Demand by Nigerian Tax Authorities against Shipowners

We have learned that Nigerian tax authorities have started issuing demands to certain shipping companies for taxes allegedly due and unpaid.  Intertanko has issued a circular, the text of which is as follows:

“INTERTANKO has been advised by several Members that they have received demands from the Nigerian Federal Inland Revenue Services (FIRS) referring to this public notice and the commencement of a tax investigation of international petroleum shipping companies (IPSCs) that have conducted business in Nigeria from 2010- 2019. The circular referred to in the public notice can be found here

The letters being sent by FIRS allege that certain named vessels have traded to Nigeria between 2010-2019 and have not filed Companies Income Tax (CIT) returns nor paid taxes to the Nigerian government. The claims vary depending on the value of the cargo and number of visits by the vessel, but are in the range of USD400,000 to USD1.1m per vessel.

Members are advised to be alert to the possibility of receiving letters from the FIRS which considers non-payment of the demands to be classified as tax evasion and a criminal offence. The common understanding following consultation with club legal advisers in Nigeria, is that there is a 30-day period in which to appeal the demand after which there is a risk of vessels being detained.
INTERTANKO is writing to the FIRS asking for more clarity on this issue. Members are asked to let the Association know if they have received similar demands from the FIRS or have any more information on this issue so that INTERTANKO can consider a standardised industry approach.”

With grateful thanks to Intertanko

If Members wish to discuss this further, they should approach their usual contact at the Club.