Appeal Court declines to bar FIRS from VAT collection

The Court of Appeal on Thursday declined to accede to the request of Rivers and Lagos States for the appointment of Receiver or Manager for the purpose of collecting and keeping Value Added Taxes (VAT) in place of the Federal Inland Revenue Services (FIRS) pending the resolution of all legal disputes in the matter.

VAT on hold in view of the appeal already logged at the Supreme Court against the order.

Counsel to Rivers State Chief Ifedayo Adedipe SAN, in his oral application, pleaded with the appellate to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver or Manager to take custody of the VAT in the interest of justice to parties in the matter.

Attorney General of Lagos, Mr Moyosore Onigbanjo SAN, who stood for his state toed the path of Rivers in canvassing that the court be fair and just in pending appeal.

Onigbanjo specifically asked the Appeal Court to restrain FIRS from further collectting the tax and replace it with a Receiver or Manager that will act for patties that are locked in the legal battle.

The Lagos Attorney General predicated his expressed fear of unjust treatment on the fact that FIRS apart from collectting the tax has been sharing it among the 36 states and the Federal Capital Territory FCT despite the pendency of the legal tussle.

However, the presiding justice, Hamma Simon Tsanami asked the two states to make their request formal by making it in writing.