FCT Tax Practitioners Warn Of Possible Tax Disputes In 2026

The Federal Capital Territory (FCT) Tax Practitioners Association has cautioned taxpayers and tax consultants to prepare for a likely increase in tax disputes in 2026 as newly enacted tax laws enter full implementation.

The caution was issued by a former chairman of the association, Dr. Kennedy Iwundu, during the group’s annual end-of-year get-together held in Abuja.

Dr. Iwundu explained that the expected rise in disputes underscores the need for both taxpayers and consultants to fully understand what qualifies as final and conclusive tax liability as well as the dispute-resolution mechanisms already embedded in law.

Referencing Section 43 of the National Tax Administration Act (NTAA), he stated that a tax liability becomes final and conclusive under any of the following conditions: “when no valid objection or appeal is filed within the legally specified time; when a taxpayer agrees to an assessed income or profit under Section 41(5); when the amount is determined following an objection or revised under Section 41(5); or when an assessment has been agreed to, revised, or settled on appeal.

On dispute-resolution procedures, Dr. Iwundu highlighted the statutory steps available once a tax assessment is issued. Under Section 41 of the NTAA, taxpayers have 30 days to lodge an administrative objection, after which the tax authority must respond within 90 days by either accepting or rejecting the objection.

He added that where an objection is rejected, taxpayers may pursue one of three routes: Amicable Settlement – Provided under Section 141 of the NTAA, allowing both parties to resolve disputes through an agreed procedure.

“Tax Ombud – Established under Sections 36–49 of the Joint Revenue Board Establishment Act 2025, enabling taxpayers to petition for reconciliation.

“Appeal Processes – Beginning at the Tax Appeal Tribunal and extending, where necessary, to the Federal High Court, Court of Appeal, and ultimately the Supreme Court, in line with Sections 41(8) and 41(9) of the NTAA 2025.

“The FCT Tax Practitioners Association comprises professionals from ICAN, ANAN, and CITN operating within the territory and is presently chaired by Mr. Aja Kpomevi Uziewe.”

The association emphasized that early and thorough understanding of tax obligations and dispute-resolution pathways will help reduce conflict between taxpayers and authorities as the new tax framework comes into effect next year.