In its recent decision in AllanGray Investment Management Nigeria Limited v Federal Inland Revenue Service, the Tax Appeal Tribunal (TAT) held that a foreign company (which engages an agent in Nigeria to provide marketing or distribution services) will be deemed to be carrying on business in Nigeria and generating profit through the said agent.
In this article, Ugonna Ogbuagu (a Senior Associate) reviews the TAT’s decision and highlights the potential value-added tax exposure for foreign private equity firms which engage agents in Nigeria to provide marketing and business prospecting services.