FIRS Objection Letter (Nigeria)

A FIRS Objection Letter in Nigeria sets out, in writing, the request or notice the sender directs to the recipient.

Under Section 68(1) of CITA, a company that wishes to contest a FIRS assessment must file a written notice of objection with the relevant FIRS office within 30 days from the date of service of the assessment notice. The objection must state the grounds of objection in sufficient detail, specify the amount the taxpayer considers to be the correct tax liability, and be accompanied by any supporting evidence, audited accounts, computations, or legal authorities relied upon. Failure to file within 30 days results in the assessment becoming final and conclusive under Section 68(4) of CITA, depriving the taxpayer of any further right to challenge the assessment except through the discretionary extension provisions.

The FIRS objection process is the mandatory first administrative step before a taxpayer can access the Tax Appeal Tribunal (TAT) — established under the Federal Inland Revenue Service (Establishment) Act 2007 — and subsequently the Federal High Court on points of law. The TAT, constituted under Section 59 of the FIRSEA 2007 and the Tax Appeal Tribunal (Establishment, etc.) Order 2010, hears appeals from taxpayers who are dissatisfied with FIRS's determination of an objection. A taxpayer who has not filed a timely objection cannot appeal directly to the TAT.

A FIRS Objection Letter must be distinguished from a FIRS Query Response (which responds to FIRS audit queries during an ongoing investigation, before a formal assessment is raised), a Tax Appeal Tribunal Appeal (which is filed after the objection is determined, if the taxpayer remains dissatisfied), and a Request for Information (which is a voluntary response to FIRS's request for records under Section 29 of the FIRSEA 2007).

The legal framework governing the FIRS Objection Letter (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a FIRS Objection Letter (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Federal Inland Revenue Service (Establishment) Act 2007 sets the foundational requirements.

A FIRS Objection Letter in Nigeria is needed whenever a taxpayer receives a FIRS assessment notice that is incorrect, excessive, or based on wrong facts or law, and wishes to preserve their rights to challenge the assessment.

A FIRS Objection Letter is required when FIRS raises a best of judgment (BOJ) assessment under Section 66 of CITA against a company that failed to file its CIT return on time, estimating the company's taxable profits at an amount the company considers excessive. The BOJ assessment is automatically raised on the FIRS's assumed profits; only a timely objection can challenge this figure.

A FIRS Objection Letter is needed when FIRS raises an additional assessment following a tax audit, claiming disallowance of deductions (such as management fees, intercompany charges, or interest on shareholder loans) that the company considers allowable under CITA or applicable tax treaties. The Finance Act 2021 introduced restrictions on interest deductibility under the earnings stripping rules; disputes on the application of these rules frequently require formal objection.

A FIRS Objection Letter is required when a company disagrees with FIRS's transfer pricing adjustment under the Income Tax (Transfer Pricing) Regulations 2018, where FIRS has re-priced intercompany transactions to reflect an arm's length price that the company considers excessive or methodologically incorrect.

A FIRS Objection Letter is needed when FIRS raises a VAT assessment under the Value Added Tax Act (VATA) Cap V1, LFN 2004, charging output VAT on supplies the company considers exempt or zero-rated under the VATA Schedules, or disallowing input VAT credits the company considers legitimate.

A FIRS Objection Letter is required when FIRS raises a withholding tax (WHT) assessment on payments the company made to contractors or service providers, claiming WHT was not deducted at the correct rate or was not remitted on time under Section 81 of CITA.

A FIRS Objection Letter is needed when a non-resident company receives a FIRS assessment on income that the company considers outside the scope of Nigerian taxation by virtue of a Double Taxation Agreement (DTA) between Nigeria and the company's home country — Nigeria has DTAs with the UK, France, South Africa, China, Belgium, the Netherlands, Romania, Pakistan, and several other countries.

Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters.

A valid FIRS Objection Letter must contain the following essential elements to be accepted by FIRS and to preserve the taxpayer's statutory rights under Section 68 of CITA.

Addresee and Assessment Reference: The letter must be addressed to the relevant FIRS tax office — the integrated tax office (ITO) or large taxpayer office (LTO) responsible for the taxpayer's account. The FIRS assessment notice number, date, and the tax year to which the assessment relates must be clearly stated at the outset.

Taxpayer Identification: Full legal name of the taxpayer company, TIN, CAC RC number, and registered address as in FIRS records. For corporate taxpayers, the letter must be signed by a director, company secretary, or authorised tax representative (a tax practitioner enrolled with FIRS or a member of the Chartered Institute of Taxation of Nigeria — CITN).

Grounds of Objection: The specific factual and legal grounds on which the taxpayer disputes the assessment — for example, incorrect characterisation of income, disallowance of legitimate deductions, double taxation treaty protection, computation errors, or time-bar (where the assessment was raised outside the 6-year FIRS assessment limitation period). Each ground must be stated separately and with sufficient particularity for FIRS to evaluate.

Amount Admitted as Correct: Under Section 68(1) of CITA, the objection must state the amount the taxpayer admits to be correct tax. A taxpayer who objects to 100% of the assessment must still state that the correct amount of tax is zero, with reasons.

Request for Stay of Enforcement: Where applicable, a request that FIRS stay enforcement of the assessment (recovery of the disputed amount) pending determination of the objection and any subsequent TAT appeal, under the provisions of Section 68(3) of CITA.

Supporting Evidence: Audited financial statements, tax computations, board resolutions, intercompany agreements, transfer pricing documentation, DTA certificates of residence, WHT credit notes, and any other documents that support the grounds of objection. Attach all evidence to the letter as numbered exhibits.

Request for Meeting: Most FIRS objections are resolved through a negotiated settlement meeting between the taxpayer's tax advisers (typically CITN members or ICAN-qualified tax accountants) and the FIRS objection desk officer. A specific request for such a meeting within the body of the letter often supports faster resolution.

Additional compliance elements for a FIRS Objection Letter (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.