JUDICIARY
Tribunal Orders AEDC to Pay N5.3bn Tax Liability for 4 Years
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The Tax Appeal Tribunal (TAT) sitting in Abuja, on Thursday, ordered the Abuja Electricity Distribution Company (AEDC) Ltd to pay the cumulative sum of N5.3 billion as value added tax (VAT) and withholding tax liability for the period between 2013 and 2017.
The five tax appeal commissioners, chaired by Hon.
Alice Iriogbe in a judgment, held that the assessment of the VAT made by the Federal Inland Revenue Service (FIRS) on the company was valid and in accordance with the Value Added Tax Act (VATA).reports that the appellant, AEDC, had, in the appeal marked: TAT/ABJ/330/2024, sued the FIRS as sole respondent.
The FIRS, in conjunction with the Economic and Financial Crimes Commission (EFCC), had, in 2018, conducted a tax investigation on the appellant for the 2013-2017 years of assessment (YOA).
At the end of the investigation, a tax liability of N20, 163,668,697.00 (twenty billion, one hundred and sixty-three million, six hundred and sixty eight thousand, six hundred and ninety seven naira only) was established against the company.
The FIRS, therefore, conveyed the liability for the period to the AEDC vide a letter dated Sept. 21, 2018 but KPMG, on behalf of the company, was said to have objected to the assessments through a letter dated Nov. 1, 2018.
The company on Nov. 20, 2019, also appointed a consortium: Messrs Ascension Consulting Services Consortium authorised to reconcile its VAT matters in the ongoing tax investigation with the FIRS and EFCC.
In the said letter, it was stated that the reason for the appointment was because they handled the compliance aspect of the work and now “expressly authorised to discuss and conclude the matter.”
The tribunal, however, observed that during the oral testimony of the AEDC’s witness, Mr Martins Aroge, it was clear that KPMG (another tax consultant) was mandated to reconcile the appellant’s Withholding Tax (WHT) liability matters.
The FIRS, while giving its evidence, argued that the appellant, through its agents; Ascension Consulting Consortium and KPMG, held several reconciliation meetings with the respondent (FIRS) and came up with N4, 534,358,874.00 revised computations as their own reconciled liabilities for the company and N780, 307,078.00 as withholding tax (totalling N5, 314, 665, 952) through two letters dated March 24, 2021 and Sept. 10, 2021.
But the AEDC, dissatisfied with the assessment contained in the FIRS’ Notice of Refusal to Amend (NORA) dated Feb. 24, 2022, appealed against the federal agency’s decision.
Giving a three-ground of appeal, the electricity firm said the FIRS was wrong to have assessed the tax on the basis of an unauthorised representation by its agent and to have issued a VAT assessment of over N4.53 billion on the basis of a purported letter, instead of relying on the legal basis of the VAT Act, among others.
Delivering the judgement, the five-member panel held that the AEDC was bound by the action of its agents; Ascension Consulting Services Consortium (comprising of Ascension Consulting Services, TBS Professional Services and The Eminent Konsult) appointed to act on its behalf for reconciliation of VAT in respect of the tax investigation/reconciliation exercise.
“This honourable tribunal, therefore, compels the appellant to pay N4,534,358,874.00 (four billion, five hundred and thirty -four million, three hundred and fifty -eight thousand, eight hundred and seventy — four naira) only as VAT liability for 2013 – 2017 as contained in the Notice of Refusal to Amend (NORA) to the respondent (FIRS) forthwith.
“This honourable tribunal compels the appellant to pay the sum N780,307,078.00 (seven hundred and eighty million, three hundred and seventy-eight naira) only as withholding tax (WHT) liability for 2013 and 2016 as established by its consultant KPMG,” it ordered.
The tribunal also compelled AEDC to pay the sum of N100.000 pending cost awarded in favour of the FIRS in the course of the proceeding.
According to the tribunal, the appellant is also liable to interest on the judgement sum at the prevailing CBN rediscount rate from the date of judgement until the judgement debt is liquidated.
“This is the judgement of this honourable tribunal,” it declared.
Reports says that other members of the tribunal include Hon Ishola Akintoye, Hon Ajayi Julius-Bamidele, Hon Nasir Kuliya and Hon Almustapha Aliyu.(NAN)
JUDICIARY
3 Docked Over Alleged Theft of Transformer Valued N50m
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Three men, were on Tuesday, arraigned before an Ikorodu Chief Magistrates’ Court, Lagos, for allegedly stealing an electricity transformer valued N50 million.
The defendants, Kehinde Akinkugbe, Tope Salisu, and Isiaka Amusa, whose addresses were not given, are being charged with conspiracy, stealing and malicious damage.
The defendants, pleaded not guilty to the charge.
The Prosecutor, ASP Aminu Isaac, told the court that Akinkugbe, Salisu and Amusa, committed the offences at about 2.
30a.m on Aug. 22, at Ajeri Street, Ijede, Ikorodu, Lagos.Isaac said that the defendants maliciously damaged an electricity transformer, belonging to the Federal Government.
The prosecutor said that the defendants were apprehended by residents of the area, who later reported the matter to the police.
He said that the offences contravened Sections 411, 287 and 339 of the Criminal Law of Lagos State, 2015.
The Chief Magistrate, Mrs A.B. Olagbegi-Adelabu, granted the defendants bail in the sum of N1 million each, with two sureties in like sum.
Olagbegi-Adelabu, ordered that one of the sureties must own a landed property, and should present evidence of three years tax payment to the Lagos State Government.
The Magistrate adjourned the case until Oct. 10 for mention.(NAN)
JUDICIARY
Tinubu Swears in Kekere-Ekun as Acting CJN
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President Bola Tinubu has sworn in Justice KudiratKekere-Ekun as the 23rd and second female Chief Justice of Nigeria (CJN), in acting capacity pending confirmation by the Senate.She takes over from Justice Olukayode Ariwoola, who retired on Aug. 22 at the age of 70.(NAN)
JUDICIARY
Labourer Jailed 18 Months for Attempting to Steal from a Church
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A Jos Magistrates’ Court on Friday, sentenced a 28-year old labourer , Naanswan Daboer to 18 months imprisonment for attempting to steal from a church premises.The Magistrate, Mr Shawomi Bokkos, summarily tried and sentenced Daboer after he pleaded guilty to the crime.The magistrate , however, gave the convict a fine of N100,000.
Earlier, the Prosecution Counsel,Ibrahim Gokwat told the court that the case was reported on July 9, at the “C” Division Police Station by Yohanna Nanjul and Musa John, the complaints. The prosecutor said that the convict trespassed in to the church premises and switched off their security lights but was caught.The offence, according to him, is punishable under the Plateau Penal Code Law. (NAN)