VAT Collection: Appeal Court Shuns Rivers, Lagos Request To Stop FIRS

• Demands written applications from both states

BY EDMOND ODOK – The Court of Appeal on Thursday shunned the plea by Rivers and Lagos State Governments to have a Receiver or Manager collect and keep Value Added Taxes (VAT) in place of the Federal Inland Revenue Services (FIRS) pending the resolution of all legal disputes in the ongoing suit.

In declining to grant the request for an independent party to handle the VAT collections for now, the Court however directed both States to formally present written applications before the Court.

Both states had separately canvassed that the September 10, 2021 order of status quo ante belum granted in favour of FIRS to continue VAT collection be put on hold given the appeal already lodged at the Supreme Court against the order.

In his oral application, Counsel to Rivers State, Chief Ifedayo Adedipe (SAN) had urged the appellate court to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver or Manager to handle VAT receipts in the interest of justice to all parties in the matter.

Attorney General of Lagos, Mr Moyosore Onigbanjo (SAN), who represented his state, also supported the position canvassed by Rivers that the Court be fair and just in hearing the appeal.

In specific terms, the Senior lawyer urged the Appeal Court to restrain FIRS from collecting the contentious tax and replace it with a Receiver or Manager to act for parties currently locked in the legal tussle.

Making further submission, the Lagos State Attorney General expressed fear of unjust treatment by the FIRS, noting that besides collecting the tax, the Service has been sharing the proceeds among the 36 states and the Federal Capital Territory (FCT), despite the pending legal tussle.

In his ruling, the Presiding Justice, Hamma Simon Tsanami, directed both states to formally put their requests in writing before the Court.