NEWS
Tribunal Orders NLNG to pay FIRS $27.5m as 2016 Revised Corporate Income tax
The Tax Appeal Tribunal (TAT) has ordered the Nigeria Liquefied Natural Gas (NLNG) Limited to pay the Federal Inland Revenue Service (FIRS) 27.5 million dollars as full and final settlement of the revised companies income tax (CIT) for the 2016 assessment year.
This was part of the judgment of the Tax Appeal Tribunal (TAT) sitting in Abuja.
The five-member panel of TAT, chaired by Mrs Alice Iriogbe, entered the judgment in the terms of settlement agreed to by parties in the appeal.
The NLNG Ltd had, in the appeal marked: TAT/ABJ/APP/331/2022, filed a notice of appeal dated and filed on April 21, 2022.
The company, an appellant, had sued the FIRS, a Federal Government’s revenue agency, as sole respondent.
The NLNG prayed the tribunal to restrain the revenue agency from collecting the sum of $141. 75 million dollars from it as CIT for the year under review.
It challenged the FIRS’ notice of additional assessment dated Dec. 15, 2021, and the notice of refusal to amend (NORA) dated March 22, 2022.
In the appeal, NLNG argued that by the provisions of Clause 8(A) of the TCPAs (Time Charter Party Arrangements), the appellant Is contractually obligated to pay for the use and hire of the vessels.
This is at a daily hire rate, which consist of the Fixed and Variable Elements from the time of delivery of the vessels to the appellant and continuing until the time and date of redelivery i.e., handover date of the vessels by the appellant to BGT (Bony Gas Transport) at the end of the lease.”
The company said although the parties to the TCPAs agreed that the lease and the attendant lease payments will continue until the redelivery dates of the vessels which were to occur at the end of the agreed tenure of the lease, it became expedient and necessary for the appellant to replace the old steam vessels with more efficient Dual Fuel Diesel Engine vessels in order to reduce the appellant’s operating expenses.
It said in line with its business objectives, the firm entered into a termination agreement with BGT to exit the TCPAs prior to the expiration of the leases.
It said that the FIRS however took the position that the terminal costs were not reasonably and necessarily incurred for its business operations.
The NLNG therefore sought seven reliefs including “a declaration that, having regard to the TCPAs, the refit and drydock payments in the sum of 141.7 million dollars were ultimately incurred by the appellant without any duplication in the books of BGT.
“A declaration that the provision of Section 90 of the CITA (Companies Income Tax Act) Is inapplicable to the appellant in this appeal.
“A declaration that having regard to the provisions of the CITA, the TCPAs, the International Accounting Standard 16 and 17 and other applicable laws, the respondent was wrong in its decision to refuse to set aside/discharge the notice of additional assessment reference number: PDBA/CIT/AUD/16/207 dated 15th December, 2021.”
The gas company therefore sought an order setting aside the FIRS’ Notice of Additional Assessment for the reasons set out in grounds one to four and the accompanying particulars contained in this notice of appeal.
It equally sought an order of injunction restraining the FIRS, its agents, officers or privies, from further assessing the company to tax for the 2016 year of assessment as set out in the demand note reference number: PDBA/CIT/AUD/16/207 dated December 15, 2021, among other reliefs.
Delivering the judgement, the tribunal observed that parties had engaged in process of settlement even when the trial was ongoing in the matter.
The TAT, in the certified true copy of the judgement, which was delivered on Thursday and made available on Tuesday, said: “On the 10th July, 2024, parties filed a term of settlement in the tribunal.”
The panel held that in the terms of settlement signed by parties, the NLNG agreed to pay FIRS “the sum of USD$27,500,000 (Twenty-Seven Million, Five Hundred Thousand Dollars) as Full and final settlement of the Revised CIT Assessment and the subject matter of this appeal if payment is made on or before Friday, 12th July 2024.
“In furtherance of the above the appellant (NLNG) on Monday 8th July, 2024, duly remitted the said sum of USD$27,500,000 (Twenty-Seven Million, Five Hundred Thousand Dollars) to the respondent (FIRS), being the full and final settlement amount agreed upon by the parties.
“In the circumstance, the terms contained in the terms of settlement have been adopted and made judgement of this Honourable Tribunal.
“This is the judgment of this Honourable Tribunal.”
Earlier, in a ruling, the tax panel dismissed the NLNG’s interlocutory motion seeking to disqualify the tribunal from further sitting on the grounds that the company did not have confidence in the tribunal to adjudicate on the matter.
In the motion filed, the company had asked the tribunal to direct the chair person, Mrs Iriogbe, and another member in the person of Mr Ajayi Bamidele, who were former staff of FIRS before retirement, to recuse themselves from further participation in hearing of the matter as their presence in the panel posed likelihood of bias against the applicant.
Delivering the ruling, the tribunal said it had gone through the application and cannot see any cogent reason for it.
It agreed with the FIRS lawyer’s argument citing Section 59 of the FIRS Establishment Act 2007 (as amended) and Paragraph 8 of the 5th Schedule of the same Act.
“The appellant (NLNG) counsel also said that he does not have any reason to suspect that the panel would be biased but that other people out there might have a contrary view.
“However, in view of the statutory provisions quoted above, the only option probably open to the applicant would be to seek to invalidate the statutory provisions in a superior court of law.
“In view of the foregoing, this tribunal sees this application as being frivolous and it is hereby dismissed with no order as to cost,” the TAT ruled.(NAN)
From Jude Dangwam, Jos
The Vice Chancellor of the University of Jos, Prof. Ishaya Tanko has confirmed the sad death of 8 students of the University to a road crash involving their Toyota bus with a truck in the metropolitan city of Jos.
He disclosed that one of the students was being prepared for surgery in the early hours of Thursday at the Jos University Teaching Hospital while others were receiving medication at the Bingham Teaching Hospital.
The Federal Road Safety Corps (FRSC) Plateau State Command disclosed that the accident occurred opposite Unity Bank Zaria Road, Jos, at around 2:30 am.
The Plateau State Sector Commander of the Corps, Olajide Mogaji explained that seven people lost their lives on the spot, while another victim died in hospital, bringing the total number of fatalities to eight.
According to the Command’s statement, the crash involved a trailer and a bus, which was carrying eleven passengers, all male students of the University of Jos, opposite Unity Bank Zaria Road, Jos, at around 2:30 am.
Mogaji said eyewitness accounts revealed to the corps emergency teams that the bus was speeding and engaged in wrongful overtaking, leading to the loss of control and the crash.
The Sector Commander has appealed to drivers to avoid night trips, excessive speed, and dangerous driving, saying, “The government needs you alive, and wants you to live life to the fullest in this festive season and beyond.”
The FRSC noted that the incident is still under investigation, while urging the public to report crashes or road emergencies to their toll-free emergency number 122 at all times for prompt responses.
The victims were said to have been coming back from a welcome special party for new students when the unfortunate incident occurred with the vehicle carrying the male students while the other vehicle carrying the female students escaped the tragedy.
UNICEF Hails Bayelsa as Champion of Primary Healthcare Devt in Nigeria
From Mike Tayese, Yenagoa
The United Nations Children’s Fund (UNICEF) has commended the Bayelsa State Government for its deliberate efforts at improving primary healthcare delivery, especially in the area of immunization in recent years.
The Country Representative of UNICEF in Nigeria, Wafaa Saeed, gave the commendation, on Wednesday, when she led a delegation on a courtesy visit to Government House, Yenagoa.
Saeed said what she saw during her visit to some health facilities and her random interactions with some mothers in the state, corroborated the positive reports UNICEF has been receiving about Bayelsa in terms of immunization.
The special UN envoy, who described Bayelsa as champion of healthcare delivery and a shining spot in the country, noted that the state has achieved an impressive performance in its immunization indices from 2021 to date.
She attributed the improvement in the health indicators of the state to purposeful leadership, commitment and accountability being provided by the present administration.
While assuring the Bayelsa of UNICEF’s readiness for collaboration to improve nutrition for children as well as unlock resources for healthcare development in the state, the Country Rep, however, urged the Governor Douye Diri-led administration to sustain its efforts in the health sector.
She said, “We are really impressed with what Bayelsa is doing… Bayelsa State has also committed its financing of immunization campaigns from the state budget, and a special one (immunization) in-between.
“Also there is a monthly allowance and support you have continued to give from GAVI. These are some of the things that have really increased the number of immunized children and improved the performance of the state.
“In 2021, the number of children not immunized in Bayelsa was 71 percent; that means seven out of ten kids were not immunized. But between then and now, there is a big difference due to the leadership, commitment and accountability we are seeing in Bayelsa State.
“You have been a champion of primary healthcare and a champion of immunization. And I really look to have Bayelsa not only a champion of states in Nigeria but in our continent and the globe.”
In a response, Governor Douye Diri represented by his deputy, Senator Lawrence Ewhrudjakpo, reaffirmed the determination of his administration to prioritize investments in the health sector.
He said plans were underway to review the state primary healthcare board law with a view to not only sustaining the extant primary healthcare funding model but also expanding it through effective private sector contributions, especially from corporate organizations operating in the state.
Diri thanked the Country Rep, Ms Wafaa Saeed, for her kind words of encouragement and also acknowledged the support of UNICEF, WHO, Bill Gate, Dangote Foundation and other development partners, noting that Bayelsa could not have recorded its present achievements in the health sector without their collaboration.
His words: “We also want to thank you profusely for supporting our programme. We thank UNICEF, the WHO, Bill Gate Foundation, Dangote Foundation and others for your support. We really appreciate what you have done for our state.
“As a government, we know where we are going. A man who knows where he is going cannot be misled. We are focused and will continue to redouble our efforts in the health sector.
“You talked about sustainability. That is very important to us, and so, we are looking at the principal law, which is the Primary Healthcare Development Board Law. We are looking at some areas of that law to bind the hands of whoever that comes after us.
“That is to ensure that even if the administration after us will not have the motivation and passion to provide leadership for primary healthcare like the present governor is doing, the law will compel them to do so.”
The UNICEF Country Representative was accompanied on the visit by the Chief of Field Service, Judith Leville, UNICEF Health Consultant, Dr. Makio Perekeme, the Chief Field Officer, Anselm Audu and a health specialist, Eghe Abe, among others.
Mutfwang Pledges Support for Minister of Defence in Fight against Insecurity
From Jude Dangwam, Jos
Plateau State Governor, Caleb Mutfwang, has paid a courtesy visit to the newly appointed Minister of Defence, Gen. Christopher Gwabin Musa (Rtd), assuring him of his total and unwavering support in the collective effort to defeat insecurity in Plateau State and across Nigeria.
The Director of Press and Public Affairs to the Governor, Gyang Bere on Thursday disclosed that the Governor has expressed delight over Gen.
Musa’s appointment, describing it as a “strategic and timely decision” in confronting the country’s intricate and evolving security challenges.Mutfwang noted that the Minister’s vast experience and proven professionalism would significantly strengthen ongoing national security interventions.
“We must now focus on finding solutions to the challenges confronting us. Whatever has happened in the past should not deter us. The time has come for all of us to join hands and holistically address our security concerns,” Mutfwang emphasized.
The Governor reiterated his support for the establishment of State Police, acknowledging concerns about possible abuses, but stressing that the nation must collectively develop safeguards and ensure operational efficiency.
Gen. Christopher Musa expressed gratitude for the Governor’s visit, assuring him of a robust and productive collaboration in addressing security concerns in Plateau State and the country at large.
He commended Governor Mutfwang for hosting the Plateau Unity Christmas Carols and Praise Festival, describing it as a unifying initiative.
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