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The Tax Appeal Tribunal (TAT) of the South-East Zone on June 21, 2019, in its decision in Nigerian Breweries Plc v Abia State Board of Internal Revenue (TAT/SEZ/002/17) held that gratuities are exempted from income tax under the Personal Income Tax Act (PITA), 2011.

The matter was instituted in 2017 by the Nigerian Breweries Plc (“the Appellant”), where the Appellant contested the decision of the Abia State Board of Internal Revenue (“the Respondent”) on taxing of gratuities paid to its retirees. The main ground of objection raised by the Appellant was that the Respondent erred in law when it assessed the Appellant’s employees to tax on gratuities paid to them by the Appellant.