Bank takes RMAFC, EFCC to court over tax liabilities

Abdulrasheed Bawa

Suspended EFCC Chairman Abdulrasheed Bawa resigns

Akin Kuponiyi

Standard Chartered Bank has approached a federal high court in Lagos urging the court to declare Value Added Tax (VAT) and Withholding Tax (WHT) liabilities charged by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) as illegal and of no effect whatsoever.

The Bank is also urging the court to declare that the Federal Inland Revenue Service is the sole agency of the Federal Government statutorily empowered to administer, assess, collect and enforce the payment of federal taxes (including VAT and WHT due to the Federal Government) pursuant to the Value Added Tax Act, Companies Income Tax Act and other tax statutes enumerated in the First Schedule to the Federal Inland Revenue Service (Establishment) Act.

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The Bank, in an amended Statement of Claim filed before the court by its lawyer, Chukwuka Ikwuazom, SAN, is contending that the Federal Inland Revenue Service cannot abdicate these statutory functions to the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Economic and Financial Crimes Commission (EFCC) who are 1st and 2nd defendants respectively in the suit.

The Bank stated that “sometime in 2016, the RMAFC, in the purported exercise of its powers allegedly donated to it by the Federal Inland Revenue Service, commenced verification and reconciliation of revenue collections and remittances” by banks (including the Plaintiff) on behalf of the Federal Inland Revenue Service and the Nigeria Customs Service for the period between 2008 and June 2012.

The presiding Judge, Lewis Allagoa has adjourned till next year for the hearing to commence.

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