Alleged $1.3bn MTN Tax Assessment: Court Reserves Ruling On A.G.F’s Objection 

Justice Chukwujeku Aneke sitting in Federal High Court in Lagos on Tuesday have reserve ruling in a preliminary objection filed by the Attoney general of federation asking court not to  entertain MTN siut over alleged N242 billion and 1.3 billion dollars import duties and withholding tax assessments.

Agueing The motion on Teusday counsel to the  Attorney general of federation Mr Tijani Gazali urged the court to strike out the suit filed by MTN on the ground that the case was instituted outside the time prescribed by law.

Gazali agued that the power of A.G.F to write letter to M.T.N for the payment import and withholding tax is included under section 2A of public officers protection Act. So there is no issue of abuse of office here.

” MTN file this case as a result of letter written by A.G.F asking M.T.N to the  pay tax due to the federal government of Nigeria over the past 10 years ,  but rather than responding  to this directive they institute  this case.

in its preliminary objection, the AGF argues that the plaintiff in seeking redress to the subject matter, has just three months from the date of 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 further that plaintiff’s failure to commence the suit within three months as stipulated by law, robs the court of jurisdiction to entertain same.

This case does not amount to A.G.F acting outside the scope of his office,  A.G can even filed a charge or civil siut to recover the money

Gazali urge the court to strike out or dissimed the suit

MTN through its counsel led chief Wole Olanipekun SAN, Damia Dodo SAN and professor Fabian Ajogwu told justice Aneke that the object of A.G.F was unfounded.

Agueing the case Olanipekun contend that errer of stute bar have been abolished in our jurisprudence sitting order 29 rule 4 that the preliminary objection was filed out of time and since there is no application for extension of time, the P.O must be fail because there is no competent motion before your lordship.

Olanipekun said that the court cannot at this stage dissimed or strike out this suit without the evidence of parties.” My Lord can even ordered parties for oral evidence in determining our relieves”

We urge your Lordship to dismissed this objection as been frivolous.

Recall that MTN instituted the suit by a writ, dated Sept. 10, 2018, challenging 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 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.

Justice Aneke after listening to both parties reserve ruling till 7th of May,

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 – 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 ” 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