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The Benin- South South Zone of the Tax Appeal Tribunal has ordered Century Exploration & Production Ltd to pay Bayelsa State Board of Internal Revenue the sum of N264,000,000.00 (Two Hundred and Sixty-Four Million Naira only) inclusive of interest and penalties being the assessed tax liability for the years, 2011 to 2018 in accordance with the relevant tax legislations.
The Panel led by Obehi Odiase-Alegimenlen held that Century Exploration & Production’s assertion that the Jurisdiction of the tribunal is limited only to the enforcement of laws imposing taxes, levies and fees in respect of Federal Government Agencies does not fly in the face of reality.
The Tribunal held that it is well clothed with jurisdiction to hear the matter as it relates to claims for the Bayelsa State Infrastructural Maintenance Levy and Development Levy as well as the operation of the entire Personal Income Tax Act (PITA) 2011 (as amended).
From facts, the Appellant- Bayelsa State Board of Internal Revenue had appealed before the Tribunal for not being satisfied with Century Exploration & Production Ltd’s failure to file and pay the assessed tax liability in the sum of N264,000,000.00 (Two Hundred and Sixty-Four Million Naira only) in respect of PAYE, Withholding taxes, Development Levy, Bayelsa State Infrastructural Maintenance Levy.
The revenue board sought among others, AN ORDER directing the Respondent to pay the assessed sum inclusive of interest and penalties being the assessed tax liability for the years, 2011 to 2018 due to the agency in accordance with the relevant tax legislations.
In defense, the Respondent- Century Exploration & Production Ltd averred that it objected to the Notice of Assessment but the revenue board failed to accord any regard to the said objection or consider the same that the PAYE due to the Appellant for the period of its operation in Bayelsa State is the sum of N11,578,873.51(Eleven Million, Five Hundred and seventy-Eight Thousand, Eight Hundred and Seventy-Three Naira, Fifty-One Kobo).
The company objected to the suit and argued that the Tribunal does not have the jurisdiction to hear the matter as it relates to the imposition and enforcement of Development and Infrastructure levies.
The Respondent’s counsel, Olalekan Kareem contended that the Jurisdiction of the Tribunal by the enabling laws is limited only to enforcement of those laws specifically referred to and mentioned in the FIRS (Establishment) Act 2007 which are laws imposing taxes, levies and fees in respect of Federal Government Agencies.
In opposition, the revenue agency through its counsel I.M. Beinbein maintained that the law empowers the Tax Authority to resort to Best of Judgment Assessment where the tax payer refused to submit returns or documents, that the Respondent was given enough time to render returns or furnish the Revenue agency with relevant documents and information but choose not to do so, and urged the court to dismiss the company’s objection in its entirety and grant the reliefs sought.
In its well-considered judgment after careful evaluation of the evidence and submissions of both parties, the tribunal led by Hon. Prof. Obehi Odiase-Alegimenlen as Chairman, Hon Dr. Ala-Peters David, Hon. Mrs. Hilda Ofure Ozoh, Hon. Barr. Ajoku Vitalis Friday and Hon. Prof. Olatunde Julius Otusanya as members affirmed the jurisdiction of the tribunal of its power to adjudicate not only on the Taxes and Levies (Approved List for Collection) Act or other laws imposing taxes, levies and fees in respect of Federal Government Agencies but all other Laws mentioned in the Fifth Schedule to the FIRS (Establishment) Act 2007 including the Personal Income Tax Act (PITA) 2011 and other laws derived from the PITA and domesticated by the various States.
The Tribunal held that it is well clothed with jurisdiction to hear the matter as it relates to claims for the Bayelsa State Infrastructural Maintenance Levy and Development Levy as well as the operation of the entire Personal Income Tax Act (PITA) 2011 (as amended).
The panel held that the Appellant has proved its Case as required by Law to be entitled to the reliefs sought.
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