Tax Dispute Resolution Mechanisms in Lagos State: Navigating the Legal Framework and Procedures.


Tax disputes are an inevitable aspect of any tax system, arising from differences in interpretation, assessment, or application of tax laws between taxpayers and tax authorities. In Lagos State, Nigeria, the effective resolution of tax disputes is crucial for maintaining a fair and transparent tax environment that encourages compliance and supports economic growth. In this article, we will delve into the legal framework and procedures that govern tax dispute resolution in Lagos State, highlighting key mechanisms and strategies for navigating these challenges.

Legal Framework:

The legal framework for tax dispute resolution in Lagos State is guided by both national and state-level legislation:

  1. Federal Laws: Federal tax laws, such as the Companies Income Tax Act (CITA), Personal Income Tax Act (PITA), and Value Added Tax Act (VATA), provide the foundation for tax assessment and dispute resolution across Nigeria.
  2. State Laws: Lagos State has its own tax laws, including the Lagos State Revenue Administration Law (LIRS Law), which outlines the procedures and mechanisms for tax assessment, collection, and dispute resolution within the state.

Mechanisms for Tax Dispute Resolution:

Lagos State offers various mechanisms for resolving tax disputes, each designed to cater to different stages and complexities of disputes:

  1. Administrative Review: Taxpayers can request an administrative review of their tax assessments by submitting a formal objection to the Lagos Internal Revenue Service (LIRS). The LIRS reviews the objection and may adjust the assessment based on its findings.
  2. Alternative Dispute Resolution (ADR): ADR methods, such as mediation and negotiation, provide an avenue for taxpayers and the LIRS to reach a mutually acceptable resolution without resorting to formal litigation.
  3. Tax Appeal Tribunal (TAT): The TAT is an independent body established to hear and determine tax disputes arising from decisions of tax authorities. Taxpayers dissatisfied with the outcome of an administrative review can appeal to the TAT.
  4. High Court: If a party is dissatisfied with the TAT’s decision, they can further appeal to the High Court of Lagos State. The High Court has the jurisdiction to hear and determine tax appeals.

Procedures for Tax Dispute Resolution:

  1. Notice of Objection: Taxpayers who disagree with a tax assessment must submit a formal Notice of Objection to the appropriate tax authority within the prescribed time frame. This initiates the administrative review process.
  2. Administrative Review: The LIRS reviews the objection, conducts investigations, and communicates its findings to the taxpayer. If the taxpayer is satisfied with the outcome, the dispute is resolved at this stage.
  3. ADR Process: Parties interested in ADR may engage in mediation or negotiation to reach an amicable settlement. A signed settlement agreement concludes the dispute.
  4. TAT Appeal: If an administrative resolution or ADR is not achieved, the taxpayer can file an appeal with the TAT within 30 days from the date of the decision being appealed.
  5. High Court Appeal: If dissatisfied with the TAT’s decision, either party can further appeal to the High Court of Lagos State within 30 days from the date of the decision.

Navigating Tax Dispute Resolution:

Navigating tax dispute resolution in Lagos State requires a strategic and informed approach:

  1. Professional Guidance: Engaging qualified tax advisors or legal professionals with expertise in tax dispute resolution ensures that taxpayers have a comprehensive understanding of their rights, obligations, and available options.
  2. Timely Compliance: Adhering to prescribed timelines for filing objections, appeals, and submissions is critical to preserving one’s right to dispute resolution.
  3. Documentary Evidence: Providing accurate and comprehensive documentary evidence to support claims and objections strengthens the taxpayer’s position.
  4. ADR Consideration: Exploring ADR options can lead to quicker and more cost-effective resolutions, avoiding lengthy and expensive litigation.
  5. Proactive Communication: Open and transparent communication with the tax authorities can facilitate the resolution process and prevent misunderstandings.


The tax dispute resolution mechanisms in Lagos State underscore the government’s commitment to fairness, accountability, and a conducive business environment. By providing avenues for administrative review, ADR, and judicial appeals, Lagos State offers taxpayers a comprehensive framework to address disagreements and disputes.

Efficient and effective tax dispute resolution not only ensures that taxpayers’ rights are protected but also contributes to a more stable and predictable tax environment that fosters economic growth and investment. By navigating the legal framework and procedures with diligence and professional support, taxpayers can contribute to a transparent and equitable tax ecosystem that benefits both businesses and the state.

For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, You can also reach us via WhatsApp at +2348038460036.