Taking A Look At The Latest TAT Decision On NITDA Levy

Taking A Look At The Latest TAT Decision On NITDA Levy

• There are have been massive developments in the Nigerian Tax space in recent years. From developments regarding the OECD guidelines on minimum tax, to landmark decisions on topical tax issues, it’s important to stay abreast of recent updates in the tax space.

• The Tax Appeal Tribunal (TAT) has delivered a recent ruling on the applicability of the NITDA levy.

• Background Of The Case

• In the case of INT Towers Ltd v FIRS, the appellant, INT Towers is a company involved in operations relating to infrastructural sharing and allocation of telecom facilities to telecoms in Nigeria. The appellant received an assessment notice from the FIRS for the payment of NITDA Levy to which they objected to. Subsequently, as is it’s with the FIRS, they issued a notice of refusal to amend, and so, INT Towers filed an appeal the Lagos Tax Appeal Tribunal.

• Decision

• The tribunal held thus, network facilities providers, being not exactly telecommunications companies are not subject to the 1 percent NITDA levy.

• Importantly, the tribunal also clarified that, obtaining a NCC license does not make one a telecom company and automatically subject to NITDA levy.

• This decision is quite progressive and a big statement in the telecom world.

Reference

https://pwcnigeria.typepad.com/tax_matters_nigeria/2023/02/tat-rules-that-information-technology-it-levy-does-not-apply-to-network-facilities-providers.html accessed on Feb 2023

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