Business
VAT: With Tax Payers In Dilemma, FIRS Reacts
Nigeria’s tax payers are in dilemma ahead of the monthly cut off date for the submission of VAT returns to offices of the Federal Inland Revenue Service, FIRS across the country.
GreenWhiteGreen GWG reports that the dilemma flows from the court victory by the Rivers State Government in which it successfully obtained injunctions against the FIRS collecting Value Added Tax on behalf of the states and the Federal Government.
Under the system declared illegal by the court, FIRS collects VAT and distributes it to the different tiers of government. However, the sharing formula has been severely criticized as disproportionate with some states which collect least getting superior allocation than those who produce more.
Even more, some states have also been flayed for destroying commodities such as alcoholic beverages in their states but collecting the VAT from states where they are mostly sold.
However with the court judgment tax payers are in a puzzle as to what they would do ahead of the 20th day of the month under which all taxable entities in the country are supposed to make their VAT returns. Entities which fail to make their returns even with a NIL VAT return by the 20th of every month are surcharged a daily fine of N5,000.
Against the background of the concern of the tax payers, the FIRS on Sunday said that it had appealed for a stay of execution on the judgment as it directed that VAT payments should be made as usual.
Mr Abdullahi Ahmad, Director, Communications and Liaison Department of the FIRS, made this known in a statement in Abuja, on Sunday.
“This is to inform the general public that the FIRS has lodged an appeal against the judgment of the Federal High Court, Port Harcourt Judicial Division, delivered by Hon. Justice Stephen Pam, in SUIT NO. FHC/PH/CS/149/2020-Attorney General of Rivers State v. Federal Inland Revenue Service & Another.
“We have also sought an injunction, pending appeal, and a Stay of Execution of the said judgment.
“As the decision is being appealed and in view of the pending applications for injunction and stay of execution which the FIRS has filed in court against the judgement, members of the public are advised to continue complying with their Value Added Tax obligations.
“The public should continue to comply until the matter is resolved by the appellate courts, in order to avoid accruing the consequent penalties and interest for non-compliance” he explained. (With additional report from NAN)
Send Us A Press Statement Advertise With Us Contact Us
And For More Nigerian News Visit GWG.NG
