Analysis of Tax Dispute Resolution Mechanisms in Nigeria

This study analyses the effectiveness of tax dispute resolution mechanisms in Nigeria, focusing on the Tax Appeal Tribunal and alternative mechanisms such as settlement negotiations and administrative review processes. Tax disputes between the Federal Inland Revenue Service and taxpayers have increased substantially in recent years as assessment practices have become more aggressive, creating a need for efficient and fair resolution channels. The study adopts a descriptive approach, reviewing case records from the Tax Appeal Tribunal, examining selected landmark decisions, and conducting a survey of 90 tax practitioners including lawyers, chartered accountants, and consultants in Lagos, Abuja, and Port Harcourt. Survey questions assess satisfaction with the efficiency, cost, and fairness of existing dispute resolution pathways. Secondary data from the TAT annual reports and CITN publications supplement primary findings. Descriptive statistics and qualitative content analysis are applied. The study expects to find that the TAT, while functional, is hampered by case backlogs, inconsistent application of precedent, and limited technical expertise among tribunal members in specialised tax areas. Recommendations include increasing the number of TAT benches across geopolitical zones, mandating time limits for dispute resolution, providing specialised training for tribunal members on complex tax issues, and promoting pre-litigation alternative dispute resolution. This research contributes undergraduate-level analysis to the growing body of work on tax governance reform in Nigeria. Keywords: tax dispute resolution, Tax Appeal Tribunal, FIRS, taxpayer rights, ADR.