Income Tax Law

1. Short title. This Law may be cited as the Income Tax Law.

2. Interpretation. In this Law unless the context otherwise requires - ?The Appropriate Authority? means the person for the time being charged with ultimate responsibility for the Ministry of Finance. ?Area Assessment Committee? means a committee appointed by the appropriate authority under section 24 of this Law for the assessment, in any area specified by him, of persons for the payment of tax; ?The Board? means the Internal Revenue Board established under section 4 of this Law; ?Body of Persons? means any unincorporated fraternity, fellowship, association or society of persons, whether or not carrying on a trade or business, and includes a trustee, and an executor, but does not include a partnership; ?The Chairman? means the Chairman of the Board. [W.R 7 of 1960] ?Company? means any company or corporate body incorporated by or under any law in force in State or elsewhere; [L.B.S.N 1976 Cap.71] ?The Director? means the Director of Internal Revenue; [1972 No.4] ?Executor? includes any executor, administrator, or other person administering the estate of a deceased person; ?Functions? includes powers and duties; [W.R 7 of 1960] ?Incapacitated Person? means any infant, lunatic, idiot or insane person; ?Independent Member? means a member of the Board who ? (a) is not a member of the House of Assembly of the State; and (b) does not hold and is not acting in any office of emolument in the public service of the State; [W.R 7 of 1960] ?Inspector of Taxes? means an inspector of taxes in the public service of the State and includes a principal inspector of taxes and a senior inspector of taxes in that service; [W.N. of 1961] ?Loss? in relation to a trade, business, profession or vocation means a loss computed in like manner as profits; ?Married Woman? and ?wife? include a wife married according to customary law where both husband and the wife are subject to such customary law; ?Member? in relation to the Board includes the Chairman; [W.R.7 of 1960] "Person" includes a company or a body of persons; ?Prescribed? means prescribed by rules made under section 11; ?Rating Authority? means a Local Government Council or a body which has the power to make or levy rates in its area in accordance with the appropriate Law. [Cap. 53] ?Resident in the State?, when applied to an individual, means an individual who resides in the State except for such temporary absences as to an area assessment committee may seem reasonable and not inconsistent with the claim of such individual to be resident in the State; and any individual who is in the State for some temporary purpose only and not with any intent to establish his residence therein and who has not actually resided in the State at one or more times for a period equal in the whole to six months in the year of assessment shall not be treated as resident in the State. [W.R 7 of 1960] ?State? means Delta State of Nigeria; ?Tax? means the income tax10 imposed by this Law; ?Year of Assessment? means the period of twelve months commencing on the first day of January and ending 31st December of the same year and each subsequent period of twelve months.

3. Extent of the functions of area assessment committees and rating authorities. The functions of an area assessment committee or a rating authority conferred or imposed by this Law with respect to the assessment or collection of tax shall, unless the context otherwise requires, be exercisable by such committee or authority only in respect of persons whose individual total income for any year of assessment does not exceed eighteen thousand naira and who are not persons whose individual assessable income for such year is derived wholly or partly from an employment or pension. [W.R.5 of 1963 L.B.S.N.1976 Cap. 71]

4. Establishment of the Board. (1) There shall be established for the State a Board to be known as the Board of Internal Revenue (hereinafter referred to as “the Board”). (2) The Board shall be a body corporate with perpetual succession and a common seal and with power to sue and be sued in its corporate name and to acquire, hold and dispose of movable and immovable property.

5. Constitution of the Board. (1) The Board shall consist of the following members: [W.R. 7 of 1960] (a) The Director of Internal Revenue - Chairman (b) The Most Senior Deputy Director of Internal Revenue - Deputy Chairman (c) Secretary for Revenue in the Ministry of Finance and Economic Planning - Member (d) Secretary for Local Government Finance of the Ministry of Local Government - Member (e) A law officer from the Ministry of Justice - Member (f) A chief statistician from the Ministry of Finance and Economic Planning: and - Member (g) An officer not below the rank of Senior Inspector of Taxes - Secretary (2) A Tax Committee shall consist of the following members: (i) the Tax Officer in charge of the Local Government Area - Chairman (ii) the Zonal Officer of the Ministry of Justice in the Local Government Area - Member (iii) An officer not below the grade of Assistant Secretary in the Ministry of Local Government in the area - Member (iv) the Treasury Cash Officer for the area - Member (v) a representative of the Ministry of Education not below the grade of Assistant Secretary or Education Officer in the area - Member (vi) a representative of the Ministry of Agriculture and Natural Resources not below the grade of Agricultural Officer in the area: and - Member (vii) an officer of the Board of Internal Revenue Department not below the grade of Assistant Executive Officer - Secretary (3) Wherever a member is absent from a meeting of the Board for any reason, the Permanent Secretary to the Ministry which the member represents may nominate any other suitable officer in the said Ministry to act in his place. (4) Any proceeding or cause of action pending or existing in a court of law immediately before the commencement of this law if instituted by or against the State Tax Board or an Area Assessment Committee in respect of any right, interest or obligation or liability shall be continued and any judgment of the court shall be enforced by or against the Board of Internal Revenue as if the Board was an original party to the action. [1986 No. 9] (5) (a) Whenever a member of the Board who is also a member of the public service of the State is absent from duty for any reason, the appropriate authority may, subject to the provisions of subsections (1) and (2) of this section appoint another member of that service to act in His office. (b) Whenever an independent member of the Board (other than the Chairman) is absent from duty for any reason or is appointed to act as Chairman, the appropriate authority may appoint any person appearing to him to possess the qualifications prescribed for an independent member, to act in his office. (6) No proceedings of the Board shall be rendered invalid by reason of a vacancy among the members or by reason of any defect in the appointment of a member (7) The Chairman or the person acting for him, three independent members and any two other members of the Board shall constitute a quorum. [Quorum] (8) There shall be paid to the Chairman and each independent member of the Board such remuneration, fees and allowances for expenses as the appropriate authority may determine.

6. Duties of the Board. (1) It shall be the duty of the Board - (a) to advise the appropriate authority as to the structure, incidence and administration of the tax imposed by this Law or by any other enactment; [W.R. 7 of 1960 W.R. I I of 1961 L.B. S.N.1976 Cap. 71] (b) to advise the appropriate authority for the purposes of the Local Government Law as to whether or not approval may be given to any proposals by a Local Government Council to impose rates upon persons resident or owing tenements in its area of authority; [1976 No. 3 L.B.S.N.1976 Cap 71] (c) to advise and in other ways assist area assessment committees in the exercise or performance of their functions in accordance with the provisions of this Law; (d) to undertake the direct assessment and collection, in the State as a whole or in any part thereof, of any tax imposed by any enactment (other than this Law) whenever the Board is directed so to do by the appropriate authority; (e) to undertake the direct assessment and collection of tax imposed by this Law in respect of persons - [W.N. I I of 1961, W.N 5 of 1963] (i) whose individual assessable income for any year of assessment is derived wholly or partly from an employment, office or pension; [1974 No. 13 L.B.S.N.1976 Cap. 71] (ii) who are not African individuals; (iii) whose individual total income for any year of assessment exceeds eighteen thousand naira. (f) generally to supervise the administration of this Law subject to the directions of the appropriate authority. (2) So far as it may be necessary for the purposes of its duties under paragraph (e) of subsection (1) of this section, the Board shall, subject to any provision in that behalf in any section of this Law, have power to exercise and perform all the functions conferred or imposed by or under this Law upon an area assessment committee or a rating authority, and accordingly references in this Law to area assessment committees and rating authorities shall, with necessary adaptations and modifications, be construed as references to the Board: Provided that the references to area assessment committees or rating authorities in section 24 shall not for any purpose whatever be construed as references to the Board. [W.N.of1961 L.B.S.N.1976 Cap. 71] (3) In the discharge of its duties under paragraph (e) of subsection (1) of this section, the Board shall be assisted by area assessment committees and rating authorities in such manner and to such extent as the Board may require. [W.N. 5 of 1963 L.B.&N. 1976 Cap. 71] (4) The Board may by notice in the Gazette or in writing authorise any person (including an inspector of taxes) to exercise or perform or assist or advise in the exercise or performance of any functions conferred or imposed upon the Board by or under this Law: Provided that any such authorisation shall be revocable at will and shall not prevent the exercise by the Board of any functions conferred or imposed upon it as aforesaid. (5) The Board shall, in the exercise or performance of its functions under this Law be assisted by such members of the public service of the State as may be assigned to it for the purpose. (6) In the exercise of the Board’s functions, persons duly authorised by the Board shall - (a) have the right to attend all meetings of any area assessment committee, and (b) have access to, and be entitled to inspect, all books, accounts and records of any area assessment committee or any rating authority. (7) Where it appears to the Executive Council necessary so to do the Executive Council may by order direct that any functions conferred or imposed by this Law upon any person, area assessment committee or rating authority shall be exercised or performed by the Board - (a) in respect of the area subject to such committee or rating authority; (b) in respect of persons chargeable with tax each of whom is in any year of assessment in receipt of a total income of or above any amount as may be specified in such order; (c) in respect of such classes of persons chargeable with tax as may be specified in such order.

7. Power of board in relation to area assessment committees and rating authorities. (1) Subject to the provisions of this Law, the Board may, with the approval of the appropriate authority, give directions to an area assessment committee with respect to the exercise of that committee’s powers of assessment under this Law and any committee to which such directions are given shall comply with the same. (2) The Board may, with the approval of the appropriate authority, vary any assessment made by any area assessment committee, other than an assessment in respect of which an appeal is pending or has been determined. [W.N .5 of 1963 L.B.S.N 1976 Cap.71] (3) The Board shall have the right to attend any meeting of an area assessment committee during the transaction of business relating to assessments and take part in the proceedings thereof and if the Board so requests its advice on any such matter shall be recorded in the minutes of the meeting, but the Board shall not be entitled to vote in such proceedings. (4) The Board shall at all reasonable times have access to and be entitled to inspect the books, accounts and records of a rating authority and an area assessment committee with respect to the assessment of any tax or development contribution imposed under this Law. (5) A rating authority shall furnish the Board with such returns and information as the Board may specify relating to the assessment of incomes for the purposes of any tax or development contribution imposed under this Law.

8. Proceedings of the Board. Subject to the provisions of this Law the Board shall have power, to regulate its own proceedings and may for that purpose make Standing Orders. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71]

9. Significant of documents, etc (1) Anything required to be done by the Board in relation to its functions under this Law may be signified under the hand of the Chairman or any person duly authorised by the Board for that purpose. [W.R. 7 of 1960 WX I I of 1960 W.N. II of 1961 L.B.S.N.1976 Cap. 71] (2) Subject to the provisions of subsection (1) of this section, any notice or other document to be given under this Law shall be valid if - (a) it is signed by the Chairman or by any person (including an inspector of taxes) or persons from time to time authorised by the Board for that purpose; or (b) such notice or document is printed and the official name of the Board is duly printed or stamped thereon. (3) Every notice, authorisation or other document duly given and signified, notified or bearing the official name of the Board, in accordance with the provisions of this section, shall be deemed to be validly given and signified, notified or otherwise, without further proof, until the contrary is shown. (4) The provisions of this section shall apply mutatis mutandis in the case of area assessment committees and rating authorities as those provisions apply in the case of the Board.

10. Official Secrecy. (1) Every person having any official duty or being employed in the administration of this Law shall regard and deal with all documents, information, returns, assessment lists and copies of such fists relating to the income or items of the income of any person, as secret and confidential. (2) Every person having possession of or control over any documents, information, returns or assessment lists or copies of such lists relating to the income or items of the income of any person, who at any time communicates or attempts to communicate such information or anything contained in such documents, returns, lists or copies to any person - (a) other than a person to whom he is authorised by the appropriate authority to communicate it; or (b) otherwise than for the purpose of this Law, shall be guilty of an offence against this Law and be liable on conviction to a fine of fifty thousand naira or six months imprisonment. (3) No proceedings for an offence against this section shall be instituted without the consent in writing of the Attorney-General of the State. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (4) No person appointed under or employed in carrying out the provisions of this Law shall be required to produce in any court any return, document or assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties under this Law except as may be necessary for the purpose of carrying into effect the provisions of this Law, or in order to institute a prosecution, or in the course of a prosecution for any offence committed in relation to income tax. (5) Where under any law in force in any Commonwealth country provision is made for the allowance of relief from income tax in respect of the payment of tax in the State, the obligation as to secrecy imposed by this section shall not prevent the disclosure to the authorised officers of the Government in that Commonwealth country of such facts as may be necessary to enable the proper relief to be given in cases where relief is claimed from tax in the State or from income tax in that country. (6) Notwithstanding anything contained in this section the Auditor-General or any person duly authorised in that behalf by him shall have such access to any records or documents as may be necessary for the performance of his official duties. The Auditor-General or any such officer shall be deemed to be a person employed in carrying out the provision of this Law for the purpose of this section. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71]

11. Rules. (1) The Executive Council may from time to time make rules for carrying out the provisions and purposes of this Law and may provide for such matters as are authorised by this Law to be prescribed. [W.R. 7 of 1960 L.B.S.N.1976 Cap.71] (2) The Board may from time to time specify the form of returns, claims, settlements and notices under this Law.

12. Service of notices. (1) Except where it is provided by this Law that service shall be effected either personally or by registered post, the provisions of section 49 of the Interpretation Law shall apply to the service of a notice, if such notice is addressed in accordance with the provisions of subsection (3) of this section. [W.R. 7 of 1960 Cap. 76 L.B.S.N.1976 Cap. 71] (2) Where a notice is sent by registered post it shall be deemed to have been served on the day succeeding the day on which the addressee of the registered letter containing the notice would have been informed in the ordinary course of events that such registered letter was awaiting him at a post office, if such notice is addressed in accordance with the provisions of subsection (3) of this section Provided that a notice shall not be deemed to have been served under this subsection if the addressee proves that no notification informing him of the fact that the registered letter was awaiting him at a post office or was left at the address given on such registered letter. (3) A notice to be served in accordance with subsection (1) or (2) of this section shall be addressed (a) in the case of a company incorporated in Nigeria, to the registered office of the company, and; (b) in the case of a company incorporated outside Nigeria, either to the person authorised to accept service of process under the Companies and Allied Matters Act at the address filed with the Registrar of Companies, or to the registered office of the company wherever it may be situated, and [Companies and Allied Matters Act] (c) in the case of an individual or body of persons, to the last known business or private address of such individual or body of persons. (4) Any notice to be given, sent or posted under this Law may be served by being left at the appropriate office or address determined under subsection (3) unless such address is a registered post office box number.

13. Charges of tax. (1) Tax shall, subject to the provisions of this Law and of the Income Tax (Armed Forces and Other Persons) (Special Provisions) Decree, 1972, be charged for each year of assessment at the rate hereinafter specified – [W.R. 11 of 1961 L.B.S.N.1976 Cap. 71] (a) upon the income of any person resident in the Delta State accruing in, derived from, brought into, or received in the Delta State; [L.B.S.N. 1976 Cap.71 1972 Decree No.51] (b) upon the income of any person from an employment by the Government of the Delta State wherever the remuneration is paid if that person performs the duties of such employment in a country other than Nigeria and that country under any agreement or diplomatic usage exempts him from tax on such income: [L.B.S.N. 1976 Cap. 71] Provided that for the purposes of deductions that may be allowed for the purpose of ascertaining such a person’s chargeable income such a person shall be deemed to be resident in the State in the year of assessment; (c) upon the income of any person not resident anywhere in Nigeria accruing in or derived from the Delta State. (2) For the purposes of subsection (1) of this section “income” shall mean income in respect of - (a) gains or profits from any trade, business, profession or vocation, for whatever period of time such trade, business, profession or vocation may have been carried on or exercised; (b) gains or profits from any employment or office including any allowance paid or payable in money to or on behalf of an employee or office-holder, other than in respect of medical or dental expenses or any passage to or from Nigeria, or the maintenance or education of any child; (c) dividends, interests or discounts; (d) any pensions, charge or annuity; (e) rent, royalties, premiums and any other profits arising from property. (3) “So much of any amount of rent or allowance in lieu paid by the employer to or on account of the employee up to a maximum of N720 as may be admitted by the relevant tax authority as paid by the employer to or on account of the employee during a year of assessment”. [1977 No. 13] (4) In this section “person” means an individual and includes a body of persons composed wholly of individuals.

14. Business only partially carried on in the State. (1) Where a person carries on a trade, business, profession or vocation of which only part of the operations are carried out in the State, the gains or profits to the trade, business, profession or vocation shall be deemed to be derived from the State, to the extent to which such gains or profits are not attributable to that of the operations carried on outside the State. (2) Gains or profits from any employment or office exercised in the State shall be deemed to be derived from the State, whether they are received in the State or not and whether the contract of employment or the appointment to the office was made in the State or not. [Employment exercised in the State] (3) Where an area assessment committee is of the opinion that by reason of the sale or disposal of any asset in any income period the sum of the allowances granted under the Income Tax Management Act, 1961, in respect of that asset when added to the net proceeds of sale or the value of the asset at the date of its value at the time it was acquired is in excess, the amount of such excess shall be deemed to be a profit of the trade, business, profession or vocation for that period for the purposesof this Law. [W.R. 7 of 1960 1961 No. 21 L.B.S.N. 1976 Cap. 71]

15. Period of computing income. (1) Subject to the provisions of this section, the income of any person for each year of assessment from each source of his income (hereinafter referred to as assessable income) shall be the full amount of the income of the year immediately preceding the year of assessment from each such source notwithstanding that he may have ceased to possess any such source or that such source may have ceased to produce income. [W.R. 7 of 1960 L.B.S.N. 1976 Cap. 71] (2) The assessable income of any person for each year of assessment from any employment, office or pension shall be the amount of the income of that year of assessment. [W.R. 11 of 1961 L.B.S.N. 1976 Cap. 71] (3) Where an area assessment committee is satisfied that any person usually makes up the accounts of a trade, business, profession or vocation carried on by him on some day other than the thirty-first day of December, it may direct that the income from that source be computed on the amount of the gains of profits of the year ending on that day in the year preceding the year of assessment. [W.R. 7 of 1960 L.B.S.N. 1976 Cap. 71] (4) Where a direction has been given under subsection (3) of this section in relation to any person for any year of assessment the income of that person from the source concerned shall for each subsequent year of assessment be computed either upon the profits or gains of the year terminating on the same date as is specified in the direction or on such other date and subject to such adjustments as appear to the area assessment committee just and reasonable. (5) Where in the case of any trade, business, profession or vocation it is necessary in order, for the purposes of this section, to arrive at the income of any year of assessment or other period to divide and apportion to specific, periods the income or loss of any period for which accounts have been made up, or to aggregate any such income or loss or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation, and any apportionment under this subsection shall be made in proportion to the number of days in the respective periods, unless the area assessment committee having regard to any special circumstances, otherwise directs. [W.R. 35of1959 L.B.S.N. 1976 Cap. 71]

16. Commencement and cessation of trade, business, profession or vocation. (1) The assessable income of any person from any trade, business, profession or vocation carried on by him in the State for the year of assessment in which he commenced to carry on such trade, business, profession or vocation in the State and for the two following years of assessment (which years are in this subsection respectively referred to as the first year”, “the second year” and “the third year”) shall be ascertained in accordance with the following provisions. [W.R. 11 of 1961 L.B.S.N.1976 Cap. 71] (a) for the first year the assessable income shall be the amount of the income of that year; (b) for the second year the assessable income shall, unless such notice as hereinafter mentioned be given, be the amount of the income of one year from the date of the commencement in the State of the trade, business, profession or vocation; (c) For the third year the assessable income shall, unless such notice as is hereinafter mentioned be given, be computed in accordance with the provisions of subsection (1) of section 15; (d) the person carrying on the trade, business, profession or vocation shall be entitled, on giving notice in writing to the area assessment committee within two years after the end of the second year, to require that the assessable income both for the second year and the third year (but not for one or other only of those years) shall be the income of the respective years of assessment: Provided that he may, by notice in writing given to the area assessment committee within twelve months after the end of the third year, revoke the first notice and in that case the assessable income both for the second year and the third year shall be computed as if the first notice had never been given; (e) where such a notice as aforesaid has been given or revoked, such additional assessments, or, on a claim being made for the purpose in writing, such reductions of assessments or repayments of tax shall be made as may be necessary to give effect to paragraph (d) of this subsection. (2) Where a person permanently ceases to carry on a trade, business, profession or vocation in the State his assessable income from that trade, business, profession or vocation shall be - (a) as regards the year of assessment in which the cessation occurs, the amount of the income of that year; (b) as regards the year of assessment preceding that in which the cessation occurs, the amount of the income as computed in accordance with whichever of the provisions of section 15 or subsection (1) of this section would but for the provisions of this subsection have applied to his case, or the amount of the income of such year, whichever is the greater, and he shall not be deemed to derive any assessable income from such trade, business, profession or vocation for the year of assessment following that in which the cessation occurs.

17. Exemptions. (1) There shall be exempt from tax ?- (a) the income and profits of any co-operative society registered under any Act or, Law; (b) the official emoluments of the officer administering the Government of the State received by him in his capacity as such officer; [W.R. 2 of 1961 L.B.S.N.1976 Cap. 71 1973 No. 31 L.B.S.N.1976 Cap. 71] (c) the income of any trade union registered under the Trade Unions Decree, 1973 in so far as such income is not derived from a trade or business carried on by such trade union. (d) the income of any ecclesiastical, charitable or educational institution of a public character in so far as such income is not derived from a trade or business carried on by such institution; (e) the income of any body of persons formed for the purpose of promoting social or sporting amenities not involving the acquisition of gain by the body of persons or by its individual members: Provided that - (i) such body of persons registers with the Ministry are charged with responsibility for social and sporting activities in the State; [1971 No.17 1972 No. 4 L.B.S. N. 1976 Cap.71] (ii) the rules and regulations of such body shall be approved by the said Ministry and a copy thereof submitted to the Director; (iii) such body of persons shall submit an annual audited account to the said Ministry and the Director; (iv) the exemption shall not apply to any income derived from any trade or commercial business undertaken by such body; (f) capital sums withdrawn by individuals on retirement from any pension or provident society or fund approved by the Board; [W.N. of1960 L.B.S.N 1976 Cap. 71] (g) the investment income of any pension or provident fund or society approved by the Joint Tax Board under section 17 of the Income Tax Management Act, 1961 or any other law. [1961 No. 21 L.B.S.N 1976 Cap. 71] (h) capital sums received by way of retiring or death gratuities or as consolidated compensation for death or injuries; (i) wound and disability pensions granted to members of the armed forces of Nigeria; [1976 No. 3 L.B.S.N 1976 Cap. 71] (j) interest paid or credited to any person by the Nigerian Post Office Savings Bank or in respect of any Nigerian Savings Certificates; (k) the income of any non-resident person whose chargeable income does not exceed one thousand naira; [W.N. 35 of 1959 1971 No. 22 1961 No. 22] (l) dividends received or receivable from a company which is a pioneer company for the purposes of the Industrial Development (Income Tax Relief) Decree 1971, to the extent that such dividends would have been exempted by section 17 of that Decree for the purposes of the Companies Income Tax Act; (m) the income of a female person, not being an employee, where such income for any year of assessment does not exceed six thousand naira; [1968 No. 30 L.B.S.N 1976 Cap. 71] Provided that the Board is satisfied that such income is the personal property of such female person. (2) The Executive Council may by notice in the State Gazette provide that the interest payable on any loan charged on the revenue of the State shall be exempted from tax, either generally, or in respect of interest payable to persons not resident in Nigeria, and such interest shall as from the date and to the extent specified by such notice be exempt accordingly. (3) (a) Every area assessment committee shall at the commencement of each year of assessment submit to the Director a list of persons considered by them to be eligible to be declared exempt from tax in their area of authority during that year of assessment and the Board shall, on the recommendation of the Director, declare such persons exempt. (b) For the purposes of this subsection, a person shall be eligible to be declared exempt if, in the opinion of the area assessment committee, he is on grounds of old age or of infirmity of mind or body unable to work and has no source of income of his own.

18. Chargeable. (1) Where under the law of the State income tax is payable for any year of assessment upon the chargeable income of an individual other than a corporation sole or body of individuals, the amount of that chargeable income shall, notwithstanding anything to the contrary in any other enactment or law relating to the ascertainment of chargeable income, be the amount of the total income of that individual for that year ascertained under the provisions of this Law, after any income exempted has been excluded therefrom and the deduction allowed by this Part have been made. (2) In the case of every such individual there shall be allowed a deduction of six hundred naira. (3) In the case of an individual who ordinarily resides in Nigeria, or who at any time during the year of assessment (i) becomes ordinarily resident in Nigeria in connection with any trade, business, profession or vocation carried on by him; or (ii) engages in any employment the whole gains or profits from which are deemed under the provisions of section 8 of this Law to be derived from Nigeria; or (iii) is a person liable to tax under the Income Tax Armed Forces and other Persons) Decree, 197239 not being a person mentioned in paragraph (d) of section 1 (1) thereof; there shall be allowed – (a) a deduction of three hundred naira in the case of a married man who at any time during the year preceding the year of assessment had a wife living with or maintained by him, or a deduction of the amount of any alimony not exceeding three hundred naira paid to a former spouse under an order of a court of competent jurisdiction in the case of an individual whose marriage has been dissolved; (b) a deduction of two hundred and fifty naira in respect of each unmarried child who was maintained by the individual during the year preceding the year of assessment and who, on the first day of that preceding year, had either not attained sixteen years of age, or was receiving full time instruction in a recognised educational establishment, or was under articles or indentures in a trade or profession; Provided that: (i) no deduction under this paragraph shall be allowed to any individual in respect of more, than four children and, for the purposes of applying this restriction, a husband and his wife or wives not separated from him by deed or any order of any court shall be treated as one and the same individual; (ii) no additional deduction shall be allowed in respect of the costs incurred in connection with the education of any child in respect of whom he is entitled to a deduction under this paragraph; (iii) where the costs of maintaining any child is shared between two or more persons, the relevant tax authority may apportion the sum of two hundred and fifty naira as may seem to it to be equitable between such persons, and the deduction to be allowed under this paragraph to any individual in respect of such child shall be his apportioned share of such sum. (c) a deduction of the costs incurred by the individual during the year preceding the year of assessment in maintaining or assisting to maintain a close relative of the individual or of the individual’s spouse who was either incapacitated by old age or infirmity from maintaining himself or is the widowed mother (whether so incapacitated or not) of the individual or of the individual’s spouse: Provided that (i) no deduction shall be allowed in respect of any relative whose income of the year preceding the year of assessment exceeded six hundred naira. (ii) the aggregate of all deductions to be allowed to two or more individuals for any year in respect of anyone relative shall not exceed four hundred naira and, if the total of the costs incurred by them in respect of the same relative exceed that sum, then the amount of the deduction to be allowed to any such individual shall be the same proportion of that sum as the costs so incurred by him bear to the total of the costs so incurred; (iii) the aggregate of all deductions to be made under this paragraph in ascertaining the chargeable income of anyone individual for any year shall not exceed four hundred naira; (d) a deduction of the annual amount of any premium paid by the individual during the year preceding the year of assessment to any insurance company in respect of insurance on his life or the life of his spouse, or of any contract for a deferred annuity on his own life or the life of his spouse; Provided that – (i) no such deduction shall be allowed for such insurance except in respect of premium payable on policies securing a capital sum on death, whether in conjunction with any other benefit or not, and the amount of the deduction allowed shall not exceed ten per centum of that capital sum exclusive of any additional benefit by way of bonus, profit or otherwise; (ii) the aggregate amount of the deduction allowed under the provisions of – (a) this paragraph; (b) paragraph (b) of subsection (1) of Section 13 of this law; and (c) in the case of any employee, paragraph (b) of subsection (1) of section 13 of this Law; shall not exceed two thousand naira in the case of any individual for any year of assessment; (iii) the aggregate amount of the deduction allowed to an individual for a year of assessment under the provisions of this paragraph shall not exceed an amount equal to one-fifth part of the total income of that individual for that year; and (iv) the restrictions specified in sub-paragraphs (ii) and (iii) of this proviso shall apply in the case of a husband and his wife or wives not separated from him by deed or an order or any court as though all such individuals were one and the same individual whose total income for anyone year of assessment was equal to the aggregate total income for that year of such husband and his wife or wives.

(4) (a) Any deduction to be allowed to an individual for a year of assessment under the provisions of the section, other than paragraph (a) of sub-section (3) (iii) thereof, may be claimed by and allowed to that individual or any spouse of that individual not separated from him by deed or an order of any court on the first day of such year or may be partly claimed by and allowed to each such spouse but in no case shall the aggregate of such deductions allowed to any husband and his wife or wives exceed the amount which would be allowed if such individual were treated as one and the same individual. (b) Where a deduction is claimed in respect of any one child under paragraph (b) of sub- section (3) (iii), or any one dependent under paragraph (c) of sub-section (3) (iii), or any one annual premium under paragraph (d), for the same year of assessment, by both husband and wife and the aggregate amount to be allowed then in any such case the relevant tax authority shall apportion the amount to be allowed as it sees fit for deduction ascertaining the separate chargeable income of each such husband or wife. (c) Where pursuant to any direction of the relevant tax authority a deduction is allowed under this section to any husband or wife and such deduction has not been claimed, it shall be allowed to either such husband or wife, or to be apportioned between them as the relevant tax authority in its absolute discretion may decide.

19. Books of account. (1) If a person chargeable with tax fails or refuses to keep books or accounts which, in the opinion of an area assessment committee, are adequate for the purposes of tax, the committee may by notice in writing require him to keep such records, books and accounts as the committee considers to be adequate in such form and in such language as the committee may in the said notice direct. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (2) Any person aggrieved by a notice served under subsection (1) of this section may, within thirty days of the date of service of such notice on him, appeal to a magistrate’s court for the withdrawal or amendment of such notice. [W.R. 7 of 1960] (3) On hearing such appeal the magistrate may confirm or modify any direction given by the area assessment committee under this section and any decision of such magistrate shall be final. [W.R. 7 of 1960 L.B.S.N.1976 Cap, 76]

20. Official information and official secrecy. (1) An area assessment committee may require any officer in the employment of the Government of the State or of any other public body to supply such particulars as may be required for the purposes of this Law and which may be in the possession of such officer. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 76] Provided that no such officer shall by virtue of this section be obliged to disclose any particulars as to which he is under any statutory obligation to observe secrecy. (2) (2) Returns to be made by employer - Every employer shall deliver quarterly to the Director in writing a return containing:- [1972 No. 4 L.B.S.N.1976 Cap. 71] (a) the names and places of residence of all persons, employed by him, and (b) the full amount of remuneration, whether in cash or otherwise, paid or payable to those persons in respect of that employment. (3) Where the employer is a company or an incorporated body, the manager or other principal officers of the company or body in the State shall be deemed to be the employer for the purposes of this section, and any director of a company or person engaged in the management of a company shall be deemed to be a person employed. (4) Every registered company operating in the State shall deliver quarterly to the Director in writing a list of all contractors and petty contractors or firms working for it and the total amount paid or payable to such contractors, petty contractors or firms. (5) Every registered company shall within three months of its commencement of business in the State deliver to the Director in writing a list of all its directors showing – (a) the names and places of residence of such directors; (b) the full amount of remuneration, whether in cash or otherwise, paid or payable to such directors. (6) All registered companies, partnerships and persons operating under business names shall give notice in writing of their registration to the Director within three months of commencement of business in the State. (7) very person, other than a company engaged in the business of banking or a person who is under a statutory obligation of secrecy, who may be required by the Director shall give orally or in writing, as may be required, all such information as may be demanded by the Director for the purpose of enabling the Director to make an assessment or a rating authority to collect the tax or a tax collector to prepare a nominal roll: Provided that nothing in this subsection shall be deemed to exempt any person from any duty, obligation or liability imposed on him under or by virtue of subsection (2) of this section.

21. Returns to be furnished of income received on account of , or paid to, other persons. Where any person, other than a company engaged in the business of banking, in any capacity whatever - [W.R. 7 of 1960] (a) receives any profit or income to which this Law applies and which belongs to some person who is assessable and chargeable in respect thereof; (b) pays to some person or to his order, any such profit or income an area assessment committee may give notice to such first mentioned person requiring him to furnish within the time limited by such notice not being less than fifteen days from the date of service of such notice, a return containing – (i) a true and correct statement of such profits and income; the (ii) the name and address of every person to whom they belong

22. Occupiers to furnish returns of rent payable. An area assessment committee may give notice in writing to any person who is the occupier of any land requiring him to furnish within the time limited by such notice, not being less than fifteen days from the date of service of such notice, a return containing ? [W.R. 7 of 1960 L.B.S.N.1976 Cap. 76] (a) the name and address of the owner of such land; and (b) a true and correct statement of the rent payable and any other consideration passing thereto

23. Returns of lodgers and inmates. An area assessment committee may give notice in writing to any person requiring him within the time limited by such notice, not being less than fifteen days from the date of service of such notice, to furnish a return containing the name of every ledger or inmate who is at the date of the notice resident in his house, hotel or institution. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71]

24. Appointment of area assessment committees. (1) The appropriate authority for the purposes of the Local Government Council Law, after consultation with the appropriate rating authority, may appoint for each rating authority such number ofarea assessment committees as the appropriate authority for the purposes of the Local Government Council Law may determine for the purpose of assessing persons chargeable with tax and resident, during the year of assessment, in the areas subject to such committees. [W.R. 7 of 1960 W.N. IIof1961 1976 No. 3 L.B.S.N.1976 Cap. 71] (2) The appropriate authority for the purposes of the Local Government Council Law shall not be bound to appoint as a member of an area assessment committee any person who has been nominated by the appropriate rating authority, and he may appoint any person as such member notwithstanding that such person has not been nominated for appointment by the appropriate rating authority. (3) Where there is more than one area assessment committee the area within which each such committee shall exercise authority shall be determined by the appropriate authority for the purposes of the Local Government Council Law (4) The number of members of an area assessment committee, the term of office of each member and the remuneration or allowances, if any, to be paid to him, shall be such as shall be determined by the appropriate authority for the purposes of the Local Government Council Law, and such remuneration or allowances shall be paid by the appropriate rating authority. (5) The appropriate authority for the purposes of the Local Government Council Law shall appoint one of the members of an area assessment committee to be its chairman. (6) An area assessment committee shall have a secretary and such other staff as the appropriate authority for the purposes of the Local Government Council Law may consider necessary and such secretary and other staff shall be provided by the appropriate rating authority. (7) For the avoidance of doubt it is hereby declared that an area assessment committee is not a committee of any rating authority, Local Government Council. (8) In this section “the appropriate rating authority” means the Local Government Council which is the rating authority for the area in respect of which an area assessment committee exercises or is to exercise authority.

25. Assessment of income tax. (1) In respect of the gains or profits accruing to any person in any year of assessment from the cultivation or use of land or from the ownership of livestock, an area assessment committee shall, unless it is satisfied to the contrary, determine as the amount of income the gains or profits which would accrue to that person in that year of assessment if the land were cultivated of used or the livestock were possessed and dealt with in the manner and up to the average standard of cultivation, use or practice relating to the same prevailing in the neighbourhood. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 76] (2) In respect of the gains and profits accruing to any person in any year of assessment from any trade or craft, an area assessment committee shall, unless it is satisfied to the contrary, determine as the amount of income the gains or profits which would accrue to that person in that year of assessment if he carried on his trade or craft in the manner and up to the average standard relating to the same prevailing in the neighbourhood. (3) Where any person chargeable with tax has been given a notice for the delivery of a return as provided for in section 19, the area assessment committee shall proceed to assess such person as soon as may be after the expiration of the time allowed for the delivery of the return. (4) Where a person has delivered a return an area assessment committee may - (a) accept the return and make an assessment accordingly; (b) refuse to accept the return and, to the best of the committee’s judgment, determine the amount of the chargeable income of such person and make an assessment accordingly. (5) Where a person has not delivered a return and an area assessment committee is of the opinion that such person is chargeable with tax, the committee shall, according to the best of its judgment, determine the amount of the chargeable income of such person and make an assessment accordingly, ut such assessment shall not affect any liability otherwise incurred by such person by reason of his failure or neglect to deliver a return. (6) Subject to the provisions of section 19, where an area assessment committee is satisfied that a person is chargeable with tax, the committee may determine the amount of chargeable income of such person and make an assessment accordingly without calling on that person to render a return of his income.

26. Additional assessments. If an area assessment committee discovers or is of the opinion at any time that any person liable to tax has not been assessed or has been assessed at a less amount than that which ought to have been charged, the committee may within the year of assessment or within six years after the expiration thereof assess such person at such amount or additional amount, as according to its judgment ought to have been charged, and the provisions of this Law as to notice of assessment, appeal and other proceedings under this Law shall apply to such assessment or additional assessment andto the tax charged thereunder: [W.R. 7 of 1960] Provided that where any fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax for any year of assessment, the committee may, for the purpose of making good to the revenue of the- State any loss of tax attributable to the fraud or wilful default, exercise the powers conferred by this section at any time, whether before or after the expiration of the period specified in this section.

27. Lists of persons assessed and notice of assessment. (1) The Board, or an area assessment committee as the case may be, shall prepare lists of persons assessed by it to tax, and as soon as possible the area assessment committee shall deliver lists prepared by it to the rating authority within whose area the committee exercises authority. [W.R. 7 of l960 W.N. I I of 1961] (2) Such lists, herein called the assessment lists, shall contain the names and the addresses of the persons assessed to tax, the amount of the chargeable income of each person, the amount of tax payable by him, and such other particulars as may be prescribed. (3) Where complete copies of all notices of assessment are filed in the office of the Board or the rating authority, as the case may be, those notices, as from time to time amended in accordance with the provisions of this Law, shall constitute the assessment lists for the purposes of this Law.

28. Notification of assessment. (1) Subject to the provisions of subsection (2) of this section, where an assessment has been made by an area assessment committee, the committee shall make known, in such manner as the committee may think fit, to all persons concerned, the amount of income at which such persons have been assessed and the amount payable in accordance with the tax for the time being in force. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (2) Where any person has been assessed at a total income of more than the standard income fixed under section 54 for any year of assessment, the area assessment committee shall cause to be served personally or sent by registered post to such person a notice of assessment stating the amount of his chargeable income, the tax payable by him, and the place at which or the person to whom such payment is to be made. (3) Every person chargeable with tax for any year of assessment who is for the time being resident within the area subject to an area assessment committee and who, within thirty days of the notification of assessment as prescribed in subsection (1) of this section, has not been assessed to tax, shall within fourteen days after the expiration of that period, give notice to such committee that he is so chargeable. (4) Without prejudice to the functions of bailiffs appointed under any other law the Board may for the purposes of subsection (2) of this section appoint such fit and proper persons as Income Tax Bailiffs as it may deem necessary for the service of assessment notices and other court processes required to be served under the Law. [Appointment of Income Tax Bailiffs.]

29. Revision of assessment. (1) An area assessment committee, if it deems it necessary, may on its own or on the application of any person assessed, within thirty days from the date of the notification or service under section 28 review and revise the assessment made upon such person, and the assessment, if revised, after such review, shall be amended accordingly. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] Provided that the committee, upon being satisfied that owing to absence from Nigeria, sickness or other reasonable cause, the person applying for a review and revision of his assessment was prevented from making his application within such period, may extend the period as may be reasonable in the circumstances. (2) The area assessment committee shall give to the person concerned notice of the revised assessment and the tax payable thereon, and any reference in this Law to an assessment or an additional assessment shall include a reference to an assessment or additional assessment as revised under the provisions of this section.

30. Errors and defects in assessment and notice. (1) No assessment, warrant or other proceeding purporting to be made in accordance with the provisions of this Law shall be quashed, or deemed to be void and voidable for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Law or any Law amending the same, and if the person assessed or intended to be assessed or affected thereby is designated therein according to common intent and understanding. (2) An assessment shall not be impeached or affected - (a) by reason of a mistake therein as to - (i) the name or surname of a person liable; or (ii) the description of any income; or (iii) the amount of tax charged; (b) by reason of any variance between the assessment and the notice thereof.

31. Appeals. Appeals shall lie as of right to the Revenue Court.

32. Appeals to local committees. (1) Any person aggrieved with an assessment upon him, may, within thirty days from the notification or service upon him of a notice or assessment under section 28 appeal to the Revenue Court for the area in which he resides: [W.R. 7 OF 1960 L.B.S.N. 1976 Cap. 71] Provided that, notwithstanding the lapse of such period of thirty days, any person may appeal against the said assessment if he shows to the satisfaction of the Revenue Court that, owing to absence from Nigeria, sickness or other reasonable cause he as prevented from giving notice of appeal within such period, and that there has been no unreasonable delay on his part. (2) Any rating authority aggrieved with an assessment of the income of any person may, within thirty days of receiving any list in accordance with section 27, containing such assessment, appeal against the assessment to a Revenue Court within the area of the rating authority. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (3) No appeal for which provision is made in subsection (1) shall lie unless, within the time allowed for an appeal, the aggrieved person shall have paid to the Revenue Court or the Board as the case may be - [W. R. 12 of 1963 L.B.S.N.1976 Cap. 71] (a) a fee of one thousand naira; and (b) fifty percent of the whole amount of any tax due under the assessment appealed against, or the amount paid by that person as tax for the preceding year of assessment, whichever is the less. (4) No appeal for which provision is made in this section shall lie unless, within the time allowed for an appeal, notice in writing is given by the person aggrieved with an assessment to the Board or by the person or the rating authority aggrieved with an assessment to the area assessment committee with whose decision such person or rating authority is aggrieved. [W.N. 7 of 1960 W.N. 11 of 1961 L.B.S.N.1976 Cap. 71] (5) Every person appealing shall appear before the local committee in person on the day and at the time fixed for the hearing of the appeal. (6) The provisions of subsection (6), (7), (8) and (9) of section 33 shall apply in relation to an appeal under this section as they apply in relation to an appeal under section 33 but as if references to a special court in those subsections were references to the local committee. (7) A local committee may award the costs of an appeal against an appellant where in its opinion his appeal has been of frivolous character. (8) In an appeal under this section the Board may be represented by an inspector of taxes or by a legal practitioner, an area assessment committee may be represented by any of its members or its secretary or by a legal practitioner, and a rating authority may be represented by any person appointed by it in writing or by a legal practitioner. (9) Subject to this law the Revenue Court Law and the rules thereon, shall apply to all appeals with necessary modifications.

33. Appeals to the courts. (1) Any person who, or any rating authority which, being aggrieved with an assessment, has appealed to the Revenue Court and is aggrieved by the decision of that Court may appeal against the assessment to the High Court upon giving notice in writing to the area assessment committee or the Board, as the case may be, within the period specified in subsection (11) of this section. [W.R. 7 of 1960 W.N. 11 of 1961 1976 No. 3 L.B.S.N.1976 Cap. 71] (2) The area assessment committee or the Board may, if it is dissatisfied with the decision of the Revenue Court, appeal against the decision to the High Court upon giving notice in writing to the other party to the appeal under section 32 within thirty days after the date of such decision, and the provisions of this section so far as they are applicable shall apply to any such appeal by the area assessment committee or the Board. (3) In an appeal under this section, the Board may be represented by an inspector of taxes or by a legal practitioner, an area assessment committee may be represented by any of its members or its secretary or by a legal practitioner; and a rating authority may be represented by any person appointed by it in writing or by a legal practitioner. [W.R. 7 of 1960 W.N. II of 1961 L.B.S.N.1976 Cap. 71] (4) Every person appealing shall attend before the High Court in person on the day and at the time fixed for the hearing of his appeal: Provided that if it be proved to the satisfaction of the High Court that owing to absence. from Nigeria, sickness or other reasonable cause, any person is prevented from attending in person at the hearing of his appeal on the day and at the time fixed for that purpose, the court may postpone the hearing of the appeal for such reasonable time as the court thinks necessary for the attendance of the appellant, or the court may admit the appeal to be made by any agent, clerk or servant of the appellant on his behalf or by way of written statement. (5) Seven clear days notice shall, unless rules hereunder otherwise provide, be given to the parties of the date fixed for the hearing of the appeal. (6) All appeals shall be heard in camera, unless the special court shall, on the application of the person assessed, otherwise direct. (7) The onus of proving that the assessment complained of is excessive shall be on the person assessed. (8) The court may confirm, reduce, increase or annul the assessment or make such order thereon as the court may seem fit. [W.R. 7 of 1960 W.N. 11 of1961 L.B.S.N.1976 Cap. 71] (9) Notice of the amount of tax payable under the assessment as determined by the court shall be served by the area assessment committee or the Board, as the case may be, either personally on, or by registered post to, the person assessed. (10) The costs of the appeal shall be at the discretion of the special court hearing the appeal and shall be a sum fixed by the court. (11) The period within which notice of appeal shall be given for the purpose of subsection (1) of this section, shall be thirty days after the decision of a local committee by which the appellant is aggrieved. [W.R. 7 of 1960 W.N. IIof1961 L.B.S.N.1976 Cap. 71] (12) The special court may, upon reasonable cause being shown, grant leave to any person to give notice of appeal under subsection (1) of this section out of time, and where such leave is granted the period within which notice is directed by the High Court to be given shall be deemed to be the period specified in subsection (11) of this section for the purposes of that appeal. [W.R. 35 of 1959 L.B.S.N.1976 Cap. 71] (13) The Chief Judge may make rules proving for the method of tendering evidence before the court, the conduct of such appeals and the procedure to be followed and until such rules are made the Court of Appeal Rules shall apply. [Rules]

34. Adjustment of payment. Where, in any case, the amount of the assessment as finally determined by the decision of the committee or the court is altered, then- [1976 No. 3 L.B.S.N.1976 Cap. 71] (a) if too much tax has been paid, the amount overpaid shall be refunded with such interest, if any, as may be prescribed; (b) If no tax or too little tax has been paid, the amount unpaid shall be paid and recoverable in accordance with the provisions of Part 7.

35. Assessment to be final and conclusive. Except as expressly provided in this Law, where no appeal has been lodged within the time limited by this Part against an assessment as regards the amount of the chargeable income assessed thereby or where the amount of such chargeable income has been determined on revision or appeal, the assessment as made shall be final and conclusive for all purposes of this Law as regards the amount of such chargeable income. [ W.R. 7 of 1960 W.N. 11 of 1961 L.B.S.N.1976 Cap. 71] Provided that nothing in this Part shall prevent a rating authority from making any refund under the provisions of section 44 or an area assessment committee from making any assessment or additional assessment for any year, of assessment which does not involve re-opening any issue, on the same facts, which has been determined on appeal for that year.

36. Tax collectors. (1) A rating authority may appoint persons to be tax collectors either generally or with respect to any part of its area that it may specify. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (2) No person other than ?- (a) an employee of a rating authority or of a Local Government Council that may precept upon the rating authority under the Local Government Council Law or; (b) the holder of a traditional office in receipt of remuneration from a rating authority or a Local Government Council that may precept upon the rating authority under the Local Government Council Law; shall be appointed a tax collector without his consent. (3) It shall be the duty of a tax collector - (a) to collect and receive from each person liable for the payment of tax in the area for which he has been appointed the tax collector including any penalty, payable by each such person; (b) to pay all amounts collected by him to the board; (c) to make such returns and furnish such information to the rating authority with respect to the tax which he is required to collect as it may require; (d) generally to comply with the directions of the board in the performance of the duties imposed upon him by this Law. (4) For the purposes of its duties under paragraph (e) of subsection (1) of section 6 the Board may assign inspectors of taxes to such areas as it may determine to perform the duties of tax collectors under subsection (3) of this section and in respect of inspectors of taxes so assigned references in that subsection to the rating authority shall be construed as references to the Board. [W.N.H. of 1961 L.B.S.N. 1976, Cap. 76]

37. Time within which payment is to be made. (1) Subject to the provisions of sections 39, 40, 41 and 42 tax due from any person assessed at a total income of more than six hundred naira for any year of assessment shall be payable at the place stated in the notice of assessment under section 28 within one month after the service of such notice: Provided that - (a) if one-half of the tax due from any person assessed at a total income of more than six thousand naira is paid by him within the period aforesaid and that period ends before the thirty-first day of December within the year of assessment, the balance of the tax due may be paid at any time not later than the said thirty-first day of December; [W.R. 7 of 1960 W.N. 12 of 1963 L.B.S.N.1976 Cap. 71] (b) the rating authority in its discretion may extend the time within which payment is to be made. (2) In respect of persons each of whom has been assessed at a total income of not more than six thousand naira for any year of assessment, notice shall be given by the rating authority of the date, not being later than thirty days from the date of such notice, on which tax with which such persons are chargeable shall become due and payable, and such notice maybe given either by affixing a copy thereof in such public or conspicuous places or situations within the area of the rating authority as it deems necessary, or by publishing a copy of the notice in one or more newspapers circulating in the area of the rating authority. Different methods of publication may be used as respects different part of the area of the rating authority. [W.R. 7 of 1960 W.N. 12 of 1963 L.B.S.N.1976 Cap. 71] (3) Where notice has been given in accordance with subsection (2) of the date on which any tax shall become due and payable, it shall, subject to the provisions of sections 39, 40 and 42 be the duty of every person liable to such tax to pay the amount due to a tax collector authorized to receive the same not later than the date specified in the notice: [W.R. 7 of 1960 W.N. 12 of 1963 L.B.S.N.1976 Cap. 71] Provided that in the case of a tax assessed after the date specified in the notice the amount shall become due and payable on the date when notice of it is given to the person liable in accordance with section 28 (4) The Board may in its discretion extend any time within which payment of tax is to be made under the provisions of subsection (2) and (3) of this section. [W.R. 7 of 1960 W.N. 12 of 1963 L.B.S.N.1976 Cap. 71]

38. Penalty for non-payment of tax and enforcement of payment. (1) Subject to the provisions of subsection (2) of this section, if any tax not-paid within the period prescribed by or under this Law for the payment thereof - (a) a sum equal to ten per cent of the amount of the tax in default shall be added thereto, and the provisions of this Law relating to the collection and recovery of tax shall apply to the collection and recovery of such sum as if it were part of the tax in default; [W.R.7 of 1960 W.N.12 of 1963 L.B.S.N. 1976 Cap. 71] (b) the rating authority may proceed forthwith to enforce payment as hereinafter provided; [W.N.12 of 1963 L.B.S.N. 1976 Cap. 71] (c) a penalty imposed under this section shall not be deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this Law. [W.N.12 of 1963 L.B.S.N. 1976 Cap. 71] (2) The rating authority may for good cause shown remit the whole or any part of the penalty due under this section or may decide that no penalty shall be imposed.

39. Payment of tax by persons about to leave the State. (1) If in any particular case the rating authority has reason to believe that a person who has been assessed to tax may leave the State before such tax becomes payable without having paid such tax, it may by notice in writing to such person demand payment of such tax within the time to be limited in such notice. Such tax shall thereupon be payable at the expiration of the time so limited and shall in default of payment, unless security for payment thereof be given to the satisfaction of the rating authority, be recoverable forthwith. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71] (2) If in any particular case the area assessment committee has reason to believe that tax upon any chargeable income may not be recovered, it may at any time and as the case may require - (a) make an assessment upon such person in the amount of the income returned, or if default is made in making such return or if the area assessment committee is dissatisfied with such return, in such amount as the area assessment committee may think reasonable; (b) by notice in writing to the person assessed require that security for the payment of the tax assessed be forthwith given to the area assessment committee’s satisfaction. (3) If in any particular case the area assessment committee has reason to believe that tax upon any income chargeable to such tax may be recovered, it may at any time - (a) by notice in writing to the person by whom the tax would be payable determine it period for which tax shall be charged and require such person to render within the time specified therein returns and particulars of such income for that period; (b) make an assessment upon such person in the amount of the income returned, or if default is made in making a return or if the area assessment committee is dissatisfied with such return, in such amount as the area assessment committee may think reasonable. (4) Notice of assessment made in accordance with the provisions of subsections (2) and (3) of this section shall be given to the person assessed, and any tax so charged shall be payable on demand made in writing by the rating authority, and shall in default of payment, unless security for the payment thereof be given to the satisfaction of the rating authority, be recoverable forthwith. (5) Any person who has paid the tax in accordance with a demand made by the rating authority or who has given security for such payment under this section shall have the right of appeal conferred by section 32 and 33 and any amount paid by him shall be adjusted in accordance with the result of any such appeal. (6) The provisions of this section shall -not affect the powers conferred upon the area assessment committee by section 26.

40. Collection of tax after determination of objection or appeal. Where, after determination of an appeal, any tax is outstanding under the assessment as so determined that tax shall, except in the case of ay amount in respect of which proceedings for its recovery are pending in a court at the date of that determination, be payable within one month of the date of service on the person assessed of notification of the tax payable in accordance with the provisions of section 32 or 33. [W.R. 7 of 1960 L.B.S.N.1976 Cap. 71]

41. Provision for deductions from certain ernoluments. (1) Where any emoluments to which the provisions of this section are applied are paid to any person, tax shall, subject to and in accordance with rules made under section 11, be deducted or repaid by the employer making the payment notwithstanding that when payment is made no assessment has been made in respect of the emoluments and notwithstanding that the emoluments are in whole or in part emoluments for some year of assessment other than the year during which the payment is made. (2) Rules made for the purposes of giving effect to the provisions of this section may include provisions for – (a) requiring an employer to make deductions or repayments of tax by reference to tax tables approved by the appropriate authority from time to time; (b) the production to and inspection by the Board or any person authorised by the Board of documents and records relating to the emoluments; (c) the manner in which tax deducted is to be accounted for and recovered from any employer; (d) the repayment by the Board to any employer of tax repaid or to any person of tax deducted, in such circumstances as may be prescribed in the rules; (e) applying the provisions of this section to any emoluments; (f) appeals with respect to matters under the rules which would not be otherwise be the subject of an appeal. (3) Rules made for the purposes of giving effect to this section may make provision, with respect to the amount of tax to be deducted from any class of emoluments specified in the rules, to secure that - (a) the total tax payable in respect of emoluments for any year of assessment is deducted from emoluments paid during that year; (b) the tax deductible or repayable on the occasion of any payment of emoluments is such that the total net tax deducted since the beginning of the year of assessment bears to the total tax payable for the year the same proportion that the part of the year which ends with the date of payment bears to the whole year. (4) Where the total tax deducted from the emoluments of any person in any year of assessment in accordance with rules made under this section is equal in amount to the tax which would have been payable by him if he had been assessed as in this Law provided, it shall not be necessary for the Board to give him a notice of assessment as provided in section 28. Provided that he shall be given such notice where – (i) by notice in writing he requests the Board to give him one; or (ii) the emoluments paid to him in the year of assessment differ in amount from the emoluments assessable for that year in accordance with the provisions of this Law. and in any such case nothing in this section shall affect any right of appeal to a local committee or a court which a person would have apart from this section or rules made thereunder. (5) The emoluments to which this section may be applied are the emoluments of any employment or office and any pension. (6) In this section “employer” includes any head of a department of the Government of the State and, where consent has been given by the President by notice in the Gazette of the Federation, the principal officer in the State of any department of the Government of the Federation.

42. Agreements for payment by instalments. (1) A rating authority may enter into agreements with any person assessed at a total income of morethan six thousand naira for the payment in installments payable during a year of assessment of the tax chargeable on that person for that year of assessment. [W.R. 7 of 1960] (2) An agreement made in pursuance of the provisions of this section may provide that if the instalments are paid on the days and in the manner specified in the agreement - (a) the time for payment of the tax shall be extended to such date as may be agreed therein (being a date not later than the thirty-first day of March in the year of assessment); (b) the rating authority will not take proceedings under this Part for the recovery of the tax so long as the agreement remains in effect. (3) Where the rating authority has entered into an agreement with a person in pursuance of the provisions of this section and that person fails to observe or perform any of the provisions of the agreement, the agreement shall thereupon cease to have effect and the rating authority may recover the tax outstanding in accordance with the provisions of this Part and recover any penalty as if it were tax not paid within the period prescribed in section 37.

43. Suit for tax by rating authorities. (1) If any person fails to pay any tax for which he is liable by the date on which it is payable the Board may sue for and recover the same in the Revenue Court together with any penalty due and with full costs of suit from the person charged therewith as a civil debt due to the Government of the State. [W.R. 7 of 1960] (2) In any suit or prosecution as the case may be, brought under the provisions of this section or paragraph (a) of subsection (2) of section 47, it shall not be open to any person to raise any issue which ought to have been raised by him on appeal against his assessment under sections 32 and 33 of this Law

44. Revision of tax. (1) The Board, or a rating authority with the approval of the Board, as the case may be, may remit, wholly or in part, the tax payable by any person on the ground of poverty. [W.N. I 1 of 1961] (2) The Executive Council may remit, wholly or in part, the tax payable by any person if the Council is satisfied that it will be just and equitable to do so.

45. Repayment of tax. (1) If it be proved to the satisfaction of the Board authority that any person for any year of assessment has paid tax, by deduction or otherwise, in excess of the amount with which he is properly chargeable, such person shall be entitled to have the amount so paid in excess refunded by the Board. [W.N. 7 of 1960] (2) Every claim for repayment under this section shall be made within seven years from the end of the year of assessment to which the claim relates.

46. Accrual of revenue from tax as between Government and rating authorities. (1) Subject to the provisions of this section, any revenue collected from the tax imposed by this Law shall form part of the public revenue of the State. [W.N. 5 of 1963] (2) Any revenue from the tax imposed by this Law collected by the Board shall accrue to the Government of the State and any revenue from such tax collected by a rating authority shall accrue to that authority. (3) Notwithstanding the Provisions of subsection (2) of this section the Executive Council may, if the council deems it necessary or expedient so to do, at any time provide by order as to the manner of disposal of the revenue collected from the tax imposed by this Law.

47. Penalty for Offences. (1) Any person guilty of an offence under this Law, or any person who contravenes or fails to comply with any of the provisions of this Law or of any rule made thereunder for which no other penalty is specifically provided, shall be liable., on conviction to a fine of four thousand naira, and where such offence is the failure arising from the provisions of Part 4 to furnish a return, statement or information or to keep records required, a further sum of five hundred naira for each and every day during which such failure continues, and in default of payment to imprisonment for six months, the liability for such further sum to commence from the day following the conviction, or from such day thereafter as the court may order. [W.N. 7 of 1960 1972 No. 4] (2) Any person who - (a) fails to comply with the requirements of a notice served on him under this Law; or (b) without lawful justification or excuse, the proof whereof shall lie on the person charged, fails to pay any tax due from him within the period prescribed by or under this Law for the payment thereof; or [W.N. 12 of 1963 L.B.S.N.1976 Cap. 71] (c) without sufficient cause fails to attend in answer to a notice or summons served on him under this or having attended fails to answer any question lawfully put to him. shall be guilty of an offence under this Law. (3) The court may, on conviction of a person for an offence against the provisions of paragraph (a) of subsection (2) of this section, make an order for the payment of the tax in respect of which the prosecution hasbeen brought and such tax may be recovered as a judgment debt [1972 No. 4 L.B.S.N.1976 Cap. 71]

48. Place of Commission of offence. An offence under the provisions of this Law shall be deemed to have been committed - [1972 No. 4 L.B.S.N.1976 Cap. 71] (a) at the place where the person charged with the offence resides; or (b) within the area of jurisdiction of the relevant assessment committee or rating authority; or (c) in the case of an offence arising from the failure on the part of any person to comply with any requirement lawfully made on him under this Law, at the place from where the notice of the requirement was issued.

49. Penalty for making incorrect returns. (1) Every person who without reasonable excuse - [1972 No. 4 L.B.S.N.1976 Cap. 71] (a) makes an incorrect return by omitting or understating any income of which he is required by this Law to make a return; or (b) gives any incorrect information in relation to any matter or thing affecting his own liability to tax or the liability of any other person or of a partnership. shall be guilty of an offence and shall be liable on conviction to a fine of ten thousand naira or two years imprisonment or both and double the amount of tax which has been undercharged in consequence of such incorrect return or information, or would have been so under charged if the return or information had been accepted as correct. (2) No person shall be liable to any penalty under this section unless the complaint concerning such offence was made in the year of assessment in respect of or during which the offence was committed or within six years after the expiration thereof. (3) The Board may or a rating authority with the prior approval of the appropriate authority may compound any offence under this section, and may before judgment stay or compound any proceedings thereunder. [W.R. 7 of 1960 W.N. 11 of 1976 L.B.S.N.1976 Cap. 71]

50. False statements and returns. (1) Any person who - (a) for the purpose of obtaining any deduction, rebate, reduction or repayment in respect of tax for himself or any other person, or who in any return, account or particulars made or furnished with reference to tax, knowingly makes any false statement or false representation, or forges, or fraudulently alters or uses, or fraudulently lends, or allows to be used by any other person any receipt or token evidencing payment of the tax under this Law51; or (b) aids, abets, assists, counsels, incites or induces any other person – (i) to make or deliver any false return or statement under this Law; or (ii) to keep or prepare any false accounts or particulars concerning any income on which tax is payable under this Law; or (iii) unlawfully to refuse or neglect to pay tax, shall be guilty of an offence and shall be liable to conviction to a fine of four thousand naira and treble the amount of tax for which he is liable under this Law for the year of assessment in respect of or during which the offence was committed, or to imprisonment for six months, or both such fine and imprisonment. (2) The Board may or a rating authority with the approval of the appropriate authority may compound any offence under this section and may before judgment stay or compound any proceedings thereunder. [W.R. 7 of 1960 W.N. 11 of 1961]

51. Penalties for offences by authorised and unauthorised persons. Any person who - [WR 7 of I960, WN 11 of 1961.] (1) being a person appointed for the due administration of this Law or any assistant employed in connection with the assessment and collection of the tax who - [W.R. 7 of 1960] (a) demands from any person an amount in excess of the authorised assessment of the tax; (b) withholds for his own use or otherwise any portion of the amount of tax collected; (c) renders a false return, whether verbal or in writing, of the number of the taxpayers or the amounts of tax collected or received by him; (d) defrauds any person, embezzles any money, or otherwise uses his position so as to deal wrongfully either with the Board or a rating authority or an area assessment committee or any person, or (2) not being authorised under this Law to do so, shall collect or attempt to collect the tax under this Law; or (3) being an employer required by any provision of this law or rules made thereunder to deduct tax from any emoluments payable to his employees, or being an agent of any taxable person empowered by law to retain out of moneys coming into his hands on behalf of such taxable persons any amount for the purpose of paying tax due by such taxable person and who - (a) fraudulently converts to his own use any such tax deducted or amount retained; or (b) knowingly makes any incorrect return, account or statement with respect of such tax deducted or amount retained, shall be guilty of an offence and be liable on conviction to a fine of six thousand naira or to imprisonment for three years or both. [1968 No. 30 L.B.S.N.1976 Cap. 71]

52. Tax to be payable not-withstanding any proceedings. The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under this Law shall not relieve any person from liability to payment of any tax for which he is or may become liable.

53. Sanction for prosecution. No prosecution in respect of an offence under section 49, 50, 51 or 54 may be commenced except at the instance of, or with the sanction of the Attorney-General of the State.

54. Standardization. (1) The Board may by notice in the Gazette – [1968 No.30 L.B.S.N. 1976 Cap.71] (a) specify the persons or classes or description of persons whose incomes shall be standardised for purposes of assessment to tax; and (b) fix the standard incomes applicable to such persons, classes or description of persons. (2) Any standard income fixed by the Board shall be the minimum assessable income in each case and any reference in this Law to an assessment shall be construed to include a reference to a standard assessment: Provided that the Board may make an additional assessment in accordance with section 26 of this Law if in its opinion the imposition of the standard assessment will result in a less amount of tax than that which ought to have been charged. (3) The provisions of sections 29, 32 and 33 of this Law (relating to reviews and appeals) shall apply where any person assessed at an amount in excess of the standard income disagrees with the Board as to the amount of such excess.

55. Protection for acts done in good faith. No Member of the Board or person duly authorised by it or a rating authority or tax collector shall be liable for any actor default done or omitted to be done in good faith while exercising the powers conferred by this Law. [1968 No. 30 L.B.S.N. 1976 Cap. 71]

56. Director to certify tax due. (1) The Director shall certify the amount of tax due from a tax defaulter and the certificate shall state that - [1972 No. 4 L.B.S.N.1976 Cap. 71] (a) the assessment has been duly served on the defaulter or his agent; (b) the tax due has not been paid; and (c) the defaulter failed to appeal within the time stipulated by law. (2) Any certificate issued by the Director under the provisions of the last preceding subsection shall be prima facie conclusive evidence of the facts stated therein unless the defendant establishes the contrary.

57. Recovery of the sums dues. (1) Any sum which is certified by the Director to be due from a defaulter shall forthwith become payable by the defaulter to the Director and shall be recoverable in the manner hereinafter stated. [1972 No. 4.L.B.S.N. 1976 Cap.71] (2) The Director may register a certificate signed by him giving the name and address of the defaulter concerned and the amount of debt owing, to the Revenue Court in the same manner as a judgment obtained in another State may be registered. (3) The Director shall annex to a certificate filed by him a list of the known property and assets of the debtor. (4) Upon the filing of the certificate hereinbefore referred to, the property and assets enumerated in the list annexed to the certificate shall be deemed to have been attached for sale as if same had been attached under the Sheriffs and Civil Process Law and sale thereof may proceed in accordance with the provisions of the said Law and the Judgments (Enforcement) Rules. (5) An application for a stay of execution shall not prevent a sheriff from carrying out a sale under the provisions of the last preceding subsection unless there is an interim order by a judge as the case may be, staying execution. [1972 No. 5 L.B.S.N. 1976 Cap.71] (6) No court shall make an order, or entertain an application, for instalmental payment by a tax defaulter. (7) The provisions of this section are without prejudice to the other provisions contained in this Law relating to the manner for recovering unpaid tax.

58. Appointment of Director of Internal Revenue. The Public Service Commission may from time to time appoint an officer in the public service as the Director of Internal Revenue.

59. Deduction of tax at source. (1) Subject to subsection (2) of this section, the Director of Internal Revenue may by notice in writing of tax served on any employer or contractor or subcontractor direct that on any occasion when that employer, contractor or sub-contractor, makes to or on behalf of any other contractor or subcontractor liable to tax under this law, any payment out of or on account of any income from a contract for services rendered, there shall be deducted from such income by the authority or person making the payment, two and a half percent of the contract value towards tax payable by that other contractor or subcontractor in respect of such income notwithstanding that at the time such payment is made, no assessment of tax in respect thereof has been made. (2) Subsection (1) of this section shall not apply to an employer which, being a company, is incorporated under the Companies and Allied Matters Act 1990. (3) Every employer, contractor or sub-contractor required under the provisions of this section to make any education from any income shall account to the Director of Internal Revenue in such manner as may be prescribed for the deduction so made, and in the event of failure to make such deduction or properly to account therefore, the employer, contractor or subcontractor in default shall be liable to a penalty of ten per cent of the amount which would originally have been deducted under subsection (1) of this section. (4) For purposes of this section “contractor” or “subcontractor” includes any person or body of persons engaged in any business transaction, whether verbal or in writing for the rendering of services to a person or body of persons without normal supervision from such person or body of persons.

60. Formal defect not to invalidate proceeding. No proceeding under this Law shall be varied or declared void solely by reason of any defect or any irregularity, unless the court before which an objection is made is of the opinion that substantial injustice has been caused by any defect or irregularity, and that the injustice cannot be remedied by any order of the court. [1972 No. 4 1976 No. 3 L.B.S.N. 1976 Cap. 71]

61. Application of Law. Revenue Court shall deal with all cases arising from the application of this Law [1972 No. 4 1976 No. 3 L.B.S.N. 1976 Cap. 71]

62. Demanding of receipts. (1) Tax collectors or officials of the Departments of Internal Revenue are hereby empowered to demand tax receipts from all tax payers: [1972 N6. 4 L.B.S.N. 1976 Cap. 71] Provided that where the official demanding the receipt is satisfied that the tax payer has paid tax he may be given forty-eight hours within which to produce his tax receipt. (2) Any person who fails to produce his tax receipt when demanded or within the time limit stipulated under subsection (1) above shall be guilty of an .offence and shall be liable on conviction to a fine of one thousand naira or six months imprisonment or both.

63. - (1) Subject to subsection (2) below, in addition to the tax referred to in subsection (2) of this section there shall also be payable by every person subject to tax under the law of this State the income rate specified in Table 1 below: Provided that where the amount of the total income of a person exceeds the minimum amount specified in Table l in respect of a particular range of income by such an amount that a deduction of the applicable income rate would render the resulting income to be less than the minimum amount of a particular range of income, then and in such a case such a person shall only be liable to pay the income rate prescribed in respect of the next lower range of income plus not more than one half of the amount by which his income exceeds the minimum income of that range of income, subject to the maximum amount of the applicable income rate: TABLE 1 Income Rate Amount of Income Rate N Not exceeding N1,000 4 Exceeding N1,000 but not exceeding N2,000 8 Exceeding N2,000 20 (2) Subject to the provisions of this Law, the income tax that may be payable under the law of this State on the chargeable income of an individual ascertained in accordance with the provisions of the Law shall in respect of each year of assessment be assessed at the rate or rates specified in Table 2 below: TABLE 2 Income to be taxed Rate of Tax For every Naira of the first N2,000 10k per N10 percent For every Naira of the next N2,000 15k per N15 percent For every Naira of the next N2,000 20k per N20 percent For every Naira of the next N2,000 25k per N25 percent For every Naira of the next N2,000 30k per N30 percent For every Naira of the next N5,000 35k per N35 percent For every Naira of the next N5,000 40k per N40 percent For every Naira of the next N10,000 45k per N45 percent For every Naira of the next N30,000 50k per N50 percent