29 June 2018 Nigeria's Federal High Court rules that Minister's approval is required for tax deductibility of payments made on gas flare The Federal High Court of Nigeria (FHC or the Court) recently disregarded the judgment of the Lagos division of the Tax Appeal Tribunal (TAT or the Tribunal), in the case of Federal Inland Revenue Service (FIRS or the Appellant) vs Mobil Producing Nigeria Unlimited (Mobil or the Respondent) on the tax deductibility of payments made for gas flaring without the approval of the Minister of Petroleum Resources (the Minister). The Tribunal had, on March 17, 2015, held among others, that the Petroleum Profits Tax Act (PPTA) and the Associated Gas Re-injection Act (AGRA) do not expressly require that a company must obtain Gas Flare Certificate before the expense incurred can be tax deductible. Document ID: 2018-1336 |
