The North-West Zone of Tax Appeal Tribunal, Sitting in Kano has ordered Kano Electricity Distribution Company to immediately pay Katsina State Board of Internal Revenue Service the total sum of N125,672,649.79 (One Hundred and Twenty-Five Million, Six Hundred and Seventy-Two Thousand, Six Hundred and Forty-Nine Naira, Seventy-Nine Kobo) only as Tax Assessment liability on Pay As You Earn (PAYE) from 2019 to 2020.
The Panel led by Umar Adamu ruled that the Katsina State Board of Internal Revenue Service has proved its case against Kano Electricity Distribution Company as required by law.
From facts, the Appellant- Katsina State Board of Internal Revenue Service had submitted that the Kano Electricity Distribution Company failed to pay the sum of N139,625.651.72 (One Hundred and Thirty-Nine Million, Six Hundred and Twenty-Five Thousand, Six Hundred and Fifty-One Naira, Seventy-Two Kobo) being an accrued Pay As You Earn (PAYE) Tax from 2019 to 2020.
Following an Application by the Respondent- Kano Electricity Distribution Company to explore means of settling the matter out-of-court, which the Tribunal granted, and a Tax Audit Reconciliation meeting was conveyed and revised the Assessment to the sum of N125,672,649.79 (One Hundred and Twenty-Five Million, Six Hundred and Seventy-Two Thousand, Six Hundred and Forty-Nine Naira Seventy-Nine Kobo) and was served on the firm.
The Learned Counsel to the Katsina State Board of Internal Revenue Service, Muntaka Musa Esq submitted that since Kano Electricity Distribution Company refused to submit its payroll, the Katsina Internal Revenue acted within the ambit of Law to assess the company’s liability based on Best of Judgement Assessment.
However, despite the Respondent being aware of the date for the continuation of hearing, neither the Company nor its Counsel was in attendance at the resumed hearing, and no Notice of Intention to defend the further amended Notice of Appeal was filed by the Respondent.
Muntaka Musa Esq averred that a Respondent who fails to challenge the depositions of an Applicant is deemed to have admitted the truth of the depositions, and urged the tribunal to grant the reliefs sought.
In a well-considered judgment after careful analysis of the processes filed and adumbration of the Appellant, the tribunal led by Hon. Barr. Umar Adamu as Chairman, Hon. Kabiru Dandago, Hon. Bayero Muhammad, Hon. Sameerah Gwandu, and Ahmed Kumshe as members held unanimously that the Katsina State Board of Internal Revenue Service has proved its case as required by law.
The Tribunal ordered the Respondent to immediately pay the Katsina State Board of Internal Revenue Service the total sum of N125,672,649.79 (One Hundred and Twenty-Five Million, Six Hundred and Seventy-Two Thousand, Six Hundred and Forty-Nine Naira, Seventy-Nine Kobo) only being the 2019-2020 revised Audit liability.
