The South-South Zone of the Tax Appeal Tribunal held in Benin has dismissed the sum of N52,072,309 Companies Income Tax, Educational Tax and VAT Additional Tax Assessment for 2017 levelled by Federal Inland Revenue Service against Jubilant Multi-Concept Ltd in its entirety for lacking merit.
The tribunal led by Hon. Prof. Obehi Odiase-Alegimenlen unanimously held that Jubilant Multi-Concept Ltd is not liable to pay any tax on the alleged sum of N316,015,124.04 (Three Hundred and Sixteen Million, Fifteen Thousand Naira, One Hundred and Twenty-Four Naira and Four Kobo only) or N316,015,124.04 USD paid by SPDC as such payment does not exist.
From facts, the Appellant- Jubilant Multi-Concept Ltd had alleged that the review of the 2017 year of Assessment of Tax returns carried out by the Federal Inland Revenue Service against the firm was wrongful.
Jubilant Multi-Concept Ltd averred that the Tax assessment was carried out by the Revenue Agency against the firm when it did not execute any contract to the amount being claimed by the FIRS and all entreaties made to the FIRS to issue her tax clearance from 2018 to date were to no avail.
In defence, the Respondent- Federal Inland Revenue Service insisted that the Jubilant Multi-Concept Ltd earned the sum of $316,015,124.4 as proceeds of the contract and liable to pay Company Income Tax, Education Tax and Value Added Tax, that the Respondent is under statutory obligation to deny any taxpayer Tax Clearance Certificate for failure to settle its Tax liability.
The Federal Inland Revenue Service also alleged that when the Jubilant Multi-Concept Ltd replied and furnished the agency with the requested bank statements, it was discovered that the date of the transaction in question was missing thereby making it difficult to attach any credibility to it as it has been doctored.
The FIRS also filed a Notice of Preliminary Objection challenging the jurisdiction of the Honourable Tribunal to hear the Appeal on the ground that the pre-action Notice was not given as statutorily required by the Federal Inland Revenue (Establishment) Act 2007, an argument that was dismissed by the tribunal for lacking merit.
In a well-considered judgment, the tribunal led by Hon. Prof. Obehi Adetokunbo Odiase-Alegimenlen as Chairman, Hon Dr. Ala-Peters David, Hon. Mrs. Hilda Ofure Ozoh, Hon. Barr. Ajoku Vitalis Friday and Hon. Prof. Otusanya Olatunde Julius as members discountenanced the submission of the FIRS on the assertion of omission on the bank statements provided by the Appellant and held that there was no transaction on that day.
The Tribunal further stated that if the FIRS is not comfortable with that piece of evidence tendered by the Jubilant Multi-Concept Ltd on the alleged $316,015,124.04 contract, it is the responsibility of the revenue agency to prove that such a transaction exists as the law provides that once a claimant has proved its case, the burden of proof then shifts to the Respondent.
The Tribunal admonished that the FIRS could have written to the bank for confirmation of the Bank Statement or even written to the bank for the confirmation of the Transaction as the law provides exceptions to the duty of confidentiality of Banks to its customers.
“Conclusively, based on the evidence of both parties, it is our opinion that the Appellant has made out a case to be entitled to the judgement of this Tribunal.” The Tribunal Ruled.
