The Nigerian tax laws outline steps to tax dispute resolution procedures for tax issues. Although the various tax laws stipulate different timelines for compliance and appeal, the basic procedure remains largely the same. Upon filing of tax returns, the tax authorities review each taxpayer’s return for correctness. If, in the opinion of the tax authority, the taxpayer has not declared or remitted the right amount of tax, the tax authorities would impose an assessment event that such taxpayers fail to file their returns. The tax authorities are also empowered to impose assessments based on their “best of judgment” on such taxpayer.
Rather than entering a potentially risky situation and end up paying more in fees and interest without a resolution, here are five steps you can take take when faced with tax issues.
Steps to Tax Dispute Resolution
- Object to such Assessment in Writing – A taxpayer that is aggrieved by the assessment of an RTA may object to such assessment in writing within a stipulated timeline. Afterwards, such RTA may choose to amend or refuse to amend the assessment. In the event that the RTA refuses to amend the assessment, the RTA would issue a Notice of Refusal to Amend (NORA).
- Contact the RTA – After receiving notice of any outstanding tax obligations or penalties, it is essential to contact the Relevant Tax Authority and address the issue immediately. If you speak to a revenue officer, he is going to be willing to work with you depending on your circumstances. The revenue officer may ask you to submit certain financial information to show your ability to pay.
- Ask for Payment Program Options – Consumers unable to pay off taxes, penalties and fees in full should inquire about their eligibility to participate in the RTA offer in compromise program-but be prepared to back up claims of financial hardships with necessary documents, Depending on their circumstances, taxpayers may also be eligible for the installment payment
- Opt for a Litigation – If the taxpayer is still aggrieved with the submission of RTA, such taxpayer may opt for a litigation procedure or an alternative dispute resolution mechanism available to press further on his demands.
- When in Doubt, Hire a Tax Consultant – Some tax matters get so complicated that it is best to work with a reputable tax professional. Except it is a very small amount and you know that you can pay it off over a relatively short period of time, the best thing to do is get to a reputable accountant, tax attorney or specialist who will explain to you, the process and not promise the moon, then you have the facts you can deal with. It is in taxpayers’ best interest to be honest and upfront about their situation and provide the professional handling their case with as many documents as possible, to increase their chances of reaching an agreement with the RTA.
For more information:
SOW Professional Services, is a reputable tax consultant in Nigeria, as a professional tax consultant in Nigeria, we understand how tax problems can be resolved, hence, we look forward to assist you with this process. Please call: Call us on 07038254989 or send a mail to: email@example.com WhatsApp: 07038254989, www.sowprofessional.com