Economy

Ecobank Nigeria To Appeal Tribunal Judgment Over N1.6bn Tax Liability

The management of Ecobank Nigeria Limited, on Thursday, said it will appeal the judgement of the Tax Appeal Tribunal (TAT), sitting in Lagos in respect of disputed tax liability between it and the Federal Inland Revenue Service (FIRS) for the 2015 financial year.
The TAT had ordered Ecobank to pay excess dividend tax on the dividend sum of N5.545bn it declared for the financial year ended December 31, 2015, amounting to an excess dividend tax liability of N1.6bn.
Assuring that it will appeal the TAT decision at the Federal High Court, Ecobank Nigeria, a member of the Ecobank Group, further contended that the correct excess dividend tax liability ought to have been N1,311,673,367.
The appeal, it noted, is based on the advice from its professional consultants, that the dividend declared relates to income from sources which are statutorily exempt from tax by virtue of the Companies Income Tax (Exemption of Bonds and Short Term Government Securities) Order, 2011.
Whilst always open to engagement, the bank said its position is based on the principle that income established to be exempt from Companies Income Tax should not contrary to the intendment of the law, be subjected to the same tax it was intended to be exempt from.
It assured that being a responsible corporate citizen, it abides “by laws and regulations and believe that this matter should be conclusively determined in line with the applicable judicial process.”

Tags

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close