BY ABDULWAHAB ABDULAH
BENIN—Two days after Edo State Government and Federal Airport Authority of Nigeria, FAAN, bickered over tax payment, the Tax Appeal Tribunal, TAT, South-South Zone, has ordered Global Marine Baltic Incorporation, a multi-national oil company to pay $1,770,995 (about N279.8 million) tax due to the Federal Inland Revenue Service, FIRS.
The tribunal in its judgment, yesterday, in Benin, Edo State, ordered the company to pay the sum, as its income tax liability for 1997, 1998 and 2000 respectively.
The three-man tribunal led by Mr. Adenike Eyoma, ruled on the suit filed by the company, challenging additional tax assessment served on it by FIRS, in respect of one of its subsidiaries, Global Marine Offshore Drilling Limited.
The tribunal held the additional assessment notices for the three years under dispute were valid and made in accordance with the law, adding they did not amount to double taxation as claimed by the company.
Global Marine Baltic Incorporation, had asked the tribunal to declare that charges in respect of its subsidiary do not form part of its revenue derived from Nigeria for the purposes of taxation under Section 26 of the Company Income Tax Assessment, CITA.
It also prayed the court to declare that “inclusion of the recharges as part of the taxable revenue/profit of the appellant derived from Nigeria amounts to double taxation and therefore, unjust, null and void.”