Federal High Court Limits CbCR Penalties in Nigeria: Check Point Software Judgment

May 5, 2025

The Federal High Court reviewed the legality of penalties imposed under Nigeria’s Country-by-Country Reporting (CbCR) regime, following a 2023 appeal judgment that annulled fines levied against Check Point Software.

The Court held that while CbCR obligations were valid under the Income Tax Act, related penalty provisions exceeded the enabling statute and were therefore unenforceable. 

By upholding the Tribunal’s decision, the Court confirmed that penalties could not be imposed beyond statutory authority. 

The ruling provides an important precedent restricting the scope of CbCR enforcement and aligning penalties with Nigeria’s tax framework.

Full English Translation: Nigeria vs Check Point Software Technologies B.V NIGERIA LTD, May 2025, Federal High Court, SUIT NO. FHC/L/10A/2023 - TPcases