NACCIMA Demands Suspension Of FIRS Tax Appeal Practice Direction

NACCIMA - NEPC

Yemisi Izuora

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture,(NACCIMA), on Thursday, 26th August, in Akure called for immediate suspension of implementation of the FIRS Tax Appeal Practice Direction by the Chief Judge of the Federal High Court pending its revision.

The Association’s 3rd quarter Council meeting was of the firm view that if the Tax Practice Direction, which compels companies to pay 50 per cent of  assessed tax to FIRS before any appeal to  contest  the assessment is allowed to proceed, most  businesses in the private sector will practically  collapse.

The resolution and  call became necessary because feelers from the organised

private sector indicate that many businesses have been  struggling to survive  an unfriendly business environment which has been made even more difficult due to the COVID-19 pandemic.

The Council was convinced that MSMEs which are  currently the bedrock of the economy and provide most of the employment will certainly be most hard hit and will  not and cannot  survive the implementation of Practice Direction, some of which provisions requires enforcement and forfeiture of immovable  property, freezing of a taxpayer’s bank account and sealing of their premises. With such action, many of them will go under and collapse under the weight of these provisions of the FIRS  Practice Direction.

The Council, therefore, called for immediate suspension of its implementation to enable a robust  stakeholders engagement with the relevant authorities for a revision of the TAX PRACTICE DIRECTION and other onerous tax matters.

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