Court Adjourns MTN $ 2 Billion Tax Suit Against AG To December 3rd

A Federal High Court, Lagos, will on Dec. 3 hear a suit by MTN
Nigeria Communication Ltd against the Attorney General of the
Federation challenging the legality of N242 billion and 1.3 billion
dollars import duties and withholding tax assessment.

Justice Chukwujekwu Aneke fixed the date for hearing of all
pending applications after counsel representing both parties had
informed the court of their various applications filed and
served.

On Thursday, Chief Wole Olanipekun (SAN) with other senior
lawyers, appeared for MTN, while Mr T.A Gazali, a Chief State
Counsel from the Federal Ministry of Justice, appeared for the
AGF.

Counsel informed the court of the various processes filed before
the court and served on respective parties to the suit.

Following this development, Justice Aneke set Dec.3 for hearing
of all pending applications before the court.

The News Agency of Nigeria (NAN) reports that MTN instituted the
suit by a writ dated Sept.10, 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.

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-assessment” exercise
instituted by the AGF via its letter of May 10, is unknown to law,
null and void and of no effect whatsoever.

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 the incorrect legal basis.

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 argued 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 its
jurisdiction to entertain same.

NAN reports that MTN also filed a similar suit before a judge of
the same court against The Central Bank of Nigeria (CBN) over
alleged 8.1bllion dollars repatriated funds.

It is seeking an injunction to restrain the CBN from taking
further actions to reclaim the alleged debts.

The CBN alleged that the telecoms firm improperly repatriated
dividends, and requested that MTN returns 8.1 billion dollars to
its coffers.

The suit is set down for hearing before Justice Saliu Saidu on
Dec. 4.