The Lagos Zone of the Tax Appeal Tribunal has ordered Planet One Entertainment to pay the Federal Inland Revenue Service the sum of Twenty-Six Million, Eight Hundred and Fifty-Eight Thousand, Four Hundred and Fifty-Six Naira (N26,858,456.00) unpaid tax liabilities.

The panel led by Professor A.B Ahmed held that the failure of Planet One Entertainment to object to the respective assessments carried out and served on the firm by the FIRS on their tax liabilities within the record time has become final and conclusive.

From facts, the appellant- FIRS had submitted that the Planet One Entertainment is liable to pay the sum of #26,858,456.00 (Twenty-Six Million, Eight Hundred and Fifty-Eight Thousand, Four Hundred and FiftySix Naira) Only which has now become a debt for unpaid outstanding tax liabilities for the 2011-2014 Value Added Tax (VAT) and 2013-2017 Company Income Tax (CIT) and Value Added Tax (VAT) for years respectively, which has become final and conclusive because the assessments were not objected to.

The FIRS maintained that based on the provisions of the company Income Tax Act (CITA) that a tax assessment becomes final and conclusive when the taxpayer loses the right to question or challenge the amount of tax imposed due to his failure to carry out some steps within specified periods set out under the CITA sections, urged the tribunal to grant the reliefs sought.

However, despite evidence of service of hearing notices served on the firm they refused to appear throughout the proceeding.

The tribunal In its considered decision at a panel headed by Prof. A. B. Ahmed as Chairman, P. A. Olayemi, Babatunde Sobamomo, Samuel Ohwerttoye, and Terzungwe Gbakighir as members held that a tax assessment becomes final and conclusive when the taxpayer losses the right to question or challenge the amount of tax imposed due to his failure to carry out some steps within a given period of time.

The Tribunal held that that the Planet One Entertainment failed, in line with the provisions of the law to object to the respective assessments despite being duly communicated same respectively. 

“In the circumstances, the assessments not being objected to within record time become final and conclusive.” Tribunal ruled.