Undomesticated Treaties? Nigeria’s High Court Says ‘Not So Fast’
The Big Picture: A Lagos Federal High Court just handed tax authorities a reality check, ruling that penalties tied to Nigeria’s Country-by-Country (CbC) Reporting rules can’t stand because the underlying OECD agreement was never written into local law as detailed in Nigerian Tax Laws 2025. If the decision survives appeal, it could reset how Nigeria, and perhaps other treaty-heavy jurisdictions, enforce international tax rules.
The Details: Checkpoint Software Technologies challenged ₦10 March and 15 March 2022 penalty notices for late CbC filings. The company argued, and the Tax Appeal Tribunal agreed, that the 2018 CbC Regulations lean on the OECD Multilateral Competent Authority Agreement for further context on domestic taxation, which the National Assembly has yet to domesticate. The Federal Inland Revenue Service (FIRS) took the fight to the High Court, but Justice Faji sided with the taxpayer, tossing the penalties as “unsupported by valid statutory authority,” BusinessDay reports.
Why It Matters / What They’re Saying: The reaction was swift among practitioners who see ripple effects for any Nigerian rule that piggybacks on un-domesticated treaties. One Lagos-based adviser told BusinessDay the case is “a wake-up call for lawmakers” to close gaps between international commitments and domestic law.
Around the Tax World
• UN’s Transfer-Pricing Database Hits a Wall. Confidentiality worries and cost questions dog the UN’s proposal for a public TP database, experts warned at a recent forum (International Tax Review).
• EY Webcast Alerts CFOs to New Financing Rules. On 19 November, the Big Four firm’s Global Tax Desk will dissect fresh anti-hybrid, thin-cap and Pillar Two restrictions,plus the U.S.-centric One Big Beautiful Bill Act,in a one-hour session (EY TaxNews).
• Academics Converge in Nottingham. Digitalisation, VAT and sustainability stole the show at September’s International Tax Research Network conference, featuring HMRC’s Chris Irwin on raising standards in tax advice (University of Nottingham).
• Report Slams U.S. Oil-and-Gas Breaks. Ending foreign-production tax perks could save U.S. taxpayers $75 billion over a decade, Senator Sheldon Whitehouse said at the launch of a FACT Coalition study (FACT Coalition).
By the Numbers
Tax Stat of the Day: $75 billion , the ten-year savings from scrapping overseas oil-and-gas tax breaks, per the FACT Coalition report.
Looking Ahead
All eyes are now on the FIRS appeal timeline in light of recent reforms detailed under the Nigeria Revenue Service (Establishment) Act, 2025,while globally, negotiators prepare for fresh talks on a potential UN tax convention (Bond).
Prepared by MyTax - mytax.com.ng