Section 47 Nigeria Tax Administration Act 2025

Section 47 of the Nigeria Tax Administration Act 2025 is about Prohibited tax avoidance arrangement. It provides as follows:

(1) The relevant tax authority may counteract a prohibited tax avoidance arrangement by way of adjustments, disregarding, or recharacterising the arrangement through an assessment, the modification of an assessment, amendment or disallowance of a claim or otherwise, in part or whole, unless the taxable person proves, to the satisfaction of the relevant tax authority, that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Act or any other tax law.

(2) For the purpose of this section, prohibited tax avoidance arrangement means any arrangement where, having regard to the facts and circumstances, it is reasonable to conclude that –
(a) the main purpose of the arrangements was to obtain a tax benefit
or advantage ;
(b) obtaining the tax advantage is contrary to the object and purpose
of the provisions of this Act or any other tax law ;

(c) it results, directly or indirectly, in the misuse or abuse, of the provisions of this Act or any other tax law ; or
(d) it lacks commercial substance or coherence in whole or in part.

(3) In this section –
“tax benefit or advantage” is as defined in section 30 (3) of this Act;
and
“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.

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