Tax Liabilities of Educational Institutions in Nigeria – The “Public Character” Twist

Law Axis 360°

In a recent decision, the Court of Appeal (COA) in the case between Best Children International Schools Limited (BCIS Ltd.) and Federal Inland Revenue Service (FIRS) affirmed the decision of the Federal High Court (FHC) that BCIS Ltd is liable to Companies Income Tax (CIT) notwithstanding its status as an educational institution. This decision was reached after the court considered the mode of registration of the school and found that its business objective was to make profit coupled with the fact that it was set up as a limited liability company rather than a company limited by guarantee.

Although the position of the law seems clear on the taxability of educational institutions, the recent COA decision on the subject matter has cast a doubt on the true position of the law. A swift examination of the relevant sections of the Companies Income Tax Act (CITA) and the Companies and…

View original post 1,773 more words

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s