Facts:

Checkpoint Software Technologies BV Nigeria Limited (“the Respondent”) was issued with Notices of Administrative Penalties by the Federal Inland Revenue Service (“the Appellant”) on 10 March 2022 and 15 March 2022 for late filing of its 2019 and 2020 Country-by-Country Notifications pursuant to the Country-by-Country Reporting Regulations 2018 (CbC). The Respondent, through letters dated 21 March 2022 and 22 March 2022, objected to the Notices and requested their withdrawal. The Appellant did not withdraw the Notices or provide a formal response addressing the matters raised in the objection.

In its objection, the Respondent stated that the penalties issued were not supported by any valid statutory authority. It further noted that the CbC Regulations 2018 relied upon by the Appellant were linked to the OECD Country-by-Country Multilateral Competent Authority Agreement, which, according to the Respondent, had not been domesticated by the National Assembly at the time. The Respondent indicated that this situation raised concerns regarding the applicability, relevance, and enforceability of the regulatory framework in Nigeria, particularly where penalties or sanctions were sought to be imposed.