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The Lagos Zone of the Tax Appeal Tribunal has discharged the Federal Inland Revenue Service N488m Notice of Assessment dated February 2nd 2022 raised on INT Towers Ltd being 1% PBT levy imposed on telecommunications companies and GSM Service providers pursuant to section 12(2)(a) and the Third Schedule to the NITDA Act.
The Panel led by Hon. Adedapo Sobowale declared that INT Towers Ltd is a network facilities provider and not a telecommunications company and is therefore not liable to pay the 1% PBT NITDA levy.
From facts, the appellant- INT Towers Ltd had appealed against the N488m Notice of Assessment raised by the Federal Inland Revenue Service as National Information Technology Development Fund (“NITDA Fund”) Levy and maintained that it is not a telecommunications company but only provides support services, being an infrastructure service provider.
The appellant's counsel argued that his client is not a telecommunications company and thus not liable to pay the levy. He averred that the Notice of Assessments issued by the Federal Inland Revenue Service for 2021 is illegal, ultra vires, null and void and unenforceable.
In defense, the FIRS contended that INT Towers Ltd is a licensee of the Nigerian Communications Commission authorized to provide infrastructure sharing and collocation services as a network facilities provider, and liable to pay 1% PBT levy pursuant to the NITDA Act on telecommunications companies and GSM service providers.
The FIRS’s learned counsel submitted that INT Towers Ltd has waived its rights to be considered a non-telecommunications company, having been granted PSI as a telecommunications company and is estopped from denying that it is not a telecommunications company, and urged the Court to dismiss the case in its entirety.
In opposition, the learned counsel to INT Towers Ltd argued that the FIRS failed to appreciate the distinction between “telecommunications” and “telecommunications services” set out in the license for infrastructure sharing issued by NCC that no tax can be imposed on a taxpayer in Nigeria without express words in an act of parliament clearly showing legislative intent to lay a tax burden on the taxpayer, urged the Court to grant the reliefs sought in the interest of justice.
In its well-considered judgment after careful evaluation of the evidence and submissions of both parties, the tribunal led by Hon. Adedapo Sobowale as Chairman, Hon. Olatunde Balogun, Hon. Ebere Oruche, Hon. A. K. Akinsehinwa and Hon. Aminu Usman as members after careful evaluation of the submission of both parties held that a combined reading of Exhibits tendered show that INT Towers Ltd is a Network Facilities Provider and not a telecommunications company.
The Tribunal ruled that INT Towers Ltd is not liable for the payment of 1% PBT levy chargeable on GSM Services providers and telecommunications companies under section 12(2)(a) and the Third Schedule to the NITDA Act.
The Tribunal declared that INT Towers Ltd is a network facilities provider and not a telecommunications company and is therefore not liable to pay the 1% PBT NITDA levy.
