Tribunal reverses FIRS’s N29.2 VAT on bank – TheNigerialawyer

The Tax Appeal Tribunal, sitting in Abuja on Wednesday, reversed
N29.2 million Federal Inland Revenue Service’s (FIRS) imposed as
value added tax on Infinity Trust Mortgage Bank.

The bank had challenged FIRS’s imposition of the amount.

The tribunal chairman, Mrs Alice Iriogbe, delivering judgment,
held that FIRS failed to prove that those services carried out by
the bank were VATable.

He held further that the bank were not liable to be taxed on
those services according to the VAT Act and Central Bank of Nigeria
(CBN) Act, 2011 as amended.

Iriogbe further held that the FIRS Service Information Status
number 9 also supports the fact that such services by Mortgage
Institutions were not VATable.

” In this circumstance, the tribunal holds that the VAT
assessment dated May 17, 2018, in the sum of N29.2 million and the
Respondent’s Demand Notice dated July 5, 2018 are hereby
discharged, ” The tribunal held.

The appellant (the bank) had sought the order of the tribunal
for the annulment of the FIRS’s assessment or demand notice dated
May 17 and July 6, served on it with penalty at 10 per cent and
interest at 15 per cent.

In its defence, FIRS argued that the letter of review and
audited accounts were valid and issued in accordance with the
relevant provisions of the law.

It, therefore, asked the tribunal to declare that the VAT demand
served on the Bank was valid and made in accordance with the
law.

The respondent further sought for a declaration that the VAT
transaction by the appellant outside the main objectives of its
business was liable to VAT.

FIRS further sought for an order compelling the appellant to pay
to the respondent the sum of N29. 2 million, being its VAT
liability for the period of 2015 to 2016 as contained in the demand
letter.

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