Tax Funding Agreement Template for Nigeria

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Key Requirements PROMPT example:

Tax Funding Agreement

"I need a Tax Funding Agreement for a Nigerian oil and gas corporate group with 5 subsidiaries, including specific provisions for petroleum profits tax and mechanisms for quarterly tax funding payments starting from March 2025."

Document background
The Tax Funding Agreement is essential for corporate groups operating in Nigeria who need to establish clear mechanisms for managing and funding their tax obligations. This document becomes particularly relevant when multiple entities within a group need to coordinate their tax payments and ensure compliance with Nigerian tax laws. The agreement typically includes detailed provisions for calculating tax liabilities, timing of payments, and mechanisms for funds transfer, while ensuring compliance with the Companies Income Tax Act (CITA) and other relevant Nigerian tax legislation. The Tax Funding Agreement also addresses specific requirements of the Federal Inland Revenue Service (FIRS) and includes provisions for dealing with tax adjustments, audits, and disputes. It's particularly important for groups with complex corporate structures or those operating across multiple sectors in Nigeria.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, typically including the tax funding entity and the taxpayer entities

2. Background: Context of the agreement, including the group structure and purpose of the tax funding arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Tax Funding Obligations: Core obligations regarding the funding of tax liabilities, including payment mechanisms and timing

5. Calculation of Tax Liabilities: Methodology for calculating tax amounts to be funded

6. Payment Terms: Specific terms regarding the timing, method, and currency of payments

7. Records and Accounting: Requirements for maintaining appropriate tax and accounting records

8. Representations and Warranties: Standard warranties regarding capacity, authority, and tax compliance

9. Confidentiality: Provisions protecting confidential information of all parties

10. Default and Remedies: Consequences of failing to meet obligations under the agreement

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Dispute Resolution: Procedures for resolving disputes between parties

13. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Tax Consolidation: Required if the agreement relates to a consolidated group structure for tax purposes

2. International Tax Provisions: Required if any party has international tax obligations or cross-border implications

3. Security Arrangements: Optional section for when security is required for tax funding obligations

4. Tax Indemnities: Additional indemnities section required for complex group structures or high-risk arrangements

5. Force Majeure: Optional provisions for unforeseen circumstances affecting tax obligations

6. Step-in Rights: Optional provisions allowing funders to step in and manage tax affairs in specific circumstances

Suggested Schedules

1. Schedule 1 - Calculation Methodology: Detailed methodology for calculating tax funding amounts

2. Schedule 2 - Payment Procedures: Specific procedures and timelines for making tax funding payments

3. Schedule 3 - Participating Entities: List of all entities covered by the tax funding arrangement

4. Schedule 4 - Forms and Notices: Standard forms for tax funding requests and notifications

5. Schedule 5 - Compliance Requirements: Specific Nigerian tax compliance requirements relevant to the agreement

6. Appendix A - Power of Attorney: If required, standard form of power of attorney for tax matters

7. Appendix B - Tax Calendar: Calendar of key tax payment and filing dates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Oil and Gas

Manufacturing

Telecommunications

Mining

Real Estate

Retail

Technology

Agriculture

Construction

Healthcare

Transportation and Logistics

Relevant Teams

Legal

Finance

Tax

Treasury

Compliance

Corporate Secretariat

Risk Management

Internal Audit

Accounting

Corporate Finance

Relevant Roles

Chief Financial Officer

Tax Director

Financial Controller

Group Treasurer

Tax Manager

Corporate Counsel

Legal Director

Finance Manager

Compliance Officer

Corporate Secretary

Treasury Manager

Head of Finance

Tax Accountant

Financial Planning Manager

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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