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DTA: NIGERIAN EXPERIENCE

By
Kolawole Banwo
Snr. Program Officer, (Policy and legislative Advocacy),
Civil Society Legislative Advocacy Centre, CISLAC

International Tax Academy


December 1-6 2014

IN PLACE

A Tax Treaty Secretariat under the Tax Policy and


Legislation Department of Federal Inland Revenue
Service responsible for handling all matters relating to
initiating, negotiating and concluding Tax Treaties;

A Nigerian Model Double Taxation Agreement in place but


under review

10 Double Taxation Agreements in force between Nigeria


and United Kingdom, France, Belgium, The Netherlands,
Canada, Romania, Pakistan, South Africa, China and Italy
(limited to Air and Shipping business);

IN PLACE CONTD

There are seven negotiated DTAs but are still in the


process of being domesticated: Nigeria-Spain,
Nigeria-South Korea, Nigeria-Sweden, NigeriaTunisia, Nigeria-Mauritius, Nigeria-Algeria, and
Nigeria-Denmark.
Two previously Negotiated DTAs are to be
renegotiated: Nigeria-Bulgaria and Nigeria-Turkey;
Recently concluded a workshop on Review of the
Nigerian Model DTA, Existing Tax Treaties with a
view to Designing Strategies for DTA negotiation and
preparing a Revised Nigerian DTA model.

IN PLACE CONTD

An administrative arrangement on exchange of


information under the Tax Policy and Legislation
Department of FIRS;
Relative capacity for sourcing the information
required from the relevant State Internal
Revenue Service under EOI
There is an Exchange of information (EOI) Unit
with focal officers for EOI work;
Maintenance of records for exchange of
information requests.
There is a draft Exchange of Information
manual in place;

GAPS
Absence of well- defined Tax Treaty Policy
and Strategies for negotiating Tax
Treaties;
Lack of adequate negotiating skill on the
part of the Nigerian technocrats as
compared to their counterparts from the
advanced nations;
Poor Literacy level and Poor culture of
record keeping by businesses impact
negatively on exchange of information;

CHALLENGES OF THE OFFICE OF COMPETENT AUTHORITY


CONTD

The need for improved skills of the personnel


responsible for carrying out EOI work.

WAY FORWARD

Capacity Building of the personnel


responsible for carrying out tax treaty
negotiation and exchange of information
work;
Preparation of a Revised Nigeria Model DTA
that will be aligned with current realities;
Articulating well defined Tax Treaty policy
and negotiation strategies for Nigeria based
on lessons learnt at the recently concluded
Tax treaty workshop;

Thank you for listening