Court Of Appeal Upturns The Decision Of Federal High Court On Recharges

The Court of Appeal on 2 December 2014 delivered a judgment on the deductibility of recharges by non-resident companies filing income tax returns under the deemed profit regime in a case brought before it by the Federal Inland Revenue Service ("FIRS") against Halliburton West Africa Limited ("HWAL").

The new judgement overturned the decision of the Federal High Court which had set aside the judgment of the Body of Appeal Commissioners that decided the case in favour of the FIRS. The Court of...