Tax Tribunal Agrees With PwC On Deductibility Of Expenses Incurred Outside Nigeria

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PwC Nigeria

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PwC Nigeria is one of the leading professional services ?rms in Nigeria with of?ces in Lagos, Abuja and Port Harcourt, with over 1,000 staff and 31 resident partners. We are committed to serving as a force for integrity, good sense and wise solutions to the problems facing businesses and the capital markets. We are guided by one promise – to do what is right, be it with our people, clients, community, or environment.
Section 27(i) of the Companies Income Tax Act disallows "any expense of any description incurred outside Nigeria for and on behalf of any company except of a nature and to the extent that the Board ("FIRS") may consider allowable".
Nigeria Tax

Section 27(i) of the Companies Income Tax Act disallows "any expense of any description incurred outside Nigeria for and on behalf of any company except of a nature and to the extent that the Board ("FIRS") may consider allowable".

PwC argued on behalf of the Appellant and the TAT agreed that section 27(i) does not apply to an expense that is incurred for the business and benefits of a company by itself but rather applies to expenses incurred on behalf of another company. The FIRS countered by submitting that the section applies to expenses incurred for the company and expenses incurred for another company.

Read our alert for more Download PwC Tax Alert_ Deduction of Expenses Incurred Outside Nigeria

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