A Life in Tax: “The Hotel Bill Dilemma” It was a rainy Thursday afternoon in Abuja when Mrs. Kalu, the Finance Manager of a well-known non-profit, walked into my office holding a stack of invoices. She looked perplexed. “Tunji, please help me settle this debate,” she began, placing the papers on my desk. “Our staff attended a three-day stakeholder retreat in Lagos, and we paid the hotel directly for their lodging. Our internal auditor says we should deduct Withholding Tax before paying. But our admin head insists that since we’re a non-profit, WHT doesn’t apply.” I leaned back, smiled, and pulled out a well-worn copy of the WHT Regulations 2024. “You know, Mrs. Kalu, this reminds me of the case of a logistics company I once consulted for. They lodged their field officers in a hotel for a week while auditing branch stations. FIRS later hit them with penalties—turns out they hadn’t deducted WHT on the hotel bills.” “But hotels are businesses,” I continued. “Under the WHT Regulations 2024, payments made to hotels, guesthouses, or inns for lodging are taxable services. Whether you’re a multinational, a school, or a church, if your organization pays directly to the hotel, you're required to deduct WHT and remit it to the tax authority.” “But we’re not even making a profit!” she protested. “That’s the thing,” I replied, flipping open the WHT Regulations 2024. “WHT is not about your organization's profit status. It’s about whether you made a payment for a service that's taxable under the law. Hotels provide such services. And by not deducting the WHT, your NGO is non-compliant.” I added, “Now, if your staff had paid for the hotel from their pockets and you merely reimbursed them, that’s a different story. No WHT applies in that case.” She sighed, both relieved and frustrated. “I guess the law is the law.” “Yes,” I said with a smile. “And the taxman doesn’t take a vacation—even in a hotel.” Olatunji Abdulrazaq CNA,ACTI, ACIArb(UK) Founder/CEO, Taxmobile.Online