Success Nwogu 
Nigeria LNG Limited (NLNG) has said that it has noted media reports suggesting that a Tax Appeal Tribunal ordered NLNG to pay $27.5 million to the Federal Inland Revenue Service (FIRS) as a revised Company Income Tax (CIT) settlement for 2016.
It said that these reports misrepresent an out-of-court settlement that was reached amicably between the parties, without prejudice to their respective legal positions, which, it said, the Tribunal merely adopted as Consent Judgment in the appeal.
It added that the payment by NLNG was thus made in furtherance of a settlement agreement reached between the parties and not because of any order made by the Tribunal.
These were contained in a statement on Thursday by the General Manager, External Relations and Sustainable Development, NLNG, Andy Odeh.
The statement was titled: “Re: Tax Tribunal orders NLNG to pay $27.5m to FIRS as 2016 revised Corporate Income Tax.”
“NLNG remains a responsible corporate citizen, and consistently operates in compliance with Nigerian laws and will continue to operate in line with its vision of being “a globally competitive LNG company helping to build a better Nigeria,” Odeh said.
It had been reported that a five-member Tax Appeal Tribunal chaired by Mrs Alice Iriogbe, which sat in Abuja had in a judgement ordered NLNG to pay FIRS $27.5m as a full and final settlement of the revised Companies Income Tax for the 2016 assessment year.
The judgment reported to have been entered in the terms of settlement agreed to by the parties in the appeal.
According to the report, the NLNG Limited had sued the FIRS, praying the tribunal to restrain the revenue agency from collecting $141.75m from it as CIT for the year under review and challenged the FIRS’ notice of additional assessment dated December 15, 2021, and the Notice of Refusal to Amend dated March 22, 2022.
The report stated that NLNG appealed the matter in a suit marked TAT/ABJ/APP/331/2022, which was filed on April 21, 2022.
“Delivering the judgement, the tribunal observed that the parties had engaged in a process of settlement even when the trial was ongoing in the matter.
“The TAT, in the certified true copy of the judgement, which was delivered on Thursday and made available to NAN on Tuesday, said, “On the 10th July 2024, parties filed a term of settlement in the tribunal.
“The panel held that in the terms of settlement signed by parties, the NLNG agreed to pay FIRS “the sum of $27.50m as full and final settlement of the Revised CIT Assessment and the subject matter of this appeal if payment is made on or before Friday, 12th July 2024”.
“In furtherance of the above the appellant (NLNG) on Monday 8th July 2024, duly remitted the said sum of $27. 50m to the respondent (FIRS), being the full and final settlement amount agreed upon by the parties. In this circumstance, the terms contained in the terms of settlement have been adopted and made the judgment of this honourable tribunal. This is the judgment of this Honourable Tribunal,” part of the report said.
