Section 280: Returns of estimated.

1 Not later than two months after the commencement of each accounting period of any company engaged in upstream petroleum operations related to crude oil, the company shall submit to the Service an estimated return of its profits or losses for that accounting period for the purpose of hydrocarbon tax, which shall include —
a computations of its estimated adjusted profit or loss and of its estimated assessable profits of that period;
b in connection with the Fifth Schedule to this Act, a schedule
showing —
(i) the estimated residues at the end of that period in respect of its assets,
(ii) all estimated qualifying petroleum expenditure incurred by it in that period,
(iii) the values of any of its assets, estimated by references to the provisions of that schedule, to be disposed of in that period, and
(iv) the allowances due to it under that schedule for that period; [Fifth Schedule.]
c in connection with the Sixth Schedule to this Act, a schedule showing estimated total production allowance from all its upstream petroleum operations related to crude oil on field by field basis; [Sixth Schedule.]
d a computation of its estimated chargeable profits of that period; and
e a computation of its estimated tax for that period.

2 Where, at any time during the accounting period, there is a change in price, cost or volume, the company shall submit further returns on a monthly basis containing its revised estimated tax for such period.

3 Where the further returns provided for under subsection (2) is not made, the Service shall impose interest at the prevailing LIBOR or any other successor rate plus 10% points for the differential of the revised tax over the estimated tax paid by the company.

4 Every return made by a company engaged in upstream petroleum operations related to crude oil in fulfilment of the provisions of this section shall be subject to review and validation by the Service.

5 Where a company does not provide the estimates under subsection (1) and (2), the Service shall have the right to determine such estimates on the best of judgment basis and impose same on the company.

6 A company which fails to comply with subsection (1) is liable to pay as penalty for late filing —
a Nl 0,000,000 on the first day the failure occurs and N42,000,000 for each and every subsequent day in which the failure continues; or
b other sum as may be prescribed by the Minister of Finance by order published in the Federal Government Gazette.