Tax War: FIRS Fights Back, Insists On Collecting VAT Despite Court Ruling

The Federal Inland Revenue Service (FIRS) has urged taxpayers not to give heed to Monday’s court ruling by the Federal High Court sitting in Port Harcourt which dismissed its motion for stay of execution of the judgment that Rivers State can collect Value Added Taxes, VAT from its residents.

The FIRS in its response urged tax-paying entities everywhere to uphold the status quo until the apex court gives its final say on the matter.

 GreenWhiteGreen GWG reports that the Federal High Court sitting in Port Harcourt had on Monday dismissed the motion for a stay of execution on the judgment earlier given upholding the right of the Rivers State Government to collect its VAT.

Upon that ruling, the Rivers State Government had immediately ordered taxable entities in the state to commence immediate payment of their VAT obligations to the Rivers State Government.

“Until the Court of Appeal, or even the Supreme Court, determines the matter, tax payers are required to continue to comply with their Value Added Tax (VAT) obligations within the status quo framework,” the FIRS said in a statement issued by Johannes Oluwatobi Wojuola, Special Assistant on Media and Communication to the Executive Chairman.

“The FIRS having lodged, in the Court of Appeal, both an appeal against the decision of the Federal High Court sitting in Rivers State in Suit No. FHC/PH/CS/149/2020, Attorney General of Rivers State Vs Federal Inland Revenue Service, and an injunction pending appeal of the said judgement, assures taxpayers that there was no cause for alarm.

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers.  Taxpayers must continue to comply with the Value Added Tax Act, VAT pending the final determination of appeal,” the FIRS said.

“Taxpayers must continue to honour their tax obligations under the VAT Act. Failure to do this would put them on collision course with the law”, the statement said.

“For the avoidance of doubt, records of appeal have been transmitted to the appellate court. The Service is confident that, given the extant laws, the arguments and case put forward, it will earn a favoured judgment at the appellate court”, the statement concluded.

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