The Tax Appeal Tribunal Lagos Zone held that interest and penalties do not apply to additional assessments of value added tax (VAT) that a nonresident taxpayer validly objected to within the stipulated statutory period.
KPMG observation
It is unclear whether the Federal High Court (FHC) will uphold this judgment because it held in another case (CMA CGM Delmas v. Federal Inland Revenue Service) that objecting to a tax assessment within the stipulated period does not absolve a taxpayer from the obligation to pay interest and penalties on additional tax assessment arising from audits.
Source: KPMG
