FIRS Insists On Collecting VAT, Warns Taxpayers Against Default

The Federal Inland Revenue Service(FIRS) has directed taxpayers
in the country to continue to pay their Value Added Tax (VAT) to it
or risk penalties for failing to do so.

The FIRS said it decided to issue the directive following
numerous enquiries to it in view of a recent court ruling obtained
by Rivers State at a Federal High Court, Port Harcourt, that
states, and not the federal government, are constitutionally
empowered to collect VAT.

The FIRS, in a statement titled, “Rivers Judgment: FIRS Urges
Taxpayers to Continue to Pay VAT”, argued that since it had already
appealed the Rivers judgment seeking a stay of execution order, the
status quo ante subsists on the VAT collection authority, hence
taxpayers should continue to pay their VAT to it.

The statement issued by the Director, Communications and Liaison
Department, FIRS, Abdullahi Ismaila Ahmad said the attention of the
Service had been drawn to the trending report that on August 19,
2021, the Rivers State government took steps to enact a VAT Law for
the state following the Judgment of the Federal High Court Port
Harcourt Division on August 9, 2021 in Suit No: CS/149/2020.

It said: “The suit was about who has the constitutional duty for
the collection of VAT and Personal income tax in Rivers State.

“We wish to inform the general public that, before the
above-mentioned steps taken by the Government of Rivers State, FIRS
had lodged an appeal against the above judgment and had also filed
an application for stay of execution of the Judgment as well asking
the Court for an injunction pending determination of the
appeal.

“All parties to the suit are aware that both applications were
heard on the 19th and 20th August 2021 and are awaiting the
decision of the Court.

“Given that the Court of Appeal is yet to rule on the Appeal
from the Judgement of Federal High Court and that the Federal High
Court is yet to deliver a ruling on FIRS’s applications for stay of
execution and injunction, members of the public are advised to
continue to comply with their Value Added Tax obligations until the
matter is resolved by the appellate courts,” the FIRS said

The Federal Inland Revenue Service(FIRS) has directed taxpayers
in the country to continue to pay their Value Added Tax (VAT) to it
or risk penalties for failing to do so.

The FIRS said it decided to issue the directive following
numerous enquiries to it in view of a recent court ruling obtained
by Rivers State at a Federal High Court, Port Harcourt, that
states, and not the federal government, are constitutionally
empowered to collect VAT.

The FIRS, in a statement titled, “Rivers Judgment: FIRS Urges
Taxpayers to Continue to Pay VAT”, argued that since it had already
appealed the Rivers judgment seeking a stay of execution order, the
status quo ante subsists on the VAT collection authority, hence
taxpayers should continue to pay their VAT to it.

The statement issued by the Director, Communications and Liaison
Department, FIRS, Abdullahi Ismaila Ahmad said the attention of the
Service had been drawn to the trending report that on August 19,
2021, the Rivers State government took steps to enact a VAT Law for
the state following the Judgment of the Federal High Court Port
Harcourt Division on August 9, 2021 in Suit No: CS/149/2020.

It said: “The suit was about who has the constitutional duty for
the collection of VAT and Personal income tax in Rivers State.

“We wish to inform the general public that, before the
above-mentioned steps taken by the Government of Rivers State, FIRS
had lodged an appeal against the above judgment and had also filed
an application for stay of execution of the Judgment as well asking
the Court for an injunction pending determination of the
appeal.

“All parties to the suit are aware that both applications were
heard on the 19th and 20th August 2021 and are awaiting the
decision of the Court.

“Given that the Court of Appeal is yet to rule on the Appeal
from the Judgement of Federal High Court and that the Federal High
Court is yet to deliver a ruling on FIRS’s applications for stay of
execution and injunction, members of the public are advised to
continue to comply with their Value Added Tax obligations until the
matter is resolved by the appellate courts,” the FIRS said