as notified in the State Gazette and such notice shall be accompanied by a statement of the address of the issuing office; and

(b)     to the Board, shall be given or served upon the officer in charge of the issuing office.

3. Notices, etc.

Any notice of other document to be given, served or issued under these Rules

(a)     if to or upon the secretary, shall be given to or served upon him at his official address as notified in the State Gazette;

(b)     if to or upon the Board, shall be given to or served upon the officer in charge of the issuing office, or such other office of the Lagos State Internal Revenue Division of the Ministry of Finance as may have been notified to the secretary and the appellant by the Board for any particular appeal;

(c)     if to or upon an appellant shall be given to or served either by registered post at its address for service as given in accordance with the provisions of paragraph (e) of section 37 of the principal Act or by personal service on the principal officer or representative of appellant within Nigeria;

(d)     if to or upon any person other than a person referred to above, shall be given or served either by registered post in the case of an individual or body of persons at the last known business or private address of such individual or body of persons; or personally in accordance with section 11 of the principal Act.

4. Application for late appeal

(1)     Where an intending appellant wishes to avail himself of the proviso to section 36 of the principal Act it shall, within the period of sixty days mentioned in that proviso, make a written application to the secretary at his official address as notified in the State Gazette—

(a)     giving the particulars required by that proviso;

(b)     showing the cause which prevented him from giving notice of appeal within the period of thirty days prescribed by that section;

(c)     showing that there was no unreasonable delay on his part;

(d)     giving an address for service; and

(e)     giving the address of the issuing office.

(2)     When making such application the applicant shall send a copy thereof for the Board to the officer of the issuing office.

(3)     Upon receipt of an application made under this rule the secretary shall—

(a)     endorse thereon the date of the receipt thereof and enter the same in a register of income tax applications to be kept for that purpose by the secretary; and

(b)     as soon as possible and at least twenty-one days before the date fixed for the hearing of the application, give notice in writing of the application to each of the Commissioners, to the applicant and to the Board.

(4)     On the hearing of an application made under this rule—

(a)     the Commissioners shall decide whether the application was duly made in accordance with this rule and, if they decide that it was so made, whether they are satisfied as to the matters required by the proviso to section 36 to be shown to their satisfaction;

(b)     the chairman of the meeting shall record, in the register of income tax applications, the decision of the Commissioners.

5. Register of appeals

Upon receipt of a notice of appeal given under section 37—

(a)     the secretary shall endorse thereon the date of the receipt thereof and enter the same in a register of income tax appeals to be kept for that purpose by the secretary; and

(b)     if it appears to the secretary that such notice was not given within the time prescribed by section 36 or does not specify the particulars required by section 36 the secretary shall notify the appellant and the Board in writing accordingly.

6. Withdrawal of notice of appeal

Where an appellant has been notified under Rule 5 above—

(a)     he may elect to withdraw the notice of appeal given by him, giving notice of the withdrawal to the secretary and to the Board and, if within time, either give a fresh notice of appeal or make an application under Rule 4; and

(b)     if the notice of appeal is not withdrawn under this rule the Commissioners shall decide, at a hearing of the appeal whether or not the notice was valid.

7. Notice of hearing

The secretary, shall, at least twenty-one days before the date fixed for the hearing of an appeal, give notice in writing of the date, time and place fixed for the hearing of the appeal to each of the Commissioners, to the appellant and to the Board and, shall at least twenty-one days before the date fixed for an adjourned hearing of an appeal, give a similar notice in writing in respect of the adjourned hearing, provided that no such notice shall be given in respect of any adjourned hearing for which Commissioners have fixed a date at their previous hearing.

8. Place of hearing

(1)     Subject to the provisions of paragraph (2) hereof the place to be fixed by the secretary for the hearing of an appeal or an application (including an adjourned hearing thereof) shall be a place in the town in which the issuing office is situated.

(2)     If it appears to the secretary that it will be more convenient for the place of any such hearing to be fixed in some other town in which there is an office of the Lagos State Internal Revenue Division of the Ministry of Finance he may give notice in writing to the appellant or applicant and to the Board of his intention to fix the place of hearing in that other town, and unless the secretary receives an objection in writing to the notice within fourteen days of the giving of the notice he may fix the place of the hearing in accordance with the notice.

9. Procedure at the hearing

(1)     At the hearing, including any adjourned hearing of any appeal against an assessment the Commissioners shall admit all lawful evidence (whether oral or documentary) adduced by the appellant or the Board or any person appearing on their behalf.

(2)     Proceedings before the Commissioners shall be commenced by the appellant, or any person appearing on his behalf, producing any documents or writing whereon his appeal against the assessment may be founded and any witness he may require to give evidence or have examined in support of the same.

(3)     The case on the part of the appellant having been heard the Board or person appearing on its behalf, shall in like manner produce any documents it may desire to have read by the Commissioners and any witness it may require to give evidence or have examined.

(4)     The Board, or the person appearing on its behalf, may in connection with the hearing of appeals make use of or produce in evidence any return, correspondence, accounts, plans, statements, or other documents to which it has had or may have lawful access for the purpose of taxation and all such documents shall be admissible whether or not they are original documents.

(5)     The rules of evidence regarding the examination-in-chief, cross examination and re-examination of a witness shall apply where a witness is produced to give oral evidence.

10. Issuing of a precept

(1)     At any such hearing including any adjourned hearing of an appeal against an assessment the Commissioners may if they consider that it is necessary, adjourn the hearing and instruct the secretary to issue a precept to—

(a)     any person (other than a solicitor or an accountant acting for the appellant in connection with his liability to tax) whom they think might be able to give evidence with respect to any matter relating to the assessment to appear at any adjourned hearing to be examined;

(b)     any person including the appellant or his representative, to produce or deliver to them within the time limited by the precept or at any adjourned hearing any accounts, books, records or other documents relating to—

(i)      the property of the appellant;

(ii)     the trade, or business, carried on or exercised by the appellant, whether alone or with others;

(iii)    the amount of the profits or gains of the appellant, distinguishing the particular amounts derived from each separate source; or

(iv)    any deductions made in arriving at the profits or gains of the appellant.

(2)     The Commissioners may issue further precepts whenever they consider it necessary for the purpose aforesaid, until complete particulars have been furnished to their satisfaction.

(3)     The Board may inspect and take copies of or extracts from any books, accounts or document made available by the appellant under this rule.

(4)     Notwithstanding that the Commissioners have admitted an appeal to be made by any agent, clerk, servant or any other representative of the appellant in accordance with the provisions of subsection (6) of section 40A they may instruct the secretary to issue a precept to the appellant under paragraph (1) or (2) hereof.

(5)     Any precept to be issued under this rule shall be in the form set out in the Schedule hereto.

[Schedule.]

11. Determination of appeal

(1)     At the conclusion of the evidence admitted by virtue of Rule 10 the appellant or person appearing on his behalf and thereafter the Board, or person appearing on its behalf shall be entitled to be heard in argument, and thereafter the appellant or person appearing on is behalf may reply to any new points raised in the argument presented by or on behalf of the Board. The Commissioners shall then determine the matter in dispute or may reserve their decision until a later date. Whenever the decision is reserved, the decision shall be given at such time and place as may be fixed by the Commissioners and of which reasonable notice shall have been given to the parties.

(2)     All decisions of the Commissioners shall be determined by a simple majority of the members present and voting; and in the case of an equality of votes, the chairman shall have a second or casting vote.

12. Power to hear evidence on oath, or affirmation

The Commissioners may require any evidence to be given on oath or affirmation and the provisions of the Oaths Law shall apply to any oath or affirmation administered by the Commissioners.

13. Determination of appeals notwithstanding absence

If at the hearing of any appeal against an assessment or of any application to appeal or at any adjournment thereof it appears to the Commissioners that the appellant or person appearing on his behalf, is absent otherwise than by reason of absence from Nigeria, sickness or other reasonable cause, the Commissioner may, notwithstanding the absence of the appellant or person appearing on his behalf, proceed in accordance with the provisions of subsection (9) of section 40A of the principal Act.

14. Decisions to be recorded

The secretary shall maintain a book in which every decision of the Commissioners shall be recorded in accordance with the provisions of subsection (10) of section 40A of the principal Act.

15. Interpretation

In these Rules, unless the context otherwise requires—

“accountant” means any person practising accountancy and employed by the appellant in that capacity;

“Board” means the Lagos State Internal Revenue Board established under section 3 of the Law;

“chairman” in relation to a meeting of Commissioners means the person appointed to be chairman at that meeting in accordance with paragraph (b) of subsection (1) of section 40A of the principal Act;

“Commissioners” means the body of Appeal Commissioners established under subsection (1) of section 35A of the principal Act;

“issuing office” in relation to any appeal against an assessment or any application under the proviso to subsection (1) of section 36 means the office of the Lagos State Internal Revenue Division from which the notice of refusal of the Board to amend assessment as desired was issued;

“secretary” means the secretary to the Commissioners designated under subsection (6) of section 35A of the principal Act;

“solicitor” means a person entitled in accordance with the provisions of the Legal Practitioners Act to practice as a barrister or as a barrister and solicitor, either generally or for the purposes of any particular office or proceedings.

16. Citation and commencement

(1)     These rules may be cited as the Income Tax Appeals (Appeal Commissioners) Rules.

(2)     These rules shall be deemed to have come into force on 6th day of March, 1970.

Schedule

Rule 10 (5)

NOTICE TO WITNESS TO ATTEND BEFORE APPEAL COMMISSIONERS

Vs Lagos State Board of Internal Revenue

INCOME TAX YEAR OF ASSESSMENT 20

To

(Name of Witness)

of

(Address of Witness)

on good cause shown to the Appeal Commissioners you are hereby ordered to attend in connection with the above-mentioned appeal before the said Commissioners at

20          at         o’clock in the              noon;

to

(1)     be examined as a witness and your depositions taken;

(2)     produce any accounts, books, records or other documents and in particular the following:—

(a)

(b).

(strike out if not applicable)

Dated the        day of  20

 

Secretary,

Board of Income Tax,

Appeal Commissioners of the

Lagos State

 

2. Personal Income Tax (Employments) Regulations

 

ARRANGEMENT OF REGULATIONS

PART 1

General

 

1. Citation and commencement .
2. Interpretation.
3. Intermediate employers.
4. Powers of the Board.
5. Service or issue of notice and tax deduction card.

 

PART 2

Deduction and Repayment of Tax

 

6. Issue and preparation of tax deduction card at beginning of year.
7. Issue of special tax deduction card during year.
8. Determination of aggregated income and free emoluments by Board.
9. Determination by Board that no tax is deductible.
10. Notice of determination by Board.
11. Amendment of determination of aggregated income or free emoluments.
12. Objection to determination of aggregated income or free emoluments.
13. Calculation of deduction or repayment.
14. Net emoluments not paid monthly.
15. Subsidiary net emoluments of employee.
16. Deduction in special cases.
17. Change of directed employment.
18. Death of employee.
19. Employee not producing transfer certificate.
20. Modified method of deduction.
21. Aggregation of net emoluments in non-cumulative cases.
22. Tax free emoluments.
23. Repayment of tax during sickness and unemployment.
24. Certificate of net emoluments and of tax deducted.

PART 3

Payment and Recovery of Tax

 

25. Payment of tax by employer.
26. Employer failing to pay tax.
27. Recovery of tax.
28. Return by employer at end of year.
29. Inspection of employer’s records.
30. Death of employer.
31. Succession to a business, etc.
32. Set-off of tax recovered.
33. Recovery of underpayment of tax.

 

THE PERSONAL INCOME TAX

(EMPLOYMENTS) REGULATIONS

[L.N. 58 of 1965 (s. 55 (7).]

[1st April, 1965]

[Commencement.]

PART 1

General

1. Citation and commencement

These regulations may be cited as the Personal Income Tax (Employments) Regulations, and shall be deemed to have come into operation on 1st April, 1965.

 

2. Interpretation

In these regulations, unless the context otherwise requires—

“aggregated income” means the amounts determined by the Board to be aggregated with net emoluments and subject to deduction of tax under these regulations;

“Board” means the Lagos State Internal Revenue Board constituted under section 3 of the Law;

“cumulative aggregated income”, in relation to any week or month, means the sum of all aggregated income from the beginning of the year up to and including that week or month;

“cumu lative free emoluments”, in relation to any week or month, means the sum of the free emoluments from the beginning of the year up to and including that week or month;

“cumulative net emoluments”, in relation to any week or month, means the sum of all payments of net emoluments made by the employer to the employee from the beginning of the year up to and including that week or month;

“cumulative tax”, in relation to any week or month, means the tax due in accordance with the appropriate tax tables in respect of any cumulative taxable emoluments at such week or month;

“cumulative taxable emoluments”, in relation to any week or month, means the sum of the taxable emoluments from the beginning of the year up to and including that week or month;

“direction” means any direction given by the Board in pursuance of the provision of section 55 (1) of the Law;

“emoluments” means income chargeable to tax under the Law from any employment or pension;

“employee” means any person including a director, receiving emoluments in respect of any employment, office or appointment and in respect of whom a direction has been made by the Board under the provisions of section 55 of the Law;

“employer” means any person paying emoluments who has received a direction made by the Board under the provisions of section 55 of the Law;

“free emoluments” means the amount of net emoluments which the Board has determined shall not be subject to deduction of tax;

“Fund” means the Trust Fund established under the Nigeria Social Insurance Trust Fund Decree No. 73 of 1993;

“Joint Tax Board” means the Board established under section 27 of the Personal Income Tax Law;

“the Law” means the Personal Income Tax Law;

“month” means any calendar month, and monthly shall be construed accordingly;

“net emoluments” means emoluments reduced by contributions which are made by the employee to the Fund, and to a pension, provident or other retirement benefits fund, society or scheme approved by the Joint Tax Board and which are deducted by the employer from such emoluments, and references to payments of net emoluments include references to payments on account of net emoluments;

“special tax deduction card” means a tax deduction card on which is specified the amount of any aggregated income or any free emoluments as determined by the Board;

“tax” means the tax imposed under the provisions of the Law;

“tax deduction card” means a weekly or monthly tax deduction card in the form provided by the Board or such other document corresponding to such a tax deduction card as may be authorised by the Board in any particular case;

“tax tables” means tax tables prepared by the Board;

“taxable emoluments” means net emoluments plus any aggregated income or less any free emoluments;

“total net tax deducted”, in relation to the net emoluments paid to any employee during any period, means the total tax deducted from those net emoluments less any tax repaid to the employer;

“week” means the period of seven days commencing on the first day of any year of assessment and each subsequent period of seven days during such year, and weekly shall be construed accordingly;

“year” means year of assessment;

other expressions have the same meaning as in the Law.

(2)     Except where it is expressly provided in any direction to the contrary, every direction given by the Board shall be subject to these regulations.

 

3. Intermediate employers

(1)     Where an employee works under the general control and management of a person who is not his immediate employer, that person (referred to hereinafter in this regulation as “the intermediate employer”) shall be deemed to be the employer for the purposes of these regulations, and the immediate employer shall furnish the intermediate employer with such particulars of the employee’s emoluments as may be necessary to enable the intermediate employer to comply with the provisions of these regulation.

(2)     If the employee’s net emoluments are actually paid to him by the immediate employer—

(a)     the immediate employer shall be notified by the intermediate employer of the amount of tax to be deducted or repaid when the net emoluments are paid to the employee and shall deduct or repay the amount so notified to him accordingly; and

(b)     the intermediate employer shall make a corresponding deduction or addition on making to the immediate employer the payment out of which the said emoluments will be paid.

4. Powers of Board

Anything which is authorised or required by these regulations to be done by the Board may be done by such other person as the Board may direct.

5. Service or issue of notice and tax deduction card

Section 10 of the Law shall apply to any notice or tax deduction card which is authorised or required to be given, served or issued under these regulations.

PART 2

Deduction and Repayment of Tax

6. Issue and preparation of tax deduction card at beginning of year

(1)     Every employer, on making any payment of net emoluments during any year to any employer in his employ at the beginning of the year and in respect of whom a special tax deduction card has been issued by the beginning of the year by the Board for the use of the employer during that year, shall deduct or repay tax in accordance with these regulations and shall have reference to the aggregated income or free emoluments specified on such special tax deduction card.

(2)     Every employer, on making any payment of net emoluments during any year to any employee in his employ at the beginning of the year and in respect of whom no special tax deduction card has been issued by the beginning of the year by the Board for the use of the employer during that year, shall deduct or repay tax in accordance with these regulations and shall prepare for use during such year—

(a)     a weekly tax deduction card if such employee is paid weekly or fortnightly at an annual rate of less than eight hundred naira; or

(b)     a general purposes tax deduction card if such employee is not so paid.

7. Issue of special tax deduction card during year

(1)     Where a determination of aggregated income or free emoluments of any employee for any year is amended after the special tax deduction card for such employee has been issued, the Board shall issue to the employer an amended special tax deduction card appropriate to such amended determination, and, on making any further payment of any net emoluments during such year to such employee, the employer shall deduct or repay tax in accordance with these regulations and shall have reference to the aggregated income or free emoluments specified on such amended special tax deduction card.

(2)     Where a determination of aggregated income or free emoluments of any employee is first made after a tax deduction card for such employee has been prepared by the employer, the Board shall issue to the employer a special tax deduction card appropriate to such determination, and, on making any further payment of any net emoluments during such year to such employee, the employer shall deduct or repay tax in accordance with these regulations and shall have reference to the aggregated income or free emoluments on such special tax deduction card.

8. Determination of aggregated income and free emoluments by Board

The aggregated income or free emoluments to be specified in any special tax deduction card issued by the Board shall be determined by it and for that purpose, the Board may have regard to any of the following—

(a)     any reliefs from tax, to which the employee is entitled for the year for which the aggregated income or free emoluments are being determined, so far as his title to such reliefs has been established at the time of the determination:

Provided that, where the aggregated income or free emoluments are determined before the beginning of the year for which such aggregated income or free emoluments are to have effect, the Board shall disregard any such relief if it is not satisfied that the employee will be entitled to it for such year;

(b)     any assessable income of the employee for the year for which the aggregated or free emoluments are being determined other than he emoluments in relation to which the aggregated income or free emoluments are being determined;

(c)     any tax of the employee which is repayable but has not been repaid;

(d)     any tax of the employee which is payable but has not been paid;

(e)     such other adjustments as may be necessary to secure that, so far as possible, the tax in respect of the employee’s income for the year for which the aggregated income or free emoluments are to have effect shall be deducted from the net emoluments paid during such year.

9. Determination by Board that no tax is deductible

The Board may at any time determine that no tax shall be deducted from any net emoluments of any employee—

(a)     if such net emoluments will be included in an assessment on income from a trade, business, profession or vocation; or

(b)     if the Board is not satisfied that such net emoluments will be chargeable to tax:

Provided that, where such determination is made known to the employer during the year, any total net tax deducted from such employee’s net emoluments may, if the Board so directs, be repaid to such employee.

10. Notice of determination by Board

(1)     After the Board has determined the aggregated income or free emoluments of any employee for any year, it shall give notice of such determination to such employee before the special tax deduction card is issued to the employer.

(2)     If the Board determines that no tax shall be deducted from any net emoluments of any employee for any year, it shall give notice of such determination to the employer.

 

11. Amendment of determination of aggregated income or free emoluments

(1)     If a determination of aggregated income or free emoluments is found to be inappropriate because the actual circumstances are difference from the circumstances by reference to which the aggregated income or free emoluments were determined, the Board may, and if it is so required by the employee shall, amend such determination by reference to the actual circumstances.

(2)     After the Board has amended the determination of aggregated income or free emoluments, it shall give notice of such amended determination to the employee not later than the date on which the special tax deduction card or the amended special tax deduction card under regulation 7, as the case may be, is issued to the employer.

12. Objection to determination of aggregated income or free emoluments

(1)     If the employee is aggrieved by any determination, or amended determination, of aggregated income or free emoluments, he may give notice of objection in writing, to the Board, stating the grounds of his objection within forty-two days after the date of issue of the notice of such determination or amended determination.

(2)     On receipt of the notice of objection, the Board shall consider such objection and may amend the determination of aggregated income or free emoluments.

13. Calculation of deduction or repayment

(1)     On the occasion of any payment of net emoluments to the employee, the employer, except where these regulations otherwise provide, shall ascertain, at the week or month of payment, the cumulative net emoluments, the cumulative taxable emoluments and the corresponding cumulative tax in respect of such employee.

(2)     If the said cumulative tax exceeds the cumulative tax corresponding to the employee’s cumulative taxable emoluments at the week or month of the last preceding payment of net emoluments (hereinafter in this regulation referred to as “the previous cumulative tax”), the employer shall deduct the excess from the net emoluments on making the payment in question.

(3)     If the said cumulative tax is less than the previous cumulative tax, the employer shall repay the difference to the employee on making the payment in question:

Provided that, if the amount of tax repayable is not less than ten naira and the employer has not received prior authorisation from the Board, the employer shall forthwith notify the Board and shall not make the repayment until authorised to do so by the Board.

(4)     If the said cumulative tax is equal to the previous cumulative tax, the employer shall neither deduct nor repay tax when the payment in question is made.

(5)     Where the payment in question is the first payment in the year, paragraphs (2), (3) and (4) of this regulation shall not apply but the employer shall deduct the said cumulative tax from the net emoluments on making the payment in question.

(6)     The employer shall record, for the week or month in which any payment of net emoluments is made to the employee, either on the tax deduction card or in such other form as may be authorised by the Board, the following particulars—

(a)     the net emoluments;

(b)     the cumulative net emoluments;

(c)     the cumulative taxable emoluments;

(d)     the corresponding cumulative tax; and

(e)     the amount of tax, if any, deducted or repaid on making the payment.

(7)     Where the Board determines that no tax shall be deducted from any emoluments of any employee, the foregoing provisions of this regulation shall not apply and the employer shall deduct no tax but shall record, either on the tax deduction card or in such other form as may be authorised by the Board, the net emoluments and the cumulative emoluments:

Provided that, where the Board’s determination that no tax shall be deducted is an amended determination, the employer shall, if the Board so directs, make any repayment of tax which may be due by reference to the employee’s cumulative emoluments and the corresponding cumulative tax and shall record the particulars prescribed in paragraph (6) of this regulation.

 

14. Net emoluments not paid monthly

(1)     Where net emoluments are paid at regulator intervals of longer than a month, any payment of such net emoluments shall be deemed for the purposes of these regulations to be made in the month in which it would have been made if a payment had been made in the last month of the preceding year:

Provided that the employer shall record, either on the tax deduction card or in such other form as may be authorised by the Board, for every such payment, the actual month of payment.

(2)     Where net emoluments are paid at regulator intervals of less than a month to an employee liable to payment of tax upon his chargeable income or for whom a special tax deduction card has issued, any payment of such net emoluments within a particular month shall be deemed for the purposes of these regulation, to be made on the date on which the final payment of net emoluments within that month is made; and, on the occasion of such payment, tax shall be deducted or repaid by reference to the total net emoluments payable in the month.

(3)     Where net emoluments are paid at regulator intervals of less than a month to an employee liable to payment of tax upon his chargeable income and in respect of whom no special tax deduction card has been issued, any payment of such net emoluments made on 30th or 31st March in any leap year, or on 31st March in any other calendar year, shall be deemed for the purposes of these regulations to be made in a fifty-third week of the year of assessment.

15. Subsidiary net emoluments of employee

(1)     If the employer makes a payment in respect of overtime or other extra earnings to an employee whose main net emoluments are paid monthly and that payment is made at an earlier date in the month than that on which the main net emoluments are paid, the employer shall repay no tax to the employee on the occasion of that payment, notwithstanding that tax may be repayable under the provisions of regulation 13, but in such a case regulation 13 shall have effect as if that payment were made on the same date in that month as the date on which the main net emoluments are paid.

(2)     The foregoing provisions of this regulation shall apply with the necessary modifications to payment in respect of overtime or other extra earnings which are made to an employee whose net emoluments are paid at intervals greater than a month.

16. Deduction in special cases

(1)     This regulation applies to—

(a)     payments of net emoluments made to an employee after he has ceased to be employed by the person making the payments; and

(b)     any other payments of net emoluments made to any other employee to which the Board directs that this regulation shall apply.

(2)     Regulation 13 shall not apply to payments of net emoluments to which this regulation applies, and, on making any such payment, the employer shall deduct therefrom the amount of tax which would have been deductible therefrom if the payment had been made on the preceding 1st April and if the employee had been in that employment on the same day.

(3)     On making any such payment as aforesaid, the employer shall record, either on the tax deduction card or in such other form as may be authorised by the Board, the following particulars—

(a)     the week or month of payment;

(b)     the net emoluments;

(c)     the taxable emoluments; and

(d)     the amount of tax deducted:

Provided that, where tax is deducted by reference to regulation 19 (2) the aforesaid particulars, except for taxable emoluments, shall be recorded on the card provided or authorised by the Board for that purpose.

 

17. Change of directed employment

(1)     If the employer ceases to employ an employee, he shall forthwith send to the Board a certificate, on the form provided or authorised by the Board, containing, subject to regulation 19, the following particulars—

(a)     the name of the employee;

(b)     any number used to identify the employee;

(c)     the address of the employee;

(d)     the name, address and identifying number of the employer;

(e)     the date on which the employment ceased and, if appropriate, the date on which the employee is expected to depart from Nigeria;

(f)      the type of tax deduction card used;

(g)     the cumulative net emoluments at the week or month in which the last payment of net emoluments was made to the employee by that employer, or in a case falling within regulation 14 was deemed to be so made;

(h)     the corresponding cumulative tax;

(i)      and the name and address of any new employer, if known:

Provided that, where any payment of net emoluments to which regulation 16 (1) (a) applies is made, the employer shall forthwith send to the Board a supplementary certificate on the form provided or authorised by the Board containing particulars of such payment and the corresponding tax.

(2)     The employer shall make, on the form provided or authorised by the Board, two copies of the said certificate and shall deliver them to the employee on the date on which the employment ceases or on the date of any payment of net emoluments made to the employee after cessation of employment.

(3)     Immediately on commencing his next employment the employee shall deliver the two copies of the said certificate to his new employer, who shall, subject to the provisions of paragraphs (4) and (5) of this regulation—

(a)     insert on one copy of the said certificate—

(i)      the address of the employee if different from the existing entry made by the former employer;

(ii)     the date on which the employment commenced;

(iii)    the nature and place of the employment;

(iv)    the type of tax deduction card prepared;

(v)     the cumulative tax at the week or month in which the former employment ceased, if different from the cumulative tax recorded on the said certificate by the former employer; and

(vi)    the name and address of the new employer, and forthwith send that copy to the Board;

(b)     prepare a tax deduction card in accordance with the particulars given in the two copies of the said certificate and record on such card the cumulative net emoluments as at the date on which the employee left his former employment and the corresponding cumulative tax as shown by the tax tables; and

(c)     on making any payment of net emoluments to the employee, deduct or repay tax in accordance with regulation 13 and keep the records required by that regulation as if the cumulative net emoluments and cumulative tax shown on the tax deduction card prepared in accordance with sub-paragraph (b) of this regulation represented net emoluments paid to the employee by the new employer and tax deducted by him:

Provided that, if tax is repayable on the occasion of the first such payment and the amount repayable exceeds ten naira the new employer shall forthwith notify the Board and shall not make the repayment until authorised to do so by the Board.

(4)     Where the two copies of the said certificate show that the last payment of net emoluments was in the year preceding that in which the new employment commences, the new employer shall—

(a)     render a return to the Board, on the form authorised by the Board, giving the name and address of the employee, the date on which his employment commenced and such other particulars as may be necessary to secure the issue of the appropriate tax deduction card;

(b)     comply with the provisions of paragraph (3) (a) of this regulation, but deduct tax from each payment of net emoluments made by him to the employee and keep records on the card mentioned in regulation 16 (3) as if those payments had been payments to which regulation 19 (2) applies.

(5)     Where the two copies of the certificate—

(a)     are not identical;

(b)     show that a special tax deduction card was used by the previous employer; or

(c)     have been completed under regulation 19 (4), the new employer shall comply with the provisions of paragraph (3) (a) of this regulation, but he shall deduct tax from each payment of net emoluments paid by him to the employee and keep records on the card mentioned in regulation 16 (3) as if those payments had been payments to which regulation 19 (2) applies.

(6)     If the new employer ceases to employ the employee he shall comply with the provisions of paragraphs (1) and (2) of this regulation as if a deduction card in respect of the employee had been issued to him by the Board.

(7)     If the employee objects to the disclosure to his new employer of his aforesaid cumulative net emoluments, he may deliver the two copies of the certificate to the Board before he commences his new employment, and the Board may direct that regulation 16 shall apply to all payments of net emoluments which the new employer makes to the employee during the year.

(8)     Retirement on pension shall not be treated as a cessation of employment for the purposes of this regulation if the net emoluments are paid by the same person both before and after the retirement.

18. Death of employee

(1)     On the death of any employee, the employer shall forthwith send to the Board the certificate mentioned in regulation 17 (1) or the certificate mentioned in regulation 19 (4), as the case may require, together with the two copies of the said certificate mentioned in regulation 17 (2), and shall insert thereon the name and address of the personal representative of the deceased employee, if they are known to him.

(2)     If any net emoluments are paid by the employer after the date of the employee’s death in respect of his employment with him, the employer shall, on making any such payment, deduct or repay tax as if the deceased employee was still in his employment at the date of the payment in a case where the payment is made during the year in which the employee died or, if the payment is not so made, as if the deceased employee had ceased to be in his employment and, in every case—

(a)     if the amount of those net emoluments and the date on which they will be paid are known to him at the time he completes the certificate mentioned in paragraph (1) of this regulation, he shall include thereon the amount of the net emoluments, the date on which they will be paid, and the amount of tax which will be deducted or repaid; or

(b)     if the amount of those net emoluments and the date on which they will be paid are not known to him at the time he completes the certificate mentioned in paragraph (1) of this regulation, he shall indicate thereon that a further payment of net emoluments will be made by him.

19. Employee not producing transfer certificate

(1)     If the employer makes any payment of net emoluments to an employee who, on commencing employment, did not deliver the two copies of the certificate mentioned in regulation 17 (2), the employer, on the occasion of the first such payment, shall forthwith render a return, on the form provided by the Board, to the Board giving the name and address of the employee, the date on which his employment commenced and such other particulars as may be necessary to secure the issue of any appropriate tax deduction card.

(2)     On making any payment of net emoluments to the employee before any tax deduction card has been issued in respect of him by the Board the employer shall deduct tax and keep records on the card mentioned in regulation 16 (3) as if the payment was one to which regulation 16 applied and as if no aggregated income or free emoluments had been determined by the Board.

(3)     On making any payment of net emoluments to the employee after any tax deduction card has been issued in respect of him by the Board the employer shall deduct or repay tax in accordance with regulation 13 and keep the records required by that regulation, and, for those purposes—

(a)     any cumulative net emoluments entered on the tax deduction card by the Board shall be treated as if they represented net emoluments paid to the employee by the new employer; and

(b)     the cumulative tax before the first payment as aforesaid shall be taken to be the sum of any cumulative tax entered as aforesaid and any tax which the new employer was liable to deduct from the employee’s net emoluments under paragraph (2) of this regulation.

(4)     Where paragraph (2) of this regulation applies and the employer ceases to employ the employee before any tax deduction card in respect of the employee has been issued to him by the Board, regulation 17 shall apply but subject to the modification that the certificate mentioned in paragraph (1) of that regulation shall contain particulars of the net emoluments and the tax deducted therefrom as recorded by the employer on the card mentioned in regulation 16 (3).

20. Modified method of deduction

(1)     Where net emoluments are paid weekly or fortnightly at an annual rate of less than eight hundred naira, the State Commissioner, on being satisfied by the employer as to the general concurrence of the employees whose emoluments are so paid or of the authorised representatives of such employees and as to the adequacy of the records maintained by the employer, may permit the Board to authorise the employer—

(a)     in the first year for which a direction under section 55 of the Law applies to such employer, to deduct tax from the net emoluments paid to all such employees in accordance with arrangements agreed to by the Board and the employer, and to the extent that it is so agreed these regulations shall not apply; or

(b)     in any year, to deduct tax from the net emoluments paid to all such employees in accordance with the following provisions of this regulation, and regulation 13 shall not apply where that authority is given.

(2)     The employer shall deduct tax from each payment of net emoluments which he makes to the employee by reference to the rate prescribed in Schedule 2 Table 2 of the Law, without regard to the cumulative net emoluments and the corresponding cumulative tax:

Provided that, if the employment ceases, the employer shall ascertain the cumulative net emoluments in relation to the week in which the last payment of net emoluments was made to the employee by him and the corresponding cumulative tax and shall deduct from such net emoluments the difference between such corresponding cumulative tax and the total net tax previously deducted during the year.

(3)     The employer, on the occasion of the payment to the employee of net emoluments in every sixth week and on the occasion of the last payment to the employee of net emoluments in the year, shall ascertain the cumulative net emoluments in relation to the week of payment and the corresponding cumulative tax and shall deduct from such net emoluments the difference between such corresponding cumulative tax and the total tax previously deducted during the year:

Provided however, that if on such occasion the cumulative tax is less than the total tax previously deducted since the beginning of the year the employer shall repay to the employee, upon being authorised by the Board to do so, the difference on the occasion of the next payment of emoluments, in addition to making any necessary deduction under paragraph (2) of this regulation.

(4)     Where tax is deducted in accordance with this regulation, the employer shall record, either on the tax deduction card or in such other form as may be authorised by the Board—

(a)     for every week in which a payment of net emoluments is made to the employee, the net emoluments and the amount of tax deducted therefrom in accordance with paragraph (2) of this regulation; and

(b)     for each week in which they are ascertained, the cumulative net emoluments and the corresponding cumulative tax.

21. Aggregation of net emoluments in non-cumulative cases

Where under these regulations tax is deductible otherwise than by reference to cumulative net emoluments and the corresponding cumulative tax, the amount of tax to be deducted in any week or month shall be calculated by reference to the aggregate of the net emoluments paid to the employee in that week or month.

22. Tax free emoluments

Any payment which the employer makes to the employee or for the benefit of the employee in respect of his income tax shall be included in the net emoluments of the employee for the purposes of deduction and repayment of tax under these regulations.

23. Repayment of tax during sickness and unemployment

(1)     If, owing to absence from work through sickness or other similar cause, the employee is entitled to receive no net emoluments on the usual pay day, the employer shall, on application being made in person by the employee or his authorised representative, make such repayment of tax to the employee as may be appropriate, having regard to his cumulative taxable emoluments at the date of the pay day in question and the corresponding cumulative tax.

(2)     If, owing to absence from work otherwise than as in paragraph (1) of this regulation, the employee is entitled to receive no net emoluments on the usual pay day, the employer may, on application being made in person by the employee or his authorised representative, make such repayment of tax to the employee as may be appropriate, having regard to his cumulative taxable emoluments at the date of the pay day in question and the corresponding cumulative tax.

(3)     In the case of an individual who has ceased to be employed, any repayment which may be appropriate at any date, having regard to his cumulative taxable emoluments at that date and the corresponding cumulative tax, shall be made to him in accordance with section 58 of the Law; and such individual who has ceased to be employed shall, on applying for repayment, produce to the Board the copies of the certificate mentioned in regulation 17 (2) and such evidence of his unemployment as the Board may require.

24. Certificate of net emoluments and of tax deducted

(1)     After the end of the year, the employer shall give the employee a certificate showing the total amount of the net emoluments paid by the employer to the employee during the year, the total net tax deducted from such net emoluments or repaid and such other particulars as the Board may require.

(2)     In the case of an employee taken into employment after the beginning of the year, the said certificate shall include any net emoluments paid to the employee by any previous employer and any net tax deductible from those net emoluments, being net emoluments and net tax which the employer giving the certificate was required to take into account for the purposes of deducting or repaying tax in the case of any net emoluments paid by him.

(3)     A certificate shall be given under this regulation to every employee who is in the employer’s employment on the last day of the year and from whose net emoluments any tax has been deductible during the year.

PART 3

Payment and Recovery of Tax

25. Payment of tax by employer

(1)     Within fourteen days of the end of every month, the employer shall pay to the Board or as the Board shall direct all amounts of tax which the employer was liable under these regulations to deduct from net emoluments paid by him during such month, reduced by any amounts which he has repaid under these regulations during such month.

(2)     The Board shall give the employer a receipt on the form, authorised by the Board, for the total amount so paid to it.

(3)     If the amount which the employer is liable to pay to the Board under paragraph (1) of this regulation exceeds the amounts actually deducted by him from net emoluments paid by him during the relevant month, reduced by any amounts which have actually been repaid by him during such month, the Board on being satisfied by the employer that he took reasonable care to comply with the provisions of these regulations and that any under-deduction or over-repayment of tax was due to an error made in good faith, may direct that the excess shall be recovered from the employee in respect of whom such under-deduction or over-repayment was made, and, where the Board so directs, the employer shall not be liable to pay the amount of the excess to the Board.

(4)     If the amount which the employer is liable to pay under paragraph (1) of this regulation, had he complied with the provisions of these regulations, exceeds the amounts actually deducted by him from net emoluments paid by him during the relevant month, reduced by any amounts which have actually been repaid by him during such month, and the Board is of the opinion that any employee has received his net emoluments knowing that the employer has wilfully failed to deduct therefrom the amount of tax which he was liable to deduct under these regulations, or has received an over repayment of tax knowing that the employer has wilfully repaid tax contrary to these regulations, the Board may direct that the amount of the excess shall be recovered from the employee in respect of whom such under-deduction or over-repayment was made, and, where it so directs, the employer shall not be liable to pay the amount of the said excess to the Board.

(5)     If a difference arises between the employer and the employee as to whether the employer has deducted tax from net emoluments paid to the employee, as to the amount of the tax that has been so deducted, or as to the amount of the tax that has been repaid by the employer to the employee, the matter shall, for the purpose of ascertaining the amount of any tax to be recovered from the employee under paragraph (3) or (4) of this regulation, be determined by the Board.

(6)     If the total of the amounts which the employer was liable under these regulations to repay during any month exceeds the total of the amounts which he was liable under these regulations to deduct during that month, he shall be entitled to deduct the excess from any subsequent payment which he is liable to make under paragraph (1) of this regulation or to recover it from the Board.

26. Employer failing to pay tax

(1)     If, within fourteen days of the end of any month, the employer has paid no amount of tax to the Board under regulation 25 for that month, and the Board is unaware of the amount, if any, which the employer is liable so to pay, the Board may give notice to the employer requiring him to render, within the time limited in the notice, a return showing the name of every employee to whom he made any payment of net emoluments or repayment of tax in the period from the preceding 1st April, to the day (being the last day of a month) limited by the notice, together with such particulars with regard to each such employee as the notice may require, being particulars of—

(a)     any determination under regulation 8 appropriate to the employee’s case;

(b)     the payments of net emoluments made to the employee during the period; and

(c)     any other matter affecting the calculation of the tax which the employer was liable under these regulations to deduct or repay to the employee during that period.

(2)     The Board, by reference to the tax tables and such other documents as may be necessary, shall ascertain and certify the amount of tax which the employer is liable to pay to the Board under regulation 25 in respect of the month in question.

(3)     The production of the return made by the employer under paragraph (1) of this regulation or of the certificate of the Board under paragraph (2) of this regulation shall be sufficient evidence that the amount shown in the said certificate is the amount of tax which the employer is liable to pay under regulation 25 in respect of the month in question and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

(4)     Where a notice given by the Board under paragraph (1) of this regulation extends to two or more consecutive months, the provisions of these regulations shall have effect as if the said consecutive months were one month.

(5)     A notice may be given by the Board under paragraph (1) of this regulation notwithstanding that an amount of tax has been paid under regulation 25 by the employer for any month, if the Board is not satisfied that the amount so paid is the full amount which the employer is liable to pay to the Board under regulation 25 for that month, and the provisions of is regulation shall have effect accordingly.

27. Recovery of tax

(1)     The provisions of the Law relating to the recovery of tax shall apply to the recovery of any amount of tax which an employer is liable to pay to the Board under regulation 25 of these regulations.

(2)     Proceedings for the recovery of tax as aforesaid may be brought by the Board for the recovery of the total amount which the employer is liable to pay as aforesaid for any month, without distinguishing the amounts which he is liable to pay in respect of each employee and without specifying the employees in question, and for the purpose of such proceedings the said total amount shall be one matter of complaint; but nothing in this paragraph shall prevent the bringing of separate proceedings for the recovery of each of the several amounts which the employer is liable to pay as aforesaid for any month in respect of his several employees.

(3)     A certificate of the Board that any amount of tax such as is mentioned in paragraph (1) of this regulation has not been paid to it or, to the best of its knowledge and belief, to any other person acting on its behalf shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Government of the Lagos State and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

28. Return by employer at end of year

(1)     Not later than one month after the end of each year, the employer shall render to the Board, either on the tax deduction card or in such other form as the Board may provide or authorise, a return in respect of each employee in the employer’s employ at any time during that year showing—

(a)     the name of the employee;

(b)     the place and nature of the employment at the end of the year or at the date of cessation of employment if earlier;

(c)     any determination under regulation 8 appropriate to the employee;

(d)     the total amount of any contributions made by the employee to the Fund and to a pension, provident or other retirement benefits fund, society or scheme approved by the Joint Tax Board and deducted by the employer from the employee’s emoluments during the year;

(e)     the total amount of any net emoluments paid to the employee by the employer during the year;

(f)      the total net tax deducted from net emoluments or refunded to the employee by the employer during the year;

(g)     the total amount of any net emoluments paid to the employee by any previous employer during the year and of any net tax deductible from those net emoluments, being net emoluments and net tax which the employer rendering the return was required to take into account for the purposes of deducting or repaying tax in the case of any net emoluments paid by him;

(h)     the date of cessation of the employment if that employment ceased during the year; and

(i)      such other particulars (if any) as the Board may require.

(2)     The returns required under paragraph (1) of this regulation shall be accompanied by a statement and declaration in the form provided or authorised by the Board containing—

(a)     a list of all tax deduction cards prepared by the employer or issued to him by the Board and in use during the year;

(b)     particulars of the total net tax deducted or the total net tax repaid in the year in the case of each employee in the employer’s employ at any time during the year, the total net tax deducted or the total tax repaid by the employer in respect of such employees during the year and the amount of any tax which the employer is liable to pay under regulation 25 (1) for the final month of the year; and

(c)     a list of the names and places of residence of any class of employees the Board may require whether or not a direction under section 55 of the Law applies to such class of employees.

(3)     Where the employer is a body corporate, the statement and declaration referred to in paragraph (2) of this regulation shall be signed either by the secretary or by a director of the body corporate.

(4)     If more than one month after the end of the year the employer has failed to pay to the Board or as the Board has directed the total net amount of tax which he is liable to pay under regulation 25, the Board may prepare a certificate showing the net amount of tax remaining unpaid for that year; and to the amount shown in the said certificate the provisions of regulation 27 shall apply with any necessary modifications.

29. Inspection of employer’s records

(1)     Every employer, whenever called upon to do so by any person authorised by the Board, shall produce to that person for inspection, at the employer’s premises so at such other place as may be notified to the employer by the Board—

(a)     all wage sheets, salary vouchers, tax deduction cards, and any other documents and records whatsoever relating to the calculation or payment of the emoluments of his employees in respect of the years or months specified by the authorised person or to the deduction or repayment of tax by reference to such net emoluments; or

(b)     such of those wage sheets, salary vouchers, tax deduction cards or other documents and records as may be specified by the authorised person.

(2)     The person authorised by the Board may, on the occasion of each inspection, prepare a certificate by reference to the information obtained from the inspection of the documents and records produced under paragraph (1) of this regulation, and such certificate shall show—

(a)     the amount of tax which it appears from the documents and records so produced that the employer would have been liable to pay under regulation 25 for the years or months covered by the inspection had he complied with the provisions of these regulations; and

(b)     any amount of such tax which, to the best of his knowledge and belief, has not been paid to the Board or to any other person acting on its behalf.

(3)     The production of the certificate mentioned in paragraph (2) of this regulation shall be sufficient evidence that the employer is liable to pay in respect of the years or months mentioned in the certificate the amount shown therein pursuant to paragraph (2) (b) of this regulation; and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

(4)     The provisions of regulation 27 shall apply with any necessary modifications to the amount shown in the said certificate pursuant to paragraph (2) (b) of this regulation.

30. Death of employer

If an employer dies, anything which he would have been liable to do under these regulations shall be done by his personal representative, or, in the case of an employer who paid net emoluments on behalf of another person, by the person succeeding him or, if no person succeeds him, the person on whose behalf he paid such net emoluments.

31. Succession to a business etc.

(1)     This regulation applies where there has been a change in the employer from whom an employee receives net emoluments in respect of his employment in any trade, business, concern or undertaking, or in connection with any property.

(2)     Where this regulation applies, the change shall be treated a cessation of employment for the purposes of regulation 17, but, in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under these regulations if the change had not taken place.

32. Set-off of tax recovered

For the purposes of determining the amount of tax to be set off against tax charged upon the employee by an assessment, the Board shall refer to—

(a)     any tax which the employer is liable to deduct from the employee’s emoluments but which the employer has failed so to deduct, having regard to whether or not a direction has been made under regulation 25 that such tax be recovered from the employee; and

(b)     any tax repayable or remaining unpaid for any year.

33. Recovery of underpayment of tax

If tax which is payable by the employee under the provision of the Law in respect of any year has not otherwise been paid, the Board may require the employee to pay such tax to the Board instead of taking it into account in any determination of aggregated income or free emoluments under regulation 8.

3. High Court of Lagos State (Income Tax Appeals) Rules

made under section 61 (10) of the repealed Income Tax Act and section 89 of the High Court Law and remaining in force by virtue of section 43 (10) of the Personal Income Tax Law

[1st June, 1957]

[Commencement.]

ARRANGEMENT OF REGULATIONS

1. Citation
2. Interpretation
3. Representation
4. Filing of grounds of appeal
5. Form and contents of grounds of appeal
6. Who may sign documents
7. Steps to be taken by registrar after filing
8. Filing and service of respondent’s answer
9. Notice of hearing
10. Party in default
11. Setting aside of judgment
12. Application for enlargement or abridgment of time
13. Service by post, etc.
14. Rules in civil actions to be applied
15. Fees
16. Pending appeals
17. Transfer
18. Case stated
19. Modification of rule 5 in certain cases
20. Revocation of Rules

 

1. Citation

These rules may be cited as the High court of Lagos State (Income Tax Appeals) Rules.

2. Interpretation

In these rules, unless the context otherwise requires—

“the Appeal Commissioners” means the body of Appeal commissioners established under section 35 of the Law;

“the Board” means the Lagos State Internal Revenue Board established under section 3 of the Law;

“the court” means the High Court of Lagos State;

“the Law” means the Personal Income Tax Law;

“registrar” means the senior registrar of the court or any subordinate officer designated from time to time by the Chief Registrar of the court for the purposes of these rules;

“solicitor” means any legal practitioner entitled to practice before the court and includes any law officer.

3. Representation

In all proceedings under these rules the parties may be represented by a solicitor.

4. Filing of grounds of appeal

(1)  Any person authorised to appeal by virtue of the provisions of section 43 of the Law and who has given notice of appeal in accordance with the provisions of the section aforesaid shall deliver or cause to be delivered to the registrar, for filing, his grounds of appeal in writing before the expiration of the thirtieth day after the day on which the notice of appeal was served on the other party.

(2)  There shall be annexed to the grounds of appeal—

(a)     a duplicate or a true copy of the notice of appeal, and a true copy of the assessment, if any, appealed against; and

(b)     where the appeal is made by a person aggrieved by an assessment, an affidavit or affidavits of the date on which such person was served with notice of the Board’s refusal to amend the assessment as desired or of the revised assessment made by the Board, or of the date of the decision of the Appeal Commissioners, as the case may be, and of the date of the service of the notice of appeal on the Board; or

(c)     where the appeal is made by the Board, an affidavit or affidavits of the date of the decision of the Appeal Commissioners and of the date of the service of the notice of appeal on the respondent.

(3)     The appellant shall, when presenting for filing his grounds of appeal and the documents (if any) annexed thereto, pay to the registrar the fees for filing and service and shall supply the registrar with additional copies of the grounds of appeal and of any other document mentioned in the last preceding paragraph for service on the respondent.

(4)     If the appellant fails to comply with the provisions of the last preceding paragraph or fails to give an address for service as prescribed by paragraph (4) of the next succeeding rule, the registrar shall refuse to accept the documents presented for filing.

(5)     Save where the court otherwise orders in exercise of the powers conferred by rule 12 of these rules, the registrar shall refuse to accept the documents presented for filing where the documents are presented for filing after the time prescribed by paragraph (1) of this rule.

5. Form and contents of grounds of appeal

(1)     The grounds of appeal shall be signed by the appellant or by any of the persons authorised to sign on his behalf as provided by the next succeeding rule.

(2)     The grounds of appeal shall set out concisely in separate paragraphs the relevant facts (but not the evidence by which they are to be proved) or any point of law, or both, upon which the appellant intends to rely in support of his appeal and the concluding paragraph shall, where the appeal is against an assessment, set out—

(a)     the amount of the income shown on such assessment and upon which tax has been assessed, and also the amount of the tax as assessed and the identification number of the assessment; and

(b)     the amount of the income upon which the appellant considers the tax should have been assessed, and the amount of the tax thereon payable, which the court is asked to find and adjudge as being the proper amounts:

Provided that this paragraph shall be read where necessary, subject to the modifications set out in rule 19.

(3)     Any ground of appeal which is vague or general in terms may be struck out by the court.

(4)     At the foot of the grounds of appeal there shall be stated the address for service in Lagos State, at which documents intended for the appellant may be served in accordance with the provisions of rule 13.

6. Who may sign documents

Any document which is required by these rules to be signed by the appellant or by the respondent may be signed—

(a)     by a person holding a special power of attorney given by the appellant or the respondent, as the case may be; or

(b)     by the appellant’s solicitor or the respondent’s solicitor, as the case may be; or

(c)     where the appellant or the respondent is a body corporate, by the secretary or other duly authorised officer of such body.

7. Steps to be taken by registrar after filing

(1)     Upon the filing of grounds of appeal, the registrar shall endorse thereon the date of filing the same, and the appeal shall be entered in a register of income tax appeals to be kept for that purpose.

(2)     The registrar shall cause a copy of the grounds of appeal and of any affidavit annexed thereto to be served upon the respondent, whose address shall be furnished by the appellant.

8. Filing and service of respondent’s answer

(1)     Before the expiration of the thirtieth day after the day on which the grounds of appeal were served upon him, the respondent shall deliver or cause to be delivered to the registrar, for filing, a concise statement of the relevant facts (but not of the evidence by which they are to be proved) or any point of law, or both, upon which he intends to rely at the hearing of the appeal, and shall comply with the provisions of paragraphs (2) and (4) (a) of this rule.

(2)     Such statements shall be signed by the respondent or by any of the persons authorised to sign on his behalf as provided by rule 6 and shall hereafter be referred to as the “respondent’s answer”.

(3)     At the foot of the respondent’s answer there shall be inserted an address for service in Lagos State, at which documents intended for the respondent may be served as prescribed by rule 13. If an address for service is not given, the respondent’s answer shall not be filed.

(4)(a)          The respondent shall, when presenting his answer for filing, pay to the registrar the fees for filing and service and supply the registrar with a copy of the said answer for service on the appellant.

(b)     In default of compliance by the respondent with the requirements of the preceding sub-paragraph, the registrar shall refuse to accept the respondent’s answer for filing.

(5)     Upon filing the respondent’s answer, the registrar shall endorse thereon the date of filing.

(6)     The registrar shall cause a copy of the respondent’s answer to be served upon the appellant fifteen days at least before the date fixed for the hearing of the appeal.

9. Notice of hearing

(1)     The registrar shall give fifteen clear days’ notice in writing to the parties of the date fixed for the hearing of the appeal. Such notice shall not be given before the appellant has been served with a copy of the respondent’s answer in accordance with the provisions of rule 8 (6).

(2)     The provisions of rule 13 shall apply to the service of notices of hearing.

10. Party in default

(1)     If a party to an appeal omits to do any act or take any proceeding, within the time prescribed therefor or fixed by an order enlarging the time, the other party may move the court to give judgment against the party in default, and the court may thereupon give judgment against the party in default.

(2)     A motion under paragraph (1) shall be made on notice to the party in default and the party who files such a notice of motion shall supply the registrar with a copy thereof for service on the other party to the appeal and shall pay the fees for filing and service to the registrar. If the requirements of this paragraph are not complied with, the registrar shall refuse to accept the notice of motion for filing.

(3)     The court may, on good cause shown by affidavit or otherwise, dispense with service of the notice of motion or make an order for substituted service.

(4)     If the respondent to an appeal files a notice of motion under this rule before the appellant has filed his grounds of appeal or any other document, the heading of the notice shall be as follows—

“Between A.B.              Appellant

and

C.D.      Respondent

Notice of motion by Respondent C.D.”

(5)     A notice of motion given under the provisions of this rule shall mention the respondent’s address for service in Lagos State and it shall not be necessary for the respondent to give an address for service in any answer he may file after giving such an address in the notice of motion. The address thus given shall be deemed to be the address for service for all the purposes of these rules.

11. Setting aside of judgment

(1)     Where judgment is given against a party in his absence and in the absence of his solicitor, whether under rule 10 or any other rule applicable to the appeal, the other party shall give him notice of the judgment and attach thereto an office copy thereof.

(2)     The court may in a proper case, upon motion supported by affidavit, after notice to the party who obtained the judgment in the absence of the other party, set aside the judgment and give directions for the hearing of the appeal such terms as the court may think just; but no such motion shall be entertained unless notice thereof has been duly filed with the registrar within fifteen days of the date on which notice of the judgment was served; nor shall the time hereby prescribed be extended under rule 12 in any circumstances whatsoever.

(3)     Where a party delivers a notice of motion under the last preceding paragraph of this rule for filing, he shall supply the registrar with a copy of the notice and of the affidavit for service on the party who obtained the judgment and shall pay the fee for filing and service.

(4)     If the requirements of the last preceding paragraph are not complied with, the registrar shall refuse to accept the documents for filing.

(5)     Subject to paragraph (2) of this rule, no judgment of the court shall be set aside or reviewed by the court, any rule to the contrary notwithstanding.

12. Application for enlargement or abridgment of time

(1)     The court shall have power to enlarge or abridge the time appointed by these rules or fixed by any order enlarging time for doing any act or taking any proceeding upon such terms (if any) as the justice of the case may require, and any such enlargement may be ordered although the application for such enlargement is not made until after the expiration of the time appointed or allowed:

Provided that where the time for delivering or filing any document, or doing any act, is or has been fixed or limited by any of these rules or by any direction or order of the court, the costs of any application to extend such time and of any order made thereon shall be borne by the party making such application unless the court shall otherwise order.

(2)     Every application for enlargement or abridgement of time shall be made by motion on notice supported by one or more affidavits.

(3)     The notice of motion and the affidavit or affidavits shall be filed with the registrar.

(4)     The intending appellant shall pay the fees prescribed for filing and for service on the other party and shall supply the registrar with copies for service. If the provisions of this paragraph are not complied with, the registrar shall refuse to accept the documents for filing.

(5)     The court may for good cause shown dispense with notice to the other party.

(6)     Where the court allows a motion made under the provisions of this rule, the order of the court shall be drawn up and filed, and shall be served on the other party at the expense of the appellant unless the other party aforesaid was present when the order was made or unless the court, for good reason, otherwise directs.

13. Service by post, etc.

(1)     Where any notice or other document has to be served on any party to an appeal under these rules, the following provisions shall apply—

(a)     Where an address for service in Lagos State has been given by the party to be served, service shall be sufficiently effected by sending the notice or other document by registered post to the said address or by a bailiff of the court delivering it at the said address to an adult person employed or residing at such address.

(b)     If the party to be served is carrying on a business either alone or jointly with other persons, service shall be sufficiently effected by a bailiff of the court delivering the notice or other document to any person employed at the place where such business is being carried on or by sending it by registered post to the said place.

(c)     Where the party to be served is acting by a solicitor who has given his address for service in Lagos State, service shall be sufficiently effected by a bailiff of the court delivering the notice or other document to any clerk or other person in the employment of such solicitor at the address for service or by sending it by registered post to the aforesaid address.

(d)     Where the notice or other document is sent by registered post, it shall, unless the contrary be proved, be deemed to have been served at the time when the registration slip should have reached the addressee in the ordinary course of post, and in proving service of the notice or document it shall be sufficient to prove that it was properly addressed, franked or prepaid, and sent by registered post.

(e)     A person may change his address for service by giving notice in writing to the registrar and paying the prescribed fee for service on the other party to the appeal. Until these requirements have been fulfiled, the old address for service shall continue to be effective for the purposes of these rules.

Personal service

(2)     In addition to the modes of service mentioned in paragraph (1) of this rule, service of a notice or other document on a party to an appeal shall be sufficiently effected by personal service in the manner prescribed by the High Court civil procedure rules for the time being in force in respect of writs of summons.

(3)     The High Court civil procedure rules for the time being in force shall also apply in respect of service of any subpoena on any person.

Substituted service

(4)     Where service of a notice or other document on a party to an appeal in one of the foregoing modes has proved impracticable, an application may be made ex-parte to the court or to a judge of the court in chambers for leave to dispense with service or to effect service in some other manner and the court or judge may thereupon give leave to dispense with service or may direct service to be effected by advertisement in the Gazette or in a local daily newspaper or in any other manner which may seem fit. An application made under this paragraph shall be supported by affidavit.

14. Rules in civil actions to be applied

(1)     Subject to the express provisions of section 43 of the Law and of these rules, the practice and procedure of the court in relation to an appeal under the provisions of these rules shall be assimilated as nearly as may be to the practice and procedure of the court in the exercise of its civil jurisdiction as if the appellant and the respondent were respectively the plaintiff and the defendant in an action, and the civil procedure rules of the court for the time being in force shall apply with such modifications as may be necessary.

(2)     Evidence in relation to any such appeal may be adduced in any manner in which it may be adduced in an action.

(3)     The court may give such directions as it may deem fit to give effect to the foregoing provisions of this rule.

15. Fees

The scale of fees for the time being in force in respect of civil actions in the court shall be applied in the case of appeals under these rules as if they were civil actions and as if the grounds of appeal were a writ of summons and the respondent’s answer were a statement of defence:

Provided that the fee payable for the filing of the grounds of appeal shall be charged at the rate applicable to writs of summons on the difference between the amount of the tax payable under the assessment appealed against and the amount of the tax which the court is asked to adjudge as being the proper amount of the tax:

Provided further that no fees shall be payable by the Board.

16. Pending appeals

(1)     These rules shall not apply to any appeal pending on the date when these rules come into operation if the grounds of appeal and the respondent’s answer have already been duly filed. When notice of appeal has been duly given, an appeal shall be deemed to be pending.

(2)     Where in any appeal pending as aforesaid no grounds of appeal have been filed prior to the day when these rules come into operation, such grounds shall be filed within thirty days from the date aforesaid and these rules shall apply.

(3)     Where in any appeal pending as aforesaid the grounds of appeal have been filed prior to the date when these rules come into operation but the respondent’s answer has not been filed prior to the said date, such answer shall be filed within thirty days from the said date and these rules shall apply.

(4)     Where, by reason of paragraph (1) of this rule, the provisions of these rules do not apply to a particular appeal, such appeal shall be governed by the provisions of the Income Tax (Appeals to Court) Rules which, for that purpose, shall be deemed to be still in force notwithstanding rule 20 of these rules.

17. Transfer

The Chief Judge may, at any time or at any stage of an appeal before final judgment, transfer any appeal from one judge to any other judge in the High Court, in the same manner as an action may be transferred; and an order transferring an appeal shall have the same effect as an order transferring an action.

18. Case stated

(1)     At any time during the hearing of an appeal, before the final decision of the court has been given, the court may state a case on a point of law for the opinion of the Court of Appeal.

(2)     The statement shall be headed with the cause number and the names of the parties to the appeal, and shall be divided into paragraphs setting out the circumstances in which the question of law reserved by the court arises. The question of law shall be separately stated in the final paragraph of the case stated.

(3)     The case stated shall give the addresses of the parties.

(4)     Where a case has been stated as above provided, it shall be sent to the Chief Registrar of the Court of Appeal (together with three copies for the use of the Court of Appeal) and the hearing of the appeal shall be stayed until the opinion of the Court of Appeal has been received.

19. Modification of rule 5 in certain cases

Rule 5 shall apply subject to the following modifications in the case of any appeal arising under any of the provisions of the Personal Income Tax Law, specified in this rule, that is to say – in relation to section 21 (2), the proviso to section 23 (4) and section 25 (8) of the said Act, the “concluding paragraph” mentioned in paragraph (2) of rule 5 of these rules shall set out the amount of the claim or deduction, as the case may be, sought by the appellant, and the first proviso to rule 15 shall not apply.

20. Revocation of Rules

The Income Tax (Appeal to Court) Rules are hereby revoked.

4. Personal Income Tax (Exemption) (Special Personnel) Order

[L.S.L.N. 3 of 1973.]

under section 13

[1st April, 1971]

[Commencement.]

ARRANGEMENT OF REGULATIONS

 

1. Citation and commencement
2. Exemption
3. Duration of Order
4. Citation and commencement

This Order may be cited as the Personal Income Tax (Exemption) (Special Personnel) Order, and shall be deemed to have come into operation on 1st April, 1970.

2. Exemption

The Chief Tax Instructor appointed by the Office of the Federal Board of Inland Revenue and the Resident Engineer of Messrs G.K.W. Consulting Engineers of the Lagos State Waterworks Expansion Programme, are hereby exempted from the provisions of the Personal Income Tax (Lagos) Act, 1961, in respect of incomes derived by them by virtue of their employment within the area of the Lagos State.

3. Duration of Order

This Order shall, unless sooner revoked, continue in force for so long as the said holders of the offices of Chief Tax Instructor and the Resident Engineer of Messrs G.K.W. Consulting Engineers, remain in the employment of the Federal Board of Inland Revenue and the Consulting Engineers of the Lagos State Water Expansion Programme respectively.

PERSONAL INCOME TAX (BODY OF APPEAL COMMISSIONERS) NOTICE [L.S.L.N. 12 OF 1974.]

[1st October, 1972]

[Commencement.]

1. Establishment and membership of Appeal Commissioners

(1)     A body of Appeal Commissioners is hereby established for the Lagos State for the purpose of the Personal Income Tax (Lagos) Act, 1961.

(2)     The members of the body of Appeal Commissioners shall consist of the persons specified in the Schedule hereunder.

2. Citation and commencement

(1)     This Notice may be cited as Personal Income Tax (Body of Appeal Commissioners) Notice.

(2)     This Notice shall be deemed to have come into force on the 1st day of October, 1972.

Schedule

(a)        Dr A.V.J. Nylander       Chairman

(b)        Mr M.O. Anibaba         Member

(c)        Mr M.A Shabiolegbe    Member

(d)        Mr I.O. Alokolaro         Member

(e)        Chief Akin Adeshigbin Member