Bank of Industry others challenge arbitrary tax at Tax Appeal Tribunal, North-West Zone

Some tax payers within the North West Zone, comprising the states of Kaduna, Kebbi, Kano, Katsina, Jigawa, Sokoto and Kano have availed themselves of the service of the Tax Appeal Tribunal (TAT) North West Zone, sitting in Kaduna to successfully challenge arbitrary tax assessments imposed on them by the various revenue services and boards within the Zone. Organisations which have recently taken their cases to the tribunal include Unity Bank, Silver plastics, Leadway Pensure limited, Bank of Industry, Access Bank and Kano State University of Science and Technology Wudil.  Ibrahim Boyi of Ibrahim Boyi and Company, a law firm resident in Kano, on the 11^th of November 2020 filed before the tribunal, an appeal challenging an assessment of the sum of N118,865,475.42(one hundred and eighteen million, eight hundred and sixty-five thousand, four hundred and seventy-five naira, forty-two kobo only) imposed on Silver plastics by the Kano State Internal Revenue Service. 

The said demand notice was with respect to an outstanding tax liability, assessed by the revenue body to have been due within the 2015/2016 years of operation. The same law firm had successfully challenged the tax assessment imposed on Unity Bank Plc by the Kano State Internal Revenue Service. With respect to the said Unity Bank matter, a tax assessment imposed on the bank by the Kano State Internal Revenue Service was successfully challenged by the taxpayer. The demand by the Revenue Service in the sum of N431,924,976.25k(four hundred and thirty one million, nine hundred and twenty four thousand, nine hundred and seventy six hundred twenty five kobo), was successfully challenged before the Tribunal and the said assessment was reduced, to the sum of N27,459,236.53(twenty seven million, four hundred and fifty nine thousand, two hundred and thirty six naira, fifty three kobo) all of which was achieved within a sitting period of less than six months. The North West Zone of the Tax Appeal Tribunal is led by Barrister Umar M. Adamu, with Sameerah Abubakar Gwandu, Professor Kabiru Isa Dandago, Professor A.S Bayero and Professor Ahmed Kumshe as members.  

The Chairman, Barrister Umar M Adamu has variously stated that tax is the very life source of the country and matters pertaining to resolving disputes between tax payers and revenue bodies must be done with dispatch to ensure that taxpayers do not unnecessarily labour under arbitrary demands and/oppressive tax assessments imposed on them by revenue bodies and at the same time, tax payers do not escape or evade the taxes due to the revenue bodies, as the symbiotic relationship between the tax payer and revenue body must continue to subsist for the good of the society and the demands of government. He further revealed that no matter has remained on the cause list for more than one year, with matters being speedily conducted and brought to conclusion, most times within six months of filing.

Also, Bank of Industry challenged an assessment in the sum of N178,255,615.36(one hundred and seventy eight million, two hundred and fifty five thousand, six hundred and fifteen naira thirty six kobo) brought against it by the Kaduna State Internal Revenue Service and had same reduced to the sum of N15,000,000.00(fifteen million naira only). Leadway Pensure limited also efficaciously challenged their tax assessment, in the sum of N462,467,562,18k(four hundred and sixty two million, four hundred and sixty seven thousand, five hundred and sixty two thousand eighteen kobo only) which was reduced to N5,500,000.00(five million five hundred thousand naira only). 

Investigations revealed that pending cases before the tribunal include appeals filed by Access Bank against an assessment issued by the Kano State Internal Revenue Service in the sum of N336,957,001.01(three hundred and thirty six million, nine hundred and fifty seven thousand, one naira, one kobo only) and Kano State Internal Revenue Service and Kano State University of Science and Technology Wudil, which is in the sum of N190,274,789.89k(one hundred and ninety million, two hundred and seventy four thousand, seven hundred and eighty nine naira and eighty nine kobo) both of which are at various levels of litigation. It will be recalled that the North West Zone of the tribunal has since the inception of the present panel resolved tax disputes in excess of twelve billion naira, with pending appeals in excess of three billion naira. In his final words, the Chairman of the tribunal urged taxpayers and the various revenue services/boards within the North West Zone to continue to avail themselves of the services of the tribunal for quick dispensation of their various tax disputes.