Tax Assessment: Court fixes Jan. 30 for MTN’s suit against AGF

A Federal High Court Lagos on Tuesday further adjourned hearing
until Jan. 30 and Jan. 31, 2020, a suit filed by MTN Nigeria
Communication Ltd, against the Attorney General of the Federation,
over alleged N242 billion and 1.3 billion dollars import duties and
withholding tax assessments.

News Agency of Nigeria (NAN) reports that MTN instituted the
suit by a writ, on Sept.10, 2018, challenging mainly, the legality
of the AGF’s assessment of its import duties, withholding tax and
value-added tax in the sums of N242 billion and 1.3 billion
dollars.

The plaintiff is seeking among other declaratory reliefs, a
declaration that the AGF’s demand of the sums of N242 billion and
1.3 billion dollars from MTN, is premised on a process which is
malicious, unreasonable and made on incorrect legal basis.

When the case was called on Tueday, Chief Wole Olanipekun, SAN,
leading a team of other senior lawyers appeared for MTN.

On the other hand, Mr T.A. Gazali, a State Counsel from the
Federal Ministry of Justice, alongside Mr Terhember Agbe, announced
appearances for the AGF.

Plaintiff’s counsel then informed the court that he was ready to
proceed with trial but had been called by the respondent who
informed him that he would not be able to proceed with trial as he
was representing government in another matter.

Olanipekun also told the court that he had filed a reply to the
plaintiff’s motion and had served same on him but added that since
the respondent said he required time to study same, it will only be
fair to allow him.

On his part, Gazali also informed the court of his motion
seeking extension of time to regularise his processes.

Following consensus of parties, Justice Chukwujekwu Aneke
adjourned the case until Jan. 30 and 31, 2020 for hearing.

Meanwhile. the court vacated the Nov. 31 initial date.

In its writ of summons, MTN is seeking declaratory reliefs on
the following grounds:

That the purported “Revenue assets investigation” allegedly
carried out by the Federal Government on MTN, for the period of
2007 to 2017, and its decision conveyed through the office of the
AGF by a letter dated Aug. 20, violates the provisions of section
36 of the constitution.

A Declaration that the AGF acted in excess of its powers, by
purporting to direct through its letter of May 10, a “self
assessment exercise” which usurps the powers of the Nigerian
Customs Service to demand payment of import duties on importation
of physical goods.

A Declaration that the AGF acted illegally, by usurping the
powers of the Federal Inland Revenue Service, to audit and demand
remittance of withholding tax and value added tax.

A Declaration that the purported “self assessment” exercise
instituted by the AGF via its letter of May 10, is unknown to law,
null and void and of no effect whatsoever.

In addition, the plaintiff wants a court order, vacating the
AGF’s demand letter dated Aug. 20, for the sums of N242 billion and
1.3 billion dollars from MTN Nigeria Communications Ltd.

Besides, MTN is claiming a total sum of N3 billion in damages,
against the defendant, which covers General damages, exemplary
damages, and Legal costs.

Meanwhile, in its preliminary objection, the AGF argues that the
plaintiff in seeking redress to the subject matter, has just three
months from the date the cause of action arose, to institute the
action.

It argues that the plaintiff commenced the suit in clear
disregard to Section 2 of the Public Officers Protection Act, which
provides that any action commenced against a public officer, must
be made within three months from commencement of cause of
action.

AGF argues that plaintiff’s failure to commence the suit within
three months as stipulated by law, robs the court of jurisdiction
to entertain same.