ARTICLE
8 June 2016

Tax Appeal Tribunal Supports Tax Deduction For Modified Carry Arrangement Costs

PN
PwC Nigeria

Contributor

PwC Nigeria logo
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.
Typically, a Modified Carry Arrangement is where an oil company finances petroleum operations on behalf of all parties to the contract including the NNPC and the oil company is expected to recover its cost...
Nigeria Tax

Typically, a Modified Carry Arrangement is where an oil company finances petroleum operations on behalf of all parties to the contract including the NNPC and the oil company is expected to recover its cost partly through tax deduction and partly from oil production.

The contention was whether an oil company can claim tax deductions for cost incurred under a Modified Carry Arrangement. The case was brought before the Tax Appeal Tribunal (TAT) by an International Oil Company (IOC) against the Federal Inland Revenue Service. The TAT ruled that the IOC was entitled to make deductions for tax purposes in computing its taxable profit in accordance with the provisions of the Petroleum Profits Tax Act.

Download PwC Tax Alert_ TAT on Modified Carry Deductions

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More