Following the issuance of a public notice by the Federal Inland Revenue Service(FIRS) to International Shipping Companies (ISCs) deriving income in Nigeria to regularize their tax compliance status, the FIRS recently issued tax assessment notices to several ISCs demanding the payment of back taxes for periods covering 2011 to 2019 which stirred the reaction of the ISCs to evacuate their vessels from Nigeria to avoid possible arrest.
We have considered in this Newsletter, the taxation regime for ISCs, deriving income in Nigeria, under the relevant statutes and regulations. Additionally, we have highlighted key issues arising in light of the tax assessment notices, the tax compliance requirements of ISCs, and what they must now do following the Federal Government intervention to mitigate the ensuing hysteria arising from the FIRS tax assessments.
