The Nigeria Tax Act, 2025, alongside the Nigeria Tax Administration Act (NTAA), 2025, establishes clear pathways for taxpayers to challenge tax assessments they believe are incorrect, excessive, or improperly calculated.
What Exactly Is a Tax Assessment?
Before diving into the appeal process, it’s important to understand what you’re dealing with. A tax assessment represents the tax authority’s official calculation of what you owe. This determination can come from three main sources:
First, there’s self-assessment, which comes directly from the tax returns you file yourself. Second, administrative assessments are issued when you fail to submit your returns within the required timeframe. This prompts the tax authority to make their own calculations. Third, additional assessments arise following audits or investigations that uncover discrepancies between what was reported and what the authority believes you actually owe.
Once issued, any assessment is considered valid under law unless you take action to challenge it within the specified timeframe.
Common Reasons to File an Appeal
Not every disagreement warrants a formal appeal, but several legitimate situations call for one. They include any of the following.
1. Mathematical errors in calculating your liability. These are surprisingly common and entirely justifiable grounds for appeal.
2. Similarly, when tax authorities misinterpret or misapply specific provisions of tax law to your situation, you have every right to challenge their conclusions.
3. You might also need to appeal when the assessment denies deductions, exemptions, or reliefs that you’re legally entitled to claim.
4. Also, procedural irregularities, such as assessments issued without proper notification or investigation, can also be contested.
5. Finally, if your assessment appears arbitrary or drastically different from similar cases without reasonable justification.
Stage One: Filing Your Objection
The appeals process begins not in court, but with the tax authority that issued the assessment.
Under Section 68 of the Nigeria Tax Administration Act, 2025, you must file a written objection within 30 days from the date you received the assessment notice. This deadline is strict. If you miss it, the assessment becomes final regardless of its accuracy.
Your objection needs to be comprehensive and specific. Address it to the relevant tax authority, whether that’s the new National Revenue Services (NRS) which replaces the Federal Inland Revenue Service (FIRS), your State Internal Revenue Service (SIRS), or the local revenue office. Clearly identify which aspects of the assessment you’re disputing and explain precisely why you disagree. Most importantly, attach all supporting documentation, receipts, financial records, contracts, correspondence, or any other evidence that substantiates your position.
After receiving your objection, the tax authority will review it and respond in one of three ways: they may amend the assessment if they find your arguments convincing, confirm the original assessment if they believe it’s correct, or withdraw it entirely if they determine it was issued in error.
Stage Two: Taking Your Case to the Tax Appeal Tribunal
If the tax authority’s response to your objection doesn’t resolve the matter to your satisfaction, the next step is appealing to the Tax Appeal Tribunal (TAT). Established under Section 70 of the Nigeria Tax Administration Act, 2025, the TAT is an independent body with divisions across all six geopolitical zones plus the Federal Capital Territory.
The Tribunal was designed to be more accessible and less formal than traditional courts while maintaining the authority to make binding decisions. You have 30 days from receiving the tax authority’s decision on your objection to file your appeal using Form TAT 1A.
Your appeal should include your complete details including name, address and Taxpayer Identification Number (TIN). Outline your grounds for appeal clearly, specify the relief you’re seeking, and attach copies of all relevant documents including the original assessment, your objection letter, and the authority’s response.
What An Appeal Might Cost
The TAT charges filing fees based on the amount in dispute. For amounts up to ₦100,000, the fee is ₦2,000. Disputes between ₦100,001 and ₦500,000 cost ₦6,000 to file. For amounts between ₦500,001 and ₦5,000,000, you’ll pay ₦10,000, while disputes exceeding ₦5,000,000 require ₦14,000. Appeals without a specific monetary claim cost ₦4,000.
Significantly, a 2024 Federal High Court ruling eliminated the requirement for taxpayers to deposit 50% of the disputed amount before filing an appeal. While the 2025 Act doesn’t explicitly address this change, the judicial precedent remains in effect, making the appeal process more accessible to taxpayers of all financial capacities.
The Hearing Process
Once your appeal is properly filed, the TAT schedules hearings where both parties present their cases. The tax authority must respond within 30 days of being served with your appeal, either contesting it or accepting your position.
The Tribunal may order a pre-trial conference to narrow down the disputed issues and explore possible settlements. During formal hearings, both sides present evidence, call witnesses if necessary, and make legal arguments. You have the right to represent yourself or be represented by a tax consultant, lawyer, or accountant.
The 2025 Act emphasizes efficiency. In other words, the TAT is required to conclude proceedings within six months from when the trial commences. After deliberation, the Tribunal issues a written decision explaining its reasoning, which must be delivered within 60 days of the hearing’s conclusion.
Payment Obligations During Appeals
One of the balanced reforms in the 2025 framework concerns payment during the appeal process. You’re required to pay any undisputed portion of the assessment, but the disputed amount may be temporarily suspended pending the Tribunal’s determination. Crucially, the tax authority cannot enforce collection of the disputed amount without the Tribunal’s approval, preventing aggressive collection tactics while legitimate disputes are being resolved.
Further Appeals
If you’re dissatisfied with the TAT’s decision, you can appeal to the Federal High Court. But this can be done only on points of law, not on factual matters. This means the court examines whether the Tribunal correctly interpreted and applied the law, not whether it reached the right factual conclusions.
Also, this appeal must be filed within 30 days of the TAT’s decision.
From the Federal High Court, cases can progress to the Court of Appeal and, in exceptional circumstances, the Supreme Court. However, most tax disputes now conclude at the TAT level due to its specialized expertise and efficiency.
| Stage | Authority | Timeline | Outcome |
|---|---|---|---|
| 1. Objection | Tax Authority (NRS, SIRS, etc.) | Within 30 days of assessment | Review or amendment of assessment |
| 2. Appeal | Tax Appeal Tribunal (TAT) | Within 30 days after objection decision | Hearing and written judgment |
| 3. Further Appeal | Federal High Court | Within 30 days after TAT decision | Legal review (points of law only) |
Modernization and Accessibility
The appeal process has been modernized significantly. Electronic filing through the TAT portal reduces paperwork and speeds up the process. Virtual hearings are now permitted for certain proceedings, as a way of eliminating travel requirements. In some cases, disputes can be resolved entirely through documentary evidence without oral hearings.
Whether you’re a corporate executive, small business owner, or individual taxpayer, understanding this process empowers you to stand up for fairness in tax administration. The new law provides the tools. Using them wisely is both your right as well as your responsibility as an informed citizen.
For specific assistance with your tax appeal, reach out to Taxpal for consultation. You can also contact the Tax Appeal Tribunal directly at: Tax Appeal Tribunal No 23, Panama Street, Maitama, Abuja, Nigeria Phone: +234 905 455 0033 Email: [email protected]
