Tax newsletter
The Tax Appeal Tribunal (TAT), on 2 June 2016, delivered a ruling on the applicability of value added tax (VAT) and withholding tax (WHT) on reimbursable expenses in the case between Brasoil Oil Services Company (Nigeria) Limited (Brasoil or the Company) and Federal Inland Revenue Service (FIRS). Other issues considered in the case include the applicability of WHT on extraterritorial income and the liability of taxpayers to interest and penalties on additional assessments, after validly objecting to FIRS' assessments and subsequently filing appeal to contest such assessments.
In delivering its ruling, TAT held that Brasoil was under obligation to deduct VAT and WHT on the contract sum of its Technical Service Agreement (TSA) with its parent company, Petrobras SA (Petrobras), with the exception of the reimbursable expenses.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
