FIRS insists on its position on VAT collection, asks taxpayers not to panic

Hmmmm. Are you aware of all the yummy stuff going on with FIRS?

The Federal Inland Revenue Service (FIRS) has urged taxpayers not to panic over the recent court ruling by the Federal High Court sitting in Port Harcourt on Value Added Tax (VAT), directing taxpayers to continue to honour their tax obligations under the VAT act to the agency.

The federal tax authority stated its own position some hours after a Federal High Court sitting in Port Harcourt, Rivers State, dismissed an application by the FIRS, seeking to stop the Rivers State Government from collecting VAT.

According to the News Agency of Nigeria, this advice is contained in a statement issued by the Special Assistant to the Executive Chairman of FIRS on Media and Communications, Johannes Wojuola, on Monday in Abuja.

Wojuola said the court stated clearly that until the Court of Appeal, or even the Supreme Court, determines the matter, taxpayers were required to continue to comply with their VAT obligations within the status quo framework.

He said, “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 there is an injunction pending appeal of the said judgement, therefore we assure taxpayers that there is no cause for alarm.

What you should know

It can be recalled that on August 9, 2021, Justice Stephen Dalyop Pam of the Federal High Court in Port Harcourt ruled that Rivers State Government and not the FIRS should collect VAT and Personal Income Tax in the state, in a suit filed by the Attorney General of Rivers State against the FIRS and the Attorney General of the Federation.

The FIRS has, however, appealed the judgement by the Federal High Court in Port Harcourt, asking for a stay of execution pending the determination of the appeal, while also asking taxpayers to continue to meet their tax obligations with the federal government including VAT.

 

However, the same Federal High Court sitting in Port Harcourt, Rivers State, on Monday, September 6, 2021, was reported to have dismissed an application by the FIRS, seeking to stop the Rivers State Government from collecting Value Added Tax (VAT).

Credit: Nairametrics