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Tax Appeal Tribunal reverses N29.2m tax imposed on bank by FIRS

FIRS remitts N4.62trn to Federation Account in 11 months

The Tax Appeal Tribunal, sitting in Abuja on Wednesday, reversed N29.2 million the Federal Inland Revenue Service’s (FIRS) imposed as value added tax on Infinity Trust Mortgage Bank.

The bank had challenged FIRS’s imposition of the amount.

The tribunal chairman, Mrs Alice Iriogbe, delivering judgment, held that FIRS failed to prove that those services carried out by the bank were VATable.

He held further that the bank were not liable to be taxed on those services according to the VAT Act and Central Bank of Nigeria (CBN) Act, 2011 as amended.

”In this circumstance, the tribunal holds that the VAT assessment dated May 17, 2018, in the sum of N29.2 million and the Respondent’s Demand Notice dated July 5, 2018 are hereby discharged, ” The tribunal held.

The appellant (the bank) had sought the order of the tribunal for the annulment of the FIRS’s assessment or demand notice dated May 17 and July 6, served on it with penalty at 10 per cent and interest at 15 per cent.

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In its defence, FIRS argued that the letter of review and audited accounts were valid and issued in accordance with the relevant provisions of the law.

It, therefore, asked the tribunal to declare that the VAT demand served on the Bank was valid and made in accordance with the law.

The respondent further sought for a declaration that the VAT transaction by the appellant outside the main objectives of its business was liable to VAT.

FIRS further sought for an order compelling the appellant to pay to the respondent the sum of N29. 2 million, being its VAT liability for the period of 2015 to 2016 as contained in the demand letter.

Ripples Nigeria

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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