Deduction / Payment of Tax Chapter- 23
Commissioner Inland Revenue shall have a first claim for that amount before any distribution of
property is made.Every amount that a person is required to deduct from a payment shall be -
(a) a first charge on the payment; and(b) deducted prior to any other amount that the person may be required to deduct from the
payment by virtue of an order of any Court or under any other law.- Indemnity [Section 167]
A person who has deducted tax from a payment and remitted the deducted amount to the
Commissioner Inland Revenue shall be treated as having paid the deducted amount to the recipient
of the payment for the purposes of any claim by the recipient for payment of the deducted tax.- Credit for tax collected or deducted [Section 168]
Where an amount of tax has been collected from a person or deducted from a payment made to a
person, the person shall be allowed a tax credit for that tax in computing the tax due by the person on
the taxable income of the person for the tax year in which the tax was collected or deducted.
Where a company is a member of an association of persons which is taxed in accordance with
section 92 and an amount of tax has been collected from an association of persons under Division II
of this Part or Chapter XII or deducted from a payment made to the said association under Division III
of this Part or Chapter XII, the company shall be allowed a tax credit, in respect of tax collected or
deducted from the association of persons, according to the following formula, namely:—(A/B) x C
Where —A. is the amount of share of profits before tax received by the company as a member from the
association of persons;B. is the taxable income of the association of persons; and
C. is the amount of tax withheld in the name of the association of persons.No tax credit shall be allowed for any tax collected or deducted from an association of persons in
respect of an amount for which credit has been allowed as above to a company being a member of
the association.
No tax credit shall be allowed for any tax collected or deducted that is a final tax regime and a tax
credit or part of a tax credit allowed for a tax year that is not able to be credited for the year shall be
refunded to the taxpayer.
No amount shall be deducted on account of service charges from the tax withheld or collected by any
person, however where the same are deducted the said person will be liable to pay the said amount
to the Federal Government and all the tax recovery provisions shall apply on the same.- Power to enter and search premises [Section 175]
(1) In order to enforce any provision of this Ordinance, the Commissioner or any officer authorised
in writing by the Commissioner for the purposes of this section –
(a) shall, at all times and without prior notice, have full and free access including real-time
electronic access to any premises, place, accounts, documents or computer;(b) may stamp, or make an extract or copy of any accounts, documents or computer-stored
information to which access is obtained under clause (a);
(c) may impound any accounts or documents and retain them for so long as may be
necessary for examination or for the purposes of prosecution;