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PwC Faults Tax Tribunal’s Order on N900Bn Payment in FIRS Tax Claims against MultiChoice

Published

3 years ago

September 2, 2021

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PwC, leading professional services firm, has questioned the recent ruling of the Tax Appeal Tribunal (TAT) ordering MultiChoice Nigeria to deposit N900bn, half of the N1.8 trillion the Federal Inland Revenue Service (FIRS) says it owes in taxes, before the continuation of an appeal filed by the pay television service providers.

In an analysis of the ruling contained in its PwC Tax Alert posted on its website on Wednesday, the firm, stated that the TAT did not refer to any of the three conditions necessary for the issuance of an order to compel payment of N900bn, but focused on the order for statutory deposit.

While noting that the tribunal cited many cases and held that the payment of the statutory deposit is a condition required to trigger the appeal, it said the tribunal proceeded to order MultiChoice to comply with the provision by making the deposit before the next hearing.

PwC stated that Paragraph 15 (7) of the Fifth Schedule of the FIRS Act, on which the tribunal hung its ruling, is separable into two parts, with the first stating conditions for the order and the other the order to be made.

The section states: “At the hearing of any appeal if the representative of the Service proves to the satisfaction of the Tribunal hearing the appeal in the first instance that

(a) the appellant has for the year of assessment concerned, failed to prepare and deliver to the Service returns required to be furnished under the relevant provisions of the tax laws mentioned in paragraph 11;

(b) the appeal is frivolous or vexatious or is an abuse of the appeal process

(c) it is expedient to require the appellant to pay an amount as security for prosecuting the appeal, the Tribunal may adjourn the hearing of the appeal to any subsequent day and order the appellant to deposit with the Service, before the day of the adjourned hearing, an amount, on account of the tax charged by the assessment under appeal, equal to the tax charged upon the appellant for the preceding year of assessment or one half of the tax charged by the assessment. under appeal, whichever is the lesser plus a sum equal to ten percent of the said deposit, and if the appellant fails to comply with the order, the assessment against which he has appealed shall be confirmed and the appellant shall have no further right of appeal with respect to that assessment.”

PwC noted that the words of the paragraph are conditional, as they put the onus of proof on the FIRS.

“This clearly shows that the burden is on the FIRS to put forward relevant materials and facts before the tribunal in proof of at least one of the three conditions,” said PwC.

It listed those conditions as failure by the appellant to file tax returns for the year concerned, the appeal is frivolous and that it is expedient to require the appellant to pay the statutory deposit.

PwC further stated that it was strange that the tribunal did not refer to any of the three conditions in reaching its decision.

“As a result, the tribunal did not mention which facts were placed in proof of such condition(s) or how it considered that the FIRS’ facts were cogent enough to trigger the provision. The tribunal ignored this critical part of the provision and focused on the order for statutory deposit,” PwC stated.

It also observed that Paragraph 13 (7) of the Fifth Schedule of the FIRS Act requires aggrieved taxpayers to meet only two conditions, which are appealing within 30 days and payment of the filing fees. Beyond this, it added, the FIRS must prove the conditions before the tribunal (at its discretion) can issue an order for statutory deposit.

“Based on the provision of the law, it is perceived that it is not mandatory for the tribunal to make the order for statutory deposit. It is arguable that even if the FIRS can prove at least one of the conditions listed in the provision, the tribunal may still exercise a discretion on whether to order the appellant to make a statutory deposit or not,” it stated.

It advised the tribunal to carefully consider the requisite conditions for ordering the statutory deposits and exercise its discretion under the provision in good faith.

Not doing this, it added, may result in indiscriminate assessments and a decline in taxpayer confidence in the appeal process.

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Techy Accountants in partnership with ACCA Host AccounTech Summit to Empower Finance Professionals

Published

2 hours ago

April 24, 2024

Ugo Onwuaso

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The AccounTech Summit, hosted by The Techy Accountant in partnership with the Association of Chartered Certified Accountants (ACCA), is a groundbreaking event designed to navigate the evolving landscape of the finance industry in the digital era.

Recognizing the critical need for finance professionals to adapt to technological advancements and emerging trends, this summit is a driving force for innovation, transformation, and progress.

The event is set to take place as follows:

Date: August 15th, 2024,

Location: Radisson Blu Anchorage Hotel in Lagos, Victoria Island, Nigeria.

Time: 9:00 A.M

The summit aims to celebrate achievements in the finance sector, support entrepreneurship ventures, and enlighten participants on industry challenges and opportunities. With a focus on bridging the employability gap and promoting high-quality skill development in finance, the summit aims to address the evolving landscape of the industry in the digital age.

Over the past six years, The Techy Accountant has graduated over 1000 finance professionals and trained more than 5000 individuals worldwide.

Event Highlights

The one-day event will bring together over 200 attendees, including finance professionals, entrepreneurs, policymakers, academics, and Techies.

Attendees can expect a day of immersive learning and collaboration, culminating in an award and grant ceremony. Event Highlights include keynote sessions, interactive workshops, panel discussions, and networking opportunities, all centred around the theme “Emerging Tech in Accounting & Finance – A Game Changer.”

Commenting on the summit, Mrs. Toyin Olufon, Founder of The Techy Accountant stated, “We believe in equipping finance professionals with the skills needed to thrive in a rapidly changing industry”.

Commenting on the collaboration, Mopelola Jatto, CFA, Regional Head, ACCA Nigeria remarked, “Partnering with The Techy Accountant underscores our commitment to fostering innovation and driving excellence in the finance profession. Together, we aim to equip professionals with the skills and knowledge required to thrive in the digital age.”

TO REGISTER, VISIT: https://thetechyaccountant.org/event/the-techy-accountants-account-tech-summit-2024

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NASENI, Nasarawa State, Firm to Establish Tractor Manufacturing Plant in North-Central Geo-political Zone

Published

1 day ago

April 23, 2024

Ugo Onwuaso

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National Agency for Science and Engineering Infrastructure (NASENI) is set to collaborate with Nasarawa state government and Bobtrack Tractors, a division of Saint Bob Motors Limited to start the manufacturing and assembling of tractors in the north-central geo-political zone.

Left to Right: The Chief Executive Officer, Bob Track Ltd, Mr. Ibifiri A.C Bob Manuel; the Executive Vice Chairman/CEO, National Agency for Science and Engineering Infrastructure (NASENI), Mr. Khalil Suleiman Halilu; the Executive Governor of Nasarawa State, Engr. Abdullahi A. Sule, and Mr. Jerry of Bob Track Ltd, during a courtesy visit at NASENI Headquarters on Monday, April 22nd, 2024.

The facilities and infrastructure available at one of NASENI’s Institutes, Agricultural Machinery and Equipment Development Institute (AMEDI), Lafia, Nasarawa state will be used for assembling and manufacturing of the tractors.

According to the Executive Vice Chairman/Chief Executive Officer, NASENI, Mr. Khalil Suleiman Halilu, the project which is aimed at creating wealth and jobs for Nigerian youths is in line with President Tinubu’s Renewed Hope Agenda of ensuring food security and promotion of mechanized farming and agro-business in the country. Halilu disclosed this when the Executive Governor of Nasarawa State, Engr. Abdulahi A. Sule led a delegation comprising of Bob Track Tractors to pay a visit to the Agency’s headquarters in Abuja on Monday, April 22nd, 2024.

Mr. Halilu who assured Governor Sule and the delegation of NASENI’s readiness to do business with them, said, “the Agency is willing to partner with you and sign the memorandum of understanding (MoU) so that in the next couple of weeks we will move into action.”

He disclosed that Mr. President had recognized NASENI as a national brand and its National Tractor Recovery Programme wherein 55,000 tractors would be refurbished for mechanized farming nationwide.

In his remarks, Governor Sule said, he aligned with NASENI’s vision of collaborating and promoting made-in-Nigeria goods and also believed that government’s role is to provide a level playing field necessary for businesses to thrive.

The objective of his visit, he said, was to introduce the Bob Track Tractors which deals in assembling and manufacturing of tractor and farm implements with offices in Port Harcourt to NASENI so that it could utilize the existing facilities at AMEDI, Lafia for assembling of tractors instead of acquiring a new land for the business.

The CEO of Bob Track Tractors, Mr. Ibifiri A.C. Bob Manuel said, “We are ready to take up the facility that you have in Nasarawa State, create employment and wealth for the youths in the area and also use it as a hub to drive mechanized agricultural vision of the present administration. We are willing to invest in Nasarawa state with help of His Excellency, his team and NASENI.”

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ARISE News Channel Goes Live in SA, 9 Other Southern African Countries

Published

4 days ago

April 20, 2024

Comms Week

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ARISE News Channel, Africa’s premier broadcaster, has announced its expansion into South Africa and nine other Southern African countries.

The channel is now available on Multichoice/DSTV Channel 416 in South Africa, Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, and Zimbabwe.

With this expansion, ARISE News Channel is now live in 54 African countries, including Kenya, Tanzania, Rwanda, Uganda, Cameroon, Sudan, Ghana, Senegal, and Cote d’Ivoire, among others.

Celebrating its 11th anniversary on January 31, ARISE News Channel continues to showcase Africa’s diversity in business, politics, technology, commerce, science, sports, show business, and fashion, while projecting the best of Africa and its cultures globally.

Nduka Obaigbena, chairman and editor-in-chief of ARISE News Channel,, expressed determination to launch the channel in all countries worldwide, stating, “The move to Southern Africa reaffirms ARISE News Channel’s position as the leading broadcaster in Africa with independence and clear thinking. We are determined to celebrate the best of Africa and tell the African story in the global marketplace.”

He added, “We shall continually showcase the emerging African century where Nigeria and other African countries will be some of the leading economies around the world. This is a marathon and not a dash: we will do for Nigeria and Africa what the CNN, the BBCs, and Aljazeeras have done for their nations and regions. In the emerging African AI- driven new information highway, no one will shape your narrative better than you.”

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