The Tax Appeal Tribunal (TAT) has ruled in favour of the Nigerian tax authority to levy withholding tax on dividends paid out of gas profits by an upstream petroleum company.
The judgement takes a simple view of a rather complex provision of Sections 60 and 11 (2) of the Petroleum Profits Tax Act (PPTA) and Sections 80 and 9(1) (c) of the Companies Income Tax Act (CITA). A more in-depth analysis will be required in the future to conclusively resolve the issue.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.