The Tax Appeal Tribunal, South East Zone, on Friday, ruled that gratuities are tax exempted under the Personal Income Tax Act, PITA.
Nigerian Breweries PLC, in 2017, filed an appeal before the tribunal challenging the decision of the Abia State Board Internal Revenue to tax gratuities paid to its employees, contending that the Abia government erred when it assessed its employees to tax on gratuities paid by them.
It argued through its counsel, Moshood Olajide, that gratuities were no longer taxable, and therefore, remained the extant position in the PITA 2011 (as amended) and urged the tribunal to discharge the assessment notice issued by the respondent and declare that by virtue of Decree 1996, all gratuities in tax are exempted.
But, Abia state government through its counsel, Obike Onyemeru, urged the tribunal to dismiss the appeal and sustain the demand notice.
Delivering judgment in the appeal, the three-man panel of tribunal agreed with the submissions of the appellant and resolved the three grounds in his
