Section 141 Nigeria Tax Administration Act 2025

Section 141 of the Nigeria Tax Administration Act 2025 is about Settlement of dispute. It provides as follows:

(1) Without prejudice to any provision of this Act or any other law, the relevant tax authority and the taxable person may initiate to resolve any tax matters amicably at any stage of the dispute, subject to such terms and conditions as may be prescribed under this Act or any other law.

(2) The relevant tax authority may settle disputes in whole or in part, where –
(a) such settlement will be in the interest of public revenue or public policy ;
(b) due consideration is given to the cost of litigation in comparison to the possible benefits ;

(c) a participant or a group of participants in a tax arrangement has accepted the position of the relevant tax authority in the dispute, in which case the settlement may be negotiated in a manner required to adjust the tax arrangements or disposition ; or

(d) under a whistleblowing arrangement, the settlement will facilitate full disclosure of undisclosed tax planning or evasion schemes which may lead to significant recovery of tax revenue.

(3) Settlement of dispute shall not be considered where –
(a) the action by the taxable person concerned leading to the ‘dispute’ constitutes intentional tax evasion or fraud inimical to the government revenue; or

(b) it is in the public interest to have judicial clarification of the issue and the case will significantly promote taxpayer compliance with the relevant tax law.

(4) The procedure for settlement of disputes shall be as follows –
(a) a person participating in a settlement procedure shall disclose all relevant facts during the discussion phase of the process of settling a dispute and such facts disclosed only for the purpose of settlement shall be confidential ;

(b) a dispute settled in whole or in part shall be evidenced by an agreement in writing between the parties in the prescribed format as may be determined by the relevant tax authority and must include details on –
(i) how each particular issue is settled,
(ii) relevant undertakings by the parties,

(iii) treatment of the issue in future years,
(iv) withdrawal of objections and appeals, and
(v) arrangements for payment ; and

(c) the agreement shall be signed by authorised officers of both parties.

(5) Finality of settlement agreement is where the –
(a) settlement agreement represents the final agreed position between the parties and it is a full and final settlement of all or specified aspects of the dispute in question between the parties ; and

(b) relevant tax authority shall enforce collection of the settlement amount under the collection provisions of this Act as a debt due to the relevant tax authority.

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