The Ghost Of Taxes Past – Demands For Back Taxes From Foreign Shipping Companies That Derived Income From Nigeria

It was recently reported that some international shipping companies (specifically, owners of motor tankers used for transporting crude oil and petroleum products) engaged in Nigerian trade may be considering terminating their operations in the country, with the largest economy in Africa, following the receipt of Notices of Taxes Assessment (the “Notices”) from the Federal Inland Revenue Service (the “FIRS” or the “Service”). We also understand the Notices have resulted in a surge in charter rates for motor tanker vessels that service the Nigerian market as owners are now actively avoiding Nigeria for fear of possible detention by FIRS.