The Federal High Court of Nigeria, Lagos Judicial Division, has ruled in favor of the Federal Inland Revenue Service (FIRS) in a tax dispute with BJ Pumping Services SA Panama.
In a landmark judgment delivered on June 19, 2024, the court dismissed the appeal filed by BJ Pumping Services, challenging the Tax Appeal Tribunal’s (TAT) decision, which upheld the tax assessment of $1,902,720 by FIRS.
The appellant raised two main issues, alleging a breach of fair hearing and jurisdiction by the TAT, and contesting the fairness and reasonableness of the 20% tax assessment on their turnover from 2014-2016.
However, the court found that the TAT’s examination of financial documents and inferences drawn were legitimate, and did not constitute a breach of fair hearing or jurisdiction. The court also held that the TAT’s affirmation of the 20% assessment was within the discretion granted to FIRS by Section 30 of the Companies Income Tax Act (CITA).
The court’s judgment, delivered by Hon. Justice C. J. Aneke, adopted the issues framed by the appellant but found that both issues failed. The appeal was dismissed in its entirety, and the court upheld the decision of the Tax Appeal Tribunal in favor of FIRS.
The legal team for FIRS, led by Somayina Chigbue Esq., hailed the judgment as a significant victory for the revenue authority.
Our correspondent reports that this judgment reinforces FIRS’ authority in tax assessment and collection, and serves as a precedent for future tax disputes in Nigeria.
