Nigeria: Tax Appeal Tribunal rules on the treatment of capital allowance clawback in a disposal of an oil asset

ATL-Editor 26 February 2015

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Tax Appeal Tribunal rules on the treatment of capital allowance clawback in a disposal of an oil asset

February 2015

In brief In a recent decision, the Tax Appeal Tribunal (“Tribunal”) held that no capital allowance claw-back (balancing charge) should be computed on the disposal proceed relating to intangible assetsIntangible Assets are non-physical assets that have value due to the rights or advantages they confer on a business. Unlike tangible assets like machinery or buildings, intangible assets cannot be seen or touched but often hold significant worth. Common examples include intellectual property (IP) such as patents, trademarks, copyrights, goodwill, and brand recognition. Intangible assets are crucial for driving long-term... on which no capital allowance had been previously claimed. The Tribunal also held that Petroleum Investment Allowance (“PIA”) should not be considered as part of allowances in computing the ‘residue’ for balancing charge. However, any applicable balancing charge is liable to education tax.

For the full PWC article click here:

http://zaimages.gmimage3.com/za_members/68731/ftp/Attachments/Tax_AlertTAT_rules_on_tax_on_oil_asset_disposal.pdf?utm_source=PwC&utm_medium=email&utm_term=NewsletterLink&utm_campaign=Tax+Appeal+Tribunal+rules+on+the+treatment+of+capital+allowance+clawback+in+a+disposal+of+an+oil+ass&utm_content=

Categories: FP News

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